This paper explores the causes for China's change of policy from silence to
making public demands that Indonesia do more to protect its ethnic Chinese
population in the wake of the riots in Jakarta and other parts of Indonesi
a in May 1998. First, China saw it in its own interest to minimize potentia
l damages to its state-to-state ties with Indonesia, allowing as little roo
m as possible for Taiwan to exploit in the long-lasting China-Taiwan diplom
atic rivalry. Second, Indonesia, in spite of its domestic problems, remains
a country of significance to China in regional issues like the South China
Sea disputes. Third, China needed to retain its reputation as a responsibl
e actor in the process of regional economic crisis. Finally, the loyalty of
the Indonesian Chinese to China continues to be a question and China could
further weaken that loyalty if it contributed to the worsening of their pr
edicament. In short, China may have wished to maximize its possible gains a
nd minimize the potential risks through its action over the May riots.