From Cotton Mill To Business Empire

"The demise of state-owned enterprises, the transformation of collectives into shareholding cooperatives, and the creation of investment opportunities through stock markets indicate China’s movement from a socialist, state-controlled economy toward a socialist market economy. Yet, contrary to high expectations that China’s new enterprises will become like corporations in capitalist countries, management often remains under the control of the onetime bureaucrats who ran the socialist enterprises.The concepts, definitions, and interpretations of property rights, corporate structures, and business practices in contemporary China have historical, institutional, and cultural roots. In tracing the development under founder Zhang Jian (1853–1926) and his successors of the Dasheng Cotton Mill in Nantong into a business group encompassing, among other concerns, cotton, flour, and oil mills, land development companies, and shipping firms, the author documents the growth of regional enterprises as local business empires from the 1890s until the foundation of the People’s Republic in 1949. She focuses on the legal and managerial evolution of limited-liability firms in China, particularly issues of control and accountability; the introduction and management of industrial work in the countryside; and the integration and interdependency of local, national, and international markets in Republican China."

This book examines the relationship between business expansion and the structure of business in pre-war China through a careful and pioneering study of the enterprises of Liu Hongsheng during the 1920s and 1930s. Unlike previous studies that have concentrated on such conceptual discussions as ‘networks’ and the role of the state in Chinese economic and business history, this present work focuses on the institutional changes within Chinese business to critically delineate the major institutions in the working of Chinese-owned enterprises. Not only does it explore those institutions of Western origin, such as the company and modern banking, but also those of native tradition. Liu Hongsheng was one of the leaders of the Chinese business community in Shanghai from the 1910s to the early 1950s. Through the examination, utilizing a large number of previous unused archival materials, of the major lines of his businesses including coal-distribution, wharf operations, cement making, match-manufacturing, banking, and real estate, this study identifies the major institutional changes involved in the course of the expansion of the whole business before the outbreak of the Second Sino-Japanese War. In particular, the author argues that the ‘accounts office’ or ‘zhangfang’ was the core of the organization. This book will be of great interest to specialists and students of Chinese business and economic history. It also provides a base for comparative business and economic history, especially for those who are interested in comparing European and American businesses with the Chinese ones. Lastly, this book serves the interest of scholars and students of East Asian history, who will find in Liu’s story a substantial example of the creative institutional dimension of business in the Chinese diaspora. “Professor Chan has richly documented the fascinating business practices used by the Chinese capitalist Liu Hongsheng: his devious maneuvers as a comprador taking actions contrary to the wishes of his foreign employer; his jousting as chairman of the board with unruly Chinese shareholders in a limited liability company; his inventive accounting as a venture capitalist financing industrial enterprises. With a firm command of archival materials, Chan is able to reveal seldom seen inner workings of Chinese business.” —Sherman Cochran, Hu Shih Professor of Chinese History, Cornell University

WINNER OF THE BANCROFT PRIZE • A Pulitzer Prize finalist that's as unsettling as it is enlightening: a book that brilliantly weaves together the story of cotton with how the present global world came to exist. “Masterly … An astonishing achievement.” —The New York Times The empire of cotton was, from the beginning, a fulcrum of constant global struggle between slaves and planters, merchants and statesmen, workers and factory owners. Sven Beckert makes clear how these forces ushered in the world of modern capitalism, including the vast wealth and disturbing inequalities that are with us today. In a remarkably brief period, European entrepreneurs and powerful politicians recast the world’s most significant manufacturing industry, combining imperial expansion and slave labor with new machines and wage workers to make and remake global capitalism.

This is the first comparative study of business as an important agent of change in the economies of India and China.

"The epic story of the rise and fall of the empire of cotton, its centrality in the world economy, and its making and remaking of global capitalism, [in which the author explores] how, in a remarkably brief period, European entrepreneurs and powerful statesmen recast the world's most significant manufacturing industry, combining imperial expansion and slave labor with new machines and wage workers to change the world"--

"China’s status in the world of expanding European empires of the nineteenth and early twentieth centuries has long been under dispute. Its unequal relations with multiple powers, secured through a system of treaties rather than through colonization, has invited debate over the degree and significance of outside control and local sovereignty. Navigating Semi-Colonialism examines steam navigation—introduced by foreign powers to Chinese waters in the mid-nineteenth century—as a constitutive element of the treaty system to illuminate both conceptual and concrete aspects of this regime, arguing for the specificity of China’s experience, its continuities with colonialism in other contexts, and its links to global processes.Focusing on the shipping network of open treaty ports, the book examines the expansion of steam navigation, the growth of shipping enterprise, and the social climate of the steamship in the late nineteenth century as arenas of contestation and collaboration that highlight the significance of partial Chinese sovereignty and the limitations imposed upon it. It further analyzes the transformation of this regime under the nationalism of the Republican period, and pursues a comparison of shipping regimes in China and India to provide a novel perspective on China under the treaty system."

By tracing the history of Yudahua from the late nineteenth century to the middle of the twentieth century, this study analyzes a successful inland business model among textile companies in modern China. The steady growth of this enterprise relied primarily on its strategy to focus on low-end markets and to locate new mills in underdeveloped interior regions. This strategy further allowed the enterprise to pioneer industrialization in its host localities, demonstrating a major social and economic impact on the local societies. At the same time, Yudahua’s unique team leadership pattern—five leading families shared its ownership and management—made the business an atypical family firm and allowed relatively easy institutional departure from Chinese social networks and adoption of Western corporate hierarchy. Therefore, by the late 1940s, Yudahua had gradually developed into a fairly integrated business group with a unified management structure and routinized connections between its member mills, which differed noticeably from the loose alliances normally found in other early twentieth-century Chinese business conglomerates.