Development of Chinese community in Malaysia has a long history, Researcher pay more attention to how Chinese survival in a multi-racial society, and how their cultural identity and development strategy. Ethnic boundary theorist argued that ethnic self-image and identity not just following their language and cultural backgrounds, but also shape by specific political and economic structure and the interaction between other communities. Based on the above, this paper point out that economic globalization, democratization and the rise of China are key factors to understanding the formation of Chines identities in Malaysia. The finding will provide new ideas for theory of ethnic boundary.