The Overseas Chinese

How Do Guanxi Networks Increase Economic Integration?

Abstract

For centuries, Chinese governments have frowned upon immigration out of China. However, since the 1980s, particularly under current President Xi Jinping, Chinese immigration has been looked at in a different light, particularly Chinese immigrants in Southeast Asia, Taiwan, and Hong Kong. Through their interconnected kin networks known as guanxi, overseas Chinese have become a vital tool for Xi Jinping’s “Chinese Dream” and emerging international economic statecraft. Through a qualitative analysis of secondary sources, this paper aims to analyze the history of Chinese immigration, how guanxi networks impact Chinese cultural and economic connection, and how the use of these guanxi networks benefit Xi Jinping’s growing economic statecraft measures to create greater regional connection with Southeast Asian states. Overall, this paper argues that economic integration becomes the most successful when states have similar cultural ties and how the success story of Chinese integration in Southeast Asia has been due to this.