Research On The Industrial And Commercial Trade Associations Of Chengdu In The Period Of The Republic Of China

The Trade Associations of industrial and commerce were non-profit, social organisations first established during the period of the Republic of China by businessmen and entrepreneurs. The ultimate purposes of such establishments were to both protect the common interests of, and rectify malpractices within a business or industry.The history of guilds in China dates back to ancient times. During Tang and Song Dynasties, they were called tuan and hang. In Ming and Qing Dynasty, they were known as hanghui, huiguan, gongsuo or bang. As is elsewhere in China, guilds in Chengdu emerged since 1918, with some adopting the old structure of bang and since 1929, guilds grew to become an important form of the Trade Associations of industrial and commerce during the period of the Republic of China . This research argues that though, by nature, the Trade Associations were professional associations created by businessmen and entrepreneurs, they were also an important part of the political institution under the Nationalist government. Thus, researching the Trade Associations system will not only enrich our understanding of China's transition from feudalism to a modern society and the Chinese society during the period of the Republic of China, but also enable us to draw on past experiences more effectively in developing a professional management system that meets the demands of our time.Research on the Trade Associations of industrial and commerce during the period of the Republic of China originates from investigations into thedevelopment of professional guilds and the Chambers of commerce in modern China. It has received increased academic attention since 1990. A review of the research literature in this area, however, suggests that it remains a under-researched filed of study in that the majority of the work conducted so far focuses on the banking and silk industries in Shanghai and Suzhou. Intensive, diachronic studies on the Trade Associations of industrial and commerce, within a specific city or geographic area, such as hinterland cities, remain unavailable. Thus, by exploring the Trade Associations of industrial and commerce in Chengdu city during the period of the Republic of China in terms of their historical development, system structure, organisational functions, their link with local government and the Chambers of commerce, the present research intends to provide a comprehensive insight into the professional associations in this hinterland city. All research claims are based on in-depth analysis of the original documentation collected by the Chengdu Municipal Archives.This research finds that, by late Qing Dynasty, the trade unions guided by the Sichuan Chamber of Commerce were established on the basis of business associations (hang bang) which were grass-root member organisations of the profession. Regulations of those business associations were adopted from earlier codes of practice within the profession. The organisational structure and roles of such business unions remained basically the same as their precedents. The re-organisation of the trade unions into bang during the early days of the Republic of China saw the introduction of more democratic elements in organisational management. However, for all the modernity, traditional regulations and rules continued to prevail.The year 1929 witnessed the establishment of the Trade Associations of industrial and commerce by various trades and professions in Chengdu under government supervision. The Trade Associations of industrial and commerce during this time were either new establishments or converted from the old business bang. Local business was concentrated on speculative activities and banking. Handcraft and small-sized enterprise dominated the local economy, with little modern industry. Commercial and industrial capital was inadequate. With such lopsided local business,most of the Trade Associations then were of the handcraft and retail industries. Modern industrial and trade guilds were not identified. There were regional professional unions though they were excluded from the Trade Associations. Irrationality was identified in the redundant establishment of multiple trade associations within a single business or industry, a popular phenomenon during that time.The setup of the organisational structure of the Trade Associations of industrial and commerce was identified to have undergone two distinct phases: the period of committee and the period of board of directors. In terms of organisational operation, rules and regulations were established regarding a member's entry into and withdraw from the Trade Associations, the election and serving term of leadership, convening and democratic policy-making, business management. On the one hand, their subjecting to government decrees and supervision indicated that there was a sense of modernity in the setup of the organisational structure and operational systems. On the other hand, the self-management of individual professions through autonomous decision-making also entailed that their ways and style of management appeared to have remained significantly similar to those of the traditional professional guilds (hang bang). While they might have played an important role in helping standardise business operations, it is clear that they had also encouraged monopoly, thus impeding healthy market competition. In spite of such inadequacy, it is argued that such a situation with the Trade Associations was consistent with the industrial and business development of that time and it had, to some extent, contributed the social and economic development advancement.As regards the relationship between the Trade Associations and local government, this research found that individual the Trade Associations were all subjected to the control of the government and accreditation. However, prior to the anti-Japanese war, the Trade Associations in Chengdu were active in a series of campaigns against taxes and levies imposed by the local government. Since 1937, the Trade Associations were made by the government into the 'grass-root workforce' of managing urban life through system rectification and supervision, and imposition of restrictions on business and ideological control.Finally, this research found that, during the period of the Republic of China, the Chamber of Commerce and the Trade Associations were of equal legal status. However, in terms of organisational management, the Trade Associations were subject to the Chamber of commerce. By setting up such kind of contradictory relationship between them, the Nationalist Party and its government expected to weaken the control of the Chamber of commerce over individual guilds to keep it from becoming a cohesive power which might eventually become a threat to the government. In the meantime, by placing the Chamber of commerce at a higher level than the Trade Associations, its integrative function was secured, thus creating a convenient way for the local authorities to both control and use these unions. Well aware of these advantages, both the government of Sichuan province and local authorities in Chengdu city consciously exploited this contradiction to achieve the purpose of controlling organisations of local businessmen.In conclusion, this research wasn't able to identify any qualitative changes in the Trade Associations of Chengdu city during the period of the Republic of China. There were more traditions than changes. Thus it is argued that guilds of Chengdu during the period of the Republic of China were traditional organisations disguised in modernity...