UNIT 7 THE UNEQUAL TREATY SYSTEM

IN CHINA

Structure
7.0 Objectivis
7.1 Introduction ,

7.2 The Period of Cooperation, 1860-1870

7.2.1 TheTrratyPorts
7.2.2 ~lre~oreign Inspeclaate of Customs .
7.2.3 China's Introduction to Modem Diplomacy
7.3 Increasing Foreign Encroachments :Friction and Conflict, 1g70-1900
7.3.1 Missionary Activity and Popular Hostility
7 3.2 Fore@ Pressure Along China's Periphery
7.4 'Ibe "Scramble for Concessions"
7.5 Let u s s u m Up
7.6 Keywords
7.7 Answers to Check Your Progress Exercises

7.0 OBJECTIVES
After reading this Unit you will be able to familiarise yourself with the :
"unequal treaties'" signed between China and the west& powers and Japan in the 19th
century,
changing pattems and forms of imperialist f;xpansion in China up to &e end of the
Ch'ing Dynasty in 1911, and
characteristic institutions and practices of China's relationship with the foreign powers
in this period.

7.1 INTRODUCITION
For a full century from ;he signing of the Treaty of Nanking in 1842, China was bound by a
series of treaties with the' Western powers and Japan. These came to be known as the
"unequal treaties" because they were imposed by the bigpwers using their military
superiority on a weak and disintegrating China.

Unlike countries such as India, China was never fully colonized by any one foreign power or
group of powers. While China was forcibly opened to foreign trade and expansion, and
compelled to make one concession after another to the foreign powers, the vestiges of her
soverei?nty were kept intact. Even if China was powerless to resist the demands of the
foreign powers, these demands were given the form of treaties drawn up and mutually
agreed upon by two sovereign states. Thus just as India's long interaction with colonialism
was best symbal&d by the British Raj, China's century of humiliation at the hands of the
colonial and imperialist powers was best represented by the series of u n W d treaties. Just as
the dismantIing of the British Raj was the prime object of the Indian ilationalist movement
before 1947, the struggle against the unequal treaties was a major focus of Chinese
nationalism until the 1940s. This Unit discusses the various unequal treaties; the conditions
under which they were imposed and the impact they had on China.

In the late 1850s. it appeared as if the Western powers were actively working for the
collapse of the Ch'ing Dynasty. The Western assault on Tientsin and thi: capital Peking,
including the burning down of the imperial summer palace during the Second Opium War,
was a heavy blow to the fortunes of the Ch'ing. Equally significant was the Western attitude
towards the great Taiping Rebellion (See U$t 13, Block 4) which was then raging through
 most of Central and South China. Formally, the policy of the Westerners in th15civil war The Unequal Treaty System
I in China
was one of neil:,.ility. But in practice, it bordered on sympathy and even a degree of active
support for the rebels.
I
I
However, after 1860, this trend reversed itself. After winning substantial concessions from
f the Ch'ing at the Treaty of Tientsin (see Unit 6), the Western powers seemed to realise that
i their interests would be best served by the survival of the dynasty which had made those
r concessions. Thus, the Western policy changed almost overnight from sympathy for the
rebels to active support to the Ch'ing in its drive to put down the Taiping Rebellion. They
also desisted for the time being from putting more pressure on the Ch'ing Government and
instead set about making the best use of the concessions they had already won. The foreign
powers also began to assist China's efforts to modernise. One probable reason for this new
policy of supporting the Ch'ing Government was the reluctanct of the British, the strongest
foreign power in China at the time, to increase their direct politica1,and military
entanglements overseas after the rude jolt to their colonial rule in India in 1857.

The conciliatory mood among the Western powers and their diplomats in Peking was
matched by a new mood among the ruling circles in China. The negotiatims with the
I Western powers in 1860, as well as the suppression of the Taipings (which was completed in
1864)' brought to prominence a set of high officials who were not so violently ;inti-foreign,
and who believed that China needed above all else a period of peace in which to recover and'
l strengthen herself. These officials included the famous leaders of the Taiping-suppression
I
i campaign, Tseng Kuofan and Li hung-chang, and the Manchu Prince Kung. These leading
statesmen believed in learning. some things from Western science and technology,'as well as
I
Western diplomacy, and were not averse in principle to a limited co-operation with the West
in certain 5pheres.

The result of this change of heart on both sides was the so-called "Co-operativePolicyW,
which ensured thsit the status quo in Sino-Western relation was maintained for a full ten
years with little disturbance, It was in'this period that certain institutionalized foms of
intersction bemeen China and the West were evolved.

7.2.1 The Treaty Ports

One of the major consequences of the ~ i r sOpium
t War was the opening up of five ports to
foreign trade and residence, including the original Canton. These came to be known as the
"treaty ports". The treaty of Tientsin that ended the Second Opium War increased-the
number of treaty ports to sixteen, while the Chefoo Convention signed between China and
Britain in 1876 added five more to the list. Thus, the entire length of the China coast as well
as it5 major navigable waterway, the Yangze River, came to be dotted with these centres of
foreig,~trade and business.

The treaty ports, and especially the "foreign concessions" (the areas where the foreigners
resided together) that grew up within them became a typical feature of6ino-foreign relations
from the mid-19th to thl mid-20th century. From the point of view of temtory they did not
amount to very much. But, from the economic, political and judicial point of view, they
represented a sizeable infringement on Chinese sovereignty.

In the foreign concessions, the foreigners governed themselves and the Chinese 'subjects
who lived within them. In many of the treaty port& the concessions were named after the
nationalit of the dominant foreign power in them (e.g. the British concession, the Fre'nch
concession, etc.). However, in the largest of the treaty ports-Shanghai, the British and
American concessions merged in 1863 to form the famous "International concession".
Generally speaking, the "foreign concessions" were governed by a muicipal counciI which
was elected by the foreigners who owned property above a certain value, and which was
subject to the approval of the consular corps, the direct representatives of the foreign powers
in the treaty ports. The municipal council levied taxes for the maintenance of their
concessions, had their own police forces, andin general ran their own police affairs with no
interference from the Chinese government. The Chinese residents of the foreign concessions
were distinctly second class citizens, who were heavily taxed but had no rights. In some
cases, they were even banned from using certain roads, parks, etc. which were reserved
exclusively for foreigners.
Western Imperialism

9. The lavish house of a Hong Merchant (Canton).

In the "foreign concessions" were situated the consular courts-foreign courts which tried
foreigners involved in legal cases according to the~rown laws in keeping with the principle
of extra-territoriality (See Unit 6). Even Chinese residents of the foreign concessions were
not tried by Chinese c o q but were liable to stand trial before mixed courts consisting of
both Chinese and foreign judges. Needless to say whenever the tial involved a Chinese
against a foreigner, the Chinese was at a tremendous disadvantage-wt ouly because of the
bias of the foreign judges, but also because the Chinese could not usually comprehend the
foreign legal procedures.

As the years passed, the foreign concessions evolved their own distinctive culture and life-
style that were totally alienated from that of China. Generally speaking, they were enclaves
of wealth with relative stability and privilege, amidst the poverty and turmoil of 19th and
early 20th century China. They were backed by the gunboats of the foreign powers anchored
nearby.

7.2.2 The Foreign Inspectorate of Customs

One of the most prominent features of the treaty ports, as well as one of the &st unique
institutions in modem China's relations with the foreign powers, was the Foreign
Inspictorate of Customs.

In 1854, when Shanghai was besieged by rebels and the Chinese Superintendent of Customs
was driven from his post, the foreign consuls in Shanghai got together and took on the
collection of customs dues themselves as a temporary measure. However, when peace was
restored, this practice was not discontinued but was permanently institutionalked. The
Western powers felt that this was in their interest, as it would ensure that the low tariffs they
had won after the Second Opium War would be respected, and there would be no undue
extortion by local Chinese officials. The Ch'ing Government too, preferred to continue this
arrangement, as it ensured that a large and steady revenue would come directly into its
treasury. The system was therefore regularised. The Foreign Inspectorate of Customs shifted
its headquarters from Shanghai to Peking in 1865. In every treaty port, there was a Foreign
Inspector of Customs, with a large and well-trained staff consisting of both foreigners and
Chinese under him. Its main function was of course, the collection and remittance of
customs duties and levies. But it gradually expanded its functions to include things like the
maintenance of harbours and rivers, making geographical surveys, etc. Although the Ch'ing The Unequal Treety System
in Chin.1
Government benefitted financially from the activity of the Foreign Inspectorate, it
nevertheless represented a further erosion of China's sovereignty in economic and
administrative matters.

An interesting feature of the Foreign Ina~ctorateof Customs was that $11its employees,
including the foreigners, were formally servants of the Chinese government and not
representatives of their own countries. Even the Britisher, Sir Robert Hart, who directed this
service for forty years and came to enjoy immense authority, always considered himself to
be a loyal employee of Ch'ing Government. Certain modern scholars like J.K. Fairbank
have coined the term "synarchy" to describe this phenomenon. They have viewed it not as a
form of imperialist control, but as a form of collaboration between the Chinese Empire and
individual foreigners which had deep roots in the traditional Chinese form of government.
However, it must be remembered that the relationship between China and foreign
imperialism in the 19th century had its own unique and unprecedented character. The
Chinese Empire in this period was in decline, and the foreign powers were in a commanding
position not only militarily, but also from the economic and technological points of view. To
the emerging Chinese nationalists, the presence of a large number of foreigners directing the
economy and important matters of state was as humiliating as the gunboats of the foreign
powers patrolling their rivers and coastline. Particularly as the Ch'ing Govenunent became
rnore dependent on the customs revenue, and also when a large portion of China's finances
came to be mortgaged to various foreign powers through indemnities and loans, the control
of the customs revenues by foreigners became very significant. It ensured that China could
not go back on her treaty obligations, and that an increasing proportion of her wealth would
go to the foreign countries.

7.2.3 China's Introduction to Modern Diplomacy

China's shattering defeat in the Second Opium War convinced some of her leading
statesmen of the need to revamp her institutions and mechanisms for dealing with the
foreign powers. They felt the need to get to know more about the West, and particularly the
need to understand and master the theory and practice of modern international law. The
Manchu Prince Kung was the prime mover behind this trend, but the Grand Councillor
Wen-hsiang, Li hung-chang and other high officials also played an important role.

These statesmen began to view international law as a tool which could be used to prevent
further arbitrary encroachments on China's sovereignty by other powers. They felt that the
existing treaties, although they were decidedly unequal, could be maintained as a limit
beyond which no further concessions would be permitted. Their efforts were encouraged by
the mood of co-operation that prevailed among the leading Western powers and their
representatives in Peking at this time.

Thus, on the recommendation of Prince Kung and Wen, the court agreed to the setting up of
a kind of foreign office in March 1861, which was called the ~ s u n ~Yamen.
li Headed by a
varying number of high-ranking statesmen, it directed the work of different bureaus
assigned to deal with the major Western powers as well as coastal defence. The Foreign
Inspectorate of Customs was also attached to this office from 1860 to 1870; it was the
leading body which.concerned itself with the execution of foreign policy.

Apart from the Tsungli Yamen, the system of having two Superintendents of Trade for the
northern and southern ports was also set up at Tientsin and Shanghai respectively. When the
dynamic Li hung-chang became the Superintendent of Trade at Tientsin in 1870, he was
involved in so many matters concerning the foreign powers, that eventually he eclipsed the
Tsungli Yamen itself in the conduct of foreign affairs.

Another innovation in this period, also associated with the Tsungli Yamen, was the setting
up of the Tung wen Kuan in 1862. Originally intended as a school to train selected Chinese
and Manchu students in the Western languages, it eventually came to include subjects such
as modern physics, chemistry, physiology, etc, in its cumculum. It also began to publish
translated works of Western international law, philosophy, political economy and science.
This school was staffed and headed by foreign professors and scholars.

The Treaty of Tientsin (1860) had contained a provision for the revision of the Treaty after a
period of ten years. By the late 1860s. the Tsungli Yamen felt sufficiently contident of its
Western Imperialifm expertise in international law and western-style diplomacy to press actively for treaty
revision, hoping that the outcome would be more favourable to China than before. To this
end, it took up the offer of the sympathetic American representative at Peking, Anson
Burlingame, to undertake a mission to the Western countries on behalf of the Ch'ing
Government urging them to renegotiate the treaties. On the whole, the Burlingame Mission
was well-received wherever it went. This raised the hopes of the Tsungli Yamen and the
Ch'ing Government. However, these hopes were soon shattered. In 1870, the British
Government rejected the Alcock Convention for the revision of the treaties, which had the
approval of the Ch'ing Government. This rejection in effect marked the end of the period of
co-operation between the Ch'ing and the Western powers, and the beginning of a period o*
-mewed friction and conflict.

Check Your Progress 1

1) What were the institutions which played a key role in China's dealings with foreigners
in the later 19th century? Answer in 10 lines.

2) Explain in about five lines the functions of the Foreign Inspectorate of Customs.

3) Which of the following statements are right or wrong? Mark ( d ) or ( x ).

i) The leading Chinese statesmen looked upon international law to prevent
encroachments on China's sovereignty.
ii) The British rejected the Chinese proposal for the revision of treaties.
iii) The largest of the Treaty ports was Shanghai.
iv) There was no provision in the Treaty of Tientsin for its revision after a period of
ten years.

7.3 INCREASING FOREIGN ENCROACHMENTS :

FRICTION AND CONFLICT, 1870-1900
The last quaner of the 19th century saw a sharp downward trend in China's relations with
the big powers. In this period, these powers renewed their offensive against China
culminating in the combined military. assault on Peking after the Boxer Rebellion (See
Unit 14, Block.4) in 1900, and the near partition of China into separate spheres of foreign
influence and domination. The impulse for these developments did not lie only within China
itself. Britain as well as Tsqrist Russia in the last decades of the 19th century were
characerised by a strong expansionist drive, as was France of the Third Republic. The
United States of America, freed from the pre-occupations of the Civil War, began to look
with interest towards the East. Germany, after its uhTltlcation in 1870, as well as Japan of the
Meiji Restoration, developed into strong powers which also coveted overseas markets and
 The Unequal Treaty System
in China

10. A view of Whampoa.

territories; It is not surprising that the expansionist drives of all these powers converged on
China, which had not yet come under the colonial yoke of any one ~ o w e rand , which
seemed to be unable to extricate itself from the process of crisis and decline.

7.3.1 Missionary Activity and Popular Hostility

One of the major irritants in Sinowestern relations in this period was, ironically enough,
not the overtly military or economic activities of the Western powers, but the activities of
various individual missionaries and missionary organizations. The period in fact began, and.
ended with major clashes over the issue of missionaries and their activities.
The Treaty of Wharnpoa signedwith France after the First Opium War permitted missionary
activity in China, while the Treaty of Tientsin of 1860 permitted the missionaries to reside
and carry out their activities anywhefe in China. Unlike the Western diplomats and the
Western merchants who lived congregated together in selected enclaves in thc ports or in the
capital, Peking, the missionaries spread out everywhere. This was especially true of the
Catholic missionaries. They lived for tfie most part in small towns and villages, where they
intervened actively in the localsocial and political life. They freely acquired jroperty, and
were permitted to re-occupy 'lands confiscated from the Jesuit missionaries in the 18th
century. They converted local residents to their faith, and then proceeded to try and extend
their own legal immunity in criminal cases to these converts. They also set up schools and
orphanages which were viewed with deep suspicion by the local population, who often
believed that the missionaries were kidnapping their children. Particularly obnoxious to the
local people and the local authorities was the tendency of the missionaries to appeal to their
own countries for protection and support on every issue. It became increasingly common for
the gunboats of the foreign powers to sail threateningly up the rivers in a show of force,
whenever there was a clash between the missionaries and the local people in some part of
China. Thus, popular hostility to the foreigners, which was largely confined to the area
around Canton in the period between the two Opium Wars, rapidly spread throughout the
interior of China. The 1860s saw innumerable clashes which resulted in physical violence
and killings.
This culminated in the Tientsin Massacre of 1870, where a clash over an orphanage led to .
the death of 21 foreigners and about 30 Chinese Christians. Along with the rejection of the
Alcock-Convention,this incident marked a turning-point in Sino-Western relations. China
was made to pay heavily for it, including the payment of nearly half a million taels as
indemnity. I
The Tientsin Massacre was by no means the last such conflict over the issue of the
missionaries. There wekfrequent such riots and clashes, some especially serious, like the
riots in Sichuan province in Western China in 1886 and those dong the Yangze River valley
in 1891: The latter almost led to a combined Western military invasion of China, which was
prevented mainly by the complete capitulation by Ch'ing Government. This capitulation was
widely resented by the Chinese, reinforcing anti-Ch'ing sentiments among them, as well as
the feeling that the Ch'ing rulers were "traitors" who were in league with the foreigners.
Anti-foreign currents thus became intertwined with movements for the overthrow of the
dynasty. It was precisely such a fusion of currents that led to the explosive Boxer Rebellion
of 1898-1900 in North China (see Unit 14). Fearful of losing its power, the Ch'ing made an
about turn in its policy and sided with the rebels against the foreigners. However, when the
combined armies of the foreign powers sacked North China and once again occupied and
destroyed much of Peking, the Ch'ing capitulated again. China survived the crushing defeat
of the Boxer Rebellion by another ten years, but only as a shadow of its former self. The
imperialist powers further entrenched themselves in China. The extremely harsh terms of the
Boxer Protocol which the allied powers imposed on China in 1901 made further deep
inroads into China's economic, financial and political independence.

7.3.2 Foreign Pressure Along China's Periphery

After 1870, the big powers also began to show renewed interest in territorial expansion at
the expense of the Chinese Empire. Initially, the target of their expansionist activities was
not the heartland of China itself. They sought to gain control of territories along the
periphery of China, which the Ch'ing Government did not effectively control (such as
Sinkiang in the West), or else which were traditionally considered tributaries of China (such
as Vietnam and Korea). However, each challenge to these peripheral areas directly affected
the security and-prestige of China and exposed further her increasing weakness.

The first step in this direction was taken by Russia, which took advantage of a rebellion in
Sinkiang to occupy the Ili region of Sinkiang in 1871. It was only after a protracted
diplomatic struggle lasting 10 years that the Ch'ing Government was finally able to get back
control of most of the region by the Treaty of St. Petersburg of 1881.

In precisely the same period, Japan began to manoeuvre for control over the island of
Taiwan and the Liu Ch'iu (Ryukyu) islands off the China coast. The Japanese briefly ,
occupied Taiwan in 1874. Finally, a treaty was signed in 1875, which tacitly accepted
Japanese sovereignty over the Liu Ch'iu islands, and in which the Chinese agreed to pay
Japan an indemnity of 2 million dollars.

With the Russians and the Japanese, in Ili and Formasa, the Chinese did not directly go to
war. But ten years later, China went to war with the French over Vietnam (Amam), which
had long been a tributary state of China. The Sino-French war of 1884-85 was a disaster for
the Chinese. Although they did not have to pay an indemnity, China had to formally
renounce all rights over Vietnam. Even more important was the fact that the defeat
represented the clear failure of China's twenty-year long efforts to modernise and strengthen
her military capacity. The failure of this limited modernization inspired some Chinese to
advocate more thorough going reforms in the years that followed. while others (like the
leader of the 1911 Revolution, Sun Yat-sen) were convinced that nothing short of the
overthrow of the Ch'ing could save China from further humiliation.

France followed her victory in Vietnam with the conquest of Laos in 1893. Britain, too,
made territorial gains that threatened the security of the Chinese Empire. It annexed Burma
in 1886, turned Sikkim into a British protectorate in 1890, and subsequently made inroads
into Tibet. Russia began the rapid colonization of Siberizl, on China's northern frontier.

Meanwhile Korea, traditionally a mbutary state of China and under its strong political and
cultural influence, became the focus of interest of several of the powers. Eventually, in
1885, Japan managed to assert its right to intervene in Korean affairs through a Sino-
Japanese convention signed in that year. China continued to retain some rights there, but not
for long. In 1895, when both Chinese and Japanese troops intervened during a revolt against
the Korean King, the Japanese demanded the withdrawal of Chinese troops. This led to a
war in which the Chinese were badly defeated and half of their modernized naval fleet was
destroyed. In the Treaty of Shimonoseki that followed, China was compelled to accept the
most humiliating terms, that included complete renunciation of all her rights in Korea,
Taiwan and the Pescaders Islands. Even more significant was the clause ceding the The Unequal T m t y System
in China
Liaodtung Peninsula,whicbwas part of Manchuria. Eventually, Japan was forced to return
Liaodtung because of the pressure of Russia, Gennany and France, which was motivated by
their own rivalry with Japan. However for this intervention by the three powers, the Chinese
had to pay a heavy price in the fonn of more concessions to these powers. This set off a real
"scramble for concessions" among all the major powers, which saw even more thorough
humiliation and exploitation of China by the imperialist powers.

7.4 THE "SCRAMBLE FOR CONCESSIONS"

The early Western economic interest in China was trade, and it continued to be the
predominant interest even after the Opium Wars. The foreign concessions in the Treaty
Ports were acquired not so much to get a territorial foothold in China, as to facilitate the
progress of foreign trade. However, side by side with the growth of this trade, other fonns of
economic activity by the foreigners also developed. Initially, these fonns of economic
activity, like banking and shipping, were closely related to trade. The first foreign bank was
the British-Chartered Oriental Banking Corporation set up in Hong Kong in 1845 and in
Shanghai in 1848. The first foreign shipping company was the Shanghai Steam Navigation
Company set up by the Americans in 1862.

However, after 1860, foreign finns also ventured into manufacturing with vigour. By 1894,
there were more than 87 foreign industrial ventures with a total capital of 13 million taels
and employing 34,000 people. Initially they were engaged mainly in shipbuilding and
repairing, and processing goods for export. But soon they also turned to producing goods for
sale in China itself; Locally manufacturing goods for sale in China was one way in which
the foreign finns could avoid customs duties and reduce their transportation costs. With their
vast capital resources, privileges and technological superiority, they faced little competition
from Chinese manufacturers.

With the progress of imperialism in the last quarter of the 19th century, the imperialists'
desire for new outlets for their capital increased enormously. China seemed like a vast, and
as get largely untapped, field for their investment. Foreign industrialists and bankers
competed fiercely with each other for contracts from the Chinese Government to build
hydraulic works, construct fortifications and arrange arms shipments, build railways and
open mines, etc. To be in a stronger position with respect to the Chinese Government as well
as with respect to their competitors from other countries, finns from one country began to
combine in syndicates which undertook to manage all matters relating to a particular
project-from financing it, to supplying technical expertise and personnel, as well as all the
necessary equipment.

The economic penetration of China by imperialism developed dramatically after the Sino-
Japanese war of 1894-95. The weakness of China was used to extract maximum economic
concessions from her. Following the example of Japan, the three powers which intervened
seemingly on China's behalf after the war-Russia, France and Gennany-also sought
special privilege and concessions. They demanded as a "right" that they should be allowed
to build railways, open factories and rnines in those parts of China where they felt they were
entitled to special influence. Russia, like Japan, demanded and obtained concessions in
Manchuria. France was interested in the southern provinces of Yunan, Kwansi and
Kwantung; while Gennany was interested in the eastern coastal region of Shantung. Not to
be outdone, Britain sought and received concessions in the territories adjoining Hong Kong
and the Yangze River valley, as well as the port of Weihaiwei. Generally speaking, the form
adopted by the big powers to win these concessions and establish their own spheres of
influence, was to "lease" territories for a long period (like 99 years), during which the
Chinese Government would not be allowed to have any rights in those territories, while the
concerned foreign power would be allowed to have full control, including the power to
station their own police forces in those areas. Or else, the concerned power would secure a
promise from the Chinese Government not to give any other country rights in those
temtories.

The pace of the "scramble for concessions" was so frenzied, that by the turn of the century
China resembled a large "melon" carved up into different sections for the enjoyment of
others. In each of these sections, a particular foreign power was the virtual overlord. It
determined whatfactories, which mines and which railways were to be developed in irs own
section, with no consideration other than its own benefit. These powers then concluded
agreements amongst themselves-without any reference to the Chinese Government-to
respect each other's spheres of influence. Even when the Americans (who did not have any
such concessions) got an agreement from all the powers to respect equal opportunity for
trade, the Treaty Ports and the customs service in their sphere of influence-the so-called
"Open Door" Policy of 19CHLthe: did not bother to include the Chinese Govemment in
this agreement. Nor did they question the right of these countries to have their own spheres
of influence or concessions in China.

Another significant feature of the "scramble for concessions" was the loans extended to the
Chinese Government by the foreign powers. The first agreement for such a loan of 400
million francs was obtained by theFranco-Russian Banking Corporation, to enable the
Chinese Government to pay back the indemnity Japan had imposed on it after the war of
1894-95. Others were quick to follow suit with other loans. In 1896, British and German
banks obtained the contract for another loan to the Chinese Governmefit to meet the second
instalment of the indemnity to Japan. This loan was concluded on terms even more
unfavourable to the Chinese. Not only was the interest rate higher, but it was made clear that
China would not be allowed to pay back the loan in full before 36 years were over, and that
no changes would be allowed in the administration of the Foreign Inspectorate of Customs,
since a portion of the revenues was pledged against the loan.

Through the loans, the financial and economic grip of the imperialists over China was
tightened into a vice from which China could not extricate itself. By the end of the century,
the entire customs revenue which had once been used for the modernization of Chinese
defence and other sectors,was required just to make the payments on the debts. Moreover,
each loan, though highly profitable to the lender, was considered to be a "favour" done to
the Chinese Government, for which it was entitled to more "concessions" and other
privileges. Thus, an extremely intricate network of economic exploitation was built up.

The extent of China's humiliation and subjugation at the hands of the foreign imperialists
cannot be gauged merely by the formal treaties signed between the Chinese Government and
the foreign governments. Yhe economic contracts and agreements which China entered into
with various foreign banks, syndicates, etc., also undermined the sovereignty and
independence of China to no less a degree. The foreign contracting parties were powerful
economic conglomerates which had the full backing of their home governments. China
could not run the risk of defaulting on these agreements without getting itself involved in a
full-scale war with the imperialists. Thus, even when the Ch'ing Government was ,

overthrown in 1911, its successor governments for many years did not repudiate any of the
treaties or economic agreements with the foreign powers, who continued to dominate'china
economically and politically for three more decades.

Check Your Progress 2

1) Discuss in about ten lines some of the maln developments leading to the "scramble for
concessions"?

2) Outline in about 10 lines the consequences of the Sino-French war of 1884-85.

..........................................................................................................................................
 .......................................................................................................................................... The Unequal Treaty System
in China
.......................................................................................................................................

3) Which of the following statements are right or wrong? Mark ( 4 ) or ( x ).

i) The Treaty of Tientsin permitted missionaries to reside and carry on activities
anywhere'in China.
ii) The "Open Door" Policy of 1900 included the Chinese Government in the
agreement.
iii) The first foreign shipping company was set up in 1862 by the Japanese at Shanghai.
iv) From 1860 to 1911, China's economic, political and temtorial independence was
undermined by the imperialists.

7.5 LET US SUM UP

China never became a colony directly ruled by any one power. It has been characterized as a
"semi-colony", or even as a "hyper-colony" (a colony of several powers). This made
China's experience of subjugation at the hands of the imperialists quite unique.

In the half-century from 1860 to the Revolution of 1911, China's economic, political and
temtorial independence ar.d sovereignty was steadily eroded by the imperialists. The foreign
encroachments were enshrined in a series of treaties in which the Chinese Government
agreed to give up one concession after another. They were also reflected in the numerous
contracts and economic agreements that China entered into with various foreign firms and
banks. However, the legal aspect of these treaties and agreements was not as significant as
the actual military and economic weakness of the Chinese Empire. It was this weakness
which made the treaties and agreements absolutely binding on China. It was not till China
acquired a renewed military and political strength in the course of several decades of
revolutionary upheaval, that the Chinese were in a position to successfully repudiate their
suborqnation to the foreign powers.

7.6 KEY WORDS

-

Foreign concessions :Areas where the foreigners resided in the Treaty Ports.
Synarchy :Joint administration by Chinese and foreigners.
Missionaries :Christian priests sent abroad to propagate and make converts ti, Christianity.
Tael :Chinese currency.
~ributaries:States which paid tribute to China.
Syndicates :A group of banks and industrial houses from one country which collaborated to
undertake projects in China.
Conglomerates :Monopoly houses.
Western Imperialism
7.7 ANSWERS TO CHECK YOUR PROGRESS
EXERCISES
Check Your Progress I
1) Your answer should include (a) the Treaty ports and foreign concessions, (b) the
Foreign Inspectorate of Customs, (c) the consular courts, (d) the Tsungli Yamen. See
Sub-secs. 7.2.1 and 7.2.2.
2) Your answer should iriclude collection and remittance of customs duties and levies. See
Sub-sec. 7.2.2.
3) (i) 4 (ii) 4 (iii) 4 (iv) x

Check Your Progress 2

1) Your answer should include
- the breakdown of the policy of cooperation.
- increasing clashes between China and the big powers over the missionary issue,
territorial encroachments by the foreign powers, etc.
- the rivalry among the imperiaiists for new markets and outlets for their capital. See
Sec. 7.3.
2) Base your answer on Sub-sec. 7.3.2.
3) (i) 4 (ii) x (iii) x (iv) 4