This paper is a study of entrepreneurial problems in nineteenth-century China as seen in two types of enterprise—foreign enterprise under the treaty system and Chinese enterprise sponsored and controlled by government officials. These two types existed in different institutional environments; their capacities for efficient operation and growth were therefore also different. Case studies of both types are conveniently found in a field of modern transport—the steamship business which arose to serve the trade in the treaty ports. After 1860 a large number of foreign firms began to operate steamships in Chinese waters, and between 1862 and 1881 the following specialized “steam navigation companies” were established in Shanghai.

The name of Liang Sou-ming is perhaps most familiar in connection with his controversial published lectures of the early 1920's, The Cultures of East and West, and Their Philosophies. It is less well known that Liang had an extensive career in the field of rural reconstruction during the 1930's, that he was one of the prime movers of the political coalition which ultimately became the China Democratic League, and that, more recently, he has been under severe attack by communist thinkers for his continuing rejection of Marxism-Leninism as applied to China. Particularly during the time when he was active in rural reconstruction and in national politics, Liang represented movements which stood, or seemed to stand, as alternatives to both the Kuomintang and the Communist solutions to China's problems. The failure of these movements to prevent antagonistic polarization and civil war in China raises some of the most important problems to which a study of Liang Sou-ming gives entry. Here we shall be concerned primarily with the first of these efforts—rural reconstruction.

Of major significance both to the political history of the Meiji period and to the career of Ōkuma Shigenobu was the series of events known as the 1881 political crisis. This upheaval involved principally the problems of establishing a national parliament or Diet, of selling government colonization properties in Hokkaido, and of dismissing Okuma from the government. Although the crisis concerned nearly everyone in the government at some point and shook the political world, Ōkuma was more closely connected with these issues than any other single individual in the government. The crisis presents many problems which are still being debated by Japanese historians, and no concensus has emerged.