CLASS, RACE AND ETHNICITY: . CHINESE CANADIAN ENTREPRENEURS IN VANCOUVER by AARON JEROME WEST JAMES B.A. (Hons.)., TheUruversity of Wirinipeg, 1996 A thesis submitted in partial fulfillment of the requirements for the degree of MASTER OF ARTS in THE FACULTY OF GRADUATE STUDIES (The Department of Geography) We accept this thesis as conforming to the required^standard THE UNIVERSITY OF BRITISH COLUMBIA October 1999 ® Aaron Jerome West James In presenting this thesis in partial fulfilment of the requirements for an advanced degree at the University of British Columbia, I agree that the Library shall make it freely available for reference and study. I further agree that permission for extensive copying of this thesis for scholarly purposes may be granted by the head of my department or by his or her representatives. It is understood that copying or publication of this thesis for financial gain shall not be allowed without my written permission. Department of The University of British Columbia Vancouver, Canada Date Da (5/*K DE-6 (2/88) Abstract In research on immigrant enterprise, scholars argue that entrepreneurs mobilize informal support and resources from ethnic affiliations to overcome barriers associated with their immigrant or 'racial' status. The presumed relationship between ethnicity and entrepreneurship is relatively straight forward: immigrant entrepreneurs facing cultural or economic barriers use ethnic resources to propel their economic strategies. This assumption is brought under scrutiny in a study of Chinese Canadian immigrant entrepreneurs in Vancouver, Canada who arrived after 1967, many of whom are skilled professionals, affluent investors, and experienced entrepreneurs. Some have formed corporate ethnic enterprises and many maintain extensive social and commercial ties abroad. What relationship exists between ethnicity and entrepreneurship in this setting? Do these conditions necessitate new approaches or concepts? These questions are explored in the course of the study. Using ethnographic methods, this study examines the changing patterns and composition of Chinese Canadian rmmigrant entrepreneurship and the role of ethnic ties in this process. Consideration is given to the historical precedents and class and cultural politics surrounding the immigration and participation of Chinese Canadian entrepreneurs and workers in the Vancouver economy. The study concludes that existing theory on immigrant enterprise needs move beyond a narrow focus on ethnicity to consider the historical and cultural context of immigrant entrepreneurship. TABLE OF CONTENTS Abstract ii List of Figures vi List of Tables vii Acknowledgements viii Chapter 1: Introduction, Theory and Methods Introduction 1 Upward Mobility and Business Formation 2 Mechanical Progressivism and Capitalist Logics 4 The Ethnic Economy 5 Trader Minorities in an Industrial Economy 5 The Ethnic Enclave 6 Ethnic Networks and Immigrant Entrepreneurship 8 Ethnicity, Race and Class 12 The Organization and Purpose of the Study 15 Methods and Data 16 Qualitative Data Analysis 17 Making Contact 17 Why Import/Export Companies? 18 The Interview Schedule 19 Quantitative Data 19 Chapter 2: Forming an ethnic economy: Chinese identity in B.C. society 1850 to 1930 Introduction 22 Producing 'Race', Forming an Industrial Economy 22 Work Strategies of Early Chinese Migrants 25 Ilacializing Labour Markets 26 Immigration Policy and 'Racial' Nationalism 29 Segregation and Immigration Policy 31 Business Formation in Chinese Socio-Economic Networks 33 The Organization of Chinese Ethnic Networks 34 Ethnic Structure and Firm Development 35 Chinese Merchants and Ethnic Economic Networks 37 Anglo-Canadian and American Industrialists and Chinese Merchants 39 Ethnically Integrated Market Produce Chains 40 Conclusion 42 iii Chapter 3: Class, Race, and Ethnicity, 1930 to 1967 Introduction 44 Immigration Policy Changes 45 Early Post-War Ethnic Economy 46 Occupational Segmentation in Early Post-War Chinese Canadian Communities 46 Canadian Born Chinese and Occupational Segmentation 49 Immigration Policy through the 1950s and 1960s 50 Race, Nation and Liberalism 52 Immigration and National Development Policy under Keynesianism 54 Conclusion 56 Chapter 4: Restructuring an Ethnic Economy: New Chinese Immigrants in Vancouver after 1967 Introduction 61 Towards a Neo-Liberal Immigration Regime, 1967-1999 63 Inscribing Chinese Transnationalism: the State and Global Trade Strategy 68 Moulding the Pacific Rim: New Chinese Entrepreneurs, and State Strategy in BC 71 The Economic Adjustments of New Chinese Immigrants in Vancouver 76 Occupational Strategies of Chinese Canadians after 1967 77 Occupational Structure of Chinese Canadians in B.C., 1971 78 Occupational Structure of Chinese Canadians in Vancouver, 1991 80 Entrepreneurial Strategies and the Ethnic Economy in Transition 84 Assessing Entrepreneurial Strategies 88 Conclusion 92 Chapter 5: Ethnic Entrepreneurship and Chinese Canadian Trading Companies in Vancouver Introduction 102 Description of the Sample 103 Period of Immigration 103 Industrial Segments 106 The Social and Cultural Bases of Entrepreneurship 109 Encountering Vancouver 117 Entrepreneurial Strategies 125 Ethnic Business Strategies 127 Labour and Ethnic Networks 133 Expanding into the Mainstream 136 Conclusion 139 Chapter 6: Conclusion 144 Bibliography 150 Appendix A: Interview Schedule 162 Appendix B: Letter of Request for Participation in the Survey 163 V LIST OF FIGURES Number Page Figure 1.1: Irnmigrant Landings from Hong Kong, Taiwan and China to Canada 21 Figure 4.1: Immigration to Canada by Entry Class, 1984-1998 94 vi LIST OF TABLES Number Page Table 3.1: 1951 Occupation by Ethnic Origin and Immigration Status for Men, British Columbia 58 Table 3.2: 1951 Occupation by Ethnic Origin and Immigration Status for Women, British Columbia 58 Table 3.3: 1961 Occupation by Ethnic Origin and Immigration Status for Men, British Columbia 59 Table 3.4: 1961 Occupation by Ethnic Origin and Immigration Status for Women, British Columbia 59 Table 3.5: 1971 Asian Ethnic Origin Population, Vancouver CMA 60 Table 3.6: 1951 & 1961 Asian Ethnic Origin Workforce in Select Industrial Sectors, British Columbia 60 Table 4.1: Immigration from Hong Kong, Taiwan and China to Canada by Entry Class, 1987- 1998 95 Table 4.2: 1971 & 1991 Occupational Divisions 96 Table 4.3: 1971 Occupation by Ethnic Origin and Immigration Status for Men, British Columbia 97 Table 4.4: 1971 Occupation by Ethnic Origin and Immigration Status for Women, British Columbia 98 Table 4.5: 1991 Occupation by Ethnic Origin and Immigration Status for Men, Vancouver CMA 99 Table 4.6: 1971 Occupation by Ethnic Origin and Immigration Status for Women, Vancouver CMA 100 Table 4.7: Raw Data for Tables 4.5 & 4.6 101 Table 5.1: Year of Immigration by Type of Enterprise, Interview Sample 143 Table 5.2: Chinese Irnmigrant Entrepreneurs Interviewed in Vancouver, 1997-1998 142 Table 5.3.: Principal Source of Start-Up Capital, Interview Sample 143 Table 5.4: Percentage of Chinese Canadian Workforce, Interview Sample 143 Table 5.5: Principle Recruitment Channels for Hiring Labour, Interview Sample 143 vii Acknowledgments I would first acknowledge the very able supervision of Daniel Hiebert, who has been consistently supportive and encouraging throughout this project and who contributed greatly to the advancement of the scholarship of this work and my intellectual development. Special thanks also to David Ley for his helpful feedback and advisement at various stages, and Edgar Wlckberg, You-tien Hsing, Margaret Walton-Roberts, and Bill Burgess for their constructive suggestions on earlier drafts. Needless to say, all errors are my own. I am greatly indebted to the entrepreneurs, community leaders, and many others who spent time with me in conversation. John Rose, Laura Beattie, Alison Mountz, Kamala Todd, Erin Sheehan, Neil Goe, and Kim Mah, deserve special recognition for their help and friendship along the way. I want to thank my parents and family in Winnipeg and Calgary, and most of all my wife Rylee, whose patience, consideration, and love made this possible and to whom I dedicate this thesis. viii Chapter 1: Introduction, Theory, and Methods Introduction This is a study of new Chinese Canadian immigrant entrepreneurs who arrived after 1967 and established small to medium sized businesses in Vancouver. It concerns the development of business among immigrants and the role of ethnicity in this process. Researchers studying the field of immigrant and ethnic enterprise usually present entrepreneurship as an economic strategy used by immigrants in the face of blocked mobility. The more optimistic view presents it as a viable means to upward economic mobility for groups yet to "adapt" skills and experiences to local labour markets, while the pessimistic view portrays immigrant entrepreneurship as a survival strategy and an economic dead-end. The assumption made by most scholars is that immigrant entrepreneurs draw on informal resources from ethnic ties to make up for human or financial capital deficiencies. However, recent research on post-1967 Chinese Canadian immigrants presents a much more complex picture of economic incorporation and entrepreneurship (Li, 1998; Mitchell, 1995; Johnson & Lary, 1994). In contrast to earlier movements of Chinese Canadian labour migrants, merchants, and petty tradespersons, newer Chinese Canadian immigrants are predominantly professionals, investors, experienced entrepreneurs and skilled technicians who are not entering