Changes In The Industrial History Of The Republic (1912-1936)

Industrialization is the main contents of economic modernization. The history of the latter is the history of the industry development. The main topic of this paper is the industrial development during 1912 to 1936 of the Republic of China.During the period of Beijing Nationality Government, the market and commercial society were relative free because of the government's weak power. This kind of relation among the government, the market and the society put the industrialization of China on the road that promoted by the market and light industry. But Nanjing Nationality Government was powerful relatively. During its period the national capitalism was reinforced constantly. A series of regulations were established such as tax and monetary system. Some industrial institutions which prompted the enlarge of national capitalism were established too. The two modes of the relations among the government, market and society were different, the two modes of industrial development were different too. Profound analysis of it could help us understand history and enlighten times.The paper falls into five parts.In the first part, some divergences of opinions such as on the condition of industrial development from 1912 to 1936, on the aggregate growth of industry and the structure development are cleared. Some analysis and evaluations about the condition of industry were made too.In the second part, the economic and social structure which influenced the industrial development of China is analysed acutely. The binary structure between the traditional part and modern industry influenced the industrial development complexly. Modern industry was limitted by the traditional agriculture. The small peasant economy was isolated by the market, so the relation with modern industry was broken off. While the part of traditional agriculture which involved into the capital market system was deprived of strength of self-sustaining and self-remoulding, due to the unfair exchange. So, the relation between the modern industrial development and traditional agriculture was contradict all the time. To reduce the industrial cost, price scissors of goods between industry and agriculture must be enlarged. Otherwise, to strengthen the demand-driven of industry more surplus must stay in the agriculture and rural. The industrial crisis happened from time to time often contained no choice about the contradiction. The relation between the modern industry and handicraft development was complex too. The development of modern industry was confronted with binary structure between the port and inland. Since the port was attached to the world capital system, it imported more advanced foreign technology and market, then it was at a absolute advantage when exchanged with inland part. It extracted and assembled great resources from the inland, and made itself brisk but the inland weak .With that mentioned above, the gap between the port and the inland was enlarged farther. Without the support by the inland, the port became more and more frail in the change of world capitalism. The format of the relation between the port and the inland made the industrial development imbalance., and the most crucial point was that the inland couldn't provide enough command for the industrial development. It influenced the modern industrial development directly.The third part analyses the industrial development in the period of Beijing National Government. During that time, the industry of China received a golden age. It benefit from the reform of political system, the change of supply and demand, and the promoting of the commercial society. After the Revolution of 1911, system was changed intensely. The political elite reached to a agreement over developing the modern industry. They set a lots of economic regulations and supplied the capitalist industrial development with system environment. As a temporary federation formed by different elite, Beijing National Government was disintegrated by the opportunism action of Yuan Shikai. It became very weak and couldn't intervention economy. Some national enterprise leave by the late Qing Dynasty couldn't run normally, much less private enterprise. But industrial upsurge was called for in the same time. Commercial society became more actively than over before. The market had changed too. The demands for light industrial products surged up because the foreign industry had no time for Chinese market due to the First World War. The fall of the agricultural products' price made the cost of light industry low and the profits high. So the private enterprise received a prompt development at that time. But the industrial slack arrived at 1923 and 1924 let us get some hidden grief in industrial development across.The forth part analyses the industrial development in the period of Nanjing National Government. Nanjing National Government adjusted the policies under the direction of the idea of Sun Zhongshan after its political rule stable. Nanjing Government put a high premium on the Improving the economic polices and law. Through the reform of financing and taxation systems the government strengthened the control with economy and market. The series of polices and economic actions proved the development of private enterprise, national capitalism started emerge in the industrial development. At that time the market changed largely. It became more larger, the industrial products growth significantly. The social surplus flowed from the agriculture and the inland to the industry and the port under the unfair exchange between the two. Thus made the binary format no turn and made the industrial development weak. The crisis brought out in 1931 confirmed that.In the fifth part a whole conclusion and thought about the 25years'industrial development are made. Though the mode of the industrial development had some change, the economic structure influenced them had little change. Traditional agriculture was still the "short board". The protection systems such as custom duties, rate of exchange and economic policy could shield the bind from world capitalism , but it couldn't solute the problem essentially. The policy opinion and power of government were the main clue in the industrial development. To encircle it the changes of the relations among the government, the market and the society had a profound impact on the mode of industrial development. The process of industrialization which was broken into by the foreign invasion left infinite thought to us. Though the industrialization has succeed today, the thoughts still could help us to understand the history and response the future.