Live from London | Yasheng Huang on the Origins of Modern China
Dec 23, 2024
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Join MIT Professor Yasheng Huang, an expert on modern China and author of influential works, as he dives into fascinating aspects of Chinese history. He tackles the Needham Question, revealing the paradox of ancient innovations and modern stagnation. Discover how footbinding links to technological decline and why increased Buddhism spurred inventions. Huang shares personal reflections from the Tiananmen Square protests and discusses economic reforms versus political setbacks in the 1980s, shedding light on contemporary China's ongoing challenges.
The Needham Question re-examines China's historic inventions and why they did not lead to an industrial revolution unlike in the West.
The Keju examination system fostered meritocracy but stifled creativity, leading to a long-term stagnation in China's technological advancement.
China's economic challenges today stem from a reliance on scale over diverse perspectives, underscoring the need for innovative approaches to growth.
Deep dives
The Needham Question and Its Relevance
The Needham Question, posed by British biochemist Joseph Needham, seeks to explain why, despite numerous significant inventions, China did not experience its own industrial revolution. The original inquiry focused on the disparity between the West’s rise and China’s decline, framing the question within a comparative context. However, a rethinking of this question emphasizes understanding China's historical advancements and what led to its later technological stagnation. This new perspective offers a more profound inquiry into China's past and its implications for the present.
The Impact of the Keju Examination System
The civil service examination system, known as Keju, introduced in sixth-century China, revolutionized the recruitment of government officials by emphasizing merit over aristocracy. While it fostered a culture of learning and hard work, it also limited creativity by standardizing success metrics around narrow ideological frameworks, specifically Confucianism. This rigidity hampered innovation as it concentrated intellectual efforts on passing exams rather than encouraging diverse thought. Consequently, the narrow focus of the exam system led to a stagnation in technological advancement over time.
Understanding Scale vs. Scope Economics
The concepts of scale and scope are essential in analyzing the economic successes of different countries, particularly China and the United States. Scale economics, where larger production leads to decreasing average costs, is an area where China excels due to high literacy rates and centralized systems. Conversely, scope economics emphasizes the value of diverse perspectives and innovative approaches that drive the development of new products and ideas, an area where the U.S. traditionally outperforms China. This distinction highlights the varying strengths of each country's economic structure, influencing their capacity for innovation.
Lessons from the 1980s and Political Reforms
The 1980s in China marked a significant period of reform, characterized by economic liberalization and rising individual incomes, particularly in rural areas. However, the aftermath of the Tiananmen Square protests led to a shift where the new leadership prioritized urban infrastructure and technology over rural development, stalling previous reforms. This reversal not only impacted income growth but also laid the groundwork for contemporary issues like overcapacity and economic inefficiency. Observations from this era highlight the interconnectedness of economic policies and the importance of inclusive development strategies.
The Current Economic Landscape and Challenges
China today faces a complex array of economic challenges, including high debt levels, stagnating productivity, and declining consumer confidence. The previous growth strategies, heavily reliant on scaling rather than addressing underlying systemic issues, have led to overcapacity and discouragement of domestic consumption. The centralization of power has stifled innovation by shifting focus away from diverse, grassroots entrepreneurship. This evolving scenario underscores the need for a re-evaluation of economic strategies to stimulate sustainable growth while alleviating the burdens on the wider population.
Last Wednesday saw the first-ever live recording of On Humans. The event was held at the London Business School, courtesy of the LBS's China Club. My guest was MIT Professor Yasheng Huang, familiar to regular listeners from the China trilogy published earlier this fall.
In this new episode, we keep tackling the origins of modern China. This time, we draw insights from Huang's two upcoming books: Revisiting the Needham Question and Statism With Chinese Characteristics. The conversation is structured around five themes: 1) the "Needham Question"; 2) Keju exams; 3) Scale; 4) Scope; and 5) The Eighties. Expect juicy insights to questions such as:
Why was more Buddhism linked to more inventions in ancient China?
How does footbinding relate to China's technological decline?
Has China's GDP growth stopped serving Chinese workers?
Towards the end of the conversation, Huang also shared his memories of working in China through the 1989 crackdown at Tiananmen Square.
