The first example illustrating how a rising China has conducted its foreign policy on issues involving the Chinese overseas is the May 1998 anti–Chinese violence in Indonesia, which precipitated the downfall of then President Suharto. China's response to this episode shows the level of priority accorded to the interests of the Chinese overseas in China's overall foreign policy objectives. To put the episode in wider perspective, this chapter also deals with the factors that contributed to the violence and how the events unfolded. The question that arises from this episode is whether China's “hands off” position in this instance was an exceptional case during the early period of China's rise.

BACKGROUND

Although Indonesia proclaimed independence in August 1945, it gained full independence only in December 1949, when a Roundtable Agreement was signed between Jakarta and The Hague. The PRC, founded in October 1949, established diplomatic ties with the Republic of Indonesia soon afterwards, in 1950. Sino–Indonesian relations have fluctuated since then until 2015. Various factors have determined the nature of these relations, of which the most important has been the national interest of China. Thus, in some instances of anti– Chinese riots in Indonesia, Beijing sent ships to evacuate the Chinese in the country, but it stopped doing so when such action conflicted with higher priorities in China's national interest (see chapter 3).

Anti–Chinese violence occurred more frequently during the Indonesian struggle for independence and soon after independence. What were the factors contributing to ethnic conflict, especially anti–Chinese violence? The wealth of the ethnic Chinese relative to the pribumis or indigenous Indonesians is often cited as a major factor. Some among the indigenous elite even argued that the Chinese Indonesians “controlled” the Indonesian economy. Many indigenous Indonesians wanted to undermine the economic position of the Chinese. Another factor behind anti–Chinese sentiments was the prejudice of the indigenous Indonesians deriving from the perception that Chinese Indonesians were not loyal towards their adopted land.

Domestic politics also played an important role in the outbreak of anti–Chinese violence. Some among the indigenous elite wanted to foment and use ethnic conflict to achieve their political objectives. There has been a recurring pattern in the occurrence of ethnic violence, with the Chinese being made scapegoats for expedient reasons.