The Problem of Continuity in Chinese Businesses in Southeast Asia

Southeast Asian Studies, Vol. 25, No.3, December 1987

Kunio YOSHIHARA*

Chinese businesses and Chinese business- I Introduction men. Southeast Asia is more narrowly de If we follow Fernand Braudel's clas fined in this paper than usual. Since I sification, the economy can be divided want to focus on the problem of busi into three sectors: capitalism, the mar ness continuity in the past several dec ket economy, and the subsistence econ ades, I cover only the area where capital omy [Braudel 1979: introduction]. The ism exists today as it did earlier- meaning of the third sector would be which is the ASEAN region. It is some self-explanatory: goods are produced for times maintained that capitalism exists the producer's own consumption. In the in Burma since private property exists market economy and capitalism, how there, but since no concentration of cap ever, economic activities are undertaken ital exists in the Burmese private sec for the market; the difference between tor, I regard that it does not have capi the two is that in the former economic talism. activities are small-scale and utilize only The subject I want to treat is the fac a small amount of capital, while in the tors affecting the continuity of Chinese latter a large amount of capital is used businesses. Businesses rise and fall, in and the scale of operation is large. Cap the developed countries as well as in italism is then the sector in which the Southeast Asia. It is neither interesting role of capital is pronounced. nor very meaningful to repeat the rea Chinese businesses in this paper are sons given for the developed countries, not just any types of business owned so I want to focus on those which are and operated by the Chinese. I want to either unique to the region or more treat only those in which substantial cap pronounced there. ital is involved, that is, those in capi My focus is on Chinese businesses talism. They may be called capitalist rather than on business families. This dis institutions, and the people who own tinction is not very meaningful under them can be called capitalists, but here some circumstances, but it needs to be they are usually called, respectively, made, for a business can have a longer life than a family. For example, a family * alJj(~ t:~, The Center for Southeast Asian Studies, Kyoto University may decline, but the business it set

412 -112- K. YOSHIHARA: The Problem of Continuity in Chinese Businesses in Southeast Asia up can continue its life under a different appeared. Around that time, Southeast ownership. Asia became more substantively inte Businesses discussed in the paper were grated into the global economic network, either set up or acquired by previously as the result of the Industrial Revolu obscure businessmen and subsequently tion in the West, development of steam became large concerns, or were large ships, and the opening of the Suez Ca already at the time when they were set nal. The region became a market for up. In the former case, their business the West's manufactured goods and a life (for the purpose of this paper) be supplier of raw materials and tropical gan when they became large concerns. food products. To sustain and develop Since a large mass of small business es this pattern of integration, Western cap tablishments exists under capitalism, ital came in, but mainly on a large some businesses may have operated long scale, so there was need for someone to before they became large establishments, develop the market economy sector. For but the number of years when they the reasons of work ethic, know-how, were operating In the market economy and/or networks, the Chinese came to is not counted. dominate this sector. So, the plural eco nomic structure emerged: the Western merchants dominating in capitalism, the II Genesis and Expansion Chinese in the market economy, and the Although the Southeast Asian econ indigenous in t