The Inflationary Spiral: The Experience in China, 1939-1950

By Kia-Ngau Chang | Go to book overview
Save to active project

Chapter 10
Aggregate Supply

1. SUPPLY CONDITIONS BEFORE 1937

Domestic Production

Several paradoxical developments were noticeable in the economy of prewar China: the backwardness of agricultural production along with the growing habit of consuming and using imported modern manufactured goods; the concentration of light modern industry in the coastal Treaty Ports with apparent disregard for their sources of raw materials and the market of their products, both of which were predominantly in the interior; emphasis on railway construction in a relatively small coastal area, with hardly any mileage built in the much larger area of the country's interior, and a simultaneous lack of other modern transportation facilities in interior regions. Other noticeable factors were the neglect of flood control and irrigation in spite of China's dependence on agriculture; the lack of active export promotion despite the strong need for imports; and the failure to develop heavy industry despite the large-scale defense expenditures. All this helped to set the stage for frequent shortages of food and agricultural staples and the consequent need for emergency imports. Furthermore, the interior depended on the Treaty Ports for its manufactured consumption goods; all heavy industrial goods had to be imported; all heavy ammunitions and war equipment, and most minor strategic materials, likewise, were imported; the trade balance was chronically adverse; distribution of goods was difficult, slow, and costly.

Foreign investment and overseas Chinese remittances filled the foreign trade gap in peacetime and permitted a higher level of imports than China's exports earned. The Treaty Ports, which imported foreign capital goods and raw materials whenever these were locally

-201-

Notes for this page

Add a new note
If you are trying to select text to create highlights or citations, remember that you must now click or tap on the first word, and then click or tap on the last word.
Loading One moment ...
Project items
Notes
Cite this page

Cited page

Style
Citations are available only to our active members.
Sign up now to cite pages or passages in MLA, APA and Chicago citation styles.

Cited page

Bookmark this page
The Inflationary Spiral: The Experience in China, 1939-1950
Settings

Settings

Typeface
Text size Smaller Larger
Search within

Search within this book

Look up

Look up a word

  • Dictionary
  • Thesaurus
Please submit a word or phrase above.
Print this page

Print this page

Why can't I print more than one page at a time?

While we understand printed pages are helpful to our users, this limitation is necessary to help protect our publishers' copyrighted material and prevent its unlawful distribution. We are sorry for any inconvenience.
Full screen
/ 400

matching results for page

Cited passage

Style
Citations are available only to our active members.
Sign up now to cite pages or passages in MLA, APA and Chicago citation styles.

Cited passage

Welcome to the new Questia Reader

The Questia Reader has been updated to provide you with an even better online reading experience.  It is now 100% Responsive, which means you can read our books and articles on any sized device you wish.  All of your favorite tools like notes, highlights, and citations are still here, but the way you select text has been updated to be easier to use, especially on touchscreen devices.  Here's how:

1. Click or tap the first word you want to select.
2. Click or tap the last word you want to select.

OK, got it!

Thanks for trying Questia!

Please continue trying out our research tools, but please note, full functionality is available only to our active members.

Your work will be lost once you leave this Web page.

For full access in an ad-free environment, sign up now for a FREE, 1-day trial.

Already a member? Log in now.

Are you sure you want to delete this highlight?