The intrinsic nature of the Chinese community in Malaysia and its responses to “outsiders” can best be interpreted by Max Weber's ideas about the nature of a community in relation to ethnicity. Weber contends that ethnic or racial stereotypes are developed as a result of competition for, and successful monopolization of, economic and social power by groups at various levels of the society's opportunity structure. Such stereotypes can be accumulated through what Weber calls “direct understanding” (aktuelles versteheri) of social action. Weber contends that meaningful social interactions must be based on a common system of linguistic and non-linguistic symbols. When such a common system of symbols is absent or inadequately developed (as, for instance, with the heterogeneity of a typical pioneering Overseas Chinese community in the early days and the plural nature of Malaysia's present-day multi-racial society), meaningful interaction is hindered, hence limiting interpersonal and intergroup understanding. Such a situation tends to strengthen in-group solidarity and heighten ethnic and racial stereotype conceptions of other groups, thus causing the sanction of actions taken by the dominant groups, depriving the weaker ones of access to economic and political opportunities.