This means that policymakers have to create a large middle class, and Chinese companies have to move up the value chain. "The logic of reform is an unfolding process; circumstances decided that they have to take a certain road, not others," he said. Deng Xiaoping famously opined that the Communist Party needed to cross the river by feeling the stones, that is, by careful touch and navigation. "The problem is that once you have left the stones, it (the path) disappears," Gerth says. "You stop in the middle and there is no going back. You have to keep moving."

Seeing things from the perspective of consumption also reveals the conflict in issues such as the environment.

Western governments and companies want China to consume more. At the same time, they criticize it for polluting the environment. These things contradict each other. If the Chinese eat as much meat as people in the West, many species are likely to become extinct. If the Chinese drive as many cars as their Western counterparts, the planet will be headed for eco-disaster.

Some critics say Chinese society is dominated by materialism, but Gerth disagrees. Consumption may not always lead to bad things. While consumers seek pleasure, they also gain other things, such as a different view of the world or a new approach to life.

For instance, when Chinese travel, they experience adventures and see other parts of the world. When they shop for a luxury handbag, they are buying a meaning for life. In five or 10 years, once they have gone beyond this level, things will change. As with consumers in the US or Europe, they may start to pay attention to the environment and fair trade. In fact, that is already happening in China now.

Meanwhile, Chinese brands are emerging onto the global stage. This is something they simply have to do to win a larger share of the global market.

"As in American football," said Gerth, "the best offense is defense."

As evidence, Lenovo, China's leading computer company, bought the personal computer division of IBM. Meanwhile, Huawei, one of the world's largest telecommunication companies, is establishing itself in terms of price and technology. Just like Sony and Hyundai, Chinese brands will improve the lives of consumers elsewhere.

They may make things cheaper and easier to use, as they did in manufacturing. There will be successes and there will be failures, but Chinese companies have no alternative but to try, said Gerth.

Many governments are still cautious about China, said Gerth, with reference to the recent US congressional report on the rejection of overtures from Huawei. In addition to the oft-quoted security concerns, the real issue is fundamentally about whether countries want Chinese investment or not.

Gerth described his new book as being as much an academic quest as a means of explaining his experiences in China over 25 years. He travels to China frequently and so has experienced many of the changes. He has witnessed the transformation of remote southwestern areas such as Lijiang in Yunnan province, a place blessed with tranquility and night skies studded with stars. Rural idylls such as this are now packed with tourists and Western-style bars, he said.

Now, after spending five years working on the book, Gerth feels he has an intellectual appreciation of what is happening in China. Nothing that happens in the country can surprise him, although some things do disappoint him, he said.

The late Harvard historian John King Fairbank once said that learning about China is like drawing a circle. Inside the circle is knowledge, and outside is ignorance. Fairbank said that he often felt that as his knowledge about China grew, so did his ignorance. Gerth admitted that he feels the same way.

"The more I know, the less I feel I know. And that makes me humble."

Contact the writer at diaoying@chinadaily.com.cn