The Chinese who left the mother country had to struggle, and that became a culture of its own. Because we have no social security, the OverCseas Chinese habit is to save a lot and make a lot of friends.
LEE SHAU KEE, 65, REAL ESTATE DEVELOPER, HONG KONG (rjn woitrs: $6 BILLION)J4
Compared to the Japanese keiretsu, the emerging Chinese commonwealth is an interconnected, open system - a new market mechanism for conducting global business.15 It is now becoming apparent to many business leaders who have finally figured out Japan's keiretsu that they “now need to understand a distinctively Chinese model, where tycoons cut megadeals in a flash and heads of state wheel and deal like CEO5.”i6
The “Chinese commonwealth” is a form of global network which has become the envy of Western multinationals. It is a network of entrepreneurial relationships spread across continents, though primarily in Asia- What is increasingly being referred to as the “big dragon of Greater China” includes mainland China's 1.3 billion citizens and over 55 million overseas Chinese - most of them from Taiwan, Indonesia, Hong Kong, and Thailand. It is estimated that the overseas Chinese control $2 trillion in liquid assets, and contribute about 80 percent of the capital for the PRC; if the overseas Chinese lived in one countiy their GNP would exceed& that of mainland China?7 In addition, this “bamboo network,” which transcends national boundaries, is estimated to contribute about 70 percent of the private sector in Malaysia, Thailand, Indonesia, and the Philippines.” 1Most observers believe that this China-based informal economy is the world leader in economic growth, industrial expansion, and exports. It comprises mostly midsize, family-mn firms linked by transnational networkchannels. “These channels for the movement of information, finance, goods, and capital help to explain the relative flexibility and efficiency of the numerous ongoing informal agreements and transactions that bind together the various parts of the Chinese-based trading area. The network alliances bind together and draw from the substantial pool of financial capital and resources available in the region - including those of entrepreneurial services in Hong Kong, technology and manufacturing capability in Taiwan, outstanding communications in Singapore, and vast endowments of land, resources, and labor in mainland China.
The overseas Chinese, now models for entrepreneurship, financing and modernization for the world, and in particular for Beijing, are refugees from China's poverty, disorder, and communism. Business became the key to satvival for those Chinese emigrants faced with uncertainties, hardships, and lack of acceptance in their new lands. The uncertainties, a survivor mentality, and the cultural basis in the Confucian tradition of patriarchical authority have led to a way of doing business which is largely confined to family and trusted friends. This business mentality and approach to life has led to many self-made billionaires among the overseas Chinese. Among them are Y. C. Wang, the Taiwanese plastics king, who had to leave flchool after the sixth grade, but taught himself what was necessary to develop a flew industry. At 77, he still never takes a day off and views personal consumption as undue extravagance. His wife sneaks out his worn suits to the tailor to be copied and sneaks the new ones back into his closet.2' The network of alliances of the ethnic Chinese is based on guanxi - personal connections - among families, business friends, and political associations, often rooted in the traditional clans. Massive amounts of cross-investment and trade are restricted primarily to families and long-standing connections, including those from the province of the PRC from which the overseas Chinese or their ancestors migrated. As examples, Chinese ties in Hong Kong have provided about 90 percent of the investment in the adjacent Cuangong; and telephone calls from the special economic zone of Xiamen in the PRC to Taiwan now average 60 thousand a month, up from ten a month eight years ago?2 The web of those connections has created an influential network that is the backbone of the East Asian economy.
The histomy culture, and careful, personal approach to business of the overseas Chinese has led to some underlying values, which Kao calls “life-raft values,” which have shaped a distinctive business culture. These values include thrift and a very high savings level, regardless of need, extremely hard work, trust in family before anyone else, adherence to patriarchal authority, investment based strictly on kinship and affiliations, a preference for investment in tangible goods, and an ever-wary outlook on life?3 It is this shared web of culture and contacts that has spawned an intensely commercial and entrepreneurial network of capitalists and a dominant power in Asia. Two benefits of such a business culture are speed and patience- Because of their knowledge of and trust in their contacts, the overseas Chinese can smell profits quickly and make decisions even more quickly; a deal to buy a hotel in Asia can be completed in days, compared to months in the United States.Patience to invest for the long term is an outcome of closely held ownership and management, often in a single family, so that outside shareholders are not demanding short-term profits. There is no doubt that sharing language and cultural bonds is a vital lubricant for business, especially with people in China, where there are few firm laws that businesspeople can rely on.
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