A century of Sino-UK relations

Author: Wang Weimin / Country: Mainland China
Publisher:
Publish Date: 2006-09-01
Features: In the last decade of the Qing Dynasty's rule, British capital's control over China not only meant that China's industries, mining, and transportation were completely under the direct control of foreign powers but also that China's financial and fiscal systems were monopolized by foreign banks. The economic lifelines of China were firmly in the hands of foreign powers. With its strong economic strength, Britain secured the largest share of commercial and economic interests in China. From the signing of the Anglo-Chinese Treaty of Nanking in 1842, which opened five ports for trade, to the Xinhai Revolution, of the 69 additional trading ports forced open by foreign powers on the Qing government, Britain held 28, ranking first among all foreign powers. Since the establishment of trade between China and Britain, British trade has consistently accounted for the largest share of China's foreign trade. In 1911, the share of Sino-British trade in China's foreign trade volume and in trade at trading ports far exceeded that of Japan, Germany, France, and the United States. By 1913, Sino-British trade still accounted for about half of China's total foreign trade volume. The British (Jardine Matheson) was one of the largest monopolistic organizations in China at the time. Its investments covered a wide range of industries, from insurance, real estate, shipping, and docks to trams and railways. In industry alone, it included textiles, timber, electricity, sugar, and refrigeration. By 1914, it had established more than 30 enterprises in China, with a total capital exceeding 40 million yuan. The British Hongkong and Shanghai Banking Corporation (HSBC) long controlled the financial and fiscal systems of old China, dominating the country's financial industry for 85 years and being hailed by the global banking world as the "omnipotent monopolist." In 1864, the Hongkong and Shanghai Banking Corporation established its headquarters in Hong Kong, with its main business focus on China, concentrating most of its funds in the country. In April 1865, its Hong Kong headquarters and Shanghai branch opened simultaneously, and the following year, it set up agencies in Fuzhou, Ningbo, Shantou, and Hankou. By the eve of the War of Resistance Against Japan, HSBC had established branches in 12 major cities in China, forming a vast financial network stretching from Beijing and Tianjin in the north to Haikou in the south, covering coastal cities like Guangzhou and Shanghai as well as Northeastern Shenyang and inland regions such as Hankou and Jiujiang along the Yangtze River. In China's coastal and inland shipping, Britain also maintained an absolute advantage. British shipping companies—Jardine Matheson and the China Merchants' Steam Navigation Company—long dominated the coastal and inland shipping industry. By the outbreak of World War I, Britain controlled 41% of China's foreign and domestic shipping. P12-13