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Chinese are China's strength
Friday, 09 September 2011 00:26
Arindam Chaudhuri
Overseas Chinese not only pump money into Chinas economy but also facilitate the fulfilment of Chinese ambitions of global cultural and political colonisation. The overseas Chinese have made themselves inimitable in all spheres of influencing official and popular perceptions of China. They also remit a lot of money home
The strength of the Chinese population can be gauged from the fact that today around 19.3 per cent of the world population is Chinese. But then, such a figure based on the law of averages hides more than what it reveals. The figure that talks volumes about the Chinese sphere of influence, at least with respect to human capital, is that of 50 million plus overseas Chinese who are settled in various parts of the world and doing their bit in accelerating the fast-paced Chinese economy.
Today, overseas Chinese not only pump money into the Chinese economy but also facilitate Chinese ambitions of global cultural and political colonisation. Overseas Chinese have made themselves inimitable in almost all spheres of influences from heading many hard power areas by chairing vital positions in global forums, military and political institutions of many nations to being the face of various soft power areas of influence. One may not be well versed with the Chinese powers-that-be, but at the same time, very few would be not well-versed with the likes of Jackie Chan.
The emigration of Chinese dates back to the Ming dynasty, but the real wave of Chinese diaspora started in 1840s when thousands of Chinese left China and made their way to the United States, especially after the discovery of gold in California. Initially, uneducated and unemployed Chinese labourers left their homes and moved to the US (for mining and railroad jobs); but then, during the late-19th century, the scenario changed. Instead of labourers, those were skilled and educated Chinese who moved out to avoid the ill effects of poverty and famine which were haunting China in the late-19th century.
However, this time the destination was not confined to the US or the West; many Asian nations suddenly made it to the destination list of Chinese. Among all the nations, South-East Asia and Australia (apart from the US) attracted the most Chinese immigrants. With more and more Chinese moving out of China, most of the big cities across the world saw a huge inflow of Chinese. Gradually, these people moved and settled down in a more organised manner and formed strong communities across the globe. So much so that most of the renowned cities (in almost all nations) have a China located somewhere which today we call Chinatown.
A Chinatown by no means is just another shopping destination but is a hub of overseas Chinese in a particular city. This is one place where overseas Chinese and local residents can find everything that China manufactures. It is basically a one-stop-solution for all overseas Chinese when it comes to purchasing Chinese products, and above all, being close to their roots. Given the economies it generates, its a fact that in many nations, Chinatowns are of mammoth proportions for example, the Cherkizovsky Market was considered the largest in Europe in July 2009, the Moscow Government decided to replace it with a Chinatown shopping centre.
China is reportedly investing $1 billion in the construction that would give employment to 70,000 overseas Chinese directly and would allow China to sell products worth a whopping $5 billion. Leading the race, Dubai is all set to construct the worlds biggest Chinatown spread across an area of 800 hectare its worth around $47 million.
There are around four major, recognised Chinatowns in Africa, over 35 in Asia, over 30 in UK and Europe, 15 in Latin America and over 50 in the US and Canada besides hundreds of more such markets across the world. Most of the goods sold in Chinatowns are imported from China (thus, pumping back huge revenues into China). Additionally, millions of Chinese working in these communities send more millions back home to their families.
The remittance doesnt end here. Besides millions of dollars flowing in through non-official and unorganised channels (in smaller denominations), overseas Chinese billionaires donate millions to the Chinese Government through official and transparent routes. Li Ka Shing has recently donated a medical university to China; many such donations and relief funds (during disasters) are common for China.
The cultural and family ties play a major factor in this and the overseas Chinese are largely driven by the verve to do something for their motherland. It might not be a panacea, but this solidarity of overseas Chinese towards their families back home has helped the Chinese economy to a great extent. The 55 million overseas Chinese across 135 countries contribute nearly 60 per cent to the total Chinese FDIs.
Chinas total foreign reserves were around $194 billion and total FDI was $61 billion (in the year 2004) with a GDP growth of 10.7 per cent (in 2006). The preceding decade (1990-2000) too experienced a rapid progress with average annual growth rate of 9.6 per cent mainly because of its diasporas benefactor-effect. The contribution of overseas Chinese in development of their homeland is a matter of historical and cultural patriotism.
Between 1985 and 2008, foreign investment in China reached a figure of $898 billion making it the foremost nation in the world to attract foreign investment for 18 consecutive years. OECD estimates reveal that a resounding 45 per cent of foreign investment in 2004 came from overseas Chinese. In 2010, the FDI figures rose to a record breaking $105.7 billion. By August 2011, Chinas forex reserves had reached $3.2 trillion.
All thanks to the deep-running cultural roots that create a propensity for the diaspora to invest or establish business networks with their hometown. In Xinjiang Province for instance, many entrepreneurial initiatives have been taken based on not only the Government compensation but also on the remittances from the overseas relatives of entrepreneurs. Therefore, migrant business networks are fully exploited by the diaspora with the help of cultural and ethnic linkages for the overall development of mainland China.
In 2006, overseas Chinese sent $22.5 billion to China as remittance, a figure which is now estimated to be more than $50 billion every year. The Chinese diaspora generate more than $500 billion in South-East Asia alone and are playing a very pivotal role in the development of the Chinese economy. A huge part of this money is being redirected as remittances and donations; and to this extent, this community helps in the formation of a bridge that allows overseas and domestic Chinese to share intellectual and investment know-how and thus opens avenues of business opportunities.
The diaspora too are received with conscientious warmth and encouragement by the Chinese authorities as cross-border migration is greatly encouraged and their experiences are shared with the local population. The Chinese Government realised that this point needs to be driven home with the diaspora therefore, they opened up a special Cabinet Ministry to solely deal with overseas Chinese.
As compensation for the damage caused by Mao Tse-tung during the Cultural Revolution by dissolving the Overseas Chinese Affairs Commission, the commission was reopened in 1978 with the name changed to Overseas Chinese Affairs Office. A new federation was also opened in 1978 (All-China Federation of Returned Overseas Chinese) to help the overseas population integrate with their families and help in the transfer of funds
The writer is a management guru and Editor, The Sunday Indian.
Friday, 09 September 2011 00:26
Arindam Chaudhuri
Overseas Chinese not only pump money into Chinas economy but also facilitate the fulfilment of Chinese ambitions of global cultural and political colonisation. The overseas Chinese have made themselves inimitable in all spheres of influencing official and popular perceptions of China. They also remit a lot of money home
The strength of the Chinese population can be gauged from the fact that today around 19.3 per cent of the world population is Chinese. But then, such a figure based on the law of averages hides more than what it reveals. The figure that talks volumes about the Chinese sphere of influence, at least with respect to human capital, is that of 50 million plus overseas Chinese who are settled in various parts of the world and doing their bit in accelerating the fast-paced Chinese economy.
Today, overseas Chinese not only pump money into the Chinese economy but also facilitate Chinese ambitions of global cultural and political colonisation. Overseas Chinese have made themselves inimitable in almost all spheres of influences from heading many hard power areas by chairing vital positions in global forums, military and political institutions of many nations to being the face of various soft power areas of influence. One may not be well versed with the Chinese powers-that-be, but at the same time, very few would be not well-versed with the likes of Jackie Chan.
The emigration of Chinese dates back to the Ming dynasty, but the real wave of Chinese diaspora started in 1840s when thousands of Chinese left China and made their way to the United States, especially after the discovery of gold in California. Initially, uneducated and unemployed Chinese labourers left their homes and moved to the US (for mining and railroad jobs); but then, during the late-19th century, the scenario changed. Instead of labourers, those were skilled and educated Chinese who moved out to avoid the ill effects of poverty and famine which were haunting China in the late-19th century.
However, this time the destination was not confined to the US or the West; many Asian nations suddenly made it to the destination list of Chinese. Among all the nations, South-East Asia and Australia (apart from the US) attracted the most Chinese immigrants. With more and more Chinese moving out of China, most of the big cities across the world saw a huge inflow of Chinese. Gradually, these people moved and settled down in a more organised manner and formed strong communities across the globe. So much so that most of the renowned cities (in almost all nations) have a China located somewhere which today we call Chinatown.
A Chinatown by no means is just another shopping destination but is a hub of overseas Chinese in a particular city. This is one place where overseas Chinese and local residents can find everything that China manufactures. It is basically a one-stop-solution for all overseas Chinese when it comes to purchasing Chinese products, and above all, being close to their roots. Given the economies it generates, its a fact that in many nations, Chinatowns are of mammoth proportions for example, the Cherkizovsky Market was considered the largest in Europe in July 2009, the Moscow Government decided to replace it with a Chinatown shopping centre.
China is reportedly investing $1 billion in the construction that would give employment to 70,000 overseas Chinese directly and would allow China to sell products worth a whopping $5 billion. Leading the race, Dubai is all set to construct the worlds biggest Chinatown spread across an area of 800 hectare its worth around $47 million.
There are around four major, recognised Chinatowns in Africa, over 35 in Asia, over 30 in UK and Europe, 15 in Latin America and over 50 in the US and Canada besides hundreds of more such markets across the world. Most of the goods sold in Chinatowns are imported from China (thus, pumping back huge revenues into China). Additionally, millions of Chinese working in these communities send more millions back home to their families.
The remittance doesnt end here. Besides millions of dollars flowing in through non-official and unorganised channels (in smaller denominations), overseas Chinese billionaires donate millions to the Chinese Government through official and transparent routes. Li Ka Shing has recently donated a medical university to China; many such donations and relief funds (during disasters) are common for China.
The cultural and family ties play a major factor in this and the overseas Chinese are largely driven by the verve to do something for their motherland. It might not be a panacea, but this solidarity of overseas Chinese towards their families back home has helped the Chinese economy to a great extent. The 55 million overseas Chinese across 135 countries contribute nearly 60 per cent to the total Chinese FDIs.
Chinas total foreign reserves were around $194 billion and total FDI was $61 billion (in the year 2004) with a GDP growth of 10.7 per cent (in 2006). The preceding decade (1990-2000) too experienced a rapid progress with average annual growth rate of 9.6 per cent mainly because of its diasporas benefactor-effect. The contribution of overseas Chinese in development of their homeland is a matter of historical and cultural patriotism.
Between 1985 and 2008, foreign investment in China reached a figure of $898 billion making it the foremost nation in the world to attract foreign investment for 18 consecutive years. OECD estimates reveal that a resounding 45 per cent of foreign investment in 2004 came from overseas Chinese. In 2010, the FDI figures rose to a record breaking $105.7 billion. By August 2011, Chinas forex reserves had reached $3.2 trillion.
All thanks to the deep-running cultural roots that create a propensity for the diaspora to invest or establish business networks with their hometown. In Xinjiang Province for instance, many entrepreneurial initiatives have been taken based on not only the Government compensation but also on the remittances from the overseas relatives of entrepreneurs. Therefore, migrant business networks are fully exploited by the diaspora with the help of cultural and ethnic linkages for the overall development of mainland China.
In 2006, overseas Chinese sent $22.5 billion to China as remittance, a figure which is now estimated to be more than $50 billion every year. The Chinese diaspora generate more than $500 billion in South-East Asia alone and are playing a very pivotal role in the development of the Chinese economy. A huge part of this money is being redirected as remittances and donations; and to this extent, this community helps in the formation of a bridge that allows overseas and domestic Chinese to share intellectual and investment know-how and thus opens avenues of business opportunities.
The diaspora too are received with conscientious warmth and encouragement by the Chinese authorities as cross-border migration is greatly encouraged and their experiences are shared with the local population. The Chinese Government realised that this point needs to be driven home with the diaspora therefore, they opened up a special Cabinet Ministry to solely deal with overseas Chinese.
As compensation for the damage caused by Mao Tse-tung during the Cultural Revolution by dissolving the Overseas Chinese Affairs Commission, the commission was reopened in 1978 with the name changed to Overseas Chinese Affairs Office. A new federation was also opened in 1978 (All-China Federation of Returned Overseas Chinese) to help the overseas population integrate with their families and help in the transfer of funds
The writer is a management guru and Editor, The Sunday Indian.
