d together n c^urc^ and a new mosque, to be built side by side psame property. They named their common access road fann ^errace," and they are now next-door neighbors. We 0 s an example for the world," said one of the Muslim . economies worldwide. The overseas Chinese, Bw^*^ overseas Chinese are investing in China, to be sure. w not just out of love of ancient homeland. It s business. ITS ^ue, New York. NY 10153 6. ASIAN AMERICANS long the outcasts of Asia, are now the international business community s model citizens. Ask Casey K. C. Foung why the majority of investors who fueled and have capitalized on the Asian boom are of Chinese descent, and he has a simple answer. When Asian countries sought foreign investment to develop, Western capital was not there, says Foung, a New York resident who is the founder of Arch Associates, a medium-size quilt-making firm with extensive operations in China. When China decided to open, the only capital came from the overseas Chinese. China would have preferred infusion from high-tech American and European corporations, but the West was reluctant to venture in without legal guarantees: property rights, tax laws, price deregulation, international arbitration. Overseas Chinese capital took the risk. Members of the Chinese diaspora come from a 600-year tradition of enterprising fortune seekers who escaped China s strict government controls in order to ply their trades. Most of them came from two southeastern provinces, Guangdong and Fujian, on the cultural periphery of the Chinese empire. Operating in their new homelands without the protection of China s government, they readily adapted to different trading systems and governing styles and established importexport businesses through commercial networks, often made up of Chinese who spoke the same dialect. For more than 300 years, ethnic Chinese around Asia controlled rice mills, light manufacturing, and money lending. They owned plantations, oil mills, timber industries, manufacturing concerns, and the bulk of small retail shops selling staples. They thereby made themselves indispensable to the various indigenous populations and later to the imperialists who ruled them. The Chinese, wrote T. M. Ward, a British physician stationed in Malacca in 1827, are the most enterprising, the most opulent, the most industrious and the most determined in pursuit of wealth. British, Dutch, and French colonial rulers recognized this indispensability and capitalized on it, giving the ethnic Chinese throughout Asia special status as go-betweens, especially during the nineteenth century, colonialism s peak. Their businesses also provided the most reliable and readily available tax revenue for colonial governments, and because of that these governments barred the Chinese from all but their traditional trading occupations. Understandably, the non-Chinese who lagged behind economically were often resentful, accusing their Chinese residents of dominating their economies by dubious means and unfair practices. After World War II, postcolonial nationalist governments in the region generally became hostile to Chinese residents, and after the fall of the nationalists in 1949, suspected them of having ties to the communists. Almost without exception, the ethnic Chinese experienced severe persecution and restrictions. In Thailand and Indonesia, they were forced to assimilate by adopting local names. In Malaysia, the government set up impediments through occupational, educational, and other quotas favoring ethnic bumiputras, or sons of the soil. There have been periods of intense racial violence, such as in Malaysia in the 1960s and 1970s, and in Indonesia in 1965. Because of the centuries of persecution, overseas Chinese have developed a deep- FOLLOW THE MONEY Foreign direct investment 1 in China, 1979-1994. I in billions of dollars | Hong Kong $67.3 ! Taiwan* 9.8 i United States 6.1 | Japan 5.3 | Singapore 2.7 I 'Analysts estimate (hat (he ; Chinese government may 1 underreport Taiwanese invest ; merit in China by as much .is 1 50 percent because a large i percentage of Taiwanese , money is invested in ( hin.i via Hong Kong companies. , Source: Statistical