The Chinese government woos the Bamboo Network
On July 6, Chinese Premier Li Keqiang invited more than 450 Chinese business leaders from around the world to Beijing. He asked them to help support China's economy, saying overseas Chinese are the key to the nation's future, as they form a bridge between
It makes sense to woo the Chinese diaspora, as they are a unique group, with impressive resources of capital, technology and management skills. And there are many of them. Since they keep a fairly low profile and are usually well integrated into the countries where they have settled, it is difficult to know exactly how many, but estimates put the number at about 60 million.
One of their special characteristics is the strength of their personal connections with their families, business partners and generations. The leading business clans have been dubbed the “Bamboo Network”, as they manage vast, interconnected enterprises that spread across Hong Kong, Taiwan, Southeast Asia and mainland China.
When China opened up its economy to the outside world
in the late 1970s, the initial investors were emigrants
and their progeny, who had maintained their links to the mainland. This head start,
plus similarities in language, culture and business ethics, gave them a major advantage and today the overseas Chinese play a major role in China’s economy.
Excellent example
An excellent example is Thailand’s CP Group founded by Dhanin Chearavanont, which was the first foreign company to become established in modern China. It now holds the historic foreign business registration number 001.
CP, known as Chia Tai or Zheng Da Ji Tuan in China, is one of the biggest investors in China, with interests spanning the agriculture, retail and automobile industries.
Naturally Dhanin would have been invited to meet with Li in Beijing, as well as some other business leaders from Thailand, including Bangkok Bank president Chartsiri Sophonpanich.
The meeting’s main focus was to explain the opportunities arising from the “One Belt One Road” scheme, which will link China with Southeast Asia. For example, China is establishing free trade zones along the route and the Overseas Chinese Economic and Culture Cooperation Experimental Zone in Shantou, a city that has especially close ties with Thailand, as many Thais have ancestors from there.
The new experimental zone in Shantou will cover 480 square kilometres in three
districts and should be completed in three years. It will focus
on nine industries including financial services, resource and energy trading, creative industries, education and medical services.
Beijing wants to encourage overseas Chinese to take their families to live there and establish businesses. Given the long-standing relationship between Thailand and Shantou, I am sure this initiative will attract interest from Thailand.
