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Thesis (1): Confucian States and Confucian Capitalism UvA-DARE (Digital Academic Repository) Regional integration and differentiation in a globalizing China : the blending of government and business in post-colonial Macau Trigo de Sousa, M.I.R.B. Publication date 2009 Document Version Final published version Link to publication Citation for published version (APA): Trigo de Sousa, M. I. R. B. (2009). Regional integration and differentiation in a globalizing China : the blending of government and business in post-colonial Macau. General rights It is not permitted to download or to forward/distribute the text or part of it without the consent of the author(s) and/or copyright holder(s), other than for strictly personal, individual use, unless the work is under an open content license (like Creative Commons). 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UvA-DARE is a service provided by the library of the University of Amsterdam (https://dare.uva.nl) Download date:04 Oct 2021 Inês Trigo de Sousa Inês Trigo Inês Trigo de Sousa REGIONAL INTEGRATION and DIFFERENTIATION in a Regional Integration GLOBALIZING CHINA The Blending of Government and Business in Post-Colonial Macau and Differentiation in a Globalizing China Macau_cover01.indd 1 07-07-09 09:54 Regional integration and differentiation in a globalizing China The blending of government and business in Post-colonial Macau Cover design: Helder Design, Amsterdam © Maria Inês Rosa Trigo de Sousa. All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted, in any form or by any means, electronic, mechanical, photocopying, recording, or otherwise, without the prior permission in writing from the proprietor. Regional Integration and Differentiation in a Globalizing China The Blending of Government and Business in Post-Colonial Macau ACADEMISCH PROEFSCHRIFT ter verkrijging van de graad van doctor aan de University van Amsterdam op gezag van de Rector Magnificus prof. dr. D.C. van den Boom ten overstaan van een door het college voor promoties ingestelde commissie, in het openbaar te verdedigen in de Agnietenkapel op vrijdag 11 september 2009, te 12.00 uur door Maria Inês Rosa Barros Trigo de Sousa geboren te Lissabon, Portugal Promotiecommissie Promotor: Prof. dr. M.A.F. Rutten Co-promotor: Dr. L.M. Douw Overige leden: Prof. dr. Prof. dr. G.C.A. Junne Prof. dr. T.W. Ngo Prof. dr. H.A. Sutherland Dr. H.W. Houweling Dr. S. Visscher Faculteit der Maatschappij- en Gedragswetenschappen Table of Contents List of Tables ................................................................................ 10 Abbreviations ................................................................................ 11 Map of China ................................................................................ 13 Map of Macau ............................................................................... 14 Acknowledgements ......................................................................... 15 Introduction ................................................................................. 17 CHAPTER 1. Understanding China’s response to globalization: the emergence of region-specific state-business relations and modern capitalism in Macau ......................................... 23 1.1. Introduction ............................................................................ 23 1.2. Understanding Asian Capitalism ...................................................... 26 1.2.1. Convergence Hypotheses ....................................................... 26 1.2.2. Divergence Hypothesis (1): Confucian states and Confucian capitalism ................................... 28 1.2.3. Divergence Hypothesis (2): Institutional theories ............................. 30 1.2.4 Rethinking the divergence of Asian Capitalism ............................... 31 1.3. The China Puzzle: understanding capitalist development in contemporary China . 31 1.3.1. The Classical Debate: Marx versus Weber .................................... 33 1.3.2. Explaining Chinese capitalist development: state arguments ................. 36 1.3.3. The economic success of overseas Chinese: the Confucian explanation outside the nation-state ........................... 37 1.3.4. State-Business relations in China: the Entrepreneur and the Party ........... 40 1.4. Understanding State-Business Relations in Macau ................................... 43 1.4.1. The weight of the past: state-business relations in historical perspective .... 44 1.4.2. Explaining state-business relations as one specific form of capitalism in Macau .................................. 51 – 5 – TABLE OF CONTENTS 1.5. Methodology ........................................................................... 56 1.5.1. Secondary Sources .............................................................. 56 1.5.2. Interviews ....................................................................... 57 1.6. Conclusion .............................................................................. 58 CHAPTER 2. Macau in the Colonial Period (1557-1949) ............................ 61 2.1. Introduction ............................................................................ 61 2.2. The establishment of Macau and the period of negotiated colonialism (1557-1800s) .............................. 62 2.2.1. Ming China ..................................................................... 62 2.2.2. The Tributary System and the Ming closed-door policies .................... 65 2.2.3. The Portuguese negotiate their presence in Macau ........................... 67 2.2.4. An early political triangle: Merchants, Mandarins and Missionaries ........ 72 2.2.5. Split jurisdiction: the Loyal Senate and the Chinese Customs Post .......... 73 2.2.6. The influence of Guangzhou in Macau’s trade ................................ 76 2.2.7. The impact of the Opium Wars and the shift towards unilateral colonial rule in Macau ....................... 77 2.3. The development of Chinese businesses and organizations in colonial Macau (1800s-1949) .................................. 81 2.3.1. Colonial economy and the development of local Chinese businesses ........ 82 2.3.2. Early Commercial Associations ................................................ 83 2.3.3. Growing w of local Chinese business elites over the colonial administration in the interwar period ....................... 85 2.3.4. The Macau Commercial Association (MCA) ................................. 88 2.4. Conclusions ............................................................................ 91 CHAPTER 3. The Decolonization Period: Portugal, the People’s Republic of China and the Macau Business Elites (1949-1999) ............... 95 3.1. Introduction ............................................................................ 95 3.2. Macau after the establishment of the People’s Republic of China (1949-1970s) ... 96 3.2.1. The Nam Kwong ................................................................ 98 3.2.2. The 1/2/3 incidents of 1966-67 ................................................ 100 3.3. Negotiated De-colonization I: Macau as a Chinese territory under Portuguese administration (1974-1987) ........ 104 3.3.1. The impact of the Portuguese revolution of 1974 in Macau .................. 105 3.3.2. The implementation of the Macau Organic Statute ........................... 108 – 6 – TABLE OF CONTENTS 3.3.3. Political participation and representation under the Organic Statute .......... 111 3.3.4. The associative ‘boom’ ......................................................... 115 3.4. Negotiated De-colonization II: the Transition period (1987-1999) .................. 119 3.4.1. The Sino-Portuguese Joint Declaration of 1987 and the implementation of the Macau Basic Law .................... 120 3.4.2. The co-optation of local business associations in local and national government institutions ................................. 123 3.4.3. The localization process: the substitution of Portuguese for Chinese civil servants and administrators ................................. 124 3.5. Conclusions ............................................................................ 126 CHAPTER 4. The integration of Macau in the People’s Republic of China as a Chinese Special Administrative Region: post-transition political and economic trends (1999-2004) ......... 129 4.1. Introduction ............................................................................ 129 4.2. Regional integration in a globalizing China: the Macau-Mainland Closer Economic Partnership Agreement (CEPA) ....................................................... 130 4.2.1. China’s strategies of integration in the global economy: the path towards WTO and CEPA ............................................. 132 4.2.2. An overview of the Macau-Guangdong economic relationship .............. 135 4.2.3. Hong Kong and the origins of CEPA .......................................... 138 4.2.4. The Macau-Mainland CEPA ................................................... 140 4.3. Political patterns and institutional change in the Macau
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