It seems that many so-called China experts try to enhance the value of their services by attributing a certain amount of "inscrutability" to the Chinese that only they can decipher. Besides being a patently offensive assertion, this is also grossly misleading.

At least in terms of economic issues, there is little mystery about the Chinese approach to doing business. It can be understood as being shaped by two decipherable and predictable realities. First, the system of authoritarian rule can be described as feudalism with Chinese characteristics. Second, much of the leadership continues to rely upon instincts guided by years of exposure to Marxism. In turn, the contrived notion of "market socialism" reflects the Chinese version of a Third Way so avidly sought by European social democrats like Tony Blair.

A good starting point is to remember that China's ancient and modern history is marked by what is essentially imperial rule. With brief interludes that include flirtation with democracy under Chinese President Sun Yat-Sen and chaos under warlords, each successive Chinese leader has assumed power as the head of a highly centralized imperial government that perpetuated a feudal relationship with its citizens. In effect, the destiny of citizens depends upon how they serve the plans of their political masters.