Industrial Development in Modern China This book studies the process of economic and industrial development in the Republic of China (1912– 1949), in the hope of shedding light on how China came to be a relative economic laggard in the period, especially in comparison to Japan. Backed up by extensive industrial statistical data gathered and rigorously analyzed by the author, this book stands out from previous research that has been limited to theoretical inferences and general judgments with scarce empirical evidence. So, far from being a purely historical review of China’s industrial development, this book focuses on the internal logic of economic phenomena, especially the relationship among economic variables reflected in economic data, and it offers discussions within the framework of economic development theory. The author uses multivariate statistical analysis to draw comparisons between the industrial development of China and that of Japan, focusing on outbound investment and its importance for economic growth. This book will appeal to academics and general readers interested in the economic development and modern economic history of East Asia, as well as development economics and industrial and technological history. Guan Quan is a professor in the School of Economics at Renmin University of China in Beijing. China Perspectives The China Perspectives series focuses on translating and publishing works by leading Chinese scholars, writing about both global topics and China- related themes. It covers Humanities and Social Sciences, Education, Media and Psychology, as well as many interdisciplinary themes. This is the first time any of these books have been published in English for international readers. The series aims to put forward a Chinese perspec- tive, give insight into cutting- edge academic thinking in China, and inspire researchers globally. To submit proposals, please contact the Taylor & Francis Publisher for China Publishing Programme, Lian Sun ([email protected]). Titles in economics partly include: China’s Economic Reform and Development during the 13th Five- Year Plan Period Lin Gang, Wang Yiming, Ma Xiaohe, and Gao Debu Cultural Economics Li Yining Technological Innovation and Economic Development in Modern Japan Guan Quan Resources, Power, and Economic Interest Distribution in China Zhang Yishan Industrial Development in Modern China A Quantitative Analysis Guan Quan For more information, please visit www.routledge.com/ China- Perspectives/ book- series/ CPH. Industrial Development in Modern China A Quantitative Analysis Guan Quan First published in English 2021 by Routledge 2 Park Square, Milton Park, Abingdon, Oxon OX14 4RN and by Routledge 52 Vanderbilt Avenue, New York, NY 10017 Routledge is an imprint of the Taylor & Francis Group, an informa business © 2021 Guan Quan The right of Guan Quan to be identified as author of this work has been asserted by him in accordance with sections 77 and 78 of the Copyright, Designs and Patents Act 1988. All rights reserved. No part of this book may be reprinted or reproduced or utilised in any form or by any electronic, mechanical, or other means, now known or hereafter invented, including photocopying and recording, or in any information storage or retrieval system, without permission in writing from the publishers. Trademark notice: Product or corporate names may be trademarks or registered trademarks, and are used only for identification and explanation without intent to infringe. English Version by permission of China Renmin University Press. British Library Cataloguing- in- Publication Data A catalogue record for this book is available from the British Library Library of Congress Cataloging- in- Publication Data Names: Guan, Quan, 1955– author. Title: Industrial development in modern China : a quantitative analysis / Guan Quan. Description: Abingdon, Oxon ; New York, NY : Routledge, 2021. | Series: China perspectives | Includes bibliographical references and index. | Identifiers: LCCN 2020035692 (print) | LCCN 2020035693 (ebook) | ISBN 9780367635138 (hbk) | ISBN 9780367682101 (paperback) | ISBN 9781003119432 (ebk) Subjects: LCSH: Industrialization–China–History–20th century. | China–Economic conditions–1912–1949. | Industrial statistics–China–History–20th century. | Industries–China–History–20th century. Classification: LCC HC427.8 .G83 2021 (print) | LCC HC427.8 (ebook) | DDC 338.951009/041–dc23 LC record available at https://lccn.loc.gov/2020035692 LC ebook record available at https://lccn.loc.gov/2020035693 ISBN: 978- 0- 367- 63513- 8 (hbk) ISBN: 978- 1- 003- 11943- 2 (ebk) Typeset in Times New Roman by Newgen Publishing UK Contents List of figures vii List of tables and schedules ix Introduction xi 1 Industry in the second decade of the 20th century: Based on the analysis of the Statistics Table of Agriculture and Commerce 1 2 Industry in the hinterland in 1933: Based on the analysis of the Industrial Survey Report of China 31 3 Industry in Northeast China in the 1930s: Analysis based on Statistics of Factories in Manchuria 50 4 Industry in North China from 1939 to 1942: Analysis based on North China Statistics of Factories 105 5 Industry in the rear area during the War of Resistance against Japanese Aggression: Based on the analysis of General Statistics of the Rear Industries: 1942 150 6 Industry in cities: Nationwide, Shanghai, Tianjin, Wuhan 173 7 Mining production during the Republic of China Period: Based on the analysis of the Mining Survey of China 204 vi Contents 8 Comparison of industrial development in China and Japan in the 1930s 238 9 Comparison and summary 256 References 278 Index 288 Figures 1.1 Comparison of estimated value with raw data (taking nominal production value as an example) 7 1.2 Relationship between the number of spindles per capita and the production value per capita from 1916 to 1920 21 2.1 Relationship between the horsepower of power per 100 people and the per capita production value of factories in China in 1933 37 2.2 Relationship between per capita capital and per capita production value 41 2.3 Relationship between the per capita capital and the per capita production value 41 2.4 Relationship between per capita capital and per capita production value (by industry in provinces and cities nationwide) 42 2.5 Relationship between labor coefficient and capital coefficient (industries in provinces and cities) 43 2.6 Dual structure of China’s industries in 1933 47 3.1 Actual production value and actual added value by Chinese and Japanese factories 71 3.2 Production index by Chinese and Japanese factories (=100 in 1937) 72 3.3 Relationship between horsepower per 100 people and per capita value added (1934, 1939) 84 3.4 Annual growth rate from 1934 to 1941 87 3.5 Scale of Chinese factories (1936) 91 3.6 Scale of Japanese factories (1936) 92 3.7 Relationship between horsepower per 100 people and per capita production value (1934) 100 3.8 Relationship between horsepower per 100 people and per capita production value (1940) 100 3.9 Development of industry in the Northeast in the 1930s 101 4.1 Relationship between horsepower per 100 people and per capita value added in North China in 1942 117 viii List of figures 4.2 Distribution of scale of factories in North China in 1942 (Japan) 117 4.3 Distribution of scale of factories in North China in 1942 (China) 118 5.1 Changes in industry in the rear regions 170 6.1 Relationship between per capita capital and per capita net production value by industry in 12 cities in 1933 176 6.2 Relationship between per capita capital and per capita value added by industry in Shanghai in 1933 183 6.3 Relationship between per capita capital and per capita production value in Wuhan’s machinery industry in 1936 199 7.1 Industrial and mining production index from 1912 to 1949 213 8.1 Regions and samples for discriminant analysis 247 8.2 Results of discriminant analysis of two groups 252 8.3 Results of discriminant analysis of three groups (1) (Japan and Northeast China, 1940) 253 8.4 Results of discriminant analysis of three groups (2) (Japan and North China, 1940/1 942) 254 9.1 Development pattern of modern Japanese industries 263 9.2 Development pattern of modern Chinese industries 264 9.3 Production function of development in modern China and Japan 265 9.4 Economic development patterns in modern China and Japan 273 Tables and schedules 1.1 Example of data correction of Statistics Table of Agriculture and Commerce 6 1.2 Comparison of estimate in this book with estimate by Wu Chengming and estimate by Wu Baosan for some products (1920, million yuan) 9 1.3 Average size, labor productivity, and growth rate 10 1.4 Comparison of estimate in this chapter and estimate by Wu Baosan 14 1.5 Number of factories and employees by industry 18 Schedule 1.1 Number of manufacturers by product 23 Schedule 1.2 Number of employees by product 26 Schedule 1.3 Nominal production value by product unit: million yuan 28 2.1 Profile of factories 34 2.2 Factory characteristics 36 2.3 Overview of factories by province 39 3.1 Overview of factories in the Northeast 1912– 1918 52 3.2 Industry distribution of factories in the Northeast 1912– 1918 54 3.3 Overview of factories in Northeast China in 1931 55 3.4 Estimate scope and information 57 3.5 Number of factories 61 3.6 Number of employees 64 3.7 Actual production value (price in 1937, 10,000 yuan) 66 3.8 Actual value added (price in 1937, 10,000 yuan) 69 3.9 Estimates for all factories 73 3.10 Average number of factory employees 76 3.11 Actual production value per capita (price in 1937, yuan/ person) 78 3.12 Actual value added per capita (price in 1937, yuan/ person) 80 3.13 Horsepower per 100 people 83 3.14 Growth rate (average from 1934 to 1941,%) 85 3.15 Overview of factories by size (1936) 88 3.16 Overview of factories by size (1940) 90 3.17 Regional distribution of factories (1934) 94 3.18 Regional distribution of factories (1940) 97