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

Prof. David Shambaugh, George Washington University: "In this first-hand account based on years of working in China, Paul Clifford takes the reader deep inside the belly of the beast--China's industrial economy state-owned enterprise system. This well-written and engrossing inside account should be read by all China watchers." Prof. Peter Nolan, University of Cambridge: Dr. Clifford is a scholar with a deep knowledge of Chinese history and culture, who entered the business world at a time of dramatic change in China's political economy. His rich business experience in China across a range of industrial sectors combined with his deep scholarly understanding make this a uniquely insightful book. The insights are far more original and interesting than those of other studies in this field. Prof. Edward S. Steinfeld, Brown University: "The China Paradox, while offering an important framing narrative for understanding China's developmental trajectory, explains that narrative through fascinating firm-level examples and case-studies, ones that alone make the book an essential read for anybody trying to understand contemporary China. The China Paradox introduces fresh perspectives just when such new thinking - given the turbulent nature of our present moment globally - is most urgently needed." Prof. Anthony Saich, Harvard University: "Clifford's decades of engagement with China allows him to present the reader with a deeper understanding of the contradictory forces that have made the China of today. Can The China Paradox persist? His sobering analysis of the pros and cons make this a book worth reading for anyone with an interest in China's future trajectory and its potential impact on the world."

Prof. David Shambaugh, George Washington University: "In this first-hand account based on years of working in China, Paul Clifford takes the reader deep inside the belly of the beast--China's industrial economy state-owned enterprise system. This well-written and engrossing inside account should be read by all China watchers." Prof. Peter Nolan, University of Cambridge: Dr. Clifford is a scholar with a deep knowledge of Chinese history and culture, who entered the business world at a time of dramatic change in China's political economy. His rich business experience in China across a range of industrial sectors combined with his deep scholarly understanding make this a uniquely insightful book. The insights are far more original and interesting than those of other studies in this field. Prof. Edward S. Steinfeld, Brown University: "The China Paradox, while offering an important framing narrative for understanding China’s developmental trajectory, explains that narrative through fascinating firm-level examples and case-studies, ones that alone make the book an essential read for anybody trying to understand contemporary China. 　The China Paradox　introduces fresh perspectives just when such new thinking — given the turbulent nature of our present moment globally — is most urgently needed." Prof. Anthony Saich, Harvard University: "Clifford’s decades of engagement with China allows him to present the reader with a deeper understanding of the contradictory forces that have made the China of today. Can The China Paradox persist? His sobering analysis of the pros and cons make this a book worth reading for anyone with an interest in China’s future trajectory and its potential impact on the world."