A Brief Account of the Development of Capitalism in China

Chinese capitalism first developed in the period from 1895 to 1913. Wang Jingyu’s statistics show that during this period 549 newly-built industrial and mining establishments were established by Chinese capital, each with a capital of over Ch$10 000. The total capital amounted to Ch$120 297 000. On the average, 28.9 enterprises were set up each year, with new investment of Ch$6 331 000.2 The annual growth rate of some leading industries reached 15–20 per cent, which not only was unprecedented but also surpassed the so-called golden age during the First World War. But that was due to the fact that new industries such as tobacco, flour, power, and cement were starting from a very low base. In the cotton textile industry, which had already begun to develop before 1894, the number of spindles increased by 6.3 per cent per year.