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The Chinese Overseas
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Singapore
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Confucianism in Singapore
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Malaysia
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Thailand
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Vietnam
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Indonesia
• 5 to 6 million ethnic Chinese (<3% popul.)
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Philippines
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Patterns of Migration
• Main patterns of Chinese migration– Trade– Labor– Exile– ...
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Ancient Trade Routes
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Labor Migration
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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
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Southeast Asia
• Regional foundation for the socioeconomic network– transnational flow of people and wealth– regional dialect and kinship– define capitalism in Southeast Asia today
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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
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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
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Chinese business network
• extensive networks of small and medium-sized firms instead of conglomerates
• networks of trust had to be extended beyond family
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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
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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
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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$
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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
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