WEBVTT - Odd Arne Westad on how China First Joined the Global Capitalist Economy

0:00:03.080 --> 0:00:19.079
<v Speaker 1>Bloomberg Audio Studios, Podcasts, radio News.

0:00:21.120 --> 0:00:24.880
<v Speaker 2>Hello and welcome to another episode of the Odd Lots podcast.

0:00:24.920 --> 0:00:27.160
<v Speaker 3>I'm Joe Wisenthal and I'm Tracy Alloway.

0:00:27.840 --> 0:00:31.560
<v Speaker 2>Tracy now that I'm like a middle aged old man,

0:00:31.920 --> 0:00:34.640
<v Speaker 2>I don't know. I've been getting really into reading history lately.

0:00:34.960 --> 0:00:36.400
<v Speaker 3>Is it Roman history? No?

0:00:36.400 --> 0:00:39.160
<v Speaker 2>No, it's actually worse than Roman history. I've been reading

0:00:39.159 --> 0:00:42.280
<v Speaker 2>a lot of twentieth century history. And the problem, well,

0:00:42.880 --> 0:00:44.800
<v Speaker 2>one problem is a bit of a diversion. But one

0:00:44.840 --> 0:00:48.720
<v Speaker 2>problem with reading twentieth century history is that I'm eventually

0:00:48.760 --> 0:00:50.479
<v Speaker 2>going to have to get around to really learning what

0:00:50.520 --> 0:00:52.360
<v Speaker 2>World War two is all about, and then I'm going

0:00:52.400 --> 0:00:53.480
<v Speaker 2>to be a fifty year old man.

0:00:53.440 --> 0:00:55.760
<v Speaker 3>Reading You have to fulfill your destiny.

0:00:55.360 --> 0:00:55.520
<v Speaker 4>I know.

0:00:55.640 --> 0:00:57.360
<v Speaker 2>So I'm going to be a fifty year old man

0:00:57.400 --> 0:00:59.400
<v Speaker 2>in a few years reading World War two books and

0:00:59.400 --> 0:01:02.120
<v Speaker 2>watching World War or two documentaries. So, but yes, I've

0:01:02.160 --> 0:01:04.120
<v Speaker 2>been reading a lot of twentieth century history lately.

0:01:04.200 --> 0:01:06.520
<v Speaker 3>You know how you know that you are really old,

0:01:07.200 --> 0:01:10.080
<v Speaker 3>It's when you start reading twentieth century history books and

0:01:10.120 --> 0:01:13.720
<v Speaker 3>realize that you were like there and sort of participating

0:01:13.840 --> 0:01:14.840
<v Speaker 3>in that time period.

0:01:14.920 --> 0:01:17.399
<v Speaker 2>Well, it's so funny that you mentioned this because this

0:01:17.640 --> 0:01:21.280
<v Speaker 2>is increasingly dawning on me when I read history. And again,

0:01:21.480 --> 0:01:24.000
<v Speaker 2>slight sidetrack, but I've mentioned before a couple of times.

0:01:24.240 --> 0:01:26.280
<v Speaker 2>I lived in Malaysia for a year in nineteen eighty

0:01:26.360 --> 0:01:30.520
<v Speaker 2>nine and nineteen ninety and I discovered in reading history

0:01:30.560 --> 0:01:33.120
<v Speaker 2>recently that I don't know if they call it the

0:01:33.120 --> 0:01:35.959
<v Speaker 2>Malaysian Civil War, but the Ultimate Peace Agreement between the

0:01:35.959 --> 0:01:39.679
<v Speaker 2>Malaysian government and the Communist Party of Malaysia was signed

0:01:39.680 --> 0:01:42.360
<v Speaker 2>in nineteen eighty nine that ended that conflict, And so

0:01:42.440 --> 0:01:45.039
<v Speaker 2>I was there. I had no idea, but reading his.

0:01:45.040 --> 0:01:47.160
<v Speaker 3>Grade school Joe was living through history.

0:01:47.040 --> 0:01:49.160
<v Speaker 2>I was, and it sort of reminds I think this

0:01:49.240 --> 0:01:51.720
<v Speaker 2>is an important thing that I've realized reading more history,

0:01:51.800 --> 0:01:54.120
<v Speaker 2>is that the modern world as we know it is

0:01:54.160 --> 0:01:57.040
<v Speaker 2>so young. It's basically like the length of a person's life,

0:01:57.360 --> 0:01:59.440
<v Speaker 2>depending on where you want to start it. Like we're

0:01:59.480 --> 0:02:00.520
<v Speaker 2>just getting started here.

0:02:00.880 --> 0:02:03.880
<v Speaker 3>So the history we're going to be talking about specifically

0:02:04.640 --> 0:02:07.320
<v Speaker 3>is China. And I was thinking about this because the

0:02:07.320 --> 0:02:09.920
<v Speaker 3>first time I went to China was in nineteen ninety four,

0:02:10.639 --> 0:02:14.240
<v Speaker 3>and it was completely different to how it is now,

0:02:14.280 --> 0:02:18.760
<v Speaker 3>Like there were still rickshaws on the street, Friendship stores existed.

0:02:18.800 --> 0:02:21.720
<v Speaker 3>Friendship stores still existed in the early two thousands when

0:02:21.760 --> 0:02:24.040
<v Speaker 3>I was there, and I don't know, do you know

0:02:24.080 --> 0:02:25.040
<v Speaker 3>what a friendship store is?

0:02:25.480 --> 0:02:26.160
<v Speaker 2>I can guess.

0:02:26.480 --> 0:02:30.200
<v Speaker 3>So it's like where foreigners were basically allowed to go

0:02:30.280 --> 0:02:33.320
<v Speaker 3>and like purchase specific goods. They had a lot of

0:02:33.360 --> 0:02:35.840
<v Speaker 3>like tourist tat and stuff like that. But if you

0:02:35.880 --> 0:02:38.680
<v Speaker 3>went to a friendship store in Beijing in the early

0:02:38.760 --> 0:02:42.359
<v Speaker 3>two thousands, it was basically like going to the East Bloc.

0:02:42.480 --> 0:02:45.440
<v Speaker 3>It was like a full employment program where you would

0:02:45.440 --> 0:02:48.000
<v Speaker 3>find a salesperson on the floor and you would say,

0:02:48.360 --> 0:02:50.680
<v Speaker 3>I want this item, and then they would give you

0:02:50.800 --> 0:02:53.359
<v Speaker 3>a little like token or receipt and then you would

0:02:53.400 --> 0:02:56.560
<v Speaker 3>take that to the cashier and pay, and then someone

0:02:56.560 --> 0:02:59.600
<v Speaker 3>else would bring the item to you. So yeah, that

0:02:59.720 --> 0:03:01.959
<v Speaker 3>was in the two thousands, And now when I think

0:03:02.000 --> 0:03:06.760
<v Speaker 3>about Beijing, like it has changed completely, Like stuff that

0:03:06.880 --> 0:03:09.760
<v Speaker 3>used to be one story neighborhoods full of bars like

0:03:09.840 --> 0:03:14.040
<v Speaker 3>san Ley Turn is now like luxury shopping centers totally.

0:03:14.080 --> 0:03:16.080
<v Speaker 2>So this is the other thing too, which is that

0:03:16.160 --> 0:03:18.079
<v Speaker 2>you know, we talk a lot about China right now

0:03:18.120 --> 0:03:22.000
<v Speaker 2>for obvious reasons, but I kind of feel that like,

0:03:22.040 --> 0:03:24.240
<v Speaker 2>if we're going to talk about today. There probably is

0:03:24.280 --> 0:03:27.280
<v Speaker 2>some justification for like how we got here, and I

0:03:27.400 --> 0:03:31.000
<v Speaker 2>have to admit, you know, my understanding is really very

0:03:31.080 --> 0:03:34.080
<v Speaker 2>rudimentary and limited. Like in my mind, it's basically like

0:03:34.680 --> 0:03:39.040
<v Speaker 2>Maud died Doung Hopeng liberalized the economy, that was the

0:03:39.080 --> 0:03:40.600
<v Speaker 2>economy plugged into global.

0:03:40.720 --> 0:03:42.640
<v Speaker 3>Idiot sunflower seeds happened.

0:03:42.480 --> 0:03:45.160
<v Speaker 2>Yeah, and then they allowed a business and then they

0:03:45.280 --> 0:03:47.360
<v Speaker 2>entered the wto in here. And I would say, I

0:03:47.400 --> 0:03:50.600
<v Speaker 2>know basically four facts about the history of China, and

0:03:50.680 --> 0:03:54.600
<v Speaker 2>those you know, nineteen seventy eight wto now, so maybe

0:03:54.600 --> 0:03:57.800
<v Speaker 2>that's just three. And so I actually think it's important

0:03:57.840 --> 0:04:01.360
<v Speaker 2>to sort of deepen our understanding of how we got

0:04:01.400 --> 0:04:04.600
<v Speaker 2>to the China that we are so deeply connected to today.

0:04:04.920 --> 0:04:07.800
<v Speaker 3>I am in favor of you using the podcast as

0:04:07.840 --> 0:04:09.920
<v Speaker 3>an excuse to read a bunch of history books.

0:04:09.960 --> 0:04:11.280
<v Speaker 2>It's great, it's other.

0:04:11.520 --> 0:04:14.160
<v Speaker 3>Manifest your middle aged self. That's fine, we should do it.

0:04:14.160 --> 0:04:16.080
<v Speaker 2>Well, it's better because if I have to read books,

0:04:16.120 --> 0:04:18.039
<v Speaker 2>that means I'm not just scrolling Twitter all the time.

0:04:18.080 --> 0:04:20.560
<v Speaker 2>So if I have to prepare for episodes anyway, we're

0:04:20.600 --> 0:04:23.000
<v Speaker 2>going to be speaking with one of the co authors

0:04:23.040 --> 0:04:26.480
<v Speaker 2>of the new book came out in October The Great Transformation,

0:04:27.040 --> 0:04:31.400
<v Speaker 2>China's road from revolution to reform. And I would say

0:04:31.400 --> 0:04:34.960
<v Speaker 2>it complexifies a bit the very rudimentary story of the

0:04:35.040 --> 0:04:37.160
<v Speaker 2>last I don't know, forty plus years of China. It's

0:04:37.200 --> 0:04:41.400
<v Speaker 2>more than just three specific dates. It complexifies that story.

0:04:41.520 --> 0:04:43.520
<v Speaker 2>It sort of fleshes it out in a big way.

0:04:44.080 --> 0:04:47.640
<v Speaker 2>The co authors are Odd Arned Westdad and Chen John.

0:04:48.000 --> 0:04:50.359
<v Speaker 2>The first time on odd Lots that we'll have a

0:04:50.400 --> 0:04:51.599
<v Speaker 2>guest with the name odd.

0:04:51.720 --> 0:04:52.760
<v Speaker 3>Surely the perfect guest.

0:04:52.839 --> 0:04:55.840
<v Speaker 2>So it's truly the perfect guest. So we're speaking with

0:04:55.960 --> 0:05:00.000
<v Speaker 2>professor of history at Yale, Odd Earned west Dad. Professor Westdad,

0:05:00.120 --> 0:05:01.760
<v Speaker 2>thank you so much for coming on the podcast.

0:05:02.240 --> 0:05:04.120
<v Speaker 4>Thank you for having me on you you almost had

0:05:04.160 --> 0:05:07.880
<v Speaker 4>to write we had It's truly, it's really a shame

0:05:07.960 --> 0:05:11.599
<v Speaker 4>that you haven't had me on before, I mean your

0:05:11.600 --> 0:05:13.120
<v Speaker 4>podcast with me as you first guest.

0:05:13.279 --> 0:05:15.800
<v Speaker 3>We had to wait for Joe to enter his history phase.

0:05:15.880 --> 0:05:18.000
<v Speaker 2>That's right, but you should have. You should have been

0:05:18.040 --> 0:05:21.479
<v Speaker 2>the first guest. So why this book, because I imagine

0:05:21.520 --> 0:05:24.560
<v Speaker 2>if I go on Amazon, there are probably hundreds of

0:05:24.560 --> 0:05:30.080
<v Speaker 2>books that are some version of how China reformed, How

0:05:30.160 --> 0:05:34.560
<v Speaker 2>China went from being this backwards economy to dynamic capitalist economy.

0:05:34.880 --> 0:05:36.880
<v Speaker 2>I know it's been written about in various forms of

0:05:36.960 --> 0:05:39.960
<v Speaker 2>numerous numerous times. Why did you and your co author

0:05:40.160 --> 0:05:43.279
<v Speaker 2>still feel at this point that this was an important

0:05:43.440 --> 0:05:45.400
<v Speaker 2>story or collection of stories to tell.

0:05:45.839 --> 0:05:47.520
<v Speaker 4>I think there are two reasons. The first one is

0:05:47.600 --> 0:05:49.480
<v Speaker 4>quite personal in a way. I mean it almost goes

0:05:49.560 --> 0:05:51.200
<v Speaker 4>back to what you were talking about a minute ago.

0:05:51.560 --> 0:05:53.720
<v Speaker 4>So I first came to China as and I changed

0:05:53.720 --> 0:05:57.120
<v Speaker 4>student back in the late nineteen seventies and Changen. Of course,

0:05:57.120 --> 0:05:59.640
<v Speaker 4>my co Walton lived there during that period, so this

0:05:59.720 --> 0:06:03.359
<v Speaker 4>is away so personal process. Well, we lived through parts

0:06:03.360 --> 0:06:05.839
<v Speaker 4>of the time period that we are talking about in

0:06:05.880 --> 0:06:08.800
<v Speaker 4>this book, and there is no better incentive, as you

0:06:08.960 --> 0:06:11.920
<v Speaker 4>just touched upon, to go back to look at history

0:06:12.000 --> 0:06:15.080
<v Speaker 4>again than trying to understand the period that you lived through.

0:06:15.120 --> 0:06:17.359
<v Speaker 4>So that's the first reason. And the second reason is,

0:06:17.360 --> 0:06:18.880
<v Speaker 4>of course that we think we do it better than

0:06:18.880 --> 0:06:22.800
<v Speaker 4>anyone else. Do it better than anyone else because we

0:06:22.920 --> 0:06:26.000
<v Speaker 4>have more access to sources and more access to information

0:06:26.120 --> 0:06:29.320
<v Speaker 4>about what actually happened during that time period. So as

0:06:29.320 --> 0:06:31.920
<v Speaker 4>you read the book, you can see how, at least

0:06:32.160 --> 0:06:34.400
<v Speaker 4>when we do this as well as we can, we

0:06:34.440 --> 0:06:37.320
<v Speaker 4>are able to get on the inside of many of

0:06:37.320 --> 0:06:39.560
<v Speaker 4>the things that took place during that time period and

0:06:39.680 --> 0:06:43.760
<v Speaker 4>show the complexities, I mean, show how complex that period

0:06:43.800 --> 0:06:47.440
<v Speaker 4>of very early Chinese reform and opening was and in

0:06:47.440 --> 0:06:51.560
<v Speaker 4>many ways how contingent the process was, and how surprising

0:06:51.640 --> 0:06:53.360
<v Speaker 4>it is in more than one sense that we ended

0:06:53.440 --> 0:06:54.279
<v Speaker 4>up where we are today.

0:06:54.760 --> 0:06:58.159
<v Speaker 3>So speaking of access, you mentioned this, I think in

0:06:58.240 --> 0:07:01.920
<v Speaker 3>the very beginning of the book, but you started researching

0:07:01.960 --> 0:07:05.279
<v Speaker 3>this in twenty ten, and you said that the research

0:07:05.360 --> 0:07:08.600
<v Speaker 3>process and the access you had kind of changed over

0:07:08.640 --> 0:07:11.360
<v Speaker 3>the next I guess thirteen or fourteen years or so.

0:07:11.840 --> 0:07:13.760
<v Speaker 3>Give us a little bit more detail, like, as a

0:07:13.840 --> 0:07:18.280
<v Speaker 3>researcher of Chinese history, how have things actually evolved for you?

0:07:19.160 --> 0:07:22.040
<v Speaker 4>That's right. We started thinking about this and started researching

0:07:22.080 --> 0:07:24.760
<v Speaker 4>it in the early twenty teens, and of course back

0:07:24.800 --> 0:07:28.280
<v Speaker 4>then we had much better access to sources, much better

0:07:28.320 --> 0:07:31.520
<v Speaker 4>access to archives, to talk to people, to travel around

0:07:31.520 --> 0:07:34.760
<v Speaker 4>and country, to have informal discussions with people who would

0:07:34.800 --> 0:07:36.800
<v Speaker 4>be in the know than what is the case today.

0:07:36.880 --> 0:07:40.600
<v Speaker 4>So China has really since twenty sixteen seventeen, there were

0:07:41.120 --> 0:07:44.800
<v Speaker 4>closed down in terms of access to historical sources of

0:07:44.840 --> 0:07:47.600
<v Speaker 4>all kinds. So we were lucky. We started this process

0:07:47.680 --> 0:07:50.280
<v Speaker 4>quite early on and had some good years in which

0:07:50.440 --> 0:07:54.480
<v Speaker 4>we actually could collect material. Then we did something really silly.

0:07:54.520 --> 0:07:57.480
<v Speaker 4>We put it aside for other projects, hoping that we

0:07:57.520 --> 0:08:00.600
<v Speaker 4>would get even better access in a few years. That

0:08:00.720 --> 0:08:02.880
<v Speaker 4>happens sometimes that you make the wrong call on these

0:08:02.920 --> 0:08:05.240
<v Speaker 4>kinds of things, and instead, of course, it got much

0:08:05.400 --> 0:08:07.760
<v Speaker 4>was So what we had to do was to go

0:08:07.880 --> 0:08:10.440
<v Speaker 4>back to some of the material that we had gathered

0:08:10.480 --> 0:08:12.840
<v Speaker 4>in that early time period before we switch to other

0:08:12.880 --> 0:08:15.880
<v Speaker 4>projects that we then completed before we returned to this book,

0:08:16.320 --> 0:08:18.760
<v Speaker 4>and then try to feel that in the best we

0:08:18.800 --> 0:08:20.880
<v Speaker 4>could with all the materials we could get now. But

0:08:20.920 --> 0:08:24.520
<v Speaker 4>the level of access, the level of information is very

0:08:24.520 --> 0:08:27.000
<v Speaker 4>different today from what you could get pulled off back then.

0:08:27.640 --> 0:08:29.680
<v Speaker 2>So I want to get into some of the content

0:08:29.840 --> 0:08:32.960
<v Speaker 2>of the book obviously, And like I said in the intro,

0:08:33.160 --> 0:08:37.319
<v Speaker 2>you know, I have this very cartoonish vision of history

0:08:37.320 --> 0:08:41.160
<v Speaker 2>in my head where Mao dies, Don Chopeg becomes the

0:08:41.200 --> 0:08:43.000
<v Speaker 2>new leader of the country after a little bit of

0:08:43.320 --> 0:08:46.560
<v Speaker 2>tension and turmoil, and then China liberalizes.

0:08:46.920 --> 0:08:48.520
<v Speaker 3>So one of the sort of eye.

0:08:48.280 --> 0:08:50.960
<v Speaker 2>Opening or sort of mind expanding moments in the book,

0:08:51.000 --> 0:08:54.480
<v Speaker 2>you talk about the cultural revolution, and how even there,

0:08:54.960 --> 0:08:56.840
<v Speaker 2>you know, we think of that as going I guess

0:08:56.880 --> 0:08:59.920
<v Speaker 2>from nineteen sixty six to sometime in the nineteen seventy.

0:09:00.559 --> 0:09:03.800
<v Speaker 2>You argue that the real intensity of it was two

0:09:03.920 --> 0:09:06.960
<v Speaker 2>years where the sort of the youth of China rose

0:09:07.080 --> 0:09:10.320
<v Speaker 2>up against the old cadres within the Communist Party. But

0:09:10.480 --> 0:09:13.800
<v Speaker 2>even in that time, amid some of this incredible turmoil

0:09:13.880 --> 0:09:17.480
<v Speaker 2>that the Communist Party was going through under mau, some

0:09:17.640 --> 0:09:22.080
<v Speaker 2>of the seeds of I guess capitalism were actually planted

0:09:22.480 --> 0:09:23.360
<v Speaker 2>in that turmoil.

0:09:23.880 --> 0:09:25.640
<v Speaker 4>Yeah, that's right. I mean that I think is one

0:09:25.640 --> 0:09:28.600
<v Speaker 4>of the contributions of this book. I mean, your summarized

0:09:28.679 --> 0:09:30.960
<v Speaker 4>history of what happened. It is not wrong, okay, It's

0:09:31.080 --> 0:09:34.520
<v Speaker 4>just that it was really difficult and, as I said,

0:09:34.640 --> 0:09:37.000
<v Speaker 4>very contingent in terms of the various things that are

0:09:37.000 --> 0:09:40.600
<v Speaker 4>happening to get from warm to the next of those stages.

0:09:41.280 --> 0:09:43.040
<v Speaker 4>And one of the things that we do show in

0:09:43.080 --> 0:09:47.360
<v Speaker 4>the book is how the cultural revolution, which was undertaken,

0:09:47.400 --> 0:09:51.560
<v Speaker 4>of course, in order to solidify Maltadome's leadership and attack

0:09:51.640 --> 0:09:54.880
<v Speaker 4>the old leaders in the Communist Party who he regarded

0:09:54.920 --> 0:09:57.760
<v Speaker 4>as being too backle to take China into his new

0:09:58.200 --> 0:10:02.640
<v Speaker 4>Communist paradise. This cultural revolution had effects that were in

0:10:02.679 --> 0:10:05.360
<v Speaker 4>no way for sea, and part of them was in

0:10:05.360 --> 0:10:08.480
<v Speaker 4>many ways the destruction of all China. I mean, they

0:10:08.559 --> 0:10:12.040
<v Speaker 4>got rid of many of the traditional ways of thinking

0:10:12.120 --> 0:10:17.280
<v Speaker 4>and loyalties, and much of the patriarchal approaches within families.

0:10:17.280 --> 0:10:21.000
<v Speaker 4>All of this because of these political campaigns that they undertook,

0:10:21.200 --> 0:10:26.040
<v Speaker 4>directed almost against any kind of authority except most of

0:10:26.080 --> 0:10:29.319
<v Speaker 4>ohn authority. And in a strange kind of way, when

0:10:29.360 --> 0:10:32.840
<v Speaker 4>you get into the nineteen seventies, Mao's still alive, still

0:10:32.920 --> 0:10:37.160
<v Speaker 4>ruling from Beijing, things start to change in some places

0:10:37.520 --> 0:10:41.559
<v Speaker 4>from the ground up. So this is turning to markets

0:10:41.840 --> 0:10:45.600
<v Speaker 4>almost as a kind of revolutionary acts out of desperation,

0:10:45.760 --> 0:10:49.599
<v Speaker 4>because people along the coast, in the south, in the

0:10:49.679 --> 0:10:53.319
<v Speaker 4>areas that have some experience with capitalism and with markets,

0:10:53.600 --> 0:10:56.800
<v Speaker 4>they are worried that when this campaign ends, things have

0:10:56.840 --> 0:10:58.640
<v Speaker 4>got to get even worse. And some of these people

0:10:58.679 --> 0:11:01.559
<v Speaker 4>have been starving, you know, back during the Great Leap

0:11:01.600 --> 0:11:04.280
<v Speaker 4>forward in the late fifties and early sixties. So they

0:11:04.360 --> 0:11:08.439
<v Speaker 4>start rating, they start building up the opportunities that they

0:11:08.480 --> 0:11:11.200
<v Speaker 4>can take for themselves. In a little way. I mean,

0:11:11.240 --> 0:11:14.000
<v Speaker 4>this is not a predominant act in China in the

0:11:14.040 --> 0:11:18.440
<v Speaker 4>early nineteen seventies, but it did see something that is

0:11:18.480 --> 0:11:22.080
<v Speaker 4>incredibly important for the future, and then comes into full

0:11:22.120 --> 0:11:24.960
<v Speaker 4>flow after the party takes a step back off the

0:11:24.960 --> 0:11:28.640
<v Speaker 4>mal died and opens up for these console reforms happening

0:11:28.640 --> 0:11:29.800
<v Speaker 4>on an until boy Scain.

0:11:30.400 --> 0:11:34.320
<v Speaker 3>I apologize in advance for asking a hypothetical, but do

0:11:34.400 --> 0:11:38.040
<v Speaker 3>you think the economic liberalization of the late nineteen seventies

0:11:38.120 --> 0:11:41.400
<v Speaker 3>early nineteen eighties would have been able to happen or

0:11:41.400 --> 0:11:45.800
<v Speaker 3>would have happened in some form if China hadn't experienced

0:11:45.880 --> 0:11:49.760
<v Speaker 3>the Cultural Revolution and all the I guess emotional trauma

0:11:49.960 --> 0:11:52.559
<v Speaker 3>and political chaos that came with it.

0:11:52.559 --> 0:11:54.840
<v Speaker 4>It wouldn't have happened when it happened, that's for sure.

0:11:54.920 --> 0:11:57.920
<v Speaker 4>That's not even a hypothetical. I mean, I think if

0:11:58.000 --> 0:12:02.640
<v Speaker 4>China had continued basic along the Soviet model of development,

0:12:02.800 --> 0:12:05.320
<v Speaker 4>which is what they took up after the People's REPROBLEBM

0:12:05.440 --> 0:12:08.360
<v Speaker 4>was put in place in the late nineteen forties, Soviet

0:12:08.400 --> 0:12:13.200
<v Speaker 4>style everything right, planning, centralization, the wholer. I don't think

0:12:13.240 --> 0:12:15.160
<v Speaker 4>the kind of reform that we saw in the late

0:12:15.200 --> 0:12:18.400
<v Speaker 4>seventies and nuineteen eighties would have happened because there wouldn't

0:12:18.440 --> 0:12:21.040
<v Speaker 4>have been any fundamental reason to undertake it. I mean,

0:12:21.160 --> 0:12:23.480
<v Speaker 4>China would probably have chugged along in the same kind

0:12:23.559 --> 0:12:26.079
<v Speaker 4>of way as the Soviet Union did until some point

0:12:26.480 --> 0:12:29.800
<v Speaker 4>when that model started breaking down. Now, I'm not saying

0:12:29.880 --> 0:12:34.079
<v Speaker 4>that the Cultural Revolution was a necessary condition for these

0:12:34.160 --> 0:12:38.199
<v Speaker 4>changes in pay place, but the period of Cultural Revolution

0:12:38.720 --> 0:12:42.000
<v Speaker 4>activism did in many ways prepare the ground for the

0:12:42.040 --> 0:12:44.400
<v Speaker 4>timing of this and when it was to happen alst

0:12:44.520 --> 0:12:46.800
<v Speaker 4>be because you know, China at the end of the culture

0:12:46.800 --> 0:12:49.040
<v Speaker 4>ablution was a deserted thing. You know, when I first

0:12:49.120 --> 0:12:52.000
<v Speaker 4>arrived there in nineteen seventy nine, this was a dirt

0:12:52.080 --> 0:12:56.200
<v Speaker 4>poor and terrorized country, you know, a poorer in terms

0:12:56.240 --> 0:12:59.240
<v Speaker 4>of income to capital and most African countries and things

0:12:59.240 --> 0:13:03.360
<v Speaker 4>are getting work not that. So that kind of desperation

0:13:04.000 --> 0:13:07.360
<v Speaker 4>at all levels of Chinese society fitted into these changes.

0:13:07.400 --> 0:13:10.120
<v Speaker 4>Something had to be done, and going back to the

0:13:10.160 --> 0:13:12.960
<v Speaker 4>Soviet model of development as it existed only on when

0:13:12.960 --> 0:13:15.560
<v Speaker 4>you get into the nineteen eighties does not seem as

0:13:15.600 --> 0:13:16.679
<v Speaker 4>a viable composition.

0:13:32.080 --> 0:13:35.400
<v Speaker 2>What does it mean when you talk about history being contingent?

0:13:35.600 --> 0:13:37.080
<v Speaker 2>You use that word a couple of times, and I

0:13:37.160 --> 0:13:40.440
<v Speaker 2>actually don't know if I fully understand what that means.

0:13:40.480 --> 0:13:43.000
<v Speaker 2>But when you're telling these stories or this story and

0:13:43.040 --> 0:13:46.280
<v Speaker 2>you're keeping in mind the contingency and history, can you

0:13:46.280 --> 0:13:47.720
<v Speaker 2>talk a little bit more about this idea.

0:13:48.880 --> 0:13:51.200
<v Speaker 4>So you'll see from the book that we go in

0:13:51.320 --> 0:13:53.920
<v Speaker 4>and out from the sort of micro to the macro

0:13:54.160 --> 0:13:59.040
<v Speaker 4>level of telling history. And if you look at the

0:13:59.600 --> 0:14:03.440
<v Speaker 4>night and the coup against the radicals, the softball gang

0:14:03.440 --> 0:14:07.000
<v Speaker 4>of four within the party took place, which we described

0:14:07.040 --> 0:14:09.520
<v Speaker 4>in some detail almost you know what happens from hour

0:14:09.600 --> 0:14:09.960
<v Speaker 4>to hour.

0:14:10.280 --> 0:14:13.480
<v Speaker 2>That right, This was the moment in which the left

0:14:13.559 --> 0:14:19.040
<v Speaker 2>faction after maud Dies was arrested and allowed for a

0:14:19.080 --> 0:14:21.520
<v Speaker 2>sort of more moderate path to emerge.

0:14:21.560 --> 0:14:23.960
<v Speaker 4>That's right. And it was in effect the military coup,

0:14:24.240 --> 0:14:27.119
<v Speaker 4>and it was undertaken by the military and the security

0:14:27.160 --> 0:14:31.400
<v Speaker 4>forces against the people who himself had put in charge

0:14:31.440 --> 0:14:34.200
<v Speaker 4>of the party, including his widow was most prominent of

0:14:34.360 --> 0:14:38.760
<v Speaker 4>all jiang Qin. Now that night, the following few days,

0:14:38.960 --> 0:14:42.480
<v Speaker 4>things could have ended up very differently. In Shanghai, the

0:14:42.480 --> 0:14:45.280
<v Speaker 4>biggest city in China by far, was still under control

0:14:45.360 --> 0:14:48.680
<v Speaker 4>of the radicals. There were military units that supported the

0:14:48.760 --> 0:14:52.560
<v Speaker 4>radical approach to politics. This could have ended up very

0:14:52.600 --> 0:14:55.200
<v Speaker 4>differently from what it did. And as we described in

0:14:55.280 --> 0:14:57.480
<v Speaker 4>the in the books, some of the protos, some of

0:14:57.520 --> 0:15:03.400
<v Speaker 4>the coup makers themselves in those days that followed the

0:15:03.720 --> 0:15:08.800
<v Speaker 4>coup itself, were completely surprised by how little resistance there

0:15:08.800 --> 0:15:11.240
<v Speaker 4>had been from the left and how chales there had

0:15:11.240 --> 0:15:13.160
<v Speaker 4>been on the streets. So that's what I mean with

0:15:13.480 --> 0:15:17.240
<v Speaker 4>it being contingent. I mean, this is something that obviously

0:15:17.360 --> 0:15:20.280
<v Speaker 4>connects to the larger picture that we see today, going

0:15:20.320 --> 0:15:22.800
<v Speaker 4>back to your sort of three level version of what

0:15:22.960 --> 0:15:26.040
<v Speaker 4>happened right in China, But it didn't seem that obvious

0:15:26.080 --> 0:15:28.360
<v Speaker 4>at the time, and it could have gone in very

0:15:28.440 --> 0:15:30.280
<v Speaker 4>different directions from what we're seeing today.

0:15:30.880 --> 0:15:35.400
<v Speaker 3>How important was the fraying of the relationship between China

0:15:35.480 --> 0:15:38.280
<v Speaker 3>and the Soviet Union in the sort of nineteen sixties

0:15:38.320 --> 0:15:42.920
<v Speaker 3>early nineteen seventies to spurring or catalyzing that opening up,

0:15:43.040 --> 0:15:46.320
<v Speaker 3>Because it does feel like the sudden emergence of the

0:15:46.320 --> 0:15:50.280
<v Speaker 3>Soviet Union as an external enemy. It feels like that

0:15:50.520 --> 0:15:54.000
<v Speaker 3>led China in some respects to open up to the

0:15:54.120 --> 0:15:55.680
<v Speaker 3>US and some other countries.

0:15:56.560 --> 0:15:59.080
<v Speaker 4>This is a sort of trajectory that I think is

0:15:59.160 --> 0:16:02.720
<v Speaker 4>really important to get right because what Mao and his

0:16:02.840 --> 0:16:07.160
<v Speaker 4>group of leaders did in the late nineteen sixties was

0:16:07.240 --> 0:16:11.320
<v Speaker 4>to turn to the United States as an ally pseudo

0:16:11.360 --> 0:16:15.000
<v Speaker 4>ally security ally against the Soviet Union because they were

0:16:15.040 --> 0:16:18.160
<v Speaker 4>so deadly afraid that there would be a war with

0:16:18.240 --> 0:16:21.680
<v Speaker 4>the Soviets, a war that China certainly would have lost,

0:16:21.680 --> 0:16:24.360
<v Speaker 4>given the state that the Italians communists themselves had put

0:16:24.440 --> 0:16:28.160
<v Speaker 4>China into during the Cultural Revolution. So what Mao did

0:16:28.640 --> 0:16:32.440
<v Speaker 4>was to turn to the enemy far away in the

0:16:32.520 --> 0:16:36.800
<v Speaker 4>United States to help backing against an enemy much closer

0:16:36.840 --> 0:16:39.640
<v Speaker 4>to home, the Soviet Union, which that had this falling

0:16:39.680 --> 0:16:43.320
<v Speaker 4>out with mainly for our geological reasons. From Mao's perspective,

0:16:43.440 --> 0:16:47.920
<v Speaker 4>this was always intended to be a strictly security oriented

0:16:48.240 --> 0:16:51.080
<v Speaker 4>pseudo alliance right it was the right state against the

0:16:51.120 --> 0:16:54.000
<v Speaker 4>Soviet Union. Mao, to the end of the States, was

0:16:54.080 --> 0:16:58.080
<v Speaker 4>puzzled that the United States would support the real Communists

0:16:58.120 --> 0:17:01.800
<v Speaker 4>meaning him, against the thing communists meaning the Soviet Union.

0:17:02.280 --> 0:17:03.920
<v Speaker 4>But as long as they were willing to do that,

0:17:03.960 --> 0:17:07.400
<v Speaker 4>he was certainly willing to reap burnefit. But he never

0:17:07.480 --> 0:17:11.119
<v Speaker 4>intended that this would have any effect in terms of

0:17:11.160 --> 0:17:15.240
<v Speaker 4>the increasingly radical communist direction that he was taking for

0:17:15.400 --> 0:17:21.080
<v Speaker 4>China internally domestically. So that's when what happens in nineteen

0:17:21.240 --> 0:17:24.960
<v Speaker 4>seventy six. After Mouse. That becomes so significant because the

0:17:25.000 --> 0:17:28.480
<v Speaker 4>people who then took over, they thought, aha, we have

0:17:28.600 --> 0:17:31.680
<v Speaker 4>this relationship with the United States. They are supporting us

0:17:31.680 --> 0:17:34.320
<v Speaker 4>for their own reasons in the Cold War against the

0:17:34.320 --> 0:17:37.240
<v Speaker 4>Soviet Union. We can now also make use of this

0:17:38.000 --> 0:17:42.320
<v Speaker 4>to suit the charge Chinese reform. Right, if it hadn't

0:17:42.359 --> 0:17:46.720
<v Speaker 4>been for that relationship strictly security orialited that already existed

0:17:46.760 --> 0:17:49.159
<v Speaker 4>between China and the United States, I doubt that that

0:17:49.200 --> 0:17:52.600
<v Speaker 4>would be possible. So it's very important point about the

0:17:52.720 --> 0:17:56.640
<v Speaker 4>longer term US China relationships to think about that origin

0:17:56.880 --> 0:18:00.080
<v Speaker 4>and how this actually got started, very different from the

0:18:00.119 --> 0:18:04.040
<v Speaker 4>way most people think about it, where the security element

0:18:04.400 --> 0:18:06.760
<v Speaker 4>and the reform element that sort of conflated into one.

0:18:07.520 --> 0:18:11.800
<v Speaker 2>It's also just hard in twenty twenty four to imagine

0:18:12.160 --> 0:18:17.399
<v Speaker 2>that various communist states would not be natural allies. And

0:18:17.440 --> 0:18:21.040
<v Speaker 2>of course China after the Vietnam War, China also went

0:18:21.080 --> 0:18:23.639
<v Speaker 2>to war against Vietnam. The fact that they're so concerned

0:18:23.680 --> 0:18:26.760
<v Speaker 2>about the Soviet invasion, it just sort of this fascinating

0:18:26.760 --> 0:18:29.959
<v Speaker 2>dimension that I don't think fits neatly into our heads.

0:18:30.280 --> 0:18:30.480
<v Speaker 4>You know.

0:18:30.840 --> 0:18:34.080
<v Speaker 2>I also read your co author's book. He recently wrote

0:18:34.119 --> 0:18:37.359
<v Speaker 2>a great biography of Joe and Lae, and it occurs

0:18:37.359 --> 0:18:40.400
<v Speaker 2>to me like reading that book and the new book. Obviously,

0:18:40.440 --> 0:18:44.199
<v Speaker 2>I think Mao associated ideologically with the left faction and

0:18:44.280 --> 0:18:46.879
<v Speaker 2>the CCP and the Gang of Four, etc. But he

0:18:47.040 --> 0:18:49.600
<v Speaker 2>always seemed to keep a couple of I don't know

0:18:49.600 --> 0:18:52.240
<v Speaker 2>if the word is liberals, but to some extent liberals

0:18:52.640 --> 0:18:55.879
<v Speaker 2>around So Joe he never got purged, even though it

0:18:55.920 --> 0:18:58.000
<v Speaker 2>didn't seem like Mao particularly liked him. For much of

0:18:58.000 --> 0:19:03.639
<v Speaker 2>his life. Liberals and dun Chopeng got purged multiple times,

0:19:03.640 --> 0:19:07.560
<v Speaker 2>but never lost his membership of the Communist Party and

0:19:07.680 --> 0:19:10.159
<v Speaker 2>always seemed to find his way back even during the

0:19:10.200 --> 0:19:14.880
<v Speaker 2>Mao era. Why was it that, despite his ideological predilections

0:19:14.920 --> 0:19:19.600
<v Speaker 2>towards the left, that in these important roles he couldn't

0:19:19.640 --> 0:19:23.520
<v Speaker 2>bring himself to purge some of these perhaps more reformist

0:19:23.760 --> 0:19:26.119
<v Speaker 2>minded characters.

0:19:25.640 --> 0:19:28.600
<v Speaker 4>Because he needed to have things stop. I mean, Mao

0:19:28.640 --> 0:19:31.560
<v Speaker 4>wasn't just an audiologue, which was the most important aspect

0:19:31.600 --> 0:19:34.200
<v Speaker 4>of him. I think when you look at his historical role,

0:19:34.640 --> 0:19:37.199
<v Speaker 4>he was also the leader of a country, and he

0:19:37.320 --> 0:19:40.479
<v Speaker 4>needed to get certain things to work within the country

0:19:40.560 --> 0:19:44.160
<v Speaker 4>or within the pup and for that, having seen time

0:19:44.200 --> 0:19:47.320
<v Speaker 4>and again that his ideological allies were not particularly good

0:19:47.320 --> 0:19:51.440
<v Speaker 4>at this. They were good at reciting Marx and Lenin,

0:19:51.520 --> 0:19:53.720
<v Speaker 4>but they were not particularly good at running things. He

0:19:53.840 --> 0:19:56.320
<v Speaker 4>needed people like Joe and I. He needed people like

0:19:56.400 --> 0:19:59.920
<v Speaker 4>Dung Show King to get Kingstom. But as chan Jen

0:20:00.400 --> 0:20:04.600
<v Speaker 4>Great Joe in biography shows very clearly, there were limits

0:20:04.680 --> 0:20:06.840
<v Speaker 4>to how far he would go in working with people

0:20:06.920 --> 0:20:10.200
<v Speaker 4>like Joe. Or he was willing to work with them

0:20:10.240 --> 0:20:13.359
<v Speaker 4>as long as they served his purposes, and if there

0:20:13.440 --> 0:20:15.919
<v Speaker 4>was any sense that they actually tried to have a

0:20:16.080 --> 0:20:21.360
<v Speaker 4>direct political influence above or different from his, they would

0:20:21.359 --> 0:20:24.960
<v Speaker 4>get into trouble. So I'm not sure if talken liberals

0:20:24.960 --> 0:20:26.960
<v Speaker 4>here is the right term. I mean liberals in terms

0:20:27.000 --> 0:20:29.920
<v Speaker 4>of their thinking about politics. These people served, as long

0:20:29.960 --> 0:20:33.000
<v Speaker 4>as he was alive, served as gelemen, and they served

0:20:33.080 --> 0:20:35.639
<v Speaker 4>him at his leisure. So if he got a suspicion

0:20:35.760 --> 0:20:38.439
<v Speaker 4>with them, as he did so many other people, that

0:20:38.480 --> 0:20:41.320
<v Speaker 4>they were not serving his radical interests, he would act

0:20:41.359 --> 0:20:42.760
<v Speaker 4>against them.

0:20:43.280 --> 0:20:46.560
<v Speaker 3>You mentioned earlier that your book brings together the macro

0:20:46.840 --> 0:20:50.080
<v Speaker 3>and the micro, and in terms of the micro, it

0:20:50.200 --> 0:20:53.879
<v Speaker 3>reminded me a lot of second hand time which is

0:20:54.240 --> 0:20:57.520
<v Speaker 3>an oral history of the end of the Soviet Union,

0:20:57.840 --> 0:21:00.880
<v Speaker 3>and there are lots of stories in there about individual

0:21:01.080 --> 0:21:06.080
<v Speaker 3>experiences and entrepreneurs who suddenly are starting their businesses in

0:21:06.119 --> 0:21:09.280
<v Speaker 3>the post communist period and things like that. I've been

0:21:09.280 --> 0:21:11.720
<v Speaker 3>trying to get Joe to read this book a lot time.

0:21:12.280 --> 0:21:14.800
<v Speaker 3>It's amazing. But can you talk to us a little

0:21:14.800 --> 0:21:19.000
<v Speaker 3>bit more about the individual stories that you heard from

0:21:19.000 --> 0:21:21.520
<v Speaker 3>this particular period in Chinese history.

0:21:22.240 --> 0:21:24.760
<v Speaker 4>So there are many stories, and both Jan and I

0:21:24.840 --> 0:21:28.080
<v Speaker 4>are the kind of historians who are storytellers. We like

0:21:28.160 --> 0:21:31.640
<v Speaker 4>to tell these stories. We like to focus on individuals

0:21:31.680 --> 0:21:34.720
<v Speaker 4>and their experiences, and that's of course what sets this

0:21:34.840 --> 0:21:38.479
<v Speaker 4>period upon. It's such an incredibly dramatic era. I mean,

0:21:38.560 --> 0:21:42.240
<v Speaker 4>first to count revolution and instants, and then this period

0:21:42.280 --> 0:21:46.600
<v Speaker 4>of almost unbelievable change, which I remember very well myself.

0:21:46.640 --> 0:21:48.639
<v Speaker 4>I mean, from one day to the next, things that

0:21:48.720 --> 0:21:51.440
<v Speaker 4>have been seen as being true forever were no longer true, right,

0:21:51.480 --> 0:21:55.840
<v Speaker 4>And things changed so very quickly, and entrepreneurs who had

0:21:56.440 --> 0:21:58.920
<v Speaker 4>a few weeks earlier had been put in prison for

0:21:58.960 --> 0:22:02.920
<v Speaker 4>their activities held up as heroes of economic development. Right.

0:22:03.440 --> 0:22:06.760
<v Speaker 4>That was China during this time period, and it's wonderfully

0:22:06.880 --> 0:22:10.159
<v Speaker 4>fertile ground for historians who like to tell stories, so

0:22:10.200 --> 0:22:12.359
<v Speaker 4>we tell some of these. Maybe some of the most

0:22:12.480 --> 0:22:15.840
<v Speaker 4>fascinating ones that we came across are the ones of

0:22:15.880 --> 0:22:19.920
<v Speaker 4>these early entrepreneurs, I mean people who get started even

0:22:19.920 --> 0:22:23.760
<v Speaker 4>before the political changes in Beijing have taken place, very

0:22:23.760 --> 0:22:27.440
<v Speaker 4>often coming out of collective enterprises of some sort, people's

0:22:27.520 --> 0:22:31.720
<v Speaker 4>communes or whatever you have, and finding that they were

0:22:31.720 --> 0:22:34.560
<v Speaker 4>were pretty good at doing what they were set to do.

0:22:34.920 --> 0:22:37.600
<v Speaker 4>We have one example in there, which is one little

0:22:37.960 --> 0:22:41.400
<v Speaker 4>tract or repair shop that turned out to be incredibly

0:22:41.480 --> 0:22:45.040
<v Speaker 4>good at repairing tractors in Guangdong Province in the south

0:22:45.080 --> 0:22:49.679
<v Speaker 4>of China, and then started gradually to get payment in

0:22:49.760 --> 0:22:53.760
<v Speaker 4>kind kind of bartering system their services against a little

0:22:53.760 --> 0:22:56.600
<v Speaker 4>bit of steel or a little bit of machinery or

0:22:56.640 --> 0:23:00.560
<v Speaker 4>some silk and that right which they could and trade

0:23:01.440 --> 0:23:03.600
<v Speaker 4>or for a while they could actually smuggle it into

0:23:03.600 --> 0:23:06.800
<v Speaker 4>Hong Kong and trade it there. By the mid nineteen seventies,

0:23:06.880 --> 0:23:09.919
<v Speaker 4>these folks have a Hong Kong Bank account right well

0:23:09.960 --> 0:23:13.040
<v Speaker 4>before anything has happened in Beijing in terms sorry for

0:23:13.440 --> 0:23:15.480
<v Speaker 4>so if these guys had been caught, they would probably

0:23:15.560 --> 0:23:18.920
<v Speaker 4>have been shocked, right for smuggling and currency for when

0:23:18.920 --> 0:23:22.440
<v Speaker 4>the reform really gets started in nineteen seventy eight, they

0:23:22.440 --> 0:23:24.360
<v Speaker 4>have a leg up, right, and they can do things

0:23:24.359 --> 0:23:27.320
<v Speaker 4>that no one else can, and now they're heroes. So

0:23:27.840 --> 0:23:30.560
<v Speaker 4>this is the origins of one of the biggest companies

0:23:30.560 --> 0:23:33.879
<v Speaker 4>in China today. So these are the kinds of stories

0:23:33.880 --> 0:23:35.760
<v Speaker 4>that we'd like to tell. I mean at the political

0:23:35.840 --> 0:23:38.360
<v Speaker 4>level as well. I mean, one of the most fascinating

0:23:38.640 --> 0:23:41.639
<v Speaker 4>people that we came across is who are Wokong? The

0:23:42.400 --> 0:23:47.240
<v Speaker 4>guy who became somewhat unwillingly, most handkicked successful, and who

0:23:47.320 --> 0:23:49.800
<v Speaker 4>was actually quite a decent leader in many ways, not

0:23:49.920 --> 0:23:52.800
<v Speaker 4>very imaginative, not of the kind of dynamism that Don had,

0:23:53.080 --> 0:23:57.439
<v Speaker 4>but still probably someone who was annecessary figure, you know,

0:23:57.520 --> 0:24:02.119
<v Speaker 4>in order to facilitate that station. Yeah, that happened in

0:24:02.200 --> 0:24:03.360
<v Speaker 4>the in the late nineties.

0:24:03.680 --> 0:24:06.720
<v Speaker 2>Yeah, I get the impression to reading about him that

0:24:06.840 --> 0:24:09.560
<v Speaker 2>obviously he was in a difficult position having to uphold

0:24:09.560 --> 0:24:13.840
<v Speaker 2>MoU's legacy, who's pushed aside eventually more or less by

0:24:13.880 --> 0:24:16.800
<v Speaker 2>Don Chopang, but also sort of went gradually and didn't

0:24:16.800 --> 0:24:19.320
<v Speaker 2>put up a huge fight. That probably saved a lot

0:24:19.320 --> 0:24:22.080
<v Speaker 2>of turmol, you know, speaking of somebody these early companies.

0:24:22.480 --> 0:24:27.080
<v Speaker 2>I hadn't realized that the China's number one electrical appliance manufacturer.

0:24:27.119 --> 0:24:29.160
<v Speaker 2>I don't know if I'm pronounce to you right, but mydea,

0:24:29.359 --> 0:24:32.360
<v Speaker 2>it looks like that was actually founded in nineteen sixty eight,

0:24:32.440 --> 0:24:34.440
<v Speaker 2>as you point out in the book. So really, I mean,

0:24:34.440 --> 0:24:38.840
<v Speaker 2>here's this gigantic, publicly traded company and it was founded

0:24:38.920 --> 0:24:40.440
<v Speaker 2>right in the heart of the Cultural Revolution.

0:24:41.359 --> 0:24:44.240
<v Speaker 4>Yeah, those are I mean, those were perhaps some of

0:24:44.240 --> 0:24:47.119
<v Speaker 4>the most surprising examples. I mean they're not many of

0:24:47.400 --> 0:24:50.200
<v Speaker 4>I mean, we should be careful with not exaggerate. Okay,

0:24:50.400 --> 0:24:53.480
<v Speaker 4>this is not an attempt that to rehabilitating the control revolution,

0:24:53.640 --> 0:24:59.119
<v Speaker 4>but it was possible, under extraordinary circumstances and by extraordinary people,

0:24:59.600 --> 0:25:03.280
<v Speaker 4>to few things that probably early on could not be on.

0:25:03.520 --> 0:25:05.920
<v Speaker 4>I mean, they didn't do it big because the Communist

0:25:05.960 --> 0:25:08.520
<v Speaker 4>Party wanted them to do it. They did it because

0:25:08.520 --> 0:25:11.560
<v Speaker 4>the Communist Party lost control and couldn't go on with

0:25:11.640 --> 0:25:14.320
<v Speaker 4>the kind of centralized planning that they had done before.

0:25:14.320 --> 0:25:17.960
<v Speaker 4>Not everywhere and at all times anyway. So media is

0:25:17.960 --> 0:25:20.520
<v Speaker 4>a good example of that, and I'm sure there were hundreds,

0:25:20.560 --> 0:25:24.680
<v Speaker 4>if not thousands, of these startups cultural revolution era startups

0:25:24.680 --> 0:25:26.840
<v Speaker 4>that didn't succeed, or these people were caught and ended

0:25:26.880 --> 0:25:29.480
<v Speaker 4>up in prison camps or whatever. Right, so we shouldn't

0:25:29.480 --> 0:25:36.600
<v Speaker 4>overstate the countryvoid importance of these attempts at entrepreneurships. Many

0:25:36.680 --> 0:25:39.439
<v Speaker 4>of them ended up not going anywhere, but there was

0:25:39.480 --> 0:25:43.680
<v Speaker 4>this opportunity among those that survived to have that fundamental

0:25:43.720 --> 0:25:49.240
<v Speaker 4>advantage over others when then countrywide national reform came about

0:25:49.280 --> 0:25:51.960
<v Speaker 4>in the late nineteen seventies. And that actually connects to

0:25:52.000 --> 0:25:55.640
<v Speaker 4>a point about who are go Phone because at that point,

0:25:56.040 --> 0:25:59.000
<v Speaker 4>normally in Chinese politics, someone who fell from grace the

0:25:59.040 --> 0:26:02.040
<v Speaker 4>way who all Go Phone did would have met with

0:26:02.119 --> 0:26:06.639
<v Speaker 4>quite a terrible fate. Who allowed himself to be replaced

0:26:06.880 --> 0:26:09.320
<v Speaker 4>at the top because he simply taught it was better

0:26:09.359 --> 0:26:11.240
<v Speaker 4>for China that it went in the direction that it

0:26:11.320 --> 0:26:14.200
<v Speaker 4>did peacefully, and then spent the rest of his life

0:26:14.640 --> 0:26:19.200
<v Speaker 4>cultivating grapes in his residence in Beijing. He became one

0:26:19.200 --> 0:26:23.840
<v Speaker 4>of China's foremost experts of native grape varieties, a subject

0:26:23.920 --> 0:26:26.840
<v Speaker 4>of which he published at least two articles. Of course,

0:26:26.840 --> 0:26:31.080
<v Speaker 4>andro pseudonym, So you know, this kind of thing earlier

0:26:31.119 --> 0:26:33.480
<v Speaker 4>on in China would have be don't think given the

0:26:33.800 --> 0:26:37.720
<v Speaker 4>cut throat aspects of Chinese politics.

0:26:51.680 --> 0:26:54.879
<v Speaker 3>I didn't realize that China had native grape varieties, so

0:26:55.119 --> 0:26:58.480
<v Speaker 3>that's interesting, okay, But just on this point, what was

0:26:58.520 --> 0:27:03.679
<v Speaker 3>the downside for individu rules in accepting market liberalization, Because

0:27:03.720 --> 0:27:07.159
<v Speaker 3>nowadays we talk a lot about the social compact in China,

0:27:07.240 --> 0:27:10.600
<v Speaker 3>the idea that okay, maybe people don't have as many

0:27:10.640 --> 0:27:14.040
<v Speaker 3>democratic rights as in other parts of the world, but

0:27:14.480 --> 0:27:17.479
<v Speaker 3>the promise from the CCP is that we're all going

0:27:17.520 --> 0:27:20.119
<v Speaker 3>to get rich. And it feels like in the nineteen

0:27:20.119 --> 0:27:24.520
<v Speaker 3>seventies nineteen eighties there was some loss of a social

0:27:24.560 --> 0:27:27.919
<v Speaker 3>safety net that came about as a result of the

0:27:27.960 --> 0:27:30.240
<v Speaker 3>promise that like, Okay, you're not going to get as

0:27:30.320 --> 0:27:34.439
<v Speaker 3>much welfare social welfare, but you're going to get a

0:27:34.560 --> 0:27:37.359
<v Speaker 3>chance to become really, really wealthy.

0:27:37.840 --> 0:27:40.280
<v Speaker 4>And that was, of course part of this great transformation

0:27:40.359 --> 0:27:43.560
<v Speaker 4>that we're talking about, is what happened when much of

0:27:43.760 --> 0:27:48.920
<v Speaker 4>that social welfirm net disappeared. It was a very brutal process.

0:27:49.040 --> 0:27:52.359
<v Speaker 4>I mean, we have a tendency I think in this

0:27:52.440 --> 0:27:55.399
<v Speaker 4>country and knows what to think about Chinese reform as

0:27:55.440 --> 0:27:58.639
<v Speaker 4>the good reform in terms of results, and Russian reform

0:27:58.720 --> 0:28:01.400
<v Speaker 4>is the bad reform. Right where things went wrong after

0:28:01.440 --> 0:28:04.240
<v Speaker 4>the collapse of the solid Union. But these two are

0:28:04.280 --> 0:28:07.760
<v Speaker 4>in many ways much more similar, we discovered than what

0:28:07.880 --> 0:28:12.080
<v Speaker 4>they generally have been taken to be. The desperation that

0:28:12.160 --> 0:28:15.920
<v Speaker 4>you find among a lot of Chinese when these social

0:28:16.000 --> 0:28:20.560
<v Speaker 4>welfare systems went away, mainly in the late eighties and nineties,

0:28:20.840 --> 0:28:24.240
<v Speaker 4>in the early two thousand was very profound. It was

0:28:24.240 --> 0:28:27.760
<v Speaker 4>a market revolution, but as all market revolutions, it has

0:28:27.840 --> 0:28:31.800
<v Speaker 4>its winners and its users. And what was remarkable about

0:28:31.840 --> 0:28:35.000
<v Speaker 4>the transformation in China was that when one went through

0:28:35.040 --> 0:28:39.920
<v Speaker 4>that first period of relative hardship, then of course the

0:28:39.960 --> 0:28:42.880
<v Speaker 4>general economy started to pick up, giving more people a

0:28:42.960 --> 0:28:46.640
<v Speaker 4>chance to enter into the middle class. But these two

0:28:46.720 --> 0:28:49.760
<v Speaker 4>time periods are not the same. There was a period

0:28:49.800 --> 0:28:52.920
<v Speaker 4>of real hardship to begin with, and then quite a

0:28:52.920 --> 0:28:56.760
<v Speaker 4>bit later this opportunity for many people still not everyone

0:28:57.000 --> 0:29:00.400
<v Speaker 4>still draw up about four hundred to five hundred million

0:29:00.440 --> 0:29:03.760
<v Speaker 4>poor people in China, a lot of people, but for

0:29:03.840 --> 0:29:07.280
<v Speaker 4>many to take that step into division justice. And that's

0:29:07.280 --> 0:29:09.200
<v Speaker 4>in a way the story of Channel's reformed that they

0:29:09.240 --> 0:29:12.040
<v Speaker 4>were able to make that jump, while in Russia, most

0:29:12.080 --> 0:29:14.840
<v Speaker 4>of the efforts that setting up I'm of the economy

0:29:14.880 --> 0:29:16.959
<v Speaker 4>that's actually worked domestically failed.

0:29:17.920 --> 0:29:20.239
<v Speaker 2>So one thing that people say a lot is that

0:29:20.280 --> 0:29:23.160
<v Speaker 2>the Chinese Communist Party for a long time up until

0:29:23.200 --> 0:29:26.600
<v Speaker 2>the day, is obsessed with the fall of the Soviet

0:29:26.720 --> 0:29:31.080
<v Speaker 2>Union and figuring out how to avoid a similar collapse

0:29:31.120 --> 0:29:33.600
<v Speaker 2>at some point, and part of me wonders, like, the

0:29:33.640 --> 0:29:36.800
<v Speaker 2>two countries seem so different and the circumstances seem so

0:29:36.880 --> 0:29:40.000
<v Speaker 2>different that it's like hard for me to like say, like, oh,

0:29:40.000 --> 0:29:42.240
<v Speaker 2>if you do this, then you do get that outcome,

0:29:42.280 --> 0:29:45.360
<v Speaker 2>and like who knows. But there is some school of

0:29:45.400 --> 0:29:48.480
<v Speaker 2>thought that part of the problem with Soviet reforms starting

0:29:48.520 --> 0:29:52.440
<v Speaker 2>under Gorbachov was the sort of political liberalization that maybe

0:29:52.480 --> 0:29:55.680
<v Speaker 2>economic liberalization is okay markets, but you still need that

0:29:55.800 --> 0:30:01.240
<v Speaker 2>strong central party, and that maybe Orbitschov's mistake was doing

0:30:01.280 --> 0:30:05.440
<v Speaker 2>both at once, or maybe doing the political liberalization at all,

0:30:05.560 --> 0:30:08.959
<v Speaker 2>et cetera. You talk also in your conclusion about some

0:30:09.000 --> 0:30:13.560
<v Speaker 2>of the missed opportunities of more political liberalization along with

0:30:13.640 --> 0:30:16.480
<v Speaker 2>the market liberalization that China has seen over the last

0:30:16.640 --> 0:30:19.959
<v Speaker 2>several decades. When you think about the fall of the

0:30:20.000 --> 0:30:24.160
<v Speaker 2>Soviet Union and what contributed to that collapse, how much

0:30:24.160 --> 0:30:27.720
<v Speaker 2>of it is it the market reforms versus the structure

0:30:27.720 --> 0:30:30.920
<v Speaker 2>of the Soviet Union versus the political liberalization. And is

0:30:30.960 --> 0:30:33.880
<v Speaker 2>there an argument to be made that the reason that

0:30:33.920 --> 0:30:37.239
<v Speaker 2>the CCP and the country is as stable as it

0:30:37.320 --> 0:30:41.520
<v Speaker 2>is today is because they didn't also pursue the political liberalization.

0:30:42.040 --> 0:30:44.200
<v Speaker 4>No, not really, I don't think that is the key.

0:30:44.880 --> 0:30:48.000
<v Speaker 4>I think the key reason why the CCP succeeded was

0:30:48.160 --> 0:30:51.440
<v Speaker 4>more that they were willing to experiment, I mean, under

0:30:51.480 --> 0:30:55.160
<v Speaker 4>a situation of political dictatorship. As you pointed out, they

0:30:55.240 --> 0:30:59.520
<v Speaker 4>were willing to experiment in ways that the Soviet leadership

0:31:00.280 --> 0:31:02.920
<v Speaker 4>was And maybe I mean, and this is pure speculation,

0:31:03.040 --> 0:31:04.840
<v Speaker 4>but maybe that goes back to what we talked about

0:31:04.880 --> 0:31:09.160
<v Speaker 4>earlier on that the Soviet Union kept chugging along, you know,

0:31:09.440 --> 0:31:12.040
<v Speaker 4>with some growth a very very long time. There wasn't

0:31:12.040 --> 0:31:14.440
<v Speaker 4>that kind of desperation that you found in China after

0:31:14.560 --> 0:31:17.240
<v Speaker 4>everything that the Communist Party had tried had failed. So

0:31:17.320 --> 0:31:20.120
<v Speaker 4>these people were really running out of the time both to

0:31:20.200 --> 0:31:23.880
<v Speaker 4>transformed China but also to protect the execution right. They

0:31:23.880 --> 0:31:26.680
<v Speaker 4>had to do something, and then they introduced gradual reform

0:31:26.720 --> 0:31:31.280
<v Speaker 4>and all that gradual economic reform without ever thinking that

0:31:31.320 --> 0:31:33.800
<v Speaker 4>they would give up political control. So this is one

0:31:33.800 --> 0:31:35.320
<v Speaker 4>of the things that we show in the book, and

0:31:35.320 --> 0:31:38.120
<v Speaker 4>I think this is the reason why the Chinese communist

0:31:38.160 --> 0:31:42.479
<v Speaker 4>potted today is so obsessed with learning the negative lessons

0:31:42.480 --> 0:31:44.960
<v Speaker 4>from the Soviet Union, is that much of this was

0:31:44.960 --> 0:31:48.560
<v Speaker 4>of course not just about creating a China that was

0:31:49.040 --> 0:31:52.840
<v Speaker 4>rich and strong. It was being able to recreate the

0:31:52.880 --> 0:31:56.440
<v Speaker 4>communist party that was in control of mostics. Right. So

0:31:57.360 --> 0:32:02.920
<v Speaker 4>that story or how that the dictatorship was reinforced at

0:32:02.920 --> 0:32:05.840
<v Speaker 4>the back of reform already in the mid nineteen eighties,

0:32:06.200 --> 0:32:08.800
<v Speaker 4>is a very central part of our book. I mean,

0:32:08.880 --> 0:32:11.880
<v Speaker 4>we do see a period of openness from the late

0:32:11.960 --> 0:32:15.640
<v Speaker 4>seventies to the mid nineteen eighties, when there would have

0:32:15.680 --> 0:32:19.000
<v Speaker 4>been a really possibility that China would have moved in

0:32:19.120 --> 0:32:24.400
<v Speaker 4>a more democratic, but more pluralistic, more open direction than

0:32:24.440 --> 0:32:28.000
<v Speaker 4>what happened what happened later on. But by nineteen eighty

0:32:28.040 --> 0:32:32.040
<v Speaker 4>four of their aboats that period is ended. Done is

0:32:32.120 --> 0:32:35.240
<v Speaker 4>laying down the law, saying the direction that China will

0:32:35.280 --> 0:32:40.200
<v Speaker 4>go in is one of increased deepening, market reform and

0:32:40.640 --> 0:32:44.920
<v Speaker 4>communist party control. There will be no pluralism of any sort,

0:32:44.960 --> 0:32:47.239
<v Speaker 4>there will be no freedom of speech. All of that

0:32:47.360 --> 0:32:49.760
<v Speaker 4>is and this is of course very important in terms

0:32:49.800 --> 0:32:53.320
<v Speaker 4>of understanding China today. I mean, this is what created

0:32:53.560 --> 0:32:56.080
<v Speaker 4>the kind of situation that we see now, even though

0:32:56.120 --> 0:32:58.600
<v Speaker 4>I now, of course, I was in China in the

0:32:59.080 --> 0:33:03.400
<v Speaker 4>spring and one of my businessman friends was joking that maybe,

0:33:03.560 --> 0:33:05.600
<v Speaker 4>you know, reform and opening should be seen as a

0:33:05.600 --> 0:33:09.640
<v Speaker 4>gigantic Yet you know, let in its new economic policy

0:33:09.680 --> 0:33:12.560
<v Speaker 4>back in the nineteen twenties where people were allowed to

0:33:12.680 --> 0:33:15.280
<v Speaker 4>generate wealth for a while, just for the party to

0:33:15.320 --> 0:33:18.680
<v Speaker 4>come back in and confiscate everything. So don't say that

0:33:18.720 --> 0:33:21.720
<v Speaker 4>I'm sharing that view, but given what she and King

0:33:21.800 --> 0:33:23.960
<v Speaker 4>has been up recently, you can spok of longer standing.

0:33:24.720 --> 0:33:27.800
<v Speaker 3>Since we're up firmly in the nineteen eighties. Now, talk

0:33:27.840 --> 0:33:30.840
<v Speaker 3>to us about Coca cola and its presence in the

0:33:30.920 --> 0:33:33.120
<v Speaker 3>Chinese market, because I kind of think this is like

0:33:33.200 --> 0:33:37.520
<v Speaker 3>a nice little microcosm of the changes that happened to

0:33:37.600 --> 0:33:39.440
<v Speaker 3>the Chinese economy around that time.

0:33:40.000 --> 0:33:44.000
<v Speaker 4>So the Coca Cola example is really interesting because it's

0:33:44.040 --> 0:33:46.480
<v Speaker 4>a typical example in a way of how it was

0:33:46.560 --> 0:33:51.160
<v Speaker 4>possible for a moved the national company to come into China,

0:33:51.640 --> 0:33:55.160
<v Speaker 4>to start working in China because of the attractiveness the

0:33:55.280 --> 0:33:59.320
<v Speaker 4>symbolism of the product that it delivered, but also was

0:33:59.400 --> 0:34:03.880
<v Speaker 4>able to work with local people and local businesses within China.

0:34:03.960 --> 0:34:08.319
<v Speaker 4>And what's also fascinating here is the connection between Coca

0:34:08.320 --> 0:34:14.240
<v Speaker 4>Cola and its political significance in terms of the American.

0:34:14.320 --> 0:34:18.520
<v Speaker 3>Because Coco is like a symbol of American capitalism, right.

0:34:18.719 --> 0:34:23.080
<v Speaker 4>Yes, and the Chinese leadership wanted to embrace that symbolism

0:34:23.520 --> 0:34:27.759
<v Speaker 4>without necessarily having to embrace the full package. So they

0:34:27.800 --> 0:34:30.920
<v Speaker 4>were trying to figure out how they could work with

0:34:31.080 --> 0:34:34.760
<v Speaker 4>this particular American company and indeed other American companies as well,

0:34:35.280 --> 0:34:39.840
<v Speaker 4>in order to be seen as helping bringing Coca Cola

0:34:39.920 --> 0:34:43.800
<v Speaker 4>to China, but on conditions that would be acceptable to them.

0:34:43.960 --> 0:34:46.640
<v Speaker 4>And this is the story that is repeated over and

0:34:46.719 --> 0:34:50.280
<v Speaker 4>over again in China when it comes to foreign companies,

0:34:50.600 --> 0:34:55.319
<v Speaker 4>the connections to local partners, how the government oversees this

0:34:55.640 --> 0:34:58.239
<v Speaker 4>in seat of political terms, but also how it can

0:34:58.280 --> 0:35:02.160
<v Speaker 4>turn out to be immensely emotionally successful under those circumstances.

0:35:03.200 --> 0:35:07.440
<v Speaker 2>You joked about your businessman friend in China saying, maybe

0:35:07.520 --> 0:35:11.600
<v Speaker 2>that whole reform period was like Lenin's net period, and

0:35:12.239 --> 0:35:15.440
<v Speaker 2>you had the dominance of the party and then wealth

0:35:15.560 --> 0:35:18.759
<v Speaker 2>was created, and then now the party re emerges in

0:35:18.960 --> 0:35:22.400
<v Speaker 2>strength and Caesar's control of that wealth, so to speak.

0:35:23.080 --> 0:35:27.759
<v Speaker 2>I'm curious your take here in twenty twenty four. Do

0:35:27.800 --> 0:35:30.719
<v Speaker 2>you find that to have been an inevitable arc? I mean,

0:35:30.920 --> 0:35:33.480
<v Speaker 2>I probably doesn't sound like you believe much is inevitable,

0:35:33.520 --> 0:35:37.359
<v Speaker 2>given your focus on contingencies of history. But was this

0:35:37.480 --> 0:35:41.960
<v Speaker 2>something that like due to this specific leaders who emerged

0:35:42.040 --> 0:35:46.800
<v Speaker 2>in China, most prominently Shijinping, but also to some extent

0:35:46.840 --> 0:35:49.960
<v Speaker 2>with the more nationalist edge of hu Jintao, Like, was

0:35:50.040 --> 0:35:52.279
<v Speaker 2>this something that is like it was the result of

0:35:52.320 --> 0:35:55.760
<v Speaker 2>these specific individuals that has bent the curve of history

0:35:55.840 --> 0:35:58.239
<v Speaker 2>so to speak, or do you think there was sort

0:35:58.280 --> 0:36:02.040
<v Speaker 2>of like structural forces and play that brought back the

0:36:02.160 --> 0:36:04.400
<v Speaker 2>sort of like very high level of state control.

0:36:05.160 --> 0:36:07.600
<v Speaker 4>I think it was both. I mean, in the She

0:36:07.719 --> 0:36:11.840
<v Speaker 4>and Pink case, I think he was picked by the

0:36:11.880 --> 0:36:14.399
<v Speaker 4>party as the what the Chinese could call the core

0:36:14.520 --> 0:36:19.160
<v Speaker 4>leader back in the early twenty teens in response to

0:36:19.239 --> 0:36:22.560
<v Speaker 4>what was seen as a bunch of real problems from

0:36:22.640 --> 0:36:30.560
<v Speaker 4>a Chinese Communist Party perspective over liberalization, decentralization, corruption, strength

0:36:30.640 --> 0:36:33.200
<v Speaker 4>of private companies that meddled in a lot of things

0:36:33.200 --> 0:36:35.560
<v Speaker 4>that the Communists didn't want them to meddle In. They

0:36:35.640 --> 0:36:39.080
<v Speaker 4>wanted to get a strong leader win who could deal

0:36:39.120 --> 0:36:43.240
<v Speaker 4>with those issues in a way that his predecessors, youngstermen

0:36:43.320 --> 0:36:46.040
<v Speaker 4>Hu Jintao, had not been able to do it. So

0:36:46.120 --> 0:36:49.759
<v Speaker 4>they wanted a strong leader. It's just that I think

0:36:49.800 --> 0:36:52.759
<v Speaker 4>even for many Communist leaders of that generation, they got

0:36:52.800 --> 0:36:55.560
<v Speaker 4>more than they bargained for. So that's where the personality

0:36:55.600 --> 0:36:59.040
<v Speaker 4>as state comes in. They got a leader who really

0:36:59.080 --> 0:37:02.520
<v Speaker 4>wanted to return digal So issues to the maoist or

0:37:02.520 --> 0:37:05.600
<v Speaker 4>even the sort of pre Mao period in terms of

0:37:05.640 --> 0:37:11.279
<v Speaker 4>the CCP's history, and emphasizes the party's position over what

0:37:11.440 --> 0:37:15.360
<v Speaker 4>even many party leaders back twenty fifteen years ago. Coote

0:37:15.400 --> 0:37:18.000
<v Speaker 4>would be good for China. And it's a classic example,

0:37:18.080 --> 0:37:21.960
<v Speaker 4>right of responding to real world problems not unknown in

0:37:21.960 --> 0:37:26.360
<v Speaker 4>this country, right by going very far in one direction,

0:37:26.920 --> 0:37:29.560
<v Speaker 4>hoping that that would resolve the problem that is there,

0:37:29.840 --> 0:37:32.759
<v Speaker 4>and then getting stuck in a way in WICKI kind

0:37:32.800 --> 0:37:35.239
<v Speaker 4>of leader that you have in this case in Tea

0:37:35.280 --> 0:37:38.560
<v Speaker 4>and pain. So, I think that's the story the way

0:37:38.600 --> 0:37:40.640
<v Speaker 4>we can tell it now. I hope at some point

0:37:40.680 --> 0:37:43.680
<v Speaker 4>to be able to tell that story based on archives

0:37:43.680 --> 0:37:46.759
<v Speaker 4>and primary documents. As an historian, we can't do that yet,

0:37:47.120 --> 0:37:48.759
<v Speaker 4>but I think at some point we will be able

0:37:48.800 --> 0:37:50.600
<v Speaker 4>to do that, and then it will be fascinating to

0:37:50.680 --> 0:37:53.520
<v Speaker 4>test that hypothesis about how this happened.

0:37:54.280 --> 0:37:58.640
<v Speaker 3>So just on the revolution from below point, one of

0:37:58.719 --> 0:38:01.640
<v Speaker 3>the things that you emphasize the book is a lot

0:38:01.680 --> 0:38:05.160
<v Speaker 3>of the stuff that happens in this time period is

0:38:05.200 --> 0:38:09.840
<v Speaker 3>a result of people feeling that they are heading somewhere,

0:38:10.040 --> 0:38:14.080
<v Speaker 3>that there's like a grander Chinese vision that can be achieved,

0:38:14.120 --> 0:38:18.560
<v Speaker 3>and so that motivates people to actually do something. I'm curious,

0:38:18.600 --> 0:38:22.759
<v Speaker 3>just going up to the present day, do you get

0:38:22.760 --> 0:38:26.239
<v Speaker 3>a sense that people feel that that there's like a

0:38:26.360 --> 0:38:29.799
<v Speaker 3>direction that China is heading in that it's clear to

0:38:29.920 --> 0:38:33.880
<v Speaker 3>people like what they are trying to do at a moment.

0:38:33.920 --> 0:38:36.759
<v Speaker 4>Absolutely not. I think it's very very clear that a

0:38:36.840 --> 0:38:40.400
<v Speaker 4>lot of people in China do not understand where the

0:38:40.560 --> 0:38:44.000
<v Speaker 4>country is heading and what the reasons are. And you know,

0:38:44.080 --> 0:38:47.520
<v Speaker 4>you don't spend much time in Beijing before you realize

0:38:47.560 --> 0:38:50.120
<v Speaker 4>that these days, I think it was very different in

0:38:50.160 --> 0:38:52.680
<v Speaker 4>the time period that we are talking about, which was

0:38:52.800 --> 0:38:56.400
<v Speaker 4>generally a time or uplift, at least in economic and

0:38:56.440 --> 0:38:59.160
<v Speaker 4>social terms. And it's right to say, I mean as

0:38:59.160 --> 0:39:01.600
<v Speaker 4>many historians said that there was an element of a

0:39:01.680 --> 0:39:05.319
<v Speaker 4>bargament that at least for some Chinese, not everyone, but

0:39:05.360 --> 0:39:08.320
<v Speaker 4>for some Chinese, very particularly in business, that one accepted

0:39:08.320 --> 0:39:11.520
<v Speaker 4>the dictatorship for what it was and then went on

0:39:11.960 --> 0:39:17.560
<v Speaker 4>getting rich and establishing somebodies great middling fortunes that you

0:39:17.640 --> 0:39:20.239
<v Speaker 4>find so many in China today. And that is good.

0:39:20.320 --> 0:39:22.600
<v Speaker 4>I mean, that was positive. It was much much better

0:39:22.640 --> 0:39:25.520
<v Speaker 4>than the dark past that we described at the beginning

0:39:25.520 --> 0:39:28.960
<v Speaker 4>of the book. It was just that China wasn't able

0:39:29.160 --> 0:39:32.080
<v Speaker 4>to take what in our view is a necessary step

0:39:32.680 --> 0:39:38.760
<v Speaker 4>to improve its political system, its overall attempt at trying

0:39:38.800 --> 0:39:42.680
<v Speaker 4>to become a more open, more pluralistic country in the

0:39:42.719 --> 0:39:44.880
<v Speaker 4>period when the going was good, when there was a

0:39:44.960 --> 0:39:50.720
<v Speaker 4>general sense that China was making advances domestically and internationally. Now,

0:39:51.120 --> 0:39:54.400
<v Speaker 4>I think even if people from within the Chinese Companist

0:39:54.400 --> 0:39:57.680
<v Speaker 4>Party of the Hemping would try to move in a

0:39:57.800 --> 0:40:01.080
<v Speaker 4>direction of increased liberalisation, which I think they will have

0:40:01.200 --> 0:40:03.120
<v Speaker 4>to do at some point because people are just very

0:40:03.200 --> 0:40:05.400
<v Speaker 4>unhappy with the color system that is there at the moment,

0:40:05.840 --> 0:40:08.040
<v Speaker 4>it would be much more difficult because the going is

0:40:08.080 --> 0:40:10.080
<v Speaker 4>not that good and it probably is never going to

0:40:10.160 --> 0:40:13.560
<v Speaker 4>be that good again, and it was a remarkable period

0:40:13.640 --> 0:40:17.319
<v Speaker 4>of economic transformation ten percent per year growth rates. It

0:40:17.320 --> 0:40:19.799
<v Speaker 4>would have been possible to carry out necessarily reform, but

0:40:19.840 --> 0:40:22.200
<v Speaker 4>these people didn't want to do it because they had

0:40:22.280 --> 0:40:26.000
<v Speaker 4>become so preoccupied with holding on power themselves. And I

0:40:26.120 --> 0:40:28.880
<v Speaker 4>think historically that that might turn out to be the

0:40:28.880 --> 0:40:31.520
<v Speaker 4>biggest mistake. That's cover is for us later.

0:40:32.520 --> 0:40:36.160
<v Speaker 2>On, arn Western, Thank you so much, truly the perfect guest.

0:40:36.280 --> 0:40:38.040
<v Speaker 2>Really appreciate you coming.

0:40:37.840 --> 0:40:41.319
<v Speaker 3>On nominative determinism. Truly had to come on this.

0:40:41.440 --> 0:40:45.440
<v Speaker 4>Indeedeed we talked about contingency. This is not contingent. This

0:40:45.520 --> 0:40:46.520
<v Speaker 4>is right. This is the one.

0:40:46.719 --> 0:40:49.759
<v Speaker 2>This is the one scientific fact of history that was

0:40:49.800 --> 0:40:52.560
<v Speaker 2>inevitable regardless of it.

0:40:52.600 --> 0:40:53.400
<v Speaker 4>Was great chatting with you.

0:40:53.560 --> 0:40:55.520
<v Speaker 2>Yeah, thank you so much. Congrats on the book and

0:40:55.920 --> 0:40:57.920
<v Speaker 2>encourage people to check it out. And I appreciate it.

0:40:58.000 --> 0:41:15.000
<v Speaker 2>Thank you, Tracy. I'm totally down in my dottage to

0:41:15.160 --> 0:41:17.520
<v Speaker 2>just turn this into a history podcast where we read

0:41:17.520 --> 0:41:18.960
<v Speaker 2>books and then talk to historians.

0:41:19.000 --> 0:41:22.000
<v Speaker 3>I feel like podcasts becoming history podcast is also an

0:41:22.040 --> 0:41:24.040
<v Speaker 3>Indepololgi right.

0:41:23.880 --> 0:41:25.400
<v Speaker 2>Well, you run out of things to talk about, so

0:41:25.440 --> 0:41:26.640
<v Speaker 2>you gotta start mining the past.

0:41:26.880 --> 0:41:29.200
<v Speaker 3>You know what actually in all your recent reading, you

0:41:29.280 --> 0:41:31.840
<v Speaker 3>might know the answer to this question which I forgot

0:41:31.840 --> 0:41:35.680
<v Speaker 3>to ask arn about. But why was the Soviet Union

0:41:35.880 --> 0:41:40.320
<v Speaker 3>and China in like the nineteen fifties obsessed with steel production?

0:41:41.200 --> 0:41:43.600
<v Speaker 2>Do you know why? I actually don't know the answer.

0:41:43.680 --> 0:41:46.000
<v Speaker 2>My guess would be is just like the most sort

0:41:46.040 --> 0:41:50.360
<v Speaker 2>of objective thing of what you need to modernize in

0:41:50.480 --> 0:41:54.120
<v Speaker 2>a twentieth century economy, you need steel for probably literally

0:41:54.160 --> 0:41:57.040
<v Speaker 2>everything that gets built. It'd been a good question. Another

0:41:57.080 --> 0:42:01.600
<v Speaker 2>thing that I wish I had asked is how paranoid,

0:42:02.120 --> 0:42:05.760
<v Speaker 2>how justified? Was because you asked that great question about

0:42:05.800 --> 0:42:08.680
<v Speaker 2>the importance of the tension between China and the Soviet

0:42:08.760 --> 0:42:12.080
<v Speaker 2>Union in Mao's turning at least to some extent to

0:42:12.160 --> 0:42:15.520
<v Speaker 2>the US, which then expanded greatly over the following decades.

0:42:16.120 --> 0:42:18.560
<v Speaker 2>But I never get the impression that there really was

0:42:18.760 --> 0:42:21.520
<v Speaker 2>any actual prospect of war. Like there's one point in

0:42:21.560 --> 0:42:24.600
<v Speaker 2>the book where like the leaders all scrambled away from

0:42:24.600 --> 0:42:27.600
<v Speaker 2>Beijing because they were fear of a nuclear attack from

0:42:27.600 --> 0:42:29.480
<v Speaker 2>the Soviet Union. But it's not clear that there was

0:42:29.520 --> 0:42:31.040
<v Speaker 2>any real anything happening there.

0:42:31.120 --> 0:42:33.920
<v Speaker 3>I guess hindsight is twenty twenty when it comes to

0:42:33.960 --> 0:42:36.319
<v Speaker 3>a lot of this stuff, including the Cold War, is

0:42:36.640 --> 0:42:39.960
<v Speaker 3>kind of similar. I guess, like nothing happened in the

0:42:40.080 --> 0:42:42.279
<v Speaker 3>end in terms of like a nuclear tech came close

0:42:42.360 --> 0:42:45.799
<v Speaker 3>with Cuba as minds, that is true, but like it

0:42:45.840 --> 0:42:49.040
<v Speaker 3>didn't happen. Yes, But one thing that I got from

0:42:49.080 --> 0:42:52.600
<v Speaker 3>this book is again the importance of an external enemy

0:42:52.719 --> 0:42:57.080
<v Speaker 3>when it comes to radical economic transformation. And I think

0:42:57.120 --> 0:43:00.560
<v Speaker 3>we've seen so many examples of that throughout his at

0:43:00.560 --> 0:43:04.440
<v Speaker 3>this point. So China, China's market liberalization as a result

0:43:04.520 --> 0:43:07.400
<v Speaker 3>of its fear of the Soviet Union is a great one.

0:43:07.520 --> 0:43:10.720
<v Speaker 3>I guess the return of industrial policy in the US

0:43:10.840 --> 0:43:15.279
<v Speaker 3>as a result of its fear of China's economic dominance

0:43:15.480 --> 0:43:18.400
<v Speaker 3>is another one. Japan in the nineteen eighties would be

0:43:18.440 --> 0:43:20.759
<v Speaker 3>a good one too. It feels like in order for

0:43:20.800 --> 0:43:24.280
<v Speaker 3>anything to get done at scale and in an efficient

0:43:24.400 --> 0:43:27.279
<v Speaker 3>time period, you have to have like some sort of

0:43:27.360 --> 0:43:28.960
<v Speaker 3>threat that's hanging over you.

0:43:29.520 --> 0:43:32.120
<v Speaker 2>This is why we need the Paul Krugman, like, we

0:43:32.200 --> 0:43:35.160
<v Speaker 2>need to convince everyone that the threat is the alien. Yes, yes,

0:43:35.200 --> 0:43:38.759
<v Speaker 2>and then you catalyze development without actually and then there's

0:43:38.760 --> 0:43:41.400
<v Speaker 2>no aliens in the end. But yeah, I though there

0:43:41.440 --> 0:43:43.239
<v Speaker 2>was fascinating. I know, it's such a cliche and I

0:43:43.280 --> 0:43:45.840
<v Speaker 2>hate to admit it, but it does seem like understanding

0:43:45.880 --> 0:43:49.760
<v Speaker 2>the modern world, you can learn something by reading the past.

0:43:49.960 --> 0:43:51.520
<v Speaker 3>I resist incredibly surprising.

0:43:51.680 --> 0:43:54.160
<v Speaker 2>I resisted that reality for a long time in my life,

0:43:54.200 --> 0:43:56.040
<v Speaker 2>and now I've succumbed. We have to know how we

0:43:56.120 --> 0:43:56.560
<v Speaker 2>got here.

0:43:56.680 --> 0:43:59.239
<v Speaker 3>Okay, now that you've discovered history, shall we leave it there?

0:43:59.320 --> 0:44:00.000
<v Speaker 2>Let's leave it there.

0:44:00.200 --> 0:44:03.200
<v Speaker 3>This has been another episode of the Audlots podcast. I'm

0:44:03.200 --> 0:44:05.840
<v Speaker 3>Tracy Alloway. You can follow me at Tracy Alloway.

0:44:06.040 --> 0:44:08.719
<v Speaker 2>I'm Joe Wisenthal. You can follow me at the Stalwart.

0:44:08.960 --> 0:44:13.080
<v Speaker 2>Follow our guest Odd arn Westdad. He's OA Westdad, and

0:44:13.120 --> 0:44:16.560
<v Speaker 2>definitely check out his new book, The Great Transformation. Follow

0:44:16.560 --> 0:44:20.600
<v Speaker 2>our producers Carmen Rodriguez at Kerman Arman, Dashel Bennett at Dashbot,

0:44:20.600 --> 0:44:23.600
<v Speaker 2>and Keil Brooks at Keilbrooks. Thank you to our producer

0:44:23.600 --> 0:44:26.759
<v Speaker 2>Moses Ondem. For more Oddlots content, go to Bloomberg dot

0:44:26.760 --> 0:44:29.400
<v Speaker 2>com slash od Loots. We have transcripts, a blog, and

0:44:29.480 --> 0:44:31.719
<v Speaker 2>a newsletter, and you can chat about all of these

0:44:31.760 --> 0:44:34.960
<v Speaker 2>topics twenty four to seven in our discord. There's even

0:44:35.000 --> 0:44:37.439
<v Speaker 2>a books channel, which is where I think I saw

0:44:37.480 --> 0:44:38.439
<v Speaker 2>this book pop up.

0:44:38.360 --> 0:44:41.920
<v Speaker 3>First, and if you enjoy odlots, if you like it

0:44:41.960 --> 0:44:44.640
<v Speaker 3>when Joe reads history books, then please leave us a

0:44:44.719 --> 0:44:48.719
<v Speaker 3>positive review on your favorite podcast platform. And remember, if

0:44:48.800 --> 0:44:52.000
<v Speaker 3>you are a Bloomberg subscriber, you can listen to all

0:44:52.040 --> 0:44:54.920
<v Speaker 3>of our episodes absolutely ad free. All you need to

0:44:54.920 --> 0:44:57.759
<v Speaker 3>do is find the Bloomberg channel on Apple Podcasts and

0:44:57.880 --> 0:45:21.600
<v Speaker 3>follow the instructions there. Thanks for listening.