2. The Formation of Capitalism in East Asia

This chapter investigates the process in which Japan emerged as a newly industrialized country during the first half of the twentieth century, as well as the process in which, through the colonization of surrounding areas, Japan developed as an empire. By doing so, this study aims to assess the historical significance of the economic expansion of the Japanese Empire. First, the uniqueness of intra-East Asian trade is highlighted quantitatively. In particular, Japan’s consumer goods exports to the world markets and the process in which Japan became connected with surrounding Asian areas through unique trade relationships are examined. Next, the importance of colonial agriculture which supported Japan’s industrial goods exports is emphasized. It is corroborated that Japan conserved its foreign exchange reserves through the foodstuffs imports from its colonies. Factors which made possible the conservation of foreign exchange reserves, such as agriculture strategy, commercial organizations and peasant societies in the colonies, are discussed. Then, on the basis of an analysis of the formation of the capital-wage labor relation at the empire level and workforce movements within the empire, the transplantation of the capitalist production method from Japan to its colonies is discussed. Finally, as a conclusion of the above investigation, the historical significance of the formation of ‘East Asian capitalism,’ which integrated both mainland Japan and its colonies as an empire, is emphasized, even though the structures of the societies within the empire were regulated by their natural and social conditions.