The Independent Market Observer

On China, by Henry Kissinger—A Book Review

Posted by Brad McMillan, CFA®, CFP®

Find me on:

This entry was posted on Jul 20, 2012 11:14:31 AM

and tagged Commentary, On My Bookshelf

Leave a comment

One of my newly adopted habits, as I discussed in my “Good Habits” post a few days ago, is to read a chapter a day from a book that covers something I want to know more about. Given the major role China plays in how the world is evolving, I had become fairly current on the Chinese economy, but I had no in-depth knowledge of the country itself.

I still don’t, really. What I do have is a much better sense of the political and historical context in which China makes decisions. I would describe Henry Kissinger’s On China as applied history—history applied to an understanding of how a country is likely to act in the future . . . and why. In that sense, it succeeds well.

It also succeeds well in conveying a sense of the personalities in place, along with the reasons for their past actions. Add in Dr. Kissinger’s eye-witness accounts of many of the meetings and conversations that occurred over time, and you get a sense of how and why different people and positions evolved. In my opinion, no one in the West is better suited to write such a book than Dr. Kissinger, who spent decades traveling to China and meeting with its leaders.

The book is not perfect. It reminds me, in some sense, of Churchill’s World War II histories, in which everyone worked together as a band of brothers; when differences existed, they were ones of opinion, not personalities. It would have been useful, I think, to further develop some of the policy clashes on the U.S. side as a way of providing additional insight into the context of Chinese decision-making. This is a small quibble, though.

Last year, I had a chance to speak briefly with Dr. Kissinger on China, and, despite my high expectations, I was still incredibly impressed with the clarity and scope of his answers. This book added considerably more to my understanding of how China perceives the world and makes decisions, and it will inform my analyses going forward. I wanted a lot from this book—and I got it. Recommended.


Subscribe via Email

Crash-Test Investing

Hot Topics



New Call-to-action

Conversations

Archives

see all

Subscribe


Disclosure

The information on this website is intended for informational/educational purposes only and should not be construed as investment advice, a solicitation, or a recommendation to buy or sell any security or investment product. Please contact your financial professional for more information specific to your situation.

Certain sections of this commentary contain forward-looking statements that are based on our reasonable expectations, estimates, projections, and assumptions. Forward-looking statements are not guarantees of future performance and involve certain risks and uncertainties, which are difficult to predict. Past performance is not indicative of future results. Diversification does not assure a profit or protect against loss in declining markets.

The S&P 500 Index is a broad-based measurement of changes in stock market conditions based on the average performance of 500 widely held common stocks. All indices are unmanaged and investors cannot invest directly in an index.

The MSCI EAFE (Europe, Australia, Far East) Index is a free float‐adjusted market capitalization index that is designed to measure the equity market performance of developed markets, excluding the U.S. and Canada. The MSCI EAFE Index consists of 21 developed market country indices.

One basis point (bp) is equal to 1/100th of 1 percent, or 0.01 percent.

The VIX (CBOE Volatility Index) measures the market’s expectation of 30-day volatility across a wide range of S&P 500 options.

The forward price-to-earnings (P/E) ratio divides the current share price of the index by its estimated future earnings.

Third-party links are provided to you as a courtesy. We make no representation as to the completeness or accuracy of information provided on these websites. Information on such sites, including third-party links contained within, should not be construed as an endorsement or adoption by Commonwealth of any kind. You should consult with a financial advisor regarding your specific situation.

Member FINRASIPC

Please review our Terms of Use

Commonwealth Financial Network®