Anti-Chinese feeling not strong in Asia

Anti-Chinese feeling not strong in Asia

TAIPEI (Reuters): Southeast Asia's financial woes and a simmering political crisis in Indonesia have hurt firms owned by ethnic Chinese but many regional executives said yesterday they believed anti-Chinese sentiment was rare.

The financial crisis and social unrest in Indonesia were the main topics of discussion on the sidelines of the World Chinese Traders Convention in Taipei, attended by more than 1,000 Chinese traders and merchants from around the world.

Chinese-Indonesian trader Chang Tsai-shen was among hundreds of ethnic Chinese who have fled Indonesia as mobs attacked shopping malls, businesses and homes they owned.

"The situation there was so chaotic and ethnic Chinese are the easy targets," Chang said. "My uncle was killed during earlier riots. We feel frustrated, but where can we go?" he said.

Ethnic Chinese have been main targets of the mob violence that swept Jakarta and other major cities across Indonesia last week because of their visible wealth and domination of commerce.

Although they make up less than five percent of Indonesia's 200 million people, ethnic Chinese own about 70 percent of its non-land wealth.

Firms owned by ethnic Chinese make up more than 65 percent of Indonesia's top 300 firms -- and 80 percent of their assets. The riots were set off by three months of student demands for reform and for President Soeharto to quit.

Taiwan investor Nancy Kuo, who set up a textile plant in Indonesia seven years ago because of cheap labor costs, said her plant was able to operate normally but now could not find containers to export its products.

"There has been some protest in the street, but the mood was relatively stable around my neighborhood," Kuo said.

"But the scheduled May 20 protest really worries me. The situation could turn nasty and go out of control," Kuo said. A Moslem leader has vowed to muster millions of protesters on Wednesday, the Day of National Awakening that celebrates Indonesia's first stirrings of nationalism 90 years ago, to clamor for Soeharto to quit to avoid more mob violence.

Still, many people attending the three-day convention that kicked off in Taipei yesterday said they believed anti-Chinese sentiment remained rare, especially outside Indonesia.

"Unlike in Indonesia, there is no anti-Chinese sentiment in Malaysia," said Chinese-Malaysian businessman Thor Hong Tong, whose family has lived in Malaysia for three generations.

"The racial problems in Indonesia are caused by a mix of complicated and longstanding factors, including uneven distribution of wealth and high inflation. These problems are not that serious in Malaysia," Thor told Reuters.

Thor said Malaysia's Chinese have been actively involved in "patriotism movements" to save the country's embattled economy since Asia's currency turmoil struck in mid-1997.

"Our businesses suffered a blow during the Asian turmoil, but we support the government and are willing to sacrifice to save the country's economy," Thor said. "There is a strong sense of solidarity in Malaysia."

Dang Hung Lam, who owns a trading firm in Vietnam, said Taiwan capital was welcome in Vietnam.

"The government knows we are there to do business. They know we don't get involved in politics or anything and our investments are good for the country," Dang said.