The Wall Street Journal featured a story about corporate governance in China today. The reporter touted an ex-Goldman Sacks banker's efforts to help erect new corporate governance paradigm in China. The banker, John Thornton, is a legendary figure who gave up his banking career and chose instead to teach in Tsinghua University in Beijing, China.
I always support attempts that help modernize China. Only a civilized and modernized China could stabilize the entire Asia Pacific region. But Mr. Thornton's efforts will eventually hit the unbreakable Great Wall of Chinese Communist Party. It is all good that Netcom's chairman, Zhang Chunjiang, supports changes happening in Netcom. However, Netcom is not Mr. Zhang's company. It is still controlled by the Party. What if some reforms pursued by Messrs. Zhang and Thornton are in conflict with the Party's other goals?
Just by looking at how the Communist Party ousted Shanghai's party chief a couple of days ago, I would not be so optimistic as to believe Mr. Thornton's efforts will go anywhere.
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