Continuing from Part 1:
5) Chinese goverment as a whole cares more on the solution and development outcomes, and less on the terms in office. The structure of Chinese government is decentralized (having local authorities), yet unified under state government. Such structure allows Chinese government to pursue long term objectives (due to unified body), while being able to speed up the execution when needed (due to decentralized yet unified body).
6) Just as the candidates for China banks’ are carefully selected and trained, BOD also adopted a more careful approach in managing their banks. BOD of China banks’ actually spend most of their time in risk assessment, safeguarding China banks against potential crises.
7) Policy implementation in China is slow, whereby the Chinese government takes the time to experiment and troubleshoot new policies prior to nationwide implementation. For example, in 1993, talk on reform began. But it was only implemented after 5 years, and yielded results only after 15 years from 1993.
8) Chinese government focus on national strategy and interest, much more than corporate strategy and interest. Let’s pick one recent event for an example. In 2016, when China economy slowed down more than what was anticipated by the government, they focus more on economic matters, and less on reforms. In 2017, when the economy is getting back on track, the government return their focus to reforms.
Despite all the above positive points, the author expressed his concern on whether China is able to maintain its pragmatic and yet flexible approach at political level. It is worth observing how China can maintain that approach.
Hope you enjoy the article! Have a good day!
