The Chinese Overseas

Singapore

Confucianism in Singapore

Malaysia

Thailand

Vietnam

Indonesia

• 5 to 6 million ethnic Chinese (<3% popul.)

Philippines

Patterns of Migration

• Main patterns of Chinese migration– Trade– Labor– Exile– ...

Ancient Trade Routes

Labor Migration

Chinese migration overseas

• Social pressures from the mainland– political turmoil, famine, natural disaster,

Communist and Cultural Revolution, etc.

• emigration from coastal provinces– Guangdong, Fujian, Hainan, etc.– waves of migration to established

communities

• tight economic and psychological contact with their home regions

Southeast Asia

• Regional foundation for the socioeconomic network– transnational flow of people and wealth– regional dialect and kinship– define capitalism in Southeast Asia today

Selective solidarity

• Ethnic Chinese remain significantly Chinese– bound to China and to Confucian ethics– unite clans and provide basis for cooperation

• often hostile environment– discrimination, displacement, and violence– resentment against disproportionate control of

wealth

Chinese capitalism

• Environment of insecurity and mistrust

• mentality to ensure survival and fuel success

• entrepreneurial spirit and wealth creation became essential

• family and its internal hierarchy are at the center of economic life– family enterprises

Chinese business network

• extensive networks of small and medium-sized firms instead of conglomerates

• networks of trust had to be extended beyond family

Chinese business network

• Environment of rudimentary capital market, limited financial disclosure, and weak contract law

• social networks became critical to moving economic resources across political boundaries

• confidence and trust replace contracts as major guarantees of commitment

Chinese business networks

• Tight network structures

• flexibility and quick response to changing circumstances and opportunities

• cultivating networks between politicians and Chinese firms– changes and transformation in recent years

• transnational operations– economic linkages with China’s mainland

World Bank estimates

• Total economic output of the 55 million ethnic Chinese in Southeast Asia– 400 billion US$ in 1991– 600 billion US$ in 1996

• ethnic Chinese control 500 of the largest public corporations in Southeast Asia– total assets of 500 billion US$

Less visible assets

• Private enterprises owned by ethnic Chinese

• ethnic and social networks among ethnic Chinese businesses

• crucial bonds and coordinating agents between the economies of Southeast Asia

• underlying principles, norms, activities, and informal relationships