Whereas western philosophy is reductionist and emphasizes causal relationships, Chinese philosophy is integrative and emphasizes balance. These basic differences in philosophical perspectives underpin how Chinese managers and policymakers view organizations and economic systems differently from their western counterparts (Chen, 2002; Fang and Faure, 2011). The emphasis on balance is apparent in the ancient Chinese philosophical concept of Yin and Yang. In this viewpoint paper, we draw on the Yin/Yang theoretical lens to provide an alternative viewpoint of the 2008 global financial crisis and the Chinese banking system's reaction to it. In keeping with the Yin/Yang emphasis on balance, we argue that Chinese banks stressed early prevention before an imbalance occurred and reacted more quickly once the crisis erupted. For these reasons, the Chinese financial system has behaved very differently both before and after the onset of the 2008 financial crisis. In contrast to the implosion of some western financial institutions, none of the Chinese banks had any serious financial difficulties during the crisis and Chinese banks have continued to perform well in terms of profits and stock price. We put forward the position that part of this difference in performance may be due to differences in philosophical approaches to crisis management.
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