American Chinese Business Networks and the Economic Growth of China

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I have never read a research paper regarding oversea Chinese business networks. Professor Grossman's

“American Chinese Business Networks and the Economic Growth of China” (2009) gives me a brand new knowledge of Chinese oversea business networks. I am not qualified to comment on the paper (this is one of Chinese cultures, humbleness), I just want to give some opinions based on my knowledge and observation, rather than on research. 

The one of the reasons that Chinese people are commercially successful in Southeast Asian is that Chinese people always hold the value that education is the most valuable. Every Chinese people remembers Confucius’ guide that “all things are valueless, only education is priceless.” Observing Chinese migrants, if the first generations are labors, often the second will be not. Chinese people will do their best to send their kids to college. They believe that only education can change their life. Chinese people are also laborious, sparing. These are why Chinese sojourners can dominate some Southeast Asian countries’ economy.

Chinese people have the tradition of giving back to family and homeland, but we lack of enthusiasm of philanthropy in local society. Some Southeast Asian countries’ people are hostile to Chinese sojourners not only because they are not multicultural and pluralistic society, but also because the cheeseparing of Chinese sojourners. Also, Chinese people lack of enthusiasm in politic, even though they dominate the host countries’ economy, but they are not able to change their political status. In 1990’s, there were several riots against Chinese sojourners in Indonesia, killing a numbers of Chinese and burning their shops.

Another Chinese cultural character is Yiqi, which means that one can be stabbed in his ribs for friend. This is also a big part of business practice. For example, if one did a big favor to you before, you should return more. Guanxi and Yiqi play have bad impact on Chinese social development and legal mechanism.

There are other reasons of the low percentage of returning of Chinese oversea intellectuals. Throughout Chinese history, intellectuals often were oppressed. Historically, intellectuals’ status in China was low; China is still a nondemocratic country, while oversea Chinese intellectuals are enjoying freedom in the West; “Sea turtles” (pronounced the same as “returning from oversea” in Chinese) are not as popular as in 1980’s-1990’s, they are now call “sea weeds” (means not valuable). In my opinion, those who have decent job and family will not return. I know a lot of Chinese intellectuals in America don’t want to return because of above reasons. Intellectuals can remember history clearly and they can foresee the future.

Communist Chinese government wants to attract oversea Chinese intellectuals to promote Chine’s international competiveness, but it lacks of legislation and enforcement. Intellectuals are not confident with Chinese government’s ability to sustain the policy. They just do not trust its legal mechanism.