The CoStone Reader Recommends Vol. 17



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China: Market Economy or Planned Economy

By Xu Xiaonian

    Professor Xu Xiaonian is an old friend of CoStone. He delivered an outstanding speech on how to overcome middle income trap at our annual meeting. He said in the speech that economic downturn would bring enormous wealth, which is what we are experiencing. China: Market Economy or Planned Economy is another classic of markets he publishes as a supporter of market economy. Professor Xu Xiaonian prefers liberalism. He worships markets, property rights and entrepreneurship in keeping with Adam Smith and Haye, and is always cautious about Keynesian economics and big government.



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The Great Flowing River: A Memoir of China, from Manchuria to Taiwan

By Chi Pang-yuan

    Professor Chi Pang-yuan is a highly respected scholar, educator, writer, and translator in Taiwan. Her memoir, The Great Flowing River, is a best-seller that won critical acclaim both on mainland China and among overseas Chinese communities. Her story reflects the regrettable reality of our nation and ethnic groups. It is a story that can breathe because of the homesickness of drifting people and the vicissitude of a nation in it.



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The Story of Art

By E.H. Gombrich

    The Story of Art is one of the most famous and popular books on art, written by E.H. Combrich, the tutor of most historians on modern art. It tells the life stories of various artists. Quoted from Gombrich, “There really is no such a thing as Art. There are only artists.” Gombrich’s venerable work has inhabited a unique niche, having been created specifically for newcomers to art. One should not spend all his or her time on making money. If possible, one needs to listen to a wonderful song, read a beautiful poem and enjoy a delicate painting.



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Liushen Leilei Reading Tang Poems

By Liushen Leilei

    Liushen Leilei believes that he is a rebellious person who will “scale the walls of Tang poems and bring back the fresh blossoms”. With passion and compassion, he spares no effort to dispel the myths surround us and take readers back to the times when the poems were flourishing. The spirits of ancient poets shine through this book and enlighten readers.




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Misbehaving: The Making of Behavioral Economics

By Richard H. Thaler

    Misbehaving is Thaler’s arresting, frequently hilarious account of the struggle to bring an academic discipline back down to earth and change the way we think about economics, ourselves, and our world. He reveals how behavioral economic analysis opens up new ways to look at everything and enlightens listeners about how to make smarter decisions. Misbehaving also presents the living application of behavioral economics in life.




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The Era of Watermelon Eaters
By Liu Zhenyun

    “Eating watermelons” which means sipping tea in English, has been an Internet buzzword. Written in humorous and ridiculous words, you can tell that it is a typical literary work of Liu Qingyun. The Era of Watermelon Eaters tells a story of four strangers who happen to be the game changers. With clarity and simplicity, this book is suitable for readers at all ages. It offers a profound understanding on the reality we are facing.

Rewritten by: Luo Xinying, Edited by: Du Zhixin, Wei Yiyi

The year 2019 marks the fortieth anniversary of China’s Reform &Opening-Up, once again, we meet at the turning point of history. What’s the next step for the game, is there any clear guidance? The answer is affirmative.

Our country is enjoying a good momentum of development, which does not come from the Washington Consensus nor the Beijing Consensus. China’s experience has proved that both the visible hand and the invisible hand are crucial: the visible hand, stands for the government-led reform, and would yield benefits for reform and opening up; the invisible hand, stands for the Marginal Power represented by the private sector, and would improve economic efficiency and tax collection, create jobs and employment opportunities.

Provided that we want to protect and expand the benefits form reform, three simple but mandatory agreements are to be made and followed: No.1 Private ownership must be recognized, protected and treated equally with public ownership constitutionally, both ownerships are scared and inviolable;No.2 Make further clarification of the principal position of market economy, “deepen economic system reform by centering on the decisive role of the market in allocating resources”, as President Xi addressed in the third Plenary Session of the 18th CPC Central Committee;No.3 Implement the guiding principles of “comprehensively promoting law-based governance” of the fourth plenum. The rule of law is essential for economic growth, irreplaceable to protect private ownership, and necessary to encourage innovation and entrepreneurship.

Above are three rules for us to avoid falling into the Middle-income Trap. Assuming that we are breaking systematic barriers to private enterprises’ participation in market economy, and boosting innovation and entrepreneurship of our society, then we are heading towards a promoting direction. We are marching in the path of light, regardless of the ups and downs of Sino-US relationship, the drop in GDP growth rate, or the monetary policy.

These principals also apply on knowing how better to run a business: don’t be hedged by rules and regulations at the beginning, pay more attention to your survival, and you’ll learn more when you start your second business.

For many years, Huawei has been the only Chinese company on the list of the Top 50 R&D Spenders. Regardless of the economy and its income, what Huawei has been doing is investing in its future, dedicated to R&D, continuously and resolutely. This provisional work underscores Huawei’s accomplishments, making Huawei anindustry leader.

So, there are standard answers on how to run a company,which could be summarized as concentration and professional dedication, continuous investment on innovation and trying harder in R&D. Entrepreneurship is also important, every single company needs entrepreneurs to push aside all obstacles and difficulties, to implement strategies and ideas. We, as investors, are destined to look for such outstanding entrepreneurs and their companies, invest in them and partner with them.

At this key point of history, a country, a company, or asingle individual, will all need to find the right path. Four decades after the Reform and Opening-up, it’s time to learn from our experience and stop “wadding across


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