Chapter 1: The Hybrid Model at the Heart of a Vibrant New China 1 Chapter 2: Early Attempts at Industrialization: The Empire and the Republic 9 Chapter 3: The First Decades of the People''s Republic: The Soviet Model . and Worse 17 The Fate of China''s Capitalists: From Ally to Enemy 18 The Dysfunctional Soviet Model Is Embraced 20 And Worse . Beyond the Soviet Model 26 The Brutal Assault on Intellectuals and Science 30 The Dead End of the Mao Years 35 Chapter 4: Wrongs Are Righted, the Reforms Take Shape 39 Setting the Boundaries of Change 46 The Initial Reforms--Limited and Tentative 47 The Reforms Go into a High Gear 51 The Reforms Lose Steam (2002 Onward) 52 China''s Economic Planning Today 53 Chapter 5: What to Do with the State-Owned Enterprises? 57 Weaning the SOEs Off the State (1978-93) 57 Central Planning Fades Away 60 Addressing Ownership and Governance (1993-2003) 62 Selling off the "Dogs" 62 Transforming the Large SOEs 64 Can SOE Culture Be Changed? 72 SOE Reform Falters (2003 Onward) 74 A New Type of SOE Shows the Way Forward 78 Chapter 6: The Private Economy Emerges Unannounced 83 TVEs--Engine for Growth as the Reforms Took Shape 84 POEs Flourish, Especially If Far from the Capital 87 Wanxiang--A Pioneering Private Company Forges Its Own Path 88 Huawei--A Private Firm as "National Champion" 91 Private Firms Sustain the Economy 93 Chapter 7: Magnet for Foreign Investment 95 Why Did China Welcome FDI? 96 Why Has China Been so Attractive to Foreign Investors? 97 China Has Its Cake and Gets to Eat It, Too 99 Win-Win in the Auto Industry 100 Why Did China Neglect Logistics and Resist Its "Opening Up" to FDI? 107 The Motorola Breakthrough 111 Why FDI Will Stick with China 115 Chapter 8: Business Models at the Heart of China''s Emergence 119 Model 1. Learn and Catch Up 119 Disappointment in Auto and Semiconductor 121 The Model Works Well--In Consumer Products, High-Speed Rail, and Nuclear Power 124 Model 2. Picking off Underperforming Overseas Assets 129 Obstacles to China ODI 130 Model 3. "China, Inc." in Emerging Markets 135 The Government/CCP 136 Financial Institutions 137 Chinese Firms 140 A Little-Known Firm from Anhui Grows in Africa 141 Transportation, Mines, and Downstream Industry 146 How to Assess the China, Inc. Business Model in Emerging Markets 148 Model 4.

Novel Product or Technology Breakthrough 149 Implications for the Emergence of Chinese Firms on the Global Stage? 153 Chapter 9: What Could Disrupt or Sustain the China Paradox? 155 Peace, Stability and the CCP 155 The CCP Has Survived and Adapted 156 How Well Is the CCP Functioning Today? 157 The CCP Is Embedded in Businesses 159 China''s Fault Lines and Tensions 161 The CCP and China''s Future 161 The Rule of Law 166 Culture, Education, and Civil Society 168 A Cocktail of Confucianism and Leninism 169 Anything Goes, as the Market Latches onto Newfound Freedoms 170 Corruption, Moral Turpitude, and Social Alienation 171 Education Falls Short 173 Business Education Flourishes 175 Economic and Financial Stability 175 Confronting the Environmental Crisis 179 The Mega Domestic Market 181 Gleaming New Ground Transportation Infrastructure 181 Government-Sponsored Research and Development 182 The Mobile Handset Example 186 China''s R&D Results Are Patchy 188 Connecting with the Consumer 190 Prospects of Deepening Economic Reform? 192 Chapter 10: Conclusion 197 Endnotes 207 Index 219.