Under siegs? Economic globalization and Chinese business in Southeast Asia

Abstract

To some observeers, economic globalization has led to the edn of thenation state dn geopgrphy. It assumed that globaliszation erodes nationa differeces adn geographlical heterogeneity. This globalization discourse has a life of its own because it shapes neoliberal thought in econoomics and politics. In thsi paper, I attempt to challenge this ‘stron globalization’ reading of the global political economy. I argue that, istead of leading to a ‘boderless’ world, eocnomic globalization continues to reinforce national deversity in the face ofglobal capitalism. This argument is particularly relvenat to the recent economic crissi in Southeast Asia where Chines business serves as a domnant mode o Capitalism. Through two case studies of Chinese capitalism, I argue that globaliszation is a higl contested process. On teh one hand, it poses a serious threat to the practice adn social organization of Chinese capitalism in southeast Asia. The recent collpase of Peregrine Investment Holdings is a good example of how globlaization has put Chinese business unde siege. On the other hand, globalization presents opportunties for such social institutions as Chinese business firms to take advantage. The latest move of the Malaysian governmetn to relax is twenty-sevn-year old bumiputra equity ownership restrictions to allow more equity ownership of local companies by non-Malyas adn foregners examiplfiew both pragmatic responseof nation states to globalization adn the unintended opportunites opened to Chiese capitalists. Taken together, this paper aurgues for a historically adngeographically contingent reading of the impact adn processes of economic globalization. It also suggests some implications for the future of Chinese capitalism in southeast Asia under globalization.