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7.2 Economics of Empire: China vs Japan - Coggle Diagram
7.2 Economics of Empire: China vs Japan
China
Why was China reluctant to engage in trade with the outside world?
Older scholarship ignores China's long history of openness. Narrative that it needed to be forcefully opened, prevailing ignorance
Cultural factors
Sense that China already had everything - Qianlong Emperor's reply to the MacArthur embassy in 1793
Autarkic and self-contained
However, traded much more with the Russian Empire on equal terms. Qing Court was willing to communicate with foreigners but only neighbours or valuable trade partners
Strategic priorities
Qing court directs attention to land frontiers in expanding central Asian territory
Geographic reasons
Attempted to restore a favourable balance of trade - needed silver from the outside world but didn't want to be in a trade deficit
Canton System in operation from 1760 to 1842. Abolished by the Treaty of Nanking which was the result of the First Opium War
People who facilitated trade were based in Canton/Guangzhou factories. Had to be licensed merchants (Cohongs). Superintendent of maritime customs (Hoppo) supervises on behalf of the government
Britain
British trade carried out by the EIC - trilateral trading system
EIC used surplus from Indian revenue to purchase tea, silk, and porcelain in Guangzhou for export to Britain. Exports paid for with textiles and specie
EIC had a trade deficit with China. 1813 charter meant the EIC lost its monopoly on Indian trade over 20 years, financial troubles were exacerbated. Solution was to export Indian opium to China
Opium
Opium consumption was banned in China in 1799 and 1810
Qing court faced the question of suppression or legalisation with taxation
Silver inflation in bimetallic currency could be due to the opium trade disrupting trade surplus: debasement of copper currency or production shortages in New World silver mines with Napoleonic War and overextraction
Court takes a tough line in 1839, seizing opium chests stored in Guangzhou and pouring them into the sea
British merchants lobby the government to launch a military expedition to get compensation from the Chinese government. Low-scale military operation leading to British victory
Conflict with foreign powers
1842: Sino-British treaty of Nanjing. Opens up Guangzhou, Xiamen, Fuzhou, Ningbo and Shanghai to foreign trade. Hong Kong island is ceded in perpetuity
Regular import and export tariffs, equal communication, most favoured nation clause
1844: Treaty of Wangxia between US and China grants freedom of mission in treaty ports, extraterratoriality, treaty to be revied after 12 years
Sino-British treaty of Tianjin in 1858 ended Second Opium War. Much harsher than Nanjing. British ambassador in Beijing, freedom of mission, freedom of travel, additional treaty ports, foreign imports exempt from transit tax, regular taxation of opium
Qing court refuses to sign due to harsh demands. British and French troops burn and loot the summer palace in Beijing in 1860
Conflict with France in the 1880s
Treaty of Shimonoseki 1895: Ends Sino-Japanese war. 200 million tales in indemnity. Cession of Taiwan and the Pescadores. End of Chinese influence over Korea. RIght for foreigners to build factories in concessions
Effects on China: Heavy trade deficit and inability to protect internal trade. Imports and exports grow and become more diverse in composition
1870: Net Imports: 63,693; Net exports 55,295
1888: Net imports: 124,783; Net exports 92,401
Most exports in 1900 are tea 16%, silk 30%
In 1880s, 67% of economy was agricultural
Japan
In the Tokugawa period 1603-1868, power is exercised by the Tokugawa clan as shoguns
Starts out with trade between Japan and Nanban (southern Barbarians). From 1630s, adopts a policy of Sakoku (exclusion)
Sakoku Edict 1635: Japanese remain in Japan under pain of death. Foreign visits tightly controlled. Foreign trade conducted with Chinese and Dutch restricted to Nagasaki. Catholicism banned
1853: US Naval Expedition under Commodore Matthew C Perry negotiates with Tokugawa shogunate. Returns in 1854 to sign the Kanagawa treaty of US-Japan Friendship
Treaties with Britian and Russia also signed
1858: US-Japan Treaty of Amity and Commerce signed (Harris Treaty). Similar treaties signed with other Western Countries - Ansei treaties
Ansei provide for the exchange of diplomatic agents, opening of more ports, extraterratoriality, low tarrifs
From 1885 to 1920, proportion of agriculture in GDP declines from 42.1% to 27.3%, manufacturing increases from 7% to 18.6%
Why was the modernisation experience so different?
Geographical reasons
China is closer to India and the West.
China is larger and already has trade links with the West
China has to use railways over land area, Japan keeps coastal navigation
Political Reasons
Meiji Restoration 1868: Weak Tokugawa shogunate allows for reopening to trade. Rebels make use of foreign armaments
Reform efforts in China do not take hold of the Qing court
Japan gets rid of constraints on sovereignty, pushes for economic and political modernisation (tariff autonomy fully restored by 1911)
Economic reasons
Meiji Japan opens up to the world - creation of zaibatsu (family controlled vertical monopolies)
Introduction of western technology and learning - fokoku kyohei, rich country, strong army