The CoStone Reader Recommends Vol. 21



    This is maybe the most serious volume of CoStone Reader Recommends. These books happen to reflect what we are going through now. The turning points of world’s economy, politics and culture have come. The dramatic changes of China-US relations have opened the Pandora’s box. The overwhelming pandemic is ravaging the world in a way that no one could have foreseen, which brings more uncertainties.

    As Yuval Noah Harari, the author of Sapiens, said, “Humankind is now facing a global crisis. Perhaps the biggest crisis of our generation. we face two particularly important choices. The first is between totalitarian surveillance and citizen empowerment. The second is between nationalist isolation and global solidarity.”

The virus will accelerate the collapse of the previous world order. The world we will live will largely depend on the new world order. But one thing is certain that – we will prevail.



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Why Nations Fail: Origins of Power, Poverty and Prosperity

By Daron Acemoglu and James A. Robinson


    Brilliant and engagingly written, Why Nations Fail answers the question that has stumped the experts for centuries: Why are some nations rich and others poor, divided by wealth and poverty, health and sickness, food and famine? The authors believe that a more inclusive economic system emerged in the reform and opening up contributed to the 40-year fast growth of China. China’s mode is not the major driver. China’s success largely depends on the power of markets, vitality and creativity of its society, which is in line with western countries.



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The Wrong Road of the Country: The Mystery of the Destruction of the Japanese Empire

By Ma Guochuan


The mainstream believes that Japan is a mirror and a whip of China. Japan here refers to the modern one after Meiji Restoration. However, Japan, the one which has taken the wrong road, can be more alarming. Reading this period history can be tough and heartbroken. The road ahead is always rough. As what the author puts it in this book, “Modernizing a country is tough. Boldness and courage can avoid the wrong road. As a latecomer in world, one should maintain rational and get rid of irrational nationalism.”




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The Roots of American Order

By Russell Kirk


    In 1970s, the United States was daunted by the Vietnam War. The Nixon government resigned out of scandals. Classrooms became chaotic hells. It was a mess. Kirk examines in dramatic fashion the sources of American order. He went to Jerusalem, Athens, Rome and London and read thousands of years of history, for an understanding of the significance of America in the twenty-first century. All effort is put in this book which reveals the solutions to maintain freedom and prosperity of America.

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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