Gift-giving has changed with economic development. In 1986, if I offered a cigarette or a piece of candy to a Chinese guest, it was always declined. Only later was I informed that, according to custom in times past, a guest did not want to appear needy, so one must offer such a gift three times. The first time the gift was peremptorily declined. The second time it was more gently refused. The third time it was reluctantly accepted. Today, the Chinese have adopted a more Western approach:  acceptance should be immediate, because the offer will usually not be repeated. In any case, the host will not think the receiver needy.

Formerly, when I complimented a person on, say, her piano-playing or story-writing skills, she would deny there was any merit to her performance. Today she will say, "Thank you," acknowledging the compliment.

Part of the modesty that is characteristic of the Chinese stems from a traditional Confucian philosophy that emphasizes social values; part is from the equalization preached by the Communist Party. For example, what we would call the civil service and military forces are ranked for pay purposes under a heading called "Administrators."  Chairman Mao Zedong was at Rank 1 and received a monthly salary of 400 yuan, enough to buy two bicycles. Rank 24, the lowest, was paid 60 yuan. A middle (12) rank administrator, Ji Lei, headed the system and was paid 180 yuan—about the price of one bicycle.

Of course, some Party cadres, as members are called, received perquisites of office:  a car and driver, a bodyguard, a housekeeper, a wet nurse for a baby. Since 1955, however, salaries are much higher and "perks" do not include a wet nurse. In contrast to the U.S, Chinese members of the growing middle class can now afford a live-in housekeeper.

In the early days after liberation in 1949, officials espoused and practiced a hair-shirt philosophy, which still influences behavior among older people. These oldsters are still devoted to the ideological position expressed by President John F. Kennedy in his inaugural address: "Ask not what your country can do for you; ask what you can do for your country." Today, the market dictates values in both countries and the promotion of individualism and consumerism is displacing concern for society as a whole. As Deng Xiaoping said, "It is glorious to be rich!"

In 1949, following the defeat of the corrupt Kuomintang government, there was insistence on a nearly equal distribution of income. Now there are probably greater income disparities in China than in America. (Inequality for a nation is statistically measured by what is called the Gini coefficient, whose values go from zero %, perfect equality, to 100%, perfect inequality. Zero can be interpreted to mean that everyone has the same income; 100% means that one family has all the income. China exhibits a value of about 50%; the U.S, about 40%.

In both China and America, some everyday sayings are meaningless if interpreted literally. The Chinese "Hello" is Ni hao, which means "You good."  But, like America's "Hello," it is a mere symbolic expression. Similarly with Zai jian which means "Goodbye," or, more accurately, "until we meet again," as in the French au revoir. Only a relatively few Americans know that our parting word once meant "God be with you."

One often sees young women walking along holding hands. This is merely a sign of friendship, but in America the custom might raise eyebrows. It is also unremarkable in China for men to share an apartment and for women to do the same.

A major institutional difference is the use of identity cards for each Chinese citizen. Formerly, the cards prevented labor mobility because the rationing of flour, noodles, rice and cooking oil was tied to a person's residence. Therefore, a person required government authorization to move from one city or place to another, from one job to another. If his card stated that he lived in Nanjing, then only there could he draw his essential ration. Today each person still carries an ID card, but the movement of people is not affected since staple rationing has gradually disappeared.

Some Americans may think that Social Security cards or driver's licenses are identity cards, and it is true that they sometimes serve that purpose. But no one has to carry such cards and, except to establish one's legal right to drive and to drink alcoholic beverages, these cards are not of much use.

The greatest impediment to Chinese labor mobility lies in the character of workers' connection to the workplace. Housing, medical care, education, and pension as well as earnings are often provided by the work unit. Departure from the unit may jeopardize these forms of income. (A unit may be a university, factory, store or other place of employment.) This, too, is changing as China implements a nationwide social security system including pensions, unemployment compensation, and health insurance.

One of the most astonishing accomplishments of recent Chinese development is the privatization of real property. Work units have sold apartments to the workers who occupy the housing. The prices have been reasonable. In addition, both entrepreneurs and government have built apartment buildings as commercial ventures. There are, to be sure, persistent inequities:  a "fat" unit, one with large revenues, can provide better housing than a poorer, "thin" unit.

In 1987, at a luncheon for China's ambassador, Mr. Li, I asked him if the Soviet Union had the right idea when, under Gorbachev's leadership, that nation had adopted the twin ideals of free markets and democracy. In a prescient reply, Mr. Li said, "No. First comes the free, competitive market system and later political reform." I think China's successful development and the collapse of the Soviet Union have proved the correctness of his views.