The Bro Code: Booze, Sex, and the Dark Art of Dealmaking in China

But the purpose of these visits isn’t a good time. It’s to cement business and personal ties, binding men together through the power of taboo and mutual self-exposure, or at least the pretense of it. It lets them judge that the others involved in a potential deal are men of the same stripe.

.. In part, the power of the experience comes from the mutual pleasure of shared transgression, the feeling of a shared secret. Like schoolboys’ playing hooky, being bad together moves a relationship along fast. As one saying that went rapidly around the Chinese Internet in 2011 put it, “It’s better to do one bad thing with your boss than a hundred good things for your boss.”

.. But vice serves as a kind of screen, weeding out the rare few who might have moral qualms about future dealings. It tells both sides that they’re playing by the same rules.

.. Businessmen who convert to evangelical Christianity and make a commitment to avoid vice or bribery describe sharp business losses as a result, as former partners turn away from them, fearful of their newfound probity.

.. His companion, heavily tattooed and with the build of a thuggish Buddha, nodded. “I wouldn’t trust a man I didn’t drink with,” he said.

.. In a society where trust of strangers is minimal, contract law is fragile, contracts themselves regarded more as guidelines than binding commitments, and the civil courts largely swayed by personal influence rather than legal right, the shared fraternity of the night out is one route to trust between partners.

.. Many institutions, especially State-owned enterprises, maintain staff whose job is effectively to be professional drinkers, sacrificing their livers for the sake of the firm.

.. As Zheng details in her book, getting overly sentimental or romantic toward women is seen as a sign of weakness and lack of masculinity. If a businessman is unfortunate enough to love his wife or girlfriend, using it as an excuse to avoid sex is a massive faux pas.

.. But in China colluding with officials is a necessity, not an anomaly. For local businesses, a connection with the government is vital to protect themselves from predatory officials exploiting the country’s haze of regulations. Regular pay-offs are as ubiquitous as income tax elsewhere.

 

Saving in China because there is no safety net

But similarly, wealth can simply be an indication that there’s no social safety net. The Chinese have been climbing up the global wealth rankings faster than they’ve been climbing up the global income rankings because they have a huge savings rate: they save between 40% and 50% of their income. In this case, “saving” money means lending it to financial institutions of dubious solvency.

China’s Brave Underground Journal

Wu is a trim sixty-three-year-old who favors denim shirts, leather jackets, and black baseball caps. He is also a cautious man, who positions himself as a just-the-facts recorder of history. “I simply write true things,” he told me, as the visitors pulled up chairs to a big wooden table, pouring themselves tea and cracking sunflower seeds. “No one says you can’t sit in your own home and do a little research in history.”

.. It’s hard to overstate how politicized history has become in China, where politics and tradition give it a mythic, taboo quality. Communism itself is based on historical determinism: one of Marx’s points was that the world was moving inexorably toward communism, an argument that regime-builders like Lenin and Mao used to justify their violent rise to power. In China, each succeeding dynasty wrote its predecessor’s history, and the dominant political ideology, Confucianism, is based on the concept that ideals for ruling are to be found in the past, with the virtuous ruler emulating them.

.. The unstated reason is that Mao isn’t just China’s Stalin—someone whom the Soviet Union could discard because it still had Lenin as a less tarnished founding father. For the Communist Party of China, Mao is Stalin and Lenin combined; attack Mao and his era and you attack the foundations of the Communist state.

.. “How can you tell a country’s condition?” he said. “By the virtue of its leaders.” Virtue, he said, means being not corrupt. If leaders are not corrupt, they are virtuous. If they are virtuous, they should be respected.

The People’s Daily editor laughed and shrugged, as if he were listening to one of his newspaper’s circular editorials. “The usual line from Chinese tradition—everyone should be respected and virtuous,” he said. “But what to do if the leaders aren’t virtuous? I guess you’re supposed to figure it out yourself.”

.. Wu and Dai’s rule of thumb, however, is that history stops in 1978, which is when Deng Xiaoping ascended to power and established the current political system of economic and social liberalism, but strict political control. That means Remembrance avoids sensitive contemporary issues such as the 1989 Tiananmen massacre—a report on it would guarantee the editors’ detention and Remembrance’s closure.

.. I asked Dai if Remembrance had a kanhao, the government-issued registration that all periodicals must obtain to be legal. “No, but we aren’t a publication,” she said. “We are just a PDF newsletter that goes out to just two hundred people.”

According to arcane rules that everyone accepts but whose origins no one knows, China’s public security classifies e-mails to fewer than two hundred people as a private distribution list; anything more is a publication, which means censorship and oversight.

Why do Chinese political leaders have engineering degrees whereas their American counterparts have law degrees?

The authors looked at mayors and Party secretaries of cities of over a million (of which there are today some 165); governors and provincial Party secretaries of China’s provinces, autonomous regions, and province-level municipalities; and Central Committee members, and found that by the time of writing there were already more than 80% technocrats (that is, putative or actual office holders with four-year degrees or more in the natural sciences or engineering). Just look at recent politburo Standing Committee membership: In the last two Standing Committees, I believe all but 1 were all engineers.

.. An avid  supporter of technocracy, Qian even said that he believed governments  should be run essentially like an engineering department. The notion that economic, social, and even fundamentally political problems could be approached with an engineer’s problem-solving mentality seemed somehow to resonate in China, and was largely unchallenged.