Actual Economy: Local Solutions for Global Challenges

ACTUAL ECONOMY: LOCAL SOLUTIONS FOR GLOBAL CHALLENGES

THE CHINESE FACTOR IN SOUTHEAST ASIA: INFLUENCE ON INTERNATIONAL ECONOMIC RELATIONS AT THE BEGINNING OF THE XXTH CENTURY

Rewadee Waiyawassana

Faculty of management science Suan Sunandha Rajabhat University Bangkok, Thailand e-mail: [email protected]

The article reflects on the influence of such a large national minority, as the Chinese community (known as huaqiao), on international relations in the region of Southeast Asia. The size of Chinese community in the world is really enormous, but it has the greatest influence on the development of Southeast Asia in particular. A forecast is given and promising directions for the development of Chinese expansion in the region are identified. The author also reflects the specific economic strategy of Chinese business circles and their main goals in the foreseeable future.

Keywords: China, Southeast Asia, Chinese influence, Chinese capital, huaqiao.

Introduction

Currently, there is an increase in the line of relations between Southeast Asia (Southeast Asia) and China. The People's Republic of China (PRC) intensively applies the managerial and commercial experience of huaqiao - Chinese overseas - to strengthen and improve the country's economy. Thus, China seeks to strengthen its interaction with the Chinese community and provide it with the best conditions for existence. The purpose of the study is to reflect the influence of Chinese business circles on economic regions in Southeast Asia. The process of Chinese migration to neighboring Southeast Asian states has been going on for several centuries. However, according to the leadership of China, this phenomenon was rather negative: the PRC implemented measures that restrained the economic activity of the Chinese population, wanted to abolish "dual citizenship", forced it to live according to Chinese laws and customs. Nevertheless, with the course of the “four modernizations”, China began to work more closely with the West, and also gradually became closer to Southeast Asia. Most attention was paid to the Chinese community, since it was in its help that the Chinese government was interested. Despite the fact that the capital of China in the countries of Southeast Asia is mainly aimed at using it by the Chinese communities, this provides opportunities for strengthening various sectors and sectors of Southeast Asia. In addition, increased investment leads to the introduction of Chinese capital in the development of the Southeast region, the growth of total GDP and greater economic productivity. However, the strengthening of the economic position of huaqiao also entails negative consequences for both China and Southeast Asia. For example, this exacerbates disagreements and creates some tension in the “business elite”. The appearance of the Chinese communities does not impede their interaction with the local population. Experts point to a number of features that demonstrate that the Chinese retain their identity. For example, this is a feeling of connection with your homeland, in particular, with the place of birth. In addition, communities are characterized by medium and small-sized enterprises, which is especially characteristic of the Chinese economy. In addition, huaqiao www.conferace.com 149

ACTUAL ECONOMY: LOCAL SOLUTIONS FOR GLOBAL CHALLENGES have interaction with the Chinese system of family ties, the Guangxi, which gives them a great advantage over foreign competitors. We don’t leave our own. An important factor is that for the Chinese community of Southeast Asia, custom is still an important element that controls relations within society. The legal custom includes all the main spheres of society (economic, political, social) and promotes rapprochement with other ethnic groups and Chinese. Custom is the oldest form of storage and transmission of social experience (culture) from generation to generation and from society to the individual. The reason that custom still plays an important role in the life of Chinese communities is the fact that custom, unlike law, is a mobile way of regulating relations between national minorities, which is easy to set up and create. This circumstance is very important, because Huaqiao had to adapt and adapt in different cultures. For example, it was this institution of legal regulation that allowed the Chinese community to recover from the crisis of 1997-1998, to minimize losses during the 2008 crisis, and so on.

Main focus of the study

The states of Southeast Asia are specific and vary in level of development, which affects the activities of the Chinese community and its capabilities in different ways. The Chinese community in Singapore accounts for 74.3% of the population of the whole country and is actually the titular nation. In 1986, it was estimated that more than 90% of ethnic Chinese were not able to obtain Brunei citizenship, despite many generations of Chinese living in this country. In 2014, the share of the Chinese population in Brunei was 10.3%, since in recent years, the Chinese of Brunei received the right to citizenship. However, Brunei is one of the smallest huaqiao groups in Southeast Asia. Despite the relatively small size (1% of the local population), the Chinese community in Cambodia is involved in some of the most important aspects of Cambodian society, which often leads to negative emotions from the titular nation (ranging from discontent and ending with open discrimination). Chinese Cambodians play a leading role in the business sector of Cambodia, as well as in the political sphere. Many Chinese Cambodians are especially influential in the banking sector and own a large share of the country's economy. It is worth noting the economic role of China, which invited Sino-Khmer businessmen to restore their enterprises, which were once crushed by the Khmer Rouge. In Malaysia, the Chinese population is 24.6%. Historically, the Chinese community in Malaysia has always been the most prominent, given its prominent position in the economy and politics of the country. For this reason, the Malaysian government tried to take measures to counter Chinese influence. Sino-Malay tensions became increasingly heated in light of the weakening ruling coalition "National Front" and the events in the South China Sea. Indeed, judging by the statistics of 2014, we can say that the Chinese live better: the average monthly total income of the Chinese is much higher than any other ethnic group in the country. Nevertheless, the Malays unite under the idea of “ketuanan Melayu” - Malaysian supremacy to eradicate Chinese dominance in the economy. This program is successful because the Malays actually control most of the country's economy (rather than the Chinese). They run most of the major banks, including the Central Bank, and also make up the majority of highly qualified professionals and those who work for the highest paid jobs in the private sector. The Chinese minority of Thailand makes up 14% of the country's population [12], and about 40% of the Thai population are of Chinese origin. An interesting fact is that www.conferace.com 150

ACTUAL ECONOMY: LOCAL SOLUTIONS FOR GLOBAL CHALLENGES among Thai Chinese there are a lot of outstanding personalities, the list of which is quite large. These are not only entertainment figures, but also political leaders. Against this background, Thaksin Chinnawat, who served as Thai Prime Minister from February 2001 to September 2006, and his sister Yinglak Chinnawat, who served as Prime Minister from 2012 to 2014, stand out the most. Telecommunications billionaire Mr. Tansin was unusually popular among the rural poor, but at the same time unpopular among the Bangkok elite. After five years in power, he was overthrown in a military coup in September 2006, accused of corruption and abuse of power. To this day, he is in voluntary exile, because in Thailand he faces two years in prison. Although the Chinese officially account for three percent of the total population of Myanmar (Burma), the actual figure is believed to be much higher. It does not take into account the Chinese population of mixed origin, illegal immigrants from China, as well as those who registered themselves as ethnic Burmese in order to avoid discrimination. The actual percentage of Chinese people living in Myanmar is so high that it creates social tension and attracts media attention. Burmese Chinese are widely represented in all areas of society and play a key role in trade and business, as well as in public service. Several Burmese Chinese, such as Khin Nyun (Prime Minister and military leader), Wu Ne Win (President of the Socialist Republic of the Burmese Union (SRBS)), San Yu (Chairman of the State Council of SRBS), were important figures in the political scene of Burma. capture the heights In Vietnam, the Chinese community makes up 2.9% of the country's population. The Hoa people, whose population is 0.96% of the population of Vietnam [16], live mainly in the south of the country. In 1975, Hoa controlled about 75% of all economic activity in South Vietnam. 117 of the 670 leading business families in Vietnam were representatives of this particular nation. Sansiu is a people in the north of Vietnam with a population of 146.821 people. Despite the fact that the Vietnamese government classifies Sangziu as an independent group, initially these people immigrated from the Chinese province of Guangdong. Throughout the history of Indonesia, evidence of discrimination against Indonesia's huaqiao can be found. In 1998, the anti-Chinese sentiment accumulated over decades reached its peak and the Indonesians poured out their anger on the Chinese minority. Today, the Chinese community in Indonesia (1.2%) is free to show their cultural identity, use Chinese names and even pursue a political career. The Chinese of the Philippines form one of the largest Chinese communities in Southeast Asia. Filipinos of partially Chinese descent make up 18–27% of the Filipino population, which is more than 30 million people and about 2 million Filipinos with purely Chinese descent (2.5%). Chinese Filipinos are present in several commercial and business sectors of the Philippines, which covers an important share of the Philippine economy.

Conclusions

Thus, the local residents of Southeast Asia are very unkind to the business elite of Huaqiao. Particularly acute is the issue of accepting the Chinese into new governing bodies. The activities of the Chinese in most cases take place in the business sector. conclusion The Southeast Asian countries are interested in the Chinese community as a source of huge financial investments, but the fact of a potential threat is not ruled out. An especially important fact is that the “Chinese threat” in the form of the number of ethnic Chinese in the region is growing more and more. For example, Filipino police claim that the vast majority of drug-related crimes have been committed by the Chinese in the shadow business. www.conferace.com 151

ACTUAL ECONOMY: LOCAL SOLUTIONS FOR GLOBAL CHALLENGES

Thus, more than 30 million ethnic Chinese live in Southeast Asia. They have superiority in the economies of these countries, which creates obstacles to integration into local communities. It can be assumed that the community would prefer to rally China with ASEAN countries than internal rapprochement. The Chinese community, on the one hand, is a tool for creating the image of the PRC as a peaceful and responsive power that strictly adheres to the prescribed rules of conduct, and on the other, a mechanism for strengthening and developing the PRC economy.

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