Chapter 25

The chief imports are cotton goods, opium, rice and sugar, metals, oil, coal and coke, woollen goods and raw cotton, and fish. Cotton goods are by far the most important of the imports. They come chiefly from the United Kingdom, which also exports to China woollen manufactures, metals and machinery. China is next to India the greatest consumer of Manchester goods. The export of plain cotton cloths to China and Hong-Kong has for some years averaged 500,000,000 yds. per annum. The only competitor which Great Britain has in this particular branch of trade is the United States of America, which has been supplying China with increasing quantities of cotton goods. The value in sterling of the total imports into China from the United Kingdom long remained nearly constant, but inasmuch as the gold prices were falling the volume of the export was in reality steadily growing. The imports into England, however, of Chinese produce have fallen off, mainly because China tea has been driven out of the English market by the growth of the India and Ceylon tea trade, and also because the bulk of the China silk is now shipped directly to Lyons and other continental ports instead of to London, as formerly was the rule. The growth of the import of Indian yarn into China has been very rapid. In 1884 the import was 35,000,000 lb and in 1904 it reached 217,171,066 lb. The imports into China from all countries for 1908 were as follows:--

Opium £4,563,000 Coal and coke 1,124,000 Cotton goods 14,786,000 Oil, kerosene 2,666,000 Raw cotton 232,000 Rice 3,543,000 Woollen goods 717,000 Sugar 3,514,000 Metals 2,956,000 Fish, &c. 1,028,000

The principal exports from China are silk and tea. These two articles, indeed, up to 1880 constituted more than 80% of the whole export. Owing, however, mainly to the fall in silver, and partly also to cheap ocean freights, it has become profitable to place on the European market a vast number of miscellaneous articles of Chinese produce which formerly found no place in the returns of trade. The silver prices in China did not change materially with the fall in silver, and Chinese produce was thus able to compete favourably with the produce of other countries. The following table shows the relative condition of the export trade in 1880 and 1908:--

+---------------+-------------+-------------+ | Exports of | 1880. | 1908. | +---------------+-------------+-------------+ | Silk | £9,750,000 | £11,055,000 | | Tea | 11,774,000 | 4,384,000 | | Miscellaneous | 4,058,000 | 21,448,000 | +---------------+-------------+-------------+ | Total | £25,582,000 | £36,888,000 | +---------------+-------------+-------------+

In the miscellaneous class the chief items of exports in 1908 were beans and beancake, £3,142,000; raw cotton, £1,379,000; hides, £1,028,000; straw braid, £1,002,000; furs and skin rugs, £760,000; paper, £458,000; and clothing, £177,000. Sugar, tobacco, mats and matting are also exported. The export of all cereals except pulse is forbidden. Of the tea exported in 1908 the greater part went to Russia and Siberia, the United States and Great Britain. There is a regular export of gold amounting on an average to about a million sterling per annum. A part of it would seem to be the hoardings of the nation brought out by the high price of gold in terms of silver, but a part is virgin gold derived from gold workings in Manchuria on the upper waters of the Amur river.

Customs duty is levied on exports as well as imports, both being assessed at rates based on a nominal 5% ad val.

_Shipping and Navigation._--Besides the over-sea trade China has a large coasting and river trade which is largely carried on by British and other foreign vessels. During the year 1908, 207,605 vessels, of 83,991,289 tons (86,600 being steamers of 77,955,525 tons), entered and cleared Chinese ports.[22] Of these 28,445 vessels of 34,405,761 tons were British; 33,539 of 11,998,588 tons, Chinese vessels of foreign type; 103,124 of 4,947,272 tons, Chinese junks; 5496 vessels of 6,585,671 tons, German; 30,708 of 18,055,138 tons, Japanese; 653 of 998,775 tons, American; 3901 of 5,071,689 tons, French; 1033 of 980,635 tons, Norwegian.

Of vessels engaged in the foreign trade only the entrances during the year numbered 38,556 of 12,187,140 tons, and the clearances 36,602 of 12,057,126 tons. The nationality of the vessels (direct foreign trade) was mainly as follows:--

+-------------+--------------------+--------------------+ | | Entrances. | Clearances. | | Nationality +--------+-----------+--------+-----------+ | 1908. | No. | Tons. | No. | Tons. | +-------------+--------+-----------+--------+-----------+ | British | 4,569 | 4,678,094 | 4,614 | 4,754,087 | | German | 891 | 1,195,775 | 928 | 1,124,872 | | Norwegian | 255 | 254,211 | 259 | 255,295 | | French | 468 | 629,680 | 468 | 616,883 | | American | 136 | 440,602 | 131 | 439,947 | | Japanese | 2,187 | 2,587,818 | 2,046 | 2,461,132 | | Chinese | 29,775 | 2,001,872 | 27,888 | 1,915,258 | +-------------+--------+-----------+--------+-----------+

The tonnage of the Dutch, Austrian and Russian vessels cleared and entered was in each case between 102,000 and 127,000.

_Communications._

External communication is carried on by ancient caravan routes crossing Central Asia, by the trans-Siberian railway, which is increasingly used for passenger traffic, but chiefly by steamship, the steamers being almost entirely owned by foreign companies. There is regular and rapid communication with Europe (via the Suez canal route) and with Japan and the Pacific coast of America. Other lines serve the African and the Australasian trade. The only important Chinese-owned steamers are those of the Chinese Merchants' Steam Navigation Company, which has its headquarters at Shanghai.

Internal communications are by river, canal, road and railway, the railways since the beginning of the 20th century having become a very important factor. In 1898 the Chinese government agreed that all internal waterways should be open to foreign and native steamers, and in 1907 there were on the registers of the river ports for inland water traffic 609 steamers under the Chinese flag and 255 under foreign flags.

The Pioneer Line destroyed.

China's first efforts.

The era of concessions.

Administration.

_Railways._--A short line of railway between Shanghai and Wusung was opened in 1875. The fate of this pioneer railway may be mentioned as an introduction to what follows. The railway was really built without any regular permission from the Chinese government, but it was hoped that, once finished and working, the irregularity would be overlooked in view of the manifest benefit to the people. This might have been accomplished but for an unfortunate accident which happened on the line a few months after it was opened. A Chinaman was run over and killed, and this event, of course, intensified the official opposition, and indeed threatened to bring about a riot. The working of the line was stopped by order of the British minister, and thereupon negotiations were entered into with a view to selling the line to the Chinese government. A bargain was struck sufficiently favourable to the foreign promoters of the line, and it was further agreed that, pending payment of the instalments which were spread over a year, the line should continue to be worked by the company. The expectation was that when the officials once got the line into their own hands, and found it a paying concern, they would continue to run it in their own interest. Not so, however, did things fall out. The very day that the twelve months were up the line was closed; the engines were dismantled, the rails and sleepers were torn up, and the whole concern was shipped off to the distant island of Formosa, where carriages, axles and all the rest of the gear were dumped on the shore and left for the most part to disappear in the mud. The spacious area of the Shanghai station was cleared of its buildings, and thereon was erected a temple to the queen of heaven by way of purifying the sacred soil of China from such abomination. This put a stop for nearly twenty years to all efforts on the part of foreigners to introduce railways into China. The next step in railway construction was taken by the Chinese themselves, and on the initiative of Li Hung-chang. In 1886 a company was formed under official patronage, and it built a short line, to connect the coal-mines of K'aip'ing in Chih-li with the mouth of the Peiho river at Taku. The government next authorized the formation of a Native Merchants' Company, under official control, to build a line from Taku to Tientsin, which was opened to traffic in 1888. It was not, however, till nine years later, viz. in 1897, that the line was completed as far as Peking. A British engineer, Mr Kinder, was responsible for the construction of the railway. Meantime, however, the extension had been continued north-east along the coast as far as Shanhai-Kwan, and a farther extension subsequently connected with the treaty port of Niu-chwang. The money for these extensions was mostly found by the government, and the whole line is now known as the Imperial Northern railway. The length of the line is 600 m. Meanwhile the high officials of the empire had gradually been brought round to the idea that railway development was in itself a good thing. Chang Chih-tung, then viceroy of the Canton provinces, memorialized strongly in this sense, with the condition, however, that the railways should be built with Chinese capital and of Chinese materials. In particular, he urged the making of a line to connect Peking with Hankow for strategic purposes. The government took him at his word, and he was transferred from Canton to Hankow, with authority to proceed forthwith with his railway. True to his purpose, he at once set to work to construct iron-works at Hankow. Smelting furnaces, rolling mills, and all the machinery necessary for turning out steel rails, locomotives, &c., were erected. Several years were wasted over this preliminary work, and over £1,000,000 sterling was spent, only to find that the works after all were a practical failure. Steel rails could be made, but at a cost two or three times what they could be procured for in Europe. After the Japanese War the hope of building railways with Chinese capital was abandoned. A prominent official named Sheng Hsuan-hwai was appointed director-general of railways, and empowered to enter into negotiations with foreign financiers for the purpose of raising loans. It was still hoped that at least the main control would remain in Chinese hands, but the diplomatic pressure of France and Russia caused even that to be given up, and Great Britain insisting on equal privileges for her subjects, the future of railways in China remained in the hands of the various concessionaires. But after the defeat of Russia by Japan (1904-1905) the theory of the undivided Chinese control of railways was resuscitated. The new spirit was exemplified in the contracts for the financing and construction of three railways--the Canton-Kowloon line in 1907, and the Tientsin-Yangtsze and the Shanghai-Hangchow-Ning-po lines in 1908. In the first of these instances the railway was mortgaged as security for the loan raised for its construction, and its finance and working were to be modelled on the arrangements obtaining in the case of the Imperial Northern railway, under which the administration, while vested in the Chinese government, was supervised by a British accountant and chief engineer. In the other two instances, however, no such security was offered; the Chinese government undertook the unfettered administration of the foreign capital invested in the lines, and the Europeans connected with these works became simply Chinese employés. Moreover, in 1908 the Peking-Hankow line was redeemed from Belgian concessionaires, a 5% loan of £5,000,000 being raised for the purpose in London and Paris. In that year there was much popular outcry against foreign concessionaires being allowed to carry out the terms of their contract, and the British and Chinese corporation in consequence parted with their concession for the Su-chow, Ning-po and Hang-chow railway, making instead a loan of £1,500,000 to the ministry of communications for the provinces through which the line would run. A double difficulty was encountered in the construction and management of the railways; the reconciliation of the privileges accorded to foreign syndicates and governments with the "Recovery of Rights" campaign, and the reconciliation of the claims of the central government at Peking with the demands of the provincial authorities. As to the foreigners, Great Britain, France, Germany, the United States, Russia and Japan, all had claims and concessions, many of them conflicting; while as between Peking and the provinces there was a quarrel mainly concerned with the spoils and "squeezes" to be obtained by railway construction; in some instances the provinces proved more powerful than the central government, as in the case of the Su-chow-Ning-po line, and notably in the matter of the Tientsin-Pukau (Nanking) railway. In that case the provincial authorities overrode the central government, with the result that "for wholesale jobbery, waste and mismanagement the enterprise acquired unenviable notoriety in a land where these things are generally condoned." The good record of one or two lines notwithstanding, the management of the railways under Chinese control had proved, up to 1910, inefficient and corrupt.[23] Nevertheless, so great was the economic development following the opening of the line, that in Chinese hands the Peking-Hankow railway yielded a profit.

The Railway systems.

The main scheme of the railway systems of China is simple. It consists of lines, more or less parallel, running roughly north and south, linked by cross lines with coast ports, or abutting on navigable rivers. One great east and west line will run through central China, from Hankow to Sze-ch'uen. Connexion with Europe is afforded by the Manchuria-trans-Siberia main line, which has a general east and west direction. From Harbin on this railway a branch runs south to Mukden, which since 1908 has become an important railway centre. Thence one line goes due south to Port Arthur; another south-east to An-tung (on the Yalu) and Korea; a third south and west to Tientsin and Peking. A branch from the Mukden-Tientsin line goes round the head of the Gulf of Liao-tung and connects Niu-chwang with the Mukden-Port Arthur line. By this route it is 470 m. from Peking to Niu-chwang.

From Peking the trunk line (completed in 1905) runs south through the heart of China to Hankow on the Yangtsze-kiang. This section (754 m. long) is popularly known as "the Lu-Han line," from the first part of the names of the terminal stations. The continuation south of this line from Hankow to Canton was in 1910 under construction. Thus a great north and south connexion nearly 2000 m. long is established from Canton to Harbin. From Mukden southward the line is owned and worked by China.

A railway (German concession) starts from Kiao-chow and runs westward through Shan-tung to Chinan Fu, whence an extension farther west to join the main Lu-Han line at Cheng-ting Fu in Chih-li was undertaken. Westward from Cheng-ting Fu a line financed by the Russo-Chinese Bank runs to T'ai-yuen Fu in Shan-si.

Another main north and south railway parallel to, but east of, the Lu-Han line and following more or less the route of the Grand Canal, is designed to connect Tientsin, Su-chow (in Kiang-su), Chin-kiang, Nanking, Shanghai, Hang-chow and Ning-po. The southern section (Nanking, Shanghai, &c.) was open in 1909. This Tientsin-Ning-po railway connects at Chinan-Fu with the Shan-tung lines.

A third north and south line starts from Kiu-Kiang on the Yangtsze below Hankow and traversing the centre of Kiang-si province will join the Canton-Hankow line at Shao-Chow in Kwang-tung province. The construction of the first section, Kiu-Kiang to Nanchang (76 m.), began in 1910.

In southern China besides the main Canton to Hankow railway (under construction) a line (120 m. long) runs from Canton to Kowloon (opposite Hong-Kong), and there are local lines running inland from Swatow and Fuchow. The French completed in 1909 a trunk line (500 m. long) from Haiphong in Tong King to Yun-nan Fu, the capital of Yun-nan, some 200 m. being in Chinese territory. The French hold concessions for railways in Kwang-si and Kwang-tung. The British government has the right to extend the Burma railway system through Yun-nan and north to the Yangtsze.

There are local lines in Hu-nan and Ho-nan which connect with the trunk line from Canton to Peking. The Peking-Kalgan line (122 m. long) is a distinct undertaking. The Chinese propose to continue it another 530 m. north-westward to Urga in Mongolia, and an eventual junction with the trans-Siberian railway in the neighbourhood of Lake Baikal is contemplated. This line would greatly shorten the distance between Moscow and Peking.

In 1910 there were open for traffic in China (not reckoning the Russian and Japanese systems in Manchuria, _q.v._) over 3000 m. of railway, and 1500 m. of trunk lines were under construction.

Roads, rivers, and canals.

China is traversed in all directions by roads. Very few are paved of metalled and nearly all are badly kept; speaking generally, the government spends nothing in keeping either the roads or canals in repair. The roads in several instances are subsidiary to the canals and navigable rivers as a means of communication. The ancient trade routes were twelve in number, viz.[24]:--

1. The West river route (W. from Canton). 2. The Cheling Pass route (N.W. from Canton). 3. The Meiling Pass route (N. from Canton). 4. The Min river route (N.W. from Fu-chow). 5. The Lower Yangtsze route (as far W. as Hu-peh and Hu-nan). 6. The Upper Yangtsze route (from I'chang to Sze-ch'uen). 7. The Kwei-chow route. 8. The Han river route (Hankow to Shen-si). 9. The Grand Canal (already described). 10. The Shan-si route. 11. The Kiakhta route. 12. The Manchurian route.

Of the routes named, that by the West river commands the trade of Kwang-si and penetrates to Yun-nan (where it now has to meet the competition of the French railway from Tong King) and Kwei-chow. The Cheling Pass route from Canton is so named as it crosses that pass (1500 ft. high) to reach the water-ways of Hu-nan at Chen-chow on an affluent of the Siang, and thus connects with the Yangtsze. The trade of this route--whence in former times the teas of Hu-nan (Oonam) and Hu-peh (Oopaek) reached Canton--has been largely diverted via Shanghai and up the Yangtsze. The Canton-Hankow railway also supersedes it for through traffic. The route by the Meiling Pass (1000 ft. High) links Canton and Kiu-kiang. This route is used by the King-te Chen porcelain works to send, to Canton the commoner ware, there to be painted with florid and multicoloured designs. The Min river route serves mainly the province of Fu-kien. The Lower Yangtsze is a river route, now mainly served by steamers (though the salt is still carried by junks), and the Upper Yangtsze is a river route also, but much more difficult of navigation. The Kwei-chow route is up the river Yuen from Changte and the Tung-t'ing lake. The Han river route becomes beyong Sing-nagn Fu a land route over the Tsingling mountains to the capital of Shen-si, and thence on to Kan-suh, Mongolia and Siberia. The Shan-si route from Peking, wholly by road, calls for no detailed account; the Manchurian route is now adequately served by railways. There remains the important Kiakhta route. From Peking it goes to Kalgan (this section is now served by a railway), whence the main route traverses Mongolia, while branches serve Shan-si, Shen-si, Kan-suh, Turkestan, &c. By this route go the caravans bearing tea to Siberia and Russia. Other routes are from Yun-nan to Burma and from Sze-ch'uen province to Tibet.

The government maintains a number of courier roads, which, like the main trade roads, keep approximately to a straight line. These courier roads are sometimes cut in the steep sides of mountains or run through them in tunnels. They are, in the plains, 20 to 25 ft. wide and are occasionally paved. The chief courier roads starting from Peking go to Sze-chu'en, Yun-nan, Kweilin (in Kwang-si), Canton and Fu-chow. Canals are numerous, especially in the deltas of the Yangtsze and Si-kiang.

In the centre and south of China the roads are rarely more than 5 ft. broad and wheeled traffic is seldom possible. Bridges are generally of stone, sometimes of wood; large rivers are crossed by bridges of boats. In the north carts drawn by ponies, mules or oxen are employed; in the centre and south passengers travel in sedan-chairs or in wheelbarrows, or ride on ponies. Occasionally the local authorities employ the corvée system to dig out the bed of a canal, but as a rule roads are left to take care of themselves.

_Posts and Telegraphs._--Every important city is now connected by telegraph with the capital, and the service is reasonably efficient. In 1907 there were 25,913 m. of telegraph lines. Connexion is also established with the British lines in Burma and the Russian lines in Siberia. The Great Northern Telegraph Company (Danish) and the Eastern Extension Telegraph Company (British) connect Shanghai by cable with Hong-Kong, Japan, Singapore and Europe. An imperial _postal service_ was established in 1896 under the general control of the maritime customs.[25] By an edict of November 1906 the control of the postal services was transferred to the Board of Communication. The Post Office serves all the open ports, and every important city in the interior. There were in 1910 some 4000 native post-offices, employing 15,000 persons, of whom about 200 only were foreigners. The treaty powers however, still maintain their separate post offices at Shanghai, and several other treaty ports for the despatch and receipt of mails from Europe. During the years 1901-1908 mail matters increased from ten millions to two hundred and fifty-two millions of items; and the 250 tons of parcels handled to 27,155 tons. In postal matters China has adopted a most progressive attitude. The imperial post conforms in all respects to the universal Postal Union regulations. (G. J.; X.)

IV. GOVERNMENT AND ADMINISTRATION