5 Misconceptions about China

Some of the most common misconceptions about China:-

1. Chinese culture is collectivist.
2. China has a centralized government.
3. China is a young nation.
4. The stock market in China is decoupled from the American stock market.
5. China is the world's biggest exporter.

Rationale/ conclusions :-

1. Chinese culture is collectivist
Different parts of China are trying different things to find the best formula. China does not have a grand plan for developing itself. It's very conscious that it's running the society as a series of experiments.

2. China has a centralized government
The process of evolution is experimentation. There is a lot of decentralisation in the process.The way this is moving forward is really a bottom-up process in which different localities will be doing different things.

3. China is a young nation.
China's economic emergence is unprecedented over the years in size, speed and scope and the South Korean "chaebol" model comes closest among the four to the type of capitalism ( i.e. US, Germany, Japan and South Korea) that may emerge in China. South Korean chaebol model would be dominated by large conglomerates that are not effectively family-owned anymore, but definitely family-controlled.

4.The stock market in China is decoupled from the American stock market.
Importantly, the difference in size makes China much more difficult to manage. China isn't sealed off from the rest of the world. Business in China is part of a complex global trading system that provides more different opportunities to progress.

5.China is the world's biggest exporter.
It will change extremely slowly particularly moving up in the value chain . The facts of the dependence on external innovation are very clear. In high-tech industries, 80 per cent of China's exports are from foreign companies including US. For high technology, China depends upon inputs and knowledge.