Nanyang capitalists were in a special position to assist China's early modernization. Their wealth and business experience obviously prompted high officials to respond favorably to Chang Pi-shih's initiatives toward the business class abroad, but the overseas Chinese had another more subtle appeal. As Westernized Chinese, men with practical knowledge of foreign ways who still desired to identify with elements of the traditional civilization, returning merchants came as close as anyone to maintaining that precarious balance between Western techniques and Chinese principles long sought by Chang Chih-tung and the self-strengtheners.

In many ways, the Nanyang capitalists were foreigners. They served alien masters, followed Western laws and developed a taste for certain aspects of a non-Chinese style of life. The nationalist awakening as experienced in the Chinese communities of Southeast Asia, however, helped revive interest in traditional moral teachings even as Confucius came under attack from native sons sent to study abroad. As Confucian-capitalists and gentlemen-merchants, the overseas Chinese may well have seemed to combine the best of both worlds. They brought capital and Western ideas but, unlike foreigners, they spoke Chinese, quoted the classics and were willing to operate within the traditional system even as they endeavored to elevate their own social position. Furthermore, they were not openly backed by gunboats.