Foreign Trade and China’s Economic Modernisation
Because it lacked the right to impose tariff protection, China’s foreign trade deficit increased over time. At the same time the price scissors existing between the prices of imported industrial products and those of exported farm and sideline products meant that foreign capitalists made large profits from trade, while China’s wealth flowed out of the country. This led to a serious shortfall in the accumulation of money capital, which in turn hindered the progress of industrialisation.
Some foreign imports undermined Chinese indigenous products, thus impoverishing many millions of Chinese farmers and handicraft workers. After its integration into the world economy, Chinese agriculture often suffered from the vagaries of market competition; the decline in the silk and tea trades increased unrest among the producers and caused greater turbulence in Chinese rural society. After the emergence of Chinese national industry, the continued import of competitive foreign products occupied the markets of Chinese goods. To some extent, this competition suppressed the growth of Chinese industry.
KeywordsDepression Petroleum Income Smoke Wharf
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