APPENDIX 3
TO THE
TESTIMONY OF JEFFREY S. LEHMAN
“The Value of American Liberal Education
on Chinese Soil”
Keynote Address to
The 2013 Columbia China Prospects Conference
Jeffrey S. Lehman
October 5, 2013
It is a privilege for me to speak with you at the opening of the Fourth
Annual CCPC. The organizers of this conference have assembled an
enormously ambitious program for you. Over the next two days you will
have the opportunity to consider a wide variety of economic, political,
social, and cultural topics, through the lens of a highly engaging theme,
“Explore the Value of China.”
This morning I will attempt to “explore the value of China” from the
perspective of an American educator. For the past 26 years, I have had
the privilege of participating in some of America’s finest research uni-
versities’ pursuit of three important missions: teaching, research, and
public service. Since my first visit to China in 1998, I have believed that
at this moment in history America’s finest research universities can bene-
fit greatly in each of those missions if they choose to engage actively
with China.
So that you might properly situate my perspective on this topic, I
should take a few moments to describe the five different forms that my
experience of engagement with China as an American educator has taken
over the past 15 years.
First, as dean of the University of Michigan law school, I helped to
develop opportunities for Michigan professors to teach students at Pe-
king University and at Tsinghua University. Second, as president of
Cornell University, I helped to develop joint initiatives with Peking Uni-
versity, Tsinghua University, China Agricultural University, and the
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China Academy of Sciences to give Cornell students and professors new
opportunities to study, teach, and conduct research in China, and also to
bring greater numbers of students and faculty from China to Cornell.
Third, as president of the Joint Center for China-US Law & Policy
Studies, I worked with Peking University and the Beijing Foreign Stud-
ies University to support research conferences relating to different di-
mensions of the rule of law. Fourth, as Chancellor and Founding Dean
of the Peking University School of Transnational Law, I had the chance
to help a Chinese university, Peking University, to establish a new school
at which some of the best professors from the world’s best law schools
(including Columbia) now provide an American-style legal education to
the very best students in China.
And now, as Vice Chancellor of NYU Shanghai, I am helping to es-
tablish the first Sino-American Joint Venture Research University. NYU
Shanghai is portal campus of New York University, where a community
of students that comes half from China and half from the rest of the
world, receive a true liberal education. Typically these students will
spend 3 years studying on the Shanghai campus and 1 year studying at
other campuses of NYU – here in New York, and all around the world.
Like any top research university, NYU Shanghai offers its students
rigorous education in the humanities, social sciences, natural sciences,
and certain professional disciplines, while supporting important, original
research that advances the project of human understanding. But two fea-
tures make NYU Shanghai truly unique. First, it forges an intellectual
bridge between China and the United States of unprecedented scale.
Over the next decade we will move hundreds of professors and thou-
sands of students back and forth across the Pacific, and I am confident
that every single one of them will be transformed by the journey. More-
over, a key part of our intellectual mandate is to facilitate serious thought
about the relationship between China and the rest of the world – past,
present, and future. Second, NYU Shanghai creates a uniquely powerful
environment in which to understand and develop the skills of cross-
cultural understanding, communication, and cooperation. Our students
are drawn from 34 countries around the world. Every Chinese student
has a non-Chinese roommate, and vice versa. And every day we think
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and talk – both in class and outside class – about the ways in which peo-
ple raised in different cultures hold worldviews and even cognitive
frames that are simultaneously similar and different.
My primary goal this morning is to “explore the value” of projects
such as these, and I will do that in two steps. First, I will explain why I
believe that the value cannot be economic; it must be the promotion of
universities’ nonprofit mission, and I believe that from this perspective
the value can indeed be enormous. Second, I will respond to some
commentators who have suggested that the nature of China today dra-
matically diminishes that value, and may even create harms that over-
whelm any residual benefits which may remain.
So, first, why do I believe the value of projects such as these cannot
be economic? Why don’t I think American universities should see China
as a “market opportunity,” a potential source of revenues that will
strengthen the university’s activities here in the United States?
It is useful here to distinguish between two different conceptions of
how an economic benefit might be created – a “subsidy” view and an
“economies of scale” view. Under the subsidy view, the revenues that
could be obtained through activity in China might exceed the costs of
producing those revenues. Those net profits could be shipped back to the
“primary campus” back “home” in America. Under the “economies of
scale” view, the activities in China would not produce profits, but they
would at least allow the fixed costs of operating the university to be
spread over a larger base, so that all of the university’s activities world-
wide could be carried out more efficiently, including those in America.
The subsidy view should be dismissed out of hand. America’s great
research universities are not-for-profit organizations whose tuition reve-
nues do not begin to approach the costs of the teaching, research, and
service they provide. Those activities are heavily subsidized – through
government grants and private philanthropy. In order for activities in
China to be profitable, the university would have to be providing a vastly
cheaper imitation of what it does in America. There is no reason for
Chinese students, governments, or philanthropists to pay inflated prices
to obtain such an inferior service – indeed, it is somewhat offensive to
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