Chinese Economic Dominance in Southeast Asia A Longue Duree Perspective

As the industrialization process in Western European countries took off in the late nineteenth and early twentieth centuries, they largely turned to Asia and Africa for raw materials and other resources, as well as for markets of their manufactures. Various entrepreneurial diasporas, including the Indians, Lebanese and Chinese, were at the forefront to exploit these burgeoning economic possibilities, particularly in gathering local mineral and agricultural commodities and marketing European goods in the Afro-Asian regions. The Chinese activities in Southeast Asia stood out: they not only presided over the commercial realm but also organized mining production and cash crop agriculture in ways largely autonomous of the colonial regimes and Western entrepreneurs. How can we explain the dominance of the Chinese migrants and sojourners in the Southeast Asian economy from the 1850s to the 1930s? This paper repudiates the existing literature, which largely credits their economic presence to conscious immigration policies of the colonial authorities, and instead highlights the effects of a confluence of developments in the early modern period (ca. 1450–1800), including the sidelining of South Asians, West Asians, and regional trading communities in favor of the Chinese. A particular focus is the roles played by symbolic capital and mechanisms of advanced credit and spiral marketing, and how these gave the Chinese a comparative advantage over other trading groups.