Dealing with China by Henry M. Paulson Summary

Dealing with China offers an insider’s perspective on U.S.-China economic relations, drawing on Paulson’s experiences as Goldman Sachs CEO and U.S. Treasury Secretary. It explores China’s economic reforms, banking system challenges, and environmental sustainability efforts, emphasizing pragmatic diplomacy over ideological clashes. The book highlights key moments like China’s refusal to destabilize U.S. markets during the 2008 crisis and Paulson’s conservation initiatives.

This book suits policymakers, business leaders, and students of international relations seeking insights into China’s state-controlled capitalism and U.S. diplomatic strategies. It’s particularly valuable for those interested in economic negotiations, cross-border environmental collaboration, or understanding China’s role in global financial stability.

Yes, for its rare blend of firsthand diplomatic accounts and analysis of China’s economic rise. Paulson’s access to Chinese leadership, including three heads of state, provides unique perspectives on topics like banking reform and climate collaboration. Critics note it occasionally glosses over human rights concerns, but its pragmatic approach remains influential.

Paulson advocates for cooperation over confrontation, stressing shared interests like financial stability and environmental sustainability. He details the Strategic Economic Dialogue (SED), which addressed currency policies, trade imbalances, and energy security. The book credits trust-building through initiatives like Goldman Sachs’ early investments in China’s capital markets.

As chairman of the Nature Conservancy, Paulson prioritizes climate collaboration, arguing U.S.-China partnerships are vital for wetland preservation and carbon reduction. The book links environmental sustainability to economic stability, showcasing projects like coastal ecosystem protection and clean energy investments.

Some critics argue Paulson underestimates systemic challenges like China’s political rigidity and human rights issues. Others note his narrative centers elite interactions, downplaying grassroots economic struggles. However, his focus on actionable diplomacy over idealism is widely praised.

Unlike theoretical analyses, Paulson’s book emphasizes practical deal-making from 70+ China trips. It complements Henry Kissinger’s On China by focusing on post-2000 economic diplomacy, while offering more private-sector insights than official memoirs.

• “Finding ways to say ‘yes’ to China’s reforms”: Paulson’s strategy for fostering incremental economic progress.
• “Shared challenges demand shared solutions”: His argument for U.S.-China climate collaboration.

With ongoing U.S.-China tensions over trade and climate, Paulson’s lessons on crisis management (e.g., 2008 collaboration) and long-term relationship-building remain critical. The book’s framework helps navigate modern issues like AI competition and green energy transitions.

His 32-year Goldman career, including pioneering China market entry, informs analyses of state capitalism and financial reforms. The book reveals how Goldman’s early trust-building with Chinese officials enabled later policy breakthroughs.

1. Pragmatism over ideology: Tailor strategies to China’s unique political context.
2. Long-term trust: Prioritize relationship-building during stable periods for crisis resilience.
3. Cross-sector collaboration: Link economic and environmental goals for mutual benefit.

Paulson acknowledges challenges but argues economic engagement can spur gradual reform. The book details compromises like accepting state-owned enterprises’ dominance while pushing transparency in banking and environmental policies.