Chinese Capital in the Regional Economic Integration of Southeast Asian Countries at the Beginning of the XXI Century

Abstract

Since the beginning of the 21st century, a new trend in the development of Chinese capital has emerged — the consolidation of regional Huaqiao firms and, or groups of enterprises into syndicates, banking and industrial sectors that invest capital in the economy of resident states. Consolidated for economic benefit in various fields of activity, the Chinese community of Southeast Asian countries (Southeast Asia) helped to improve the banking system, modern production, development of raw materials, infrastructure development, tourism business, modern services, etc. The liberalization of trade and investment conditions contributed to the expansion of the participation of Chinese joint capital in the economic development of Southeast Asian countries. The consolidated activity of the Chinese community was positive, it contributed to the convergence of the economies of the Southeast Asian countries, their economic complementarity, and accelerated development. Chinese capital has had and continues to have a significant impact on the unification of the region’s market, contributes to the growth of total GDP increases the efficiency and competitiveness of the economies of individual countries. From these positions, the Chinese community is a significant factor influencing the foreign economic policy of both individual Southeast Asian countries and the Association of Southeast Asian Nations (ASEAN). In addition, during the period under review, the Chinese community forms the business elite of the Southeast Asian countries, in whose hands most of the national capital is concentrated. Chinese business expanded the network of Chinese holdings, which introduced new technologies into production, strengthened business contacts, and contributed to the acquisition of managerial experience. The largest holdings began to control the main sectors of the economies of the Southeast Asian countries. Network banking structures involved in the movement of investments contributed to this process. There is a feature inherent in Chinese entrepreneurship that can prevent business risks: the activities of the holdings are diverse, and the management belongs to one clan (family). The most important feature of business development in Southeast Asia in national capital. Chinese business expanded the network of Chinese holdings, which introduced new technologies into production, strengthened business contacts, and contributed to the acquisition of managerial experience. The largest holdings began to control the main sectors of the economies of the Southeast Asian countries. Network banking structures involved in the movement of investments contributed to this process. There is a feature inherent in Chinese entrepreneurship that can prevent business risks: the activities of the holdings are diverse, and the management belongs to one clan (family). The most important feature of business development in Southeast Asia at the beginning of the XXI century was regional integration, built on the principles of pragmatism. This process has contributed to the preservation of social stability as the most important condition for the existence of States. The Chinese capital of the Southeast Asian countries in the context of globalization and regionalization of economies was focused mainly on cooperation within Chinese communities.