Myths and Lessons of Modern Chinese History

William C. Kirby; Brittany  Crow

Background Note | HBS Case Collection | November 2007 (Revised February 2009)

Myths and Lessons of Modern Chinese History

Abstract

China is an ancient civilization, but it is really a very young country. How we understand modern China is rooted in our understanding of history. Thus, the authors examine several myths surrounding important historical themes, including unity, economic and political isolation, the growth and development of capitalism, internationalization, and governance. Following the dispelling of these myths, the authors then examine several lessons of more recent Chinese history, exploring where this young country has been in its first century.

Keywords: Economic Systems; Globalization; Government and Politics; History; China;

Format: Print

14 pages

Educators Purchase

Citation:

Kirby, William C., and Brittany Crow. "Myths and Lessons of Modern Chinese History." Harvard Business School Background Note 308-065, November 2007. (Revised February 2009.)

After the legendary founder of Taiwan Semiconductor Manufacturing Company (TSMC) retired, the new chairman had to grapple with fresh challenges related to its China market. A recently opened factory in China had to find ways to reverse its financial loss and meet its full capacity; one of its major Chinese customers was facing sanctions by the U.S. government; China was investing billions of dollars in building its own powerhouse to compete in semiconductor production. The transition from 4G to 5G technology in the telecommunication industry, and the U.S.-China trade war also added to the uncertainties facing TSMC. What had changed in the competitive landscape for TSMC, and how should it respond to the changes? What were the options for the company in doing business with China, when the country had become both a customer and a competitor?

In the early 20th century, the University of Hong Kong (HKU) was established in order to serve as a bridge between mainland China and the British Empire. As an elite institution in the 21st century, HKU continued its role as a bridge, connecting mainland China, Hong Kong, and the world, but in a very different global context. President Peter Mathieson believed that HKU still had an important role to play but knew that HKU needed to adapt to China's growing global presence and the increasing influence of mainland Chinese universities. Mathieson needed to break through institutional complacency and unite HKU's oft-divided students, faculty, and administration behind a plan that would allow HKU to thrive in a landscape in which it competed not only with other institutions in Hong Kong, but also with the increasingly strong key universities in China as well as with leading institutions around the world. Would HKU be able to maintain its position as a top institution linking East and West in an increasingly connected and complex global society?

The rapid growth in quantity and quality of universities in China since 1978 is the most recent evolution in a long history of higher education. From as early as the Tang Dynasty, academies existed to prepare scholars for the civil service examination, but by the Republican period, higher learning was dominated by a host of well-regarded, cosmopolitan, comprehensive universities. In 1952, these institutions were reorganized according to the Soviet model and remained highly specialized until the resurgence of comprehensive institutions after 1978. This background note describes this history and then elaborates on the system of higher education since 2000, focusing on university governance, funding, faculty policy, admissions systems, and internationalization. It concludes by looking at the tightening of ideological control in universities since 2012 and reflects on the potential for China to establish "world-class" universities.

Faculty & Research

Myths and Lessons of Modern Chinese History

Abstract

Citation:

About the Author

More from the Author