What's Wrong With China

by Paul Midler

What’s Wrong with China is the most cogent, insightful and penetrating examination I have read on the paradoxes and self-deceptions of Modern China, written by someone who has lived in the country and dealt with it day to day for decades. This book will be hated by the commissars, because it is a triumph of analysis and good sense.
—PAUL THEROUX I sure wish I’d read this book before heading to China—or Chinatown, for that matter. China runs on an entirely different operating system—both commercial and personal. Midler’s clear, clever analysis and illuminating, often hilarious tales foster not only understanding but respect.
—MARY ROACH From the Back Cover What’s Wrong with China is the widely anticipated follow-up to Paul Midler’s Poorly Made in China, an exposé of China manufacturing practices. Applying a wider lens in this account, he reveals many of the deep problems affecting Chinese society as a whole. Once again, Midler delivers the goods by rejecting commonly held notions, breaking down old myths, and providing fresh explanations of lesser-understood cultural phenomena.

Genres: China, Nonfiction, Politics, History, Economics, Audiobook, Asia

240 pages, Kindle Edition

First published November 20, 2017

Reviews

[L.A. Starks · Rating 5 out of 5]

Incredibly pragmatic, insightful anecdotes and historical references about doing business in China. Midler describes dozens of Chinese managers' negotiation tactics to show how trying to develop, say a joint venture, from a Western frame of reference leads to obstruction, declining quality and loss of profitability.

For readers interested in China who didn't grow up there.

Be aware that Midler doesn't pull any punches. Jack Ma hates the book; others may, by contrast, find it quite useful and informative.

[Cav · Rating 5 out of 5]

Roughly one part bewildering and one part hilarious seems to be the recipe used to put What's Wrong with China together, and author Paul Midler did a great job on both accounts.
I really liked this one. This is my second book from Midler, after his 2009 book Poorly Made in China. This one is a follow-up to that book.

Author Paul Midler:



I had high hopes for this one, given how good Poorly Made In China was. Thankfully, I can say that it was just as good - if not better.
The book is full of very interesting writing; there are many excellent quotables here. Actually, most of the book could be one gigantic quote...
Midler writes on the somewhat comically-tragic SNAFU of daily business life in China with a deadpan style; to amazing effect. The writing is extremely engaging and interesting, as well as hilarious. I love the tongue-in-cheek humor he used here. A great style, to be sure!

What's Wrong with China details a society with extremely low social trust:

"...We sometimes forget the extent to which civilization rests upon a foundation of trust. The Pony Express would not likely have popped up first in China, a nation where the sender traditionally did not dare hand over a letter for which the postage was already paid in full. How to know that a courier would be sent to make the delivery? Where one can pocket the fee and spare the cost of sending a man, surely some delivery companies would take advantage. A cash-on‐delivery arrangement might have solved that problem but then the courier would have to contend with the possibility that after going to the trouble of delivery, it might get stiffed at the other end.
China's solution to the problem, as reported by Herbert Giles, was to establish a hybrid payment formula. Writing in the 1870s, he detailed the setup that balanced the risks held by each party: “About thirty percent of the postage is always paid by the sender to secure the office against imposition and loss,” he explained. “The balance is recoverable from the person to whom the letter is addressed.”

While this is somewhat tragic, the writing here makes for comedy gold:

"...After a meeting with a Guangdong manufacturer one summer afternoon, an American buyer made the mistake of mentioning to me —within sight of his supplier—that he had done much better than expected. The factory boss picked up on his customer's smile and ebullient mood and followed up the next morning by informing us that a mistake had been made and that an updated price sheet was being prepared.
Chinese factory owners hate to see their customers happy, because it means that money has been left on the table. In any given ongoing venture, each time the buyer has settled into a new reality, renewed attempts are made to ratchet up prices or to make other tweaks to the deal that are advantageous to the seller. The buyer's response is continually gauged with facial expressions, tone, and body language all monitored for meaningful clues. At the mention of a price hike, a buyer might squirm, but that is rarely enough of a response to get the seller to back off. These industrialists are unmoved by such subtle signs of discomfort, just as they are unsympathetic to logical appeals. The only signal that properly registers with them is an expression of writhing pain, and many are accustomed to laying off only just short of the customer blowing a gasket..."

Midler intersplices the stories here with quotes from historical writings; taken from many previous foreigner's experiences in China. Reading them was both hilarious and interesting at the same time. This book is literally full of incredible stories that were extremely eye-opening, especially for someone not fluent in Scinic culture:

"... At the Elephant & Castle pool-and‐darts pub in Guangzhou, an American importer named Jerry told me a story about a plywood deal. After placing a deposit with a known supplier, he waited the requisite six weeks before ringing the factory to arrange the shipping container. There was a small problem, the factory told him. The goods had been prepared and were sitting in the warehouse when another buyer saw the wood and asked if he could pay cash and take immediate possession.
“You understand, it was my wood,” Jerry said. “They sold my wood to this other guy, and I had to wait another six weeks to get my order filled.”
Jerry said he would not have minded, but his customer was so irate about the delay that he almost lost his business.
“Sounds terrible,” I said to him.
“It's all right,” he said. “The factory was so happy with how much they were able to get from the other buyer that they offered me a five percent commission.”
“A five percent commission? — On your own wood? — That they sold to someone else?”
“That's China for you,” he said. “They screw you and then bring you in as a partner on the deal...”

I would definitely recommend this one. An easy 5-star rating here.

[Daniel · Rating 3 out of 5]

This is a book about all the problems of China and Chinese people. Do not read this book if you cannot stand politically incorrect statements, or if you want a balanced discourse of China. This is a book strictly about the problems of China. There are 2 parts of the book.

The first part of the book is about all the terrible traits of the Chinese suppliers in their dealings with Western companies. Chinese suppliers supply subpar products, make copies of clients’ goods to sell to other places, are nice at first but turn nasty when they think they have the upper hand, and sometimes cheat their clients outright. They are unethical but does not even acknowledge it. Foreigners in China can get so exasperated by the Chinese that they can get angry and start annoying the locals on purpose (like Midler himself had once). A couple even broke up in the China leg of their world trip because they were so exasperated by the locals.

Midler wrote that all the terrible traits are racial in nature. That is of course rather offensive as it is blatant racism. Later in the book he contradicted himself and said that Westerners much prefer to do business with Chinese people in Hong Kong and Taiwan.

It is indeed hard to please Midler. Once he opened a bank account in his Chinese name. Then he was unable to withdraw money because the name did not match his passport name. In the end the manager helped him get his money and all he could think of was why the system allowed him to make that mistake in the first place. Not much gratitude there.

The second part of the book is continued attack of China: China does not want to lead. China takes on too much debt to boost its economy, and now is even lending money to build its Belt and Road initiative. China is not really using technology in its factories. China swallowed its invaders while, such that Manchurians became fully absorbed into Han China. Midler thinks that China could not fight, ignoring that China was the decisive factor why America did not achieve victory in the Vietnamese and Korean War.

Oh this book goes on and on about why the West is superior to China. He went into history and said that the West has forgotten about the foreigners killed in the Boxer’s revolution, forgetting to mention that in retaliation 8 countries attacked China and killed a lot more Chinese. If Midler is even a bit more balanced this would have been a great book.

All I want to ask him is, if China is so beset with problems, why do you stay there for so long?

[Ryan · Rating 5 out of 5]

An interesting, educational, and depressing read, largely about how Chinese contract manufacturing worked in the late 1990s to early 2010s. Essentially -- Chinese vendors have a different view of an optimal business relationship than most other global vendors, and will seek to maximize profit by actively cheating their counterparties once a relationship has been established, even if it puts that relationship at risk -- substituting inferior materials, workmanship, or stealing and reselling product, even if the gains from doing this are relatively small compared to the overall value of relationship. Also, that legal and other conflict resolution is much more compromise-based vs. one side or the other decisions, even when one side is unambiguously at fault. This behavior was not entirely unique to China, although much more prevalent in China than in other economies at similar stages of development, and has reduced to some degree as Chinese companies become actual leaders in their markets.

[Ben · Rating 5 out of 5]

A recommended read for anyone who does business in China.

The most eye-opening book on China I've read since We Have Been Harmonized: Life in China's Surveillance State.

I'd highly recommend both books.

This book is filled with some really fascinating realizations.

I learned so much.

4.8/5

[Neil H · Rating 4 out of 5]

Wow! I have always had this sinking feeling of not understanding the Chinese. They seem like an oxymoron. Paul M has written a startling book to divide readers. I was appropriately defensive when the criticism come fast and heavy on certain characteristics about the Chinese in the first better portion of the book. But, I took a step back and asks myself if this is plausible behavior and have to admit that there are resonances which I have experienced as a Singapore born Chinese and could relate to his descriptions. His first book was a primer. This is a more considered attribute to the fascinating cultural paradox that is China. I can sense a decidedly frustrated Paul on the disconnect perceived as to how the Chinese just needs more time to be cosmopolitan minded. More love your neighbors as opposed to stuff my pockets full in spite of your protestations. I enjoyed this work a lot. It gives a more than a required semblance to how I've felt were the indecipherable traits that confuse and confound about the Chinese. In Singapore and Malaysia, we have this description of Kiasuism. Which is the harried rush not to lose out. However, what I do found wanting is the lack of perspectives as an ally, friend or confidante conversation with the Chinese. Also missing is the engagements for service related or science heavy industries to get a more diverse opinion if they have the same proclivities. Thank you for this and the reminder that we all play a different ball game with China seeming to wring all rules of propriety.

[willy · Rating 4 out of 5]

this is probably the perfect book for anyone planning to go to china short or longterm. or anyone interested in china period.

it's essentially one massive information dump analyzing all kinds of cultural behaviours from an outsider perspective. from the tiniest little tick you've probably noticed but hadn't been able to make sense till now, to the grandest of historical analogies that are engrained from a young age, this is a china watchers life worth of notes on the chinese as a people.

i learned tons of new stuff thanks to this book. one of the biggest reveals in scale is probably the whole opium war situation, and how china may have themselves more to blame than anyone, after all. also the whole thing about how they deem themselves physically more resilient to environmental factors, and how that may even be sort of supported by outside opinions.

audiobook. took me quite a while, this one. put it on whenever i headed out

[Tralala Tralala · Rating 5 out of 5]

Read this after reading "poorly made in china". Very interesting read, in that the book offers a counter narrative to mainstream western coverage that somehow always paints china in a glowing light.
I deal with Chinese suppliers and as such, I'm interested in keys to understand behaviors, relationship dynamics and the likes.
Books are one sided, as you only get to read what the author wants you to. And with history being written by victors, even history books offer narratives with varying truthfulness.
This one sidedness is my only gripe with this book, as the author spent a good chunk of his life in China, but sounds negative throughout, which raises questions around why he finally left China, when, what is he up to now?
In China he was a fixer, so by definition, he only saw the ugly side of business dealings. And from this experience, he fashions himself, and he's clearly out of his depth, as historian, sociologist, policy analyst, economist.
So, I only wish he'd give more context and more balance, because the whole thing is just so negative that you start wondering if there's a hidden agenda, if he isn't too bitter for some reason to be a reliable narrator, and so on.
I guess, take this book with a grain of salt. But if you lose your shirt dealing with Chinese businessmen, don't come crying saying nobody told you: there's a very extensive blueprint in this book that ought to be read and understood. Sometimes you do have to blame the players, not just the game

[Shiyun Lu · Rating 3 out of 5]

I started reading this book after I saw the author Midler’s comment on a SCMP book review of his own book. In his comment, Midler accused the critic of having reading comprehension problems, asked the critic to give up reading altogether, and expressed his disappointment at the SCMP editorial for approving the publication of the book review.

The book didn’t disappoint. I finished this entertaining piece in two days. It’s just like reading a bookfull of stand-up comedy sketches.

[Juan Cook · Rating 5 out of 5]

This is an amazing book which reveals the true nature of the Chinese character. It is essential reading for anyone who is involved to any degree with China. Paul is a great writer and has turned a factual book into a page turner.

[Mike Sherman]

Interesting and valid insights into China and the Chinese culture. Rings true for those who have experienced China as an expat. Good follow on to Paul's last book: Poorly made in China.

[David · Rating 5 out of 5]

I was initially interested in this author's earlier book Poorly Made in China published in 2009 but it wasn't readily available from our library. But his new book, What's Wrong with China published in 2017, popped up so I checked it out. I think this book is somewhat of an update to his earlier book. I was initially curious about the material but didn't have high expectations. Having said that, it ended up exceeding all of my expectations and I learned quite a bit about dealing with China. We had previously traveled to China several times and visited the main tourist attractions such as Great Wall, Forbidden City, Xian with Terra Cotta Warriors, Hong Kong, Shanghai, etc. We had seen all that we wanted to see and were a bit put off by some of the dealings we had at that time too lengthy to get into. Recently we have begun to look into potential business dealings with China and this book is focused heavily on business dealings with China with examples of customs and other aspects of Chinese businesses. A lot of the things we had experienced that left a negative impression on us were presented and explained in this book. If you are interested in China generally or are or plan to do business in China, reading this book will be helpful.

[Strong Extraordinary Dreams · Rating 4 out of 5]

A large collection of anecdotes and lived-experience about the semi-functioning of the Chinese society. Start with "zero trust" go to "money obsessed" carry on to "culturally non-existent" and, if you stay on that road, you will find this book's contents.

Not 'balanced' just: "This is how bad it is. Stand back". A very enjoyable read.

[N · Rating 3 out of 5]

An interesting read. Part anecdotal and part analysis (but superficial analysis).

[Sean · Rating 4 out of 5]

China may not be all that she presents, thank god.

[Joshua · Rating 3 out of 5]

Fairly entertaining read about why China is the way it is. My main takeaway is their problems go beyond the shit the communist party did.

[Ivan · Rating 5 out of 5]

The stories and research here are very good and I would recommend it to anyone seeking a better understanding of China.

[Alexander · Rating 5 out of 5]

Illuminating and Insightful

This book is a must read for anyone who plans to do business in China. I wish I had read t before I ever made a purchase on Ali Baba.

[Sarah · Rating 4 out of 5]

Fascinating, but far from unbiased.

[Anton Golovko Hjälm · Rating 2 out of 5]

Författaren vill uppenbarligen skriva en akademisk bok, men använder aldrig riktigt bevis för att backa upp hans ganska förbryllande generaliseringar.

[Michael · Rating 5 out of 5]

This is the best book about China. Every world leader should read this book.

[John · Rating 1 out of 5]

westerner shows up to exploit and is shocked that China doesn’t comply.
“why would they try to take my money 😢 and take advantage of my need of their manufacturing, i see no possible historical or modern reason why they try to rip off westerners, must be they are culturally inferior”

absolute garbage. Opens with the claim that china was responsible for the opium wars, and continues with such hot takes as:
“chinese look at two contradictory positions and attempt to unify them. this is bad” or “i don’t know what dialectical materialism is”.

what else? man idk this really reads like a big fat bald white dude bitching about the country he is in not catering to his whims while sweating through his old navy top.

oh - all his examples of Chinese culture being naturally greedy and dishonest (this is actually something he says) come from pre revolution. like he says “mainland chinese in 1890” as if Taiwan, HK, ect where culturally distinct prior to the 30s. (i mean they were but in a different way)


man needs some reeducation.

[Tobi ﾄﾋﾞ · Rating 1 out of 5]

why was this published. how was this published. ew