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Foreign Direct Investment in China’s Electrification: Between Colonialism and Nationalism, 1882–1952

Published online by Cambridge University Press:  04 February 2020

Abstract

This article traces the history of foreign direct investment in China’s electricity industry from 1882 to 1952 through the conflict between colonialism and nationalism. China’s electrification started with foreign direct investment in colonial enclaves: settlements, annexed territories, and leaseholds. Foreign direct investment contributed the majority of China’s power supply, but the penetration to China’s hinterland had faced the hurdle of nationalism on the part of both the Chinese government and the business community. Exceptions in Taiwan and Manchuria were related to Japanese colonialism, which peaked during the Sino-Japanese War (1937–1945). After World War II, domestication was implemented by the Chinese government. This article provides a new perspective on multinationals by delineating between inward and expatriate foreign direct investment in the Chinese context.

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Article
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© The Author 2020. Published by Cambridge University Press on behalf of the Business History Conference. All rights reserved.

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Footnotes

I thank three anonymous reviewers and Andrew Popp for their useful comments. I alone am responsible for any mistakes and errors in the article.

References

Bibliography of Works Cited

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Wang, Shuhuai. “Shanghai Zhabeishuidianchang Shangban Dezhengzhi” [Dispute over the privatization of Zhapei Electric & Water Supply Company]. Zhongyang Yanjiuyuan Jindaishiyanjiusuo Jikan [Academia Sinica Modern History Institute Journal], 25 (1996): 169209.Google Scholar
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Wilkins, Mira. “Impacts of American Multinational Enterprise.” In America’s China Trade in Historical Perspective: The Chinese and American Performance, edited by May, Ernest R. and Fairbank, John K., 259292. Cambridge, MA Harvard University Press, 1986.Google Scholar
Wright, Tim. “Electric Power Production in Pre-1937 China.” China Quarterly 126 (1991): 356362.CrossRefGoogle Scholar
Yang, Yan. “Gongbujüyü Jindai Shanghai Zhaomingchanye Yanjiu, 1882–1929” [Research on the Shanghai Municipal Council’s role in lighting industries]. PhD diss., Fudan University, 2013.Google Scholar
Zheng, Yifang. “Zhongguo Dianqishiye de Fazhan, 1882–1949” [Development of China’s electricity industry, 1882–1949]. PhD diss., National Taiwan Normal University, 1988.Google Scholar
Academia Historica (AH), Taipei, ChinaGoogle Scholar
Academia Sinica Institute of Modern History (ASIMH), Taipei, ChinaGoogle Scholar
Japan Center for Asian Historical Records (JACAR), Tokyo, JapanGoogle Scholar
Ajiakeizaikenkyujo [Institute of Developing Economies]. Chugoku Denryokukogyo no Imamukashi [Present and past of China’s electricity industry]. Tokyo: Ajiakeizaikenkyujo, 1964.Google Scholar
Chen, Zhen. Zhongguo Jindai Gongyeshi Ziliao Disiji [China industrial history records, vol. 4]. Beijing: Sanlianshudian, 1961.Google Scholar
Chunichi jitsugyo [China–Japan Enterprise Company]. Chunichi jitsugyo kabushikikasha Sanjunenshi [Thirty years of China–Japan Enterprise Company]. Tokyo: Chunichijitsugyo, 1943.Google Scholar
Cochran, Sherman. Big Business in China: Sino-Foreign Rivalry in the Cigarette Industry, 1890 to 1930. Cambridge, MA: Harvard University Press, 1980.Google Scholar
Denkinenposha. Hokuchushi Denkijigyo Binran [Handbook of north China’s electricity industry]. Tokyo: Denkishinposha, 1939.Google Scholar
Dong, Zhikai, and Ronggang, Liu. Zhongguo gong chandang yu 156 xiang gongcheng [CCP and 156 Project]. Beijing: Zhonggong dangshi chubanshe, 2015.Google Scholar
Fairbank, John K. China: A New History. Cambridge, MA: Harvard University Press, 1992.Google Scholar
Fasolt, Friedrich. Die sieben gröszten deutschen elektrizitätsgesellschaften: ihre Entwicklung und Unternehmertätigkeit. Dresden: Borna-Leipzig, 1904.Google Scholar
Freyeisen, Astrid. Shanghai und die Politik des Dritten Reiches [Shanghai and the politics of the Third Empire]. Würzburg: Königshausen und Neumann, 2000.Google Scholar
Hausman, William J., Hertner, Peter, and Wilkins, Mira. Global Electrification: Multinational Enterprise and International Finance in the History of Light and Power, 1878–2007. Cambridge: Cambridge University Press, 2008.CrossRefGoogle Scholar
Hobsbawm, Eric. The Age of Empire, 1875–1914. New York: Vintage Books, 1987.Google Scholar
Hou, Chi-ming. Foreign Investment and Economic Development in China: 1840–1937. Cambridge, MA: Harvard University Press, 1965.Google Scholar
Jackson, Isabella. Shaping Modern Shanghai: Colonialism in China’s Global City. Cambridge: Cambridge University Press, 2018.Google Scholar
Kitanami, Michiko. Kohatsu Kogyohoku no Keizaihatten to Denryokujigyo: Taiwan DenryokunoHatten to Kogyoka [Economic growth and electricityindustry in late developing countries: Taiwan’s electrification and industrialization]. Kyoto: Akihiro, 2003.Google Scholar
Kokkashihonyushutsukenkyukai [Research Group in State Capital Export]. Nihon no shihonyushutsu [Japan’s capital export]. Tokyo: Tagashuppan, 1986.Google Scholar
Kubo, Toru. Chugokukeizaishi Nyumon [Introduction to Chinese economic history]. Tokyo: Tokyo Digaku Shuppankai, 2012.Google Scholar
Manshudengyo Kobunyugenkoshi Chosaka [Manchuria Electric Power Company Research Division]. Manshu Ni Okeru Denki Jigyo Gaisetu [Outline of Manchuria’s electricity industry]. Xinjing: Manshudengyo, 1937.Google Scholar
Manshudengyoshi Henshuiinkai [Editorial Committee of the History of Manchuria Electric Power Company]. Manshudengyoshi [History of Manchuria Electric Power Company]. Tokyo: Manshudengyokai, 1976Google Scholar
Minato, Teruhiro. Kindai Taiwan no Denryokusangyo [Electricity industry in modern Taiwan]. Tokyo: Cchanomitsu, 2011.Google Scholar
Remer, Charles F. Foreign Investments in China. New York: Howard Fertig, 1968.Google Scholar
Scranton, Philip. Enterprise, Organization, and Technology in China: A Socialist Experiment, 1950–1971. Cham, Switzerland: Palgrave, 2019.10.1007/978-3-030-00398-2CrossRefGoogle Scholar
Seelemann, Dirk Alexander. The Social and Economic Development of the Kiaochou Leasehold Under German Administration, 1894–1914. Toronto: Toronto University, 1982.Google Scholar
Shibata, Yoshimasa. Chugoku Senryochi Nikkeikigyo no Katsudo [Japanese firms in occupied Chinese regions]. Tokyo: Nihonkeizai Hyoronsha, 2008.Google Scholar
Shibata, Yoshimasa. Manshu Niokeru Seifukei Kigyo [State enterprise in Manchuria]. Tokyo: Nihonkeizai Hyoronsha, 2017.Google Scholar
Tan, Xihong. Shinianlai Zhi Zhongguojingji [Chinese economy in the recent decade]. Shanghai: Zhonghuashuju, 1948.Google Scholar
Tashima, Hideo. Gendaichugoku no Denryokusangyo [Electricity industry in modern China]. Kyoto: Showado, 2008.Google Scholar
Zheng, Youkui, Cheng, Linsun, and Zhang, Chuanhong. Jiuzhongguo de Ziyuanweiyuanhui 1932–1949 Shishiyupingjia [National Resources Commission in old China: facts and evaluations]. Shanghai: Shanghai Shehuikexue Chubanshe, 1991.Google Scholar
Aoyagi, Eiji. “Shinkoku Ni Okeru Denkijigyo” [China’s electricity industry]. Denkigakkai Zasshi [Journal for Institute of Electrical Engineers of Japan], 31, no. 282 (1912): 5160.Google Scholar
Chen, Bizhou. “Meishang Shanghai Dianligongsi Jingying Celüe Yanjiu, 1929–1941” [Research on Shanghai Power Company’s business strategy, 1929–1941]. PhD diss., Shanghai Academy of Social Science, 2018.Google Scholar
Cheng, Linsun. “The Industrial Activities of the National Resources Commission and Their Legacies in Communist China.” American Journal of Chinese Studies, 12, no. 1 (2005): 4564.Google Scholar
Cochran, Sherman. “Commercial Penetration and Economic Imperialism in China: An American Cigarette Company’s Entrance into the Market.” In America’s China Trade in Historical Perspective: The Chinese and American Performance, edited by May, Ernest R. and Fairbank, John K., 151203. Cambridge, MA: Harvard University Press, 1986.Google Scholar
Engineer Research Office North Atlantic Division, Corps of Engineers. Engineering Study of Electric Power of China, vol. I. In Records of the U.S. Strategic Bombing Survey, entry 46, USSBS index section 6, report no. 12-a(4). Printed by U.S. Army, November 1944.Google Scholar
Engineer Research Office North Atlantic Division. Electric Power of Manchuria. In Records of the U.S. Strategic Bombing Survey, entry 46, USSBS index section 6, general information report no. 12-a(12). Printed by U.S. Army, April 1945.Google Scholar
Faure, David, and Köll, Elisabeth. “China: The Indigenization of Insurance. ” In World Insurance: The Evolution of a Global Risk Network, edited by Borscheid, Peter and Haueter, Niels Viggo, 472494. Oxford: Oxford University Press, 2012.CrossRefGoogle Scholar
Gao, Ming. “Shanghai Dianli Gongye Yanjiu, 1945–1965” [Research on Shanghai’s electricity industry, 1945–1965]. PhD diss., Shanghai Jiaotong University, 2014.Google Scholar
Goetzmann, William, Ukhov, Andrey D., and Zhu, Ning. “China and the World Financial Markets, 1870–1939: Modern Lessons from Historical Globalization.” Economic History Review, 60, no. 2 (2007): 267312.10.1111/j.1468-0289.2007.00376.xCrossRefGoogle Scholar
Jackson, Isabella. “Who Run the Treaty Ports.” In Treaty Ports in Modern China, edited by Bickers, Robert and Jackson, Isabella, 4360. London: Routledge, 2016.Google Scholar
Jianshe weiyuan hui [National Constructions Commission]. Zhongguo dianqi shiye tongji disihao [Statistical report on electric utilities in China]. Nanjing: National Constructions Commission, 1934.Google Scholar
Kanamaru, Yuich. “Chugoku Minzokukogyo no Kokinjiki to Denryokusangyo” [The golden age of Chinese industries and the role of electricity]. Ajiakenkyu [Asia research journal] 39, no. 4 (1993): 2984.Google Scholar
Kirby, William C.China Unincorporated: Company Law and Business Enterprise in Twentieth Century China.”Journal of Asian Studies, 54, no. 1 (1995): 4363.CrossRefGoogle Scholar
Kirchberg, Dennis. “Analyse der Internationalen Unternehmenstätigkeit des Hauses Siemens in Ostasien vor dem Zweiten Weltkrieg” [Analysis on the international business of the House of Siemens in East Asia before the Second World War]. PhD diss., Friedrich-Alexander-Universität Erlangen-Nürnberg, 2010.Google Scholar
Li, Ziwei. “Dui hua mao yi fa yu meiguo zaihua shangye, 1917–1945” [China Trade Act and American business in China, 1917–1945]. Zhongshan daxueyanjiushengxuekan [Journal of the Graduates Sun Yat-Sen University], 38, no. 1 (2017): 1427.Google Scholar
Lin, Meili. “Waizidianye de Yanjiu, 1882–1937 [Research on foreign-owned electricity firms, 1882–1937]. MA thesis, National Taiwan Normal University, 1990.Google Scholar
Lin, Mingde. “Xinnengyüanshidai: Jindai Taiwan DianliFazhan, 1885–1945” [The age of new energy: modern Taiwan’s electrification, 1885–1945]. PhD diss., National Taiwan Normal University, 2003.Google Scholar
Mantetsu Shanhai Jimusho [Shanghai branch of South Manchuria Railway Company]. Shanhai Ni Okeru Denkijigyo Chosho [Survey on Shanghai’s electricity industry]. Mantetsu, 1938.Google Scholar
Minami manshutetsudo chosabu [Research division of South Manchuria Railway Company]. Hokushina niokeru kizondenkijigyo tokatsu chosa hokoku [Collective report on north China’s electric utilities]. Tokyo: Minami manshutetsudochosabu, 1940.Google Scholar
Mitsubishigoshi [Mitsubishi & Co.]. Shina no Denkijigyo Nikansuru Chosa Furoku [Statistic appendix of survey on China’s electricity industry]. Tokyo: Mitsubishigoshishiryoka, 1924.Google Scholar
Mosig, Karl. “Die erste Hochspannungs-Fernübertragungsanlage Chinas [The earliest high-voltage power transmission in China]. Siemens Zeitschrift, 5, no. 4 (1925): 149153.Google Scholar
Mosig, Karl. “Aus dem Elektro-Ausbau Chinas” [Electric industries in China]. Siemens Zeitschrift, 7, no. 10 (1927): 662668.Google Scholar
Osterhammel, Jürgen. “British Business in China, 1860s–1950s.” In British Business in Asia Since 1860, edited by Davenport-Hines, R. P. T. and Jones, Geoffrey, 189244. Cambridge: Cambridge University Press, 2003.Google Scholar
Przygode, Albert. “Elektrizitätsversorgung Chinas” [China’s electricity supply]. Elektrotechnische Zeitschrift, 5 (1936): 127128, 187–189.Google Scholar
Tozer, Warren W.Last Bridge to China: The Shanghai Power Company, the Truman Administration and the Chinese Communists.” Diplomatic History, 1, no. 1 (1977): 6478.10.1111/j.1467-7709.1977.tb00231.xCrossRefGoogle Scholar
[USSBS] U.S. Strategic Bombing Survey Electric Power Division. The Electric Power Industry of Japan. U.S. Navy: Strategic Intelligence Branch, 1945–1946.Google Scholar
Wang, Shuhuai. “Shoudu Dianchang de Chenzhang” [The growth of the Capital Power Plant]. Zhongyang Yanjiuyuan Jindaishiyanjiusuo Jikan [Academia Sinica Modern History Institute Journal], 20 (1991): 293334.Google Scholar
Wang, Shuhuai. “Zhongguo Zaoqide Dianqishiye, 1882–1928” [The early phase of electrification in China, 1882–1928]. In Zhongguo Xiandaihua Lunwenji [Articles on China’s modernization], edited by Zhongyangyanjiuyuan, 443475. Taipei: Institute of Modern History, Academia Sinica, 1991.Google Scholar
Wang, Shuhuai. “Jiangsu Wujin Qishuyen Dianchang de Jingying [The management of Qishuyen Power Plant in Wujin, Jiangsu]. Zhongyang Yanjiuyuan Jindaishiyanjiusuo Jikan [Academia Sinica Modern History Institute Journal], 21 (1992): 151.Google Scholar
Wang, Shuhuai. “Jiangsu Diyijia Minying Dianqishiye” [The earliest privately owned electric utility in Jiangsu]. Zhongyang Yanjiuyuan Jindaishiyanjiusuo Jikan [Academia Sinica Modern History Institute Journal], 24 (1995): 517571.Google Scholar
Wang, Shuhuai. “Shanghai Zhabeishuidianchang Shangban Dezhengzhi” [Dispute over the privatization of Zhapei Electric & Water Supply Company]. Zhongyang Yanjiuyuan Jindaishiyanjiusuo Jikan [Academia Sinica Modern History Institute Journal], 25 (1996): 169209.Google Scholar
Wang, Shuhuai. “Guomin Zhengfu Jieguan Minying Dianchang de Zhengceyu Shijian” [The Nationalist regime’s policy and practice in taking over privately-owned electric utilities]. Zhongyang Yanjiuyuan Jindaishiyanjiusuo Jikan [Academia Sinica Modern History Institute Journal], 28 (1997): 89132.Google Scholar
Wang, Shuhuai. “Jiujiang yinglu diandeng gongsi” [JiujiangYinglu Electric Light Company]. Zhongyang Yanjiuyuan Jindaishiyanjiusuo Jikan [Academia Sinica Modern History Institute Journal], 27 (1997): 137183.Google Scholar
Wang, Shuhuai. “Zheng fu Jieguan Qianhou de Guangzhou Dianli Gongsi” [Canton Electric Company before and after government takeover]. Zhongyang Yanjiuyuan Jindaishiyanjiusuo Jikan [Academia Sinica Modern History Institute Journal], 31 (1999): 89132.Google Scholar
Wei, C. X. George.The Economic Cooperation Administration, the State Department, and the American Presence in China, 1948–1949.”Pacific Historical Review, 70, no. 1 (February 2001): 2153.CrossRefGoogle Scholar
Wilkins, Mira. “Impacts of American Multinational Enterprise.” In America’s China Trade in Historical Perspective: The Chinese and American Performance, edited by May, Ernest R. and Fairbank, John K., 259292. Cambridge, MA Harvard University Press, 1986.Google Scholar
Wright, Tim. “Electric Power Production in Pre-1937 China.” China Quarterly 126 (1991): 356362.CrossRefGoogle Scholar
Yang, Yan. “Gongbujüyü Jindai Shanghai Zhaomingchanye Yanjiu, 1882–1929” [Research on the Shanghai Municipal Council’s role in lighting industries]. PhD diss., Fudan University, 2013.Google Scholar
Zheng, Yifang. “Zhongguo Dianqishiye de Fazhan, 1882–1949” [Development of China’s electricity industry, 1882–1949]. PhD diss., National Taiwan Normal University, 1988.Google Scholar
Academia Historica (AH), Taipei, ChinaGoogle Scholar
Academia Sinica Institute of Modern History (ASIMH), Taipei, ChinaGoogle Scholar
Japan Center for Asian Historical Records (JACAR), Tokyo, JapanGoogle Scholar