Li Lu Quotes
I was born and grew up in China during the 1960s.
Lu, Li, and Eva Li. "The Giving Pledge Letter." The Giving Pledge, 2020.
Many American ideologues assumed that the Chinese Communist Revolution would lead to an economic collapse. They did not realize that historically a competitive business economic system had been operational in the Chinese culture for thousands of years. In reality the economy was however really being suppressed somewhat by the Mau style of communism. When Deng loosened up the economic rules in China, their “Communist” system not only functioned as it had under Mao, but then thrived and China became a world economic power in just a relatively few years.
The Communists under Mao won the Civil War easily as the Nationalists were not only corrupt and very unpopular, but they were not very interested in the welfare of the Chinese peasants. Further Chiang was a ruthless dictator. At the time there was great pressure for America to support any faction that was anti Communist regardless of how bad they were themselves. Davies and others who thought that we should have communications with the Communists who would soon control China, were viciously attacked by Senator McCarthy who accused Davies of “loosing China” and the Senator and some other Americans thought that the Nationalists could win the Civil War. We now know that they never had a chance, but at the time they did a very good job of promoting their cause and capability in the United States and especially in Washington. None the less, in the Red Scare, Davies was fired, only to thereafter be awarded the highest civilian award in the nation in recognition of his great and patriotic work.
This was just a month after the Japanese sneak attack on Pearl Harbor. Anyone at that time, who promised to attack Japan would get a serious hearing, and Chiang Kai-shek and the China Lobby were making extraordinary promises. FDR wanted to give Chiang’s Nationalist government an extraordinary $½ Billion in aid. One interesting aspect of this quotation is the wording. Note that the President used the word “invent”. He realized that there was no existing mechanism whereby they could simply send such a huge block of money to a foreign country on the promise that they would use it for fighting the Japanese. If there were, he would have had the War Department or the State Department to do it. So he asked his most trusted and creative cabinet member to “invent” a way to do it. Morgenthau came through with a very complicated, elaborate scheme that Congress approved the following week. The money was sent, but Chiang Kai-shek did not spend it all for fighting the Japanese—his idea was to let the Chinese Communists under Mao wear themselves down fighting the Japanese, and Chiang could use the American military assets to then wipe out the communists, his only political opponents. See {641676}.
Li Lu is a Chinese-born American investor and hedge fund manager. He is the founder and Chairman of Himalaya Capital Management. He was one of the student leaders of the 1989 Tiananmen Square student protests, an experience he recounted in a 1990 book, Moving the Mountain: My Life in China, that was the basis of a 1994 documentary by Michael Apted.