It was therefore not surprising that the new regulations failed to give any impetus either to mining exploration by foreigners or to new enterprise by native capitalists. In Jan. 1916, the Chinese Government resumed its study of the question ; a new code of mining laws, framed on the Canadian model, was drawn up by a special commission under the chairmanship of the Minister of Commerce (Chou Tzu-chi), which included several highly qualified technical experts. It was intended to submit this new code for ratification by Parliament, but with the renewal of civil strife and the passing of Yuan Shih-k'ai, the question was indefinitely shelved. The un- willingness of Chinese officialdom under the republic to encourage any extensive development of mining enterprise by means of foreign capital has evidently been inspired, as it was under the monarchy, by fear that the employment of foreign capital and experts is likely to produce the extension of foreign influence. The chief of the Chinese geological department (V. K. Ting) , writing on the subject in May 1917,' declared that the chief obstacle to the rapid extension of mining operations by foreigners in China lies in the continuance of their claim to extra-territorial rights; that China cannot afford " to allow people who are outside Chinese jurisdiction to locate mining areas under the claim system." There is indisputable justification for the reluctance of the Chinese to grant to foreigners mining rights which may lead to political complications or involve the nation in loss of strategic or economic advantages. But the fact remains that, while preventing the extension of mining operations by foreigners in areas where no such considerations could arise, the rulers of China under the republic, either under pressure or in return for Japanese subsidies and loans, have parted with many mining rights of great national importance, in the Yangtsze valley and in Manchuria.
The total production of coal in China was estimated in 1913 at 13,190,000 tons ; two years later the estimate was 18,000,000 tons, of which 8,000,000 came from mines equipped with modern plant and the rest from small native workings. The amount of coal exported in 1918 was 1,708,149 tons; in 1919, it fell to 1,477,433 tons. The most important coal-producing enterprises are the Kailan Mining Administration (an Anglo-Chinese cooperative company) in Chihli and the Fushun mines (Japanese) in Manchuria, both of which are rapidly expanding. The principal metals which China has so far (1921) been able to produce in quantities sufficient for export are antimony, pig-iron, iron ore and copper. The trade in antimony was stimulated and the price advanced during the war, but in 1919 the demand had greatly diminished. The export of copper decreased greatly in 1918 and almost ceased in 1919,, the amount produced being supplemented by the import of about 2,000 tons to meet the country's currency requirements. An important feature in the metal trade of 1919 was the increase in the export of iron ore from the Tayeh mines to Japan, the amount shipped being about 630,000 tons.
Authorities. H. B. Morse, Trade and Administration of China (3rd ed., 1921); Montague Bell and Woodhead, China Year Book (1919-20); W. F. Collins, Mineral Enterprise in China (1918).
Manufactures. Notwithstanding the generally disturbed con- dition of the country, a rapid advance took place in the development of industrial enterprises of all kinds during the first decade of the republic; so much so that, in his report on trade for 1919, the statistical secretary (Inspectorate General of Customs) observed that there were then few foreign type articles of domestic use that were not made in China by factories on modern lines, the majority of them without foreign assistance.
In 1906 there were 14 cotton-spinning mills in China, with a total of 400,000 spindles; in the China Year Book for 1919, the number given is 56 (excluding Hongkong) and the list of other mills, fac- tories, etc., contained in the same volume covers 17 pages. With the shortage of raw materials, and the growth of labour troubles in Europe, Chinese capitalists (a class whose numbers and wealth rapidly increased under the Tuchun regime after 1916) and the rich merchants of the treaty ports came to realize after the war how great and lucrative are the opportunities awaiting the industrial development of China, with its vast resources of cheap labour and raw materials, in competition with the manufactures of the West. Japanese capitalists and captains of industry showed themselves equally alive to the possibilities of the situation. As a result, the development of industrial enterprises of many kinds, but especially in textiles, in the period immediately following upon the Armistice was limited only by the impossibility of obtaining the necessary machinery. The statistical secretary's list of articles (1919) manu- factured in China includes silk and cotton clothing and underwear; toilet articles; umbrellas; woollen yarn; chemicals; needles; electric lamps; telephone appliances; wine and beer; asbestos articles and window glass. Shipbuilding has been established on a considerable scale at Shanghai and other treaty ports. During 1919 there were 12,307 tons of shipping launched from Chinese yards; in 1920, vessels were sent to Shanghai from England to have their woodwork and fittings completed by Chinese carpenters. Auxiliary to the establishment of native industries, a number of industrial banks were organized on foreign lines by the Chinese in 191920. As the result of a contract between the Chinese Government and the Marconi
'See North China Daily News.
Net
1914
1915
1916
Imports Exports
74,564,285 47,116,453
58,939,819 54,321,069
86,067,833 80,299,561
Net
1917
1918
1919
Imports
Exports
119,072,400 110,301,853
145,658,383 127,544,295
204,882,599 199,758,331
Co., the construction of wireless telegraph stations was commenced in 1919; wireless telephony was also introduced by the Chinese National Wireless Co., using the Marconi patents; but it remains to be seen whether either these or aeroplanes can be made to serve any lasting purpose of public utility in China.
Commerce. Amongst several noteworthy changes which occurred in the commerce of China during the period 1911-21, the most important were the elimination of the lawful traffic in imported opium, a considerable diversion of general trade from its former lines in favour of America (largely as a result of the World War), and the increasing production and consumption of domestic factory products of foreign type. Remarkable also, considering the disturbed political conditions prevailing, was the increase in the volume and value of China's trade during and after the war. The customs revenue for 1919 exceeded that for 1913 (previously the highest on record) by two million taels, and this despite the elimination of the revenue derived from opium and the very low rate of exchange at which ad valorem import duties were paid. In 1920, the record was again surpassed, the amount collected being Tls. 49,500,000 (equiva- lent at the average exchange of 55. 7Jd. to 16,809,000) which was 32 million taels more than in 1919. The value of the country's trade with foreign countries in 1919 increased by no less than 337 million taels, as compared with the year 1913. The advance was chiefly in exports and due to the imperious demand for foodstuffs and raw materials in Europe; for the first time, the value of China's exports practically balanced her imports. An indication of the pros- perity resulting from this profitable activity in exports is to be found in the customs returns of the movements of treasure which show a net import into China of over 50 million taels' worth of gold and 92 million taels of silver during the years 1918-9. The growth of trade is also illustrated by the following figures, which show the sterling value, calculated at the average T.T. exchange for each year, of China's net imports and exports, exclusive of bullion:
Note: The exchange for 1918 was 55. 3i^d. and for 1919 6s. 4d. In 1920 the value of silver began to fall; the rate of exchange aver- aged 55. 7 |d.
The following statistics show the amount of China's direct trade with the foreign countries named, and afford an indication of some of the principal economic changes resulting from the war :
Great Britain Germany France . Japan Russia (Overland trade) . U. S. A. Hongkong (For transhipment)
Imports
Exports
IQIJ Ilk. Taels
1919 Hk. Taels
1913 Hk. Taels
1919 Hk. Taels
96,910,944 28,302,403
5.299,517 119,346,662
12,258,180 35427,198
171,366,099
64,292,239 .368 3,375,809 246,940,997
1,724,603 110,236,706
153.631,544
16,346,413 17,025,224 40,749,7*2 65,544,186
3,095,826 37,650,301
117,128,661
57,186,242 163,886 34,285,989 195,006,032
5-516,517 101,118,677
131,495,296
The returns of shipping entered and cleared at Chinese ports during 1919 show comparatively little change during and since the war. The figures for the principal foreign nations concerned are as follows:
Nationality
1913
1919 _j
Vessels
Tonnage
Vessels
Tonnage
American British Norwegian . German French Japanese
2458 32,186
637 5,382
1,020 22,716
898,750 38,120,300 739,328 6,320,466 1,232,763 23,422,487
4,433 36,074
3"
471 27,182
2,569,887 36,284,312 302,959
414,161
27,532,449
The chief articles of import in 1919 were cotton goods, metals, kerosene oil, sugar, cigars and cigarettes, locomotives and railway cars, machinery, coal, fish, paper and motor-cars. The value of cot- ton goods imported was 30 million taels more than in 1913, but the weight of the goods was considerably less, a result partly due to high prices and partly to the increasingly effective competition of the products of Chinese mills. The total value of the latter products, passed through the customs for home consumption and export, was Tls. 92,698,787, as against Tls. 24,425,069 in 1913. In spite of the boycott, which remained in force during the greater part of 1919, the importations of Japanese shirtings showed a considerable increase over those of 1918. The following figures illustrate the position of the import trade for 1919, as compared with 1913, and reflect the growth of native industrial enterprise.
