As Russia Sees the East: The Role of Foreign Capital in Basic Chinese Industries

Abstract

ONE of the most important spheres of foreign capitalistic interest in China is industry. The progress of China for the past two decades, which it would be an exaggeration to characterize as industrial revolution, is to a large degree connected with the activity of foreign capital. The invasion of European and Japanese capital, which began at the end of the last century, was the deciding stimulus to the development of the country. Exaggerated ideas of the colossal mineral resources of China-an idea founded on the evaluations of the first explorers-greatly attracted the attention of foreigners. As a result of concessions which were forced upon China, foreigners planted their financial roots deep in, Chinese industry. Their influence in basic industries is still dominant. In the textile industry the role of foreign capital, foremost amongst which being that of Japan, is important. Only during the time of the Great War, when the supply of materials from Europe was diminished and the activity of foreign capital was weakened, the first signs of the expansion of native industry appeared. It is necessary to stress the fact, however, that though the World War. isolated China from European influence, it did not prevent an expansion in the activity of Japanese capital. The World War, though temporarily liquidating the competitive struggle between capitalistic groups, strengthened the economic position of Japanese imperialism in China. During the war Japan flooded the Chinese market with manufactured articles. The sphere of activity for Japanese capital in China was broadened. The expansion of the Japanese textile industry in Chinese territory, the increased seizures of mineral resources, and also the establishment of a monopoly in certain basic industries, took place at the time of the War as well as