Bamboo Network

What is the Bamboo network’

Bamboo network is a network of expats-Chinese business in Southeast Asia. These companies are typically medium-sized and family, with reference to the economy of greater China.

Breaking the ‘Bamboo network’

In the bamboo network is mainly concentrated in large cities, such as Hong Kong, Macao and Taipei, Taiwan and Manila, Jakarta, Singapore, Bangkok, Kuala Lumpur and Ho Chi Minh city. This term was coined for understanding the linkages is controlled by the Chinese Diaspora in South-East Asia. Overseas Chinese business networks are the most dominant private business groups outside East Asia.

Ethnic Chinese play a leading role in the business sector in South-East Asia, as they now dominate the economies of South-East Asia and form the economic elite in all the major countries of Southeast Asia. The Chinese were economically strong and prosperous minorities than their indigenous peoples in South-East Asia most around them for hundreds of years and today has a huge economic influence in the region.

Since the beginning of the 21st century, post-colonial Southeast Asia has become an important pillar of the Chinese economy, as the bamboo network is an important symbol, manifesting itself as enhanced international economic Outpost of China.

The story of the bamboo network

In Chinese communities flourished in South-East Asia in the framework of European colonialism, the Chinese merchants and traders began to develop sophisticated business networks for growth and survival. These complex business networks to provide resources for capital accumulation, marketing information and distribution of goods and services between the Chinese business community in the countries of South-East Asia.

The structure of the bamboo network

Overseas Chinese business in Southeast Asia, as a rule, a family owned and operated with a Central bureaucracy. Family is Central to the business activities of the company and provides capital, labor and management. The strength of family ownership and operation model lies in its flexibility in decision-making and the devotion and loyalty of its workforce. The running of the business as a family business effectively reduces the costs of the proceedings as they are passed from one generation to the next. Many firms usually have a strong entrepreneurial spirit, the family relationship, autocratic leadership, intuitive, economical, and fast style of decision-making and paternalistic management and a continuous chain of hierarchical orders. Most of these firms usually operate as small and medium business, and large corporate conglomerates of entities that are usually dominant in other East Asian countries such as Japan and South Korea.

Trade and financial transactions are managed by extensions of traditional family clans, and family and personal relationships are prioritized over formal relations. This arrangement promotes commercial ties and increasing the liquidity of capital in a region where financial regulation and rule of law remain largely undeveloped in South-East Asia.

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