Advertisement

The Rise of China’s Economy and Its Impact on the Ethnic Chinese Business Community: The Case of Cherry Automobile in Malaysia

  • Danny Wong Tze Ken
  • Miao Zhang
Chapter

Abstract

This chapter examines the internationalization of Chinese multinational corporations (MNCs) and interactions with the government, local ethnic Chinese partners, and suppliers in Malaysia as the economies of Malaysia and China become increasingly integrated through trade and investment linkages. By studying China’s Chery Automobile in Malaysia, the research found that the local ethnic Chinese community has benefited somewhat from business engagement with China’s MNCs and politically dominated government-linked companies (GLCs) in Southeast Asia by playing an intermediary role. The impact of increasing flow of Chinese capital into Malaysia offers some benefit to local ethnic Chinese businesses, but it has not fundamentally changed for the better the tense relations with the politically dominant ethnic group nor the overall business environment.

Keywords

Ethnic Chinese business Malaysia MNCs GLCs 

Bibliography

  1. ACFTA. 2010. “ASEAN-China Free Trade Agreement.” The ASEAN Secretariat. Accessed June 2017. http://asean.org/?static_post=asean-china-free-trade-area-2.
  2. Athreye, Suma, and Sandeep Kapur. 2009. “Introduction: The Internationalization of Chinese and Indian Firms Trends, Motivations and Strategy.” Industrial and Corporate Change 18, no. 2: 209–221. https://ssrn.com/abstract=1372571 or http://dx.doi.org/dtp007.CrossRefGoogle Scholar
  3. Automobile Industry Association of Malaysia. 2014. “National Automotive Policy 2014.” Accessed December 2015. http://www.maa.org.my/pdf/NAP_2014_policy.pdf.
  4. Bank Negara Malaysia. 2014. “Bank Negara Malaysia and People’s Bank of China Signs Memorandum of Understanding on Renminbi Clearing Arrangements in Malaysia.” November 10. Accessed December 2017. http://www.bnm.gov.my/index.php?ch=en_press&pg=en_press&ac=1419&lang=en.
  5. Chee, Peng Lim. 1985. “The Proton Saga-No Reverse Gear: The Economic Burden of Malaysia’s Car Project.” In The Sun Also Sets: Lessons in Looking East, edited by Kwame Jomo. Kuala Lumpur: Nadi Insan.Google Scholar
  6. Cheong Cheok, Kee, Li Ran, Tan Chye Eu, Zhang Miao, et al. 2014. “China’s State Enterprises, Economic Growth and Distribution: A Revisionist View.” China: An International Journal 12, no. 1: 132–152.Google Scholar
  7. Chery Official Website. 2016. “The Introduction of Chery Automotive Company Limited.” Accessed December 2016. http://www.cheryinternational.com/corporate-overview.html.
  8. China Global Investment Tracker. 2014. “Online Database.” Accessed December 2016. http://www.aei.org/china-global-investment-tracker/.
  9. Comtrade. 2014. “The United Nations Comtrade Database.” Accessed January 2017. https://comtrade.un.org/.
  10. Doner, R. Richard. 1991. Driving a Bargain: Automobile Industrialization and Japanese Firms in Southeast Asia. Berkeley: University of California Press.Google Scholar
  11. Folker, Froebel, Juergen Heinrichs, and Otto Kreye. 1982. The New International Division of Labor: Structural Unemployment in Industrialized Countries and Industrialization in Developing Countries. Cambridge: Cambridge University Press.Google Scholar
  12. Gomez, Terence, and Michael Hsin Huang Hsiao. 2004. Chinese Enterprise, Transnationalism and Identity. London: Routledge.Google Scholar
  13. Gu, Lulu, and Robert W. Reed. 2012. “Chinese Overseas M&A Performance and the Go Global Policy.” Economics of Transition 21, no. 1: 157–192.CrossRefGoogle Scholar
  14. Hymer, Stephen. 1975. “The Multinational Corporation and the Law of Uneven Development.” In International Firms and Modern Imperialism: Selected Readings, edited by Hugo Radice. Harmondsworth: Penguin.Google Scholar
  15. Jenkins, Rhys Owen. 1987. Transnational Corporations and the Latin American Automobile Industry. Bansingstoke: Macmillan.CrossRefGoogle Scholar
  16. Jiang, Zemin. 2002. “Jiang Zemin’s Report at 16th Party Congress.” Accessed July 2015. http://www.china.org.cn/english/features/49007.htm.
  17. Kolstad, Ivar, and Arne Wiig. 2009. “What Determines Chinese Outward FDI?” Journal of World Business 47, no. 1: 26–34.CrossRefGoogle Scholar
  18. Lim, Guanie. 2015. “China’s Investments in Malaysia: Choosing the ‘Right’ Partners.” International Journal of China Studies 6, no. 1: 1–30.Google Scholar
  19. Malaysia Investment Development Authority. 2015. “Malaysia Investment Performance Report: Driving Sustainable Growth.” Accessed December 2017. http://www.mida.gov.my/home/administrator/system_files/modules/photo/uploads/20160301100315_MIPR2015-2.pdf.
  20. Michel, Serge, and Michel Beuret. 2009. China Safari: On the Trail of Beijing’s Expansion in Africa. New York: Nation Books.Google Scholar
  21. Ministry of Foreign Affairs. 2008. “The Ambassador of China, P. R.C. in Malaysia Attended the Joint Venture Agreement Signing Ceremony Between Chery and Alado.” Accessed December 2017. http://www.mfa.gov.cn/chn//pds/gjhdq/gjhdqzz/lhg_14/zwbd/t438341.htm.
  22. Ng, Paul. 2012. “Chery to World: ‘Here for the Long Term’.” Interviewed by The Business Station, July 20. Accessed July 2016. http://www.bfm.my/chery-paul-ng.html.
  23. North, Douglass C. 1991. “Institutions.” The Journal of Economic Perspectives 5, no. 1 (Winter): 97–112.CrossRefGoogle Scholar
  24. Rasiah, Rajah, Peter Gammeltoft, and Yang Jiang. 2010. “Home Government Policies and Outward Foreign Direct Investment from Emerging Economies: Lessons from Asia.” International Journal of Emerging Markets 5, no. 3: 333–357.  https://doi.org/10.1108/17468801011058415.CrossRefGoogle Scholar
  25. Rasiah, Rajah, Zhang Miao, and Kong Xin Xin. 2013. “Can China’s Miraculous Growth Continue?” Journal of Contemporary Asia 43, no. 2: 295–313.CrossRefGoogle Scholar
  26. Statista.com. 2016. “Car Sales in China (Passenger and Commercial) from 2008 to 2016.” Accessed December 2016. https://www.statista.com/statistics/233743/vehicle-sales-in-china/.
  27. Wad, Peter. 2009. “The Automobile Industry in Southeast Asia: Malaysia and Thailand.” Journal of the Asia Pacific Economy 14, no. 2: 172–193.CrossRefGoogle Scholar
  28. Wang, Yong. 2016. “Offensive for Defensive: The Belt and Road Initiative and China’s New Grand Strategy.” The Pacific Review 29, no. 3: 455–463.CrossRefGoogle Scholar
  29. Zhang, Miao, and Rajah Rasiah. 2015. “Globalization, Industrialization and Labor Markets in China.” Journal of the Asia Pacific Economy 20, no. 1: 14–41.CrossRefGoogle Scholar

Copyright information

© The Author(s) 2019

Authors and Affiliations

  • Danny Wong Tze Ken
    • 1
  • Miao Zhang
    • 1
  1. 1.Institute of China Studies, University of MalayaKuala LumpurMalaysia

Personalised recommendations