Chinese Businessmen in The German-Leas

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Chinese businessmen in the German-Leased Port City of Qingdao(1897-1914)

(1897-1914)

Zhu, Jian-Jun
(Authors)

, (11), 2014.10, 69-120 (52 pages)


(Source) Cultural Interaction Studies of Sea Port Cities , (11), 2014.10, 69-120 (52 pages)


(Publisher) International Institute of Maritime Affairs

URL http://www.dbpia.co.kr/Article/NODE02489600

APA Style Zhu, Jian-Jun (2014). Chinese businessmen in the German-Leased Port City of
Qingdao(1897-1914). , (11), 69-120.

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69

Chinese businessmen in the German-Leased


Port City of Qingdao(1897-1914)

(1897-1914)

Zhu, Jian-Jun ()* 1)

. Introduction
. Growth of Chinese Businessmen Economic Influence in Qingdao
. National and Native Place Identity of the Chinese Businessmen
in Qingdao
. Governance Identity of the Chinese Businessmen in Qingdao
. Conclusion

. Introduction

The port city of Qingdao, often described as Chinas peal of


Huanghai Sea, has a long maritime history and started to catch
Western attention since the middle of 19th century due to its economic
potentiality and strategic location in Jiaozhou Bay, which was called
Jiaoao in Chinese at that time. Seizing the pretext of a missionary
case happened in Shandong province, Germany sent troops on 7 Nov.
1897 to land Qingdao and occupied the surrounding Jiaoao area. The
weak Qing Government agreed under force in March 1898 to lease

* Lecturer of History at the Institute of Maritime Culture Studies, Ocean University


of China.(junouc@163.com).

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70 11

Jiaoao area to Germany, namely Jiaoao Leasehold (Kiautschou


Leasehold in German). Germany regarded the Jiaoao leasehold as a
colony and established systematic colonial rule with stark racial
discrimination between the Chinese and the Westerners in Qingdao
(Tsingtau in German, Tsingtao in English), the leaseholds port city
and center. A special Chinese Chancery was established to handle all
Chinese affairs. Nevertheless, aiming to build Qingdao into a model
colony as well as a commercial city and a naval base, the German
Kiautschou government tried to attract Chinese businessmen from other
parts of China to conduct business in Qingdao.1) By the time of the
German withdrawal from Qingdao in 1914 during the First World
War, the Chinese businessmen had become an important social group
in the German-occupied Qingdao with significant potential to connect
other social groups.
Living under German colonial administration on the legally Chinese
land at a time when China was experiencing huge internal social changes,
the Chinese businessmens identities were rather complicated than
simple. Recent scholarship on German Qingdao has come to pay more
attention to the Chineses active role,2) but scholarship on the prominent

1) Seelemann, Dirk Alexander(1982), The Social and Economic Development of


the Kiaochao Leasehold (Shantung, China) under German Administration
1897-1914, PhD Diss., Ms. Toronto, p. 191.
2) Mhlhahn, Klaus(2005), zai mofan zhimindi jiaozhouwan de tongzhi yu dikang
1897-1914 nian zhongguo yu deguo de xianghu zuoyong [Power and
Resistance in the Model Colony of Kiautschou: interaction between China
and Germans 1897-1914], translated by Sun Lixin, Jinan: Shandong University
Press; Hiery, Hermann J. and Hinz, Hans-Martin (1999), Alltagsleben und
Kulturaustausch: Duetsche und Chinesen in Tsingtau 1897-1914 [Everyday Life
and Cultural Exchange: Germans and Chinese in Tsingtau 1897-1914],
Wolfratshausen: Ed. Minerva,; Huang, Fu-the(1999), Qingdao: Chinesen unter
deutscher Herrschaft 1897-1914 [Qingdao: Chinese Under the German Rule
1897-1914], Bochum: Projekt-Vel.

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Chinese businessmen in the German-Leased Port City of Qingdao(1897-1914) 71

social group of Chinese businessmen so far is disproportionately few,


owing to the scarcity of archival materials. Making use of various
historical materials collected by the author in the past several years,
this paper investigates the identities of Chinese businessmen formed in
the German-leased Qingdao and their activities. An important
dimension of this investigation is subjectivity, which means that the
Chinese businessmen are not viewed as a group of passive colonized
people as some scholarship did, but positive people who acted on their
own and made use of what the port city offered as the historical
materials shows.
The paper first looks at the financial growth of Chinese businessmen
and their roles in Qingdaos economic life in this period. As most of
these people doing business under Germanys colonial rule were
immigrants from outside the colony, the paper then investigates their
national identity and their nationalist activities, while at the same time
examines the sojourning businessmen native place identity and the
flourishing of huiguans as an indicator of their strong regional
identifications and tight connections with others from the same areas,
to reveal the intertwining of both kind of identities. The third section
explores the Chinese businessmens identity with governance, especially
their attitudes towards administrations of the German Kiautschou
government, the Qing government and the Republican government
respectively. The analysis based on the three sections will shed light
on the Chinese businessmens complicated identities in the German-leased
port city of Qingdao and argued that their identities and activities
contributed to the port city with Chineseness, and the hinterland
more initiative to reform.

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72 11

. Growth of Chinese Businessmen Economic


Influence in Qingdao

Under the German Kiautschou administration, Qingdao witnessed


large-scale development of German enterprises and businesses. Notably
the Germans conducted a series of urban infrastructure and commercial
constructions. Besides the construction of the railway to Jinan, the
harbors, streets, water and illumination systems, a number of German
companies also emerged. Over thirty modern enterprises were opened
by the Germans during the colonial years. The well-known ones
included the Shandong Railway Company, the Tsingtao Bureau of
Harbor Affairs, the Tsingtao Post Office, the Tsingtao Shipyard, the
German Chinese Silk Company, the Butchering Factory, and the
Germanic Beer Company, a German-British joint-venture. The businesses
of other smaller factories dealt with powder, soap, fishing, salt, oil,
barrel, sawing, soda beverage, running water, brick and tile, straw
weaving, painted wood art, leather products, snacks, sausages, and
dairy products.3) There also appeared some international trading
companies like the German F. Schwarzkonf & Co., Sietas, Plambeck
& Co., and so on. They imported canned food and other food
products, liquor, hardware and other articles of daily use mostly from
Germany. Seimenss & Co., Carlowitz & Co., Arnhold, Karberg & Co.,
H. Diederichsen & Co., Anz & Co., on the other hand, specialized on
international wholesale trading while a few also handled shipments for

3) Liu, Yanmin(1989), de zhan shiqi qingdao gongye yu gongren jieji zhuangkuang


[Conditions of Industry and Industrial Workers in Qingdao at the Time of
German Occupation], qingdao gongshang shiliao [Historical Materials on
Industries and Commerce of Qingdao], Vol. 4, China National Democratic
Construction Association, Qingdao Committee and Qingdao General Chamber
of Commerce, p. 113.

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Chinese businessmen in the German-Leased Port City of Qingdao(1897-1914) 73

Germany and Britain. They imported machinery, large hardware,


equipment, pigments, cotton yarn and fabric, matches, kerosene, and so
on, and exported local products from Shandong including silk, straw
plait, bristle, dog fur and leather.4) These new type of German
enterprises undoubtedly made profound changes in the economic and
merchandise structure of Qingdao and monopolized the main sectors of
the colonial economy.
However, Chinese businessmen played a significant role in Qingdao.
The purpose of the German Kiautschou administration was to turn
Qingdao into a naval base and commercial colony as an entrance to
the markets of Shandong and inland China, which relied on the active
involvement of Chinese businessmen who were familiar with the local
markets. The colonial government believed that the development of a
coastal region in China mainly depended on the participation of local

business community and therefore an active and prosperous group of
Chinese businessmen was evidently beneficial to the German trade, as
had been frequently pointed out by the navy.5) In other words, the
Kiautschou governors office understood the indispensability of the
Chinese businessmen to the development of Qingdao, and thus
encouraged their business activities in Qingdao. On 3 October 1898, it
began to open land sale to the Chinese, and some Chinese
businessmen from Hong Kong and Shanghai bought land in Tapaotao,6)
a section of Qingdao set for Chinese businessmen as planned by the
colonial authority. Since then more and more Chinese businessmen

4) Announcement of Arnhold Karberg & Co, Jiaozhou Bao, No. 31, 28 February
1901, p. 1; 9 February 1903, p. 2.
5) Hmtsblatt fr das Deutsche Kiautschou Gebiet [Memorandum concerning the
Development of the Kiautschou Region], Tsingtau, Oct. 1900-Oct. 1901.
6) Hmtsblatt fr das Deutsche Kiautschou Gebiet [Memorandum concerning the
Development of the Kiautschou Region], Tsingtau, Prior to Oct. 1898.

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74 11

bought land and established business in Tapaotao.

1. Chinese Businesses prior to 1904

The businesses in Qingdao expanded on the basis of, rather than


breaking away from, the original commercial trade networks. Before
the German occupation in 1897, a traditional business trade network
had taken shape around many harbors and towns in the Jiaozhou Bay,
including Tafutou, Nugukou, Cangkou, Shazikou, Qingdaokou, Licun,
and Wanggezhuang. In Qingdao alone there were seventy-one shops
engaged in traditional handcraft, food and other services, and shipping.
These included travelers inns, bakeries, tailors, second-hand clothing
shops, barbers, oil mills, grinding mills, dying mills, groceries,
bamboo mats makers, chinaware shops, herbal medicine shops, pawn
shops, fishing net weaving services, linen and leather shops, oil
container shops, timber firms, fish, pork and salt shops, shoes and hat
shops, fur shops, yarn, cloth and silk shops, Canton and foreign goods
firms, liquor bars, restaurants, sauce and pickle shops, tofu shops, cake
shops, tea desert shops and so on. Shipping services were mostly run
by Canton and foreign goods firms and timber firms and available
between the sea ports of China, from Niuzhuang in the north,
Andongwei, Shijiusuo, Jiaozhou and Haizhou in the west, Jiangsu,
Auhui, Fujian, Zhejiang and Guangdong in the south, and as far as
Korea further north. The biggest exported commodities were pork,
peanuts, coarse oil, soybean byproducts, wax, pears; imported goods
included daily utensils, fine cotton cloth, yarn, silk, sugar, tung oil,
bamboo materials and timber, etc.7) Privately owned boats from

7) Hu, Cunyue (before 1898), haiyuntang suiji, collected in qingdao gongshang


shiliao [Historical Materials on Industries and Commerce of Qingdao] (1987),
Vol. 2, China National Democratic Construction Association, Qingdao Committee

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Chinese businessmen in the German-Leased Port City of Qingdao(1897-1914) 75

provinces such as Fujian, Ningbo, Jiangsu and Shandong ran in and


out of Qingdao. In 1897 alone there were 117 voyages that stopped
over in Qingdao.8) After the German occupation, such networks
continued to exist in Qingdao.
Some scholars suggest that prior to the German occupation, there
existed an organization which coordinated the relations among the
numerous Chinese businesses. It is found that the business people
tended to gather around the market near the Temple of Sea Goddess
to discuss public issues and mediate disputes after Qingdao became an
administered unit of Qing government in 1891. An organization called
Qingdao Guild was initiated and headed by Hu Zengrui, the manager
of Ruimao Restaurant and a native of Qingdao from a family of
generations of merchants. After Hus death, his son Hu Cunyue, a.k.a.
Hu Guichen, succeeded as the head.9) He became the most well-known
merchant at that time. During the German occupation he was one of
the few people who could represent businessmen to take part in
Qingdaos affairs.10)
New business people emerged in Qingdao during its urban
re-construction. Businessmen from outside the colony also started to
move in and establish new businesses in Tapaptao. The new ones

and Qingdao General Chamber of Commerce, pp. 132-134.


8) Qingdao Municipal Archives (1986), diguozhuyi yu jiaohaiguan [Imperialism

and the Jiaozhou Customs] the Archives Press, pp. 83-84.
9) Wang, Jiuling & Xu, Danchen(1987), The History of Qingdao Chamber of
Commerce, qingdao gongshang shiliao [Historical Materials on Industries and
Commerce of Qingdao] (1987), Vol. 2, China National Democratic
Construction Association, Qingdao Committee and Qingdao General Chamber
of Commerce, p. 3.
10) Yuan, Rongsou(1924), jiaoao zhi [Jiaoao Chronicles], zhongguo jindai
shiliao congkan [Collection of Historical Materials of Modern China], Vol. 31,
complied by Shen Yunlong, Taipei: Wenhai Press Company, 1969, p. 1324.

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76 11

mostly sold domestic and foreign daily miscellaneous goods and


construction materials, undertook construction projects, or provided
services in new demand such as western food, clothes-making,
woodcarving, and lottery in the early years of the colony, according to
the advertisements in the Chinese newspaper Jiaozhou Bao,11) and the
German newspaper Deutsch-Asiatische Warte (German Asian Observer).12)
The introduction of cars and bicycles in Qingdao also attracted
Chinese businessmen to engage in vehicle repairs.13)
Gong Shiyun was one of the successful businessmen in the
construction business. He went to Qingdao from Laiyang, Shandong
province in 1897 to become a brick laying apprentice at first. After
completing his apprenticeship, he started to contract miscellaneous
projects and made his name with the successful completion of laying
red tiles on the bell tower of the Qingdao Railway Station.
Consequently, he received an increasing number of contracts from the
German colonial administration and accumulated funds for further
growth. He founded the Gonghexing Project Company (later changed
its name to Gonghexing Construction Company) and contracted a part
of the construction work for the German Governors Office, the
Governors Residence, the main building of the Deutsch Bank,
underground sewage of Prince Wilhelm Road (now Guangxi Road).
With continuing expansion, he became the number-one contractor in
the construction business in the German-leased Qingdao.14)

11) Jiaozhou Bao, No. 31, Feb. 28, 1901, p. 3; No. 78, Feb. 24, 1903, p. 3;
No. 92, July 2, 1903, p. 4; No. 76, Feb. 9, 1903, p. 1.

12) Deutsch-Asiatische Warte 31 Dec. 1898; 7 Jan.1899; 25 Jan. 1899; 1 Feb.
1899; 1 Mar. 1899; 8 Mar. 1899; 1 Jun. 1899; 6 Jun. 1901.
13) Cao, Hairong & Cao, Haizhen(2001), Caohaiquan yu qingdao zixingche
gongye [Cao Haiquan and the Qingdao Bicycle Industry], Essence of the
Literature and History of Qingdao, Industry and Commence, Qingdao CPPCC
Committee of Cultural and Historical Data, Beijing: Xinhua Press, p. 64.

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Chinese businessmen in the German-Leased Port City of Qingdao(1897-1914) 77

The increase in trade between Chinese and the foreigners gave some
Chinese opportunities to act as compradors. Foreign trade companies
started entering Chinas coastal cities after the Opium War. Language
barrier and unfamiliarity with the Chinese market and social customs,
however, made it hard for them to conduct business directly with
Chinese producers or customers, so they hired compradors to act as
agents. The compradors took care of purchasing and sales and bought
real properties for foreign trade companies, thus were regarded as a
bridge in sino-foreign trade.15) In the German-leased port city of
Qingdao, for example, Ding Jingchen contracted with Siemssen & Co.
as its comprador,16) Sui Shiqin was the interpreter and comprador for
the German company F. Schwarzkopf & Co,17) and He Yongsheng
and Mo Jiqiao acted as compradors respectively for the Jardine,
Matheson & Co. and the Butterfield & Swire Co..18) When their

14) Gong, Ziqian(1987), Gongshiyun de shengping [Life of Gong Shiyun],


qingdao gongshang shiliao [Historical Materials on Industries and commerce
of Qingdao], Vol. 2, China National Democratic Construction Association,
Qingdao Committee and Qingdao General Chamber of Commerce, p. 117.

15) Hao, Yanping(1988), shijiu shiji de zhongguo maiban dongxi jian qiaoliang
[Chinese Compradors of the 19th Century
the Bridge between East and
West], Shanghai: Shanghai Institute of Social Sciences.
16) Zhang, Bomi & Yu, Molin, Zhou, Weilie(2001), deshang chanchen yanghang
gaikuang [An Overview of Germanys Siemssen & Co.], Essence of the
Literature and History of Qingdao, Industry and Commence, Qingdao CPPCC
Committee of Cultural and Historical Data, Beijing, Xinhua Press, p. 4.
17) Wang, Yiqun(1988), Suishiqing shilue [A General Introduction to Sui
Shiqing], qingdao gongshang shiliao [Historical Materials on Industries and
Commerce of Qingdao], Vol. 3, China National Democratic Construction
Association, Qingdao Committee and Qingdao General Chamber of Commerce,
p. 167.
18) Liu, Zhenggang & Liu, Qiang(2004), qingdai guangdong shangren zai qingdao
de huodong [The economical Activities of the Cantonese businessmen in
Shandong in the Qing Dynasty], Qi Lu Journal, No. 5, pp. 45-49.

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78 11

financial abilities increased, the compradors often opened their own


companies to become an independent Chinese merchant. For instance,
He Yongsheng later founded He Shengji, Ding Jingchen opened the
Yuelai Shipping Company, the Yuesheng Coal Company and Yongyu
Salt Company.
The transportation and business development in Qingdao, as well as
the increase in the flow of commodity, boosted the warehousing
business. Ding Jingchens Yuelai Company was one of the well-known
warehousing companies. There were long-term advertisements in the
Jiaozhou Bao, claiming that it had contracts with the Shandong
Railway Company and conducted business in railway and ocean freight
as well as domestic and international trade and loading and unloading
services. It emphasized that it owned inns and warehouses in Qingdao,
Jiaozhou, Weixian and was expanding its freight transportation,
warehousing and insurance services into Qingzhou, Zhoucun and Jina
n.19) A similar company named Dongxing Company started in Haipo
Street on Tapaotao and, with successful growth, moved to Beijing
Road. It had many types of guest rooms and handled loading,
unloading, shipping, customs clearance, and all related matters. The
company also had warehouses at the Qingdao Railway Station and its
branch offices in Jizhou, Zhangling, Weixian, and Qingzhou to
accommodate the warehousing demands.20)
It is worth noting that by 1901 there were already five straw plait
businessmen who established agent firms in Qingdao.21) Straw plaits

19) Jiaozhou Bao, No. 77 (February 17, 1903) through No. 99 (July 21, 1903),
p. 3.
20) Jiaozhou Bao, No. 91, May 26, 1903, p. 3.
21) Ohlmer(Dec. 31, 1901), Report on Jiaozhou Customs 1892-1901, Imperialism
and the Jiaozhou Customs, Qingdao Municipal Archives, Beijing: Archive
Press, 1986, p. 57.

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Chinese businessmen in the German-Leased Port City of Qingdao(1897-1914) 79

was an important commodity in Shandongs exporting business as it


had an extensive international market. Straw plait firms usually sold to
foreign companies the straw plaits bought by their storehouses set up
at the places of production; some also acted as exporters. Such
storehouses that functioned as brokers, agents, and wholesalers also
appeared in other commodity circulation chains like that of peanuts.
Scholar Zhuang Weimin believes that this kind of brokers storehouses
accelerated the two-way exchange of native and foreign goods and at
the same time formed commodity trading chains or nets centered
around these brokers storehouses. Some of the brokers storehouses
became direct or indirect agents of the foreign companies.22)
Overall, the number of Chinese businessmen in Qingdao before
1904 was still limited, although it had already increased from the
early stage of German occupation. The flat-bottom boats that had been
stopping at Tabutou for trade before the German occupation still did
the same afterwards and not used to making trade at German
Qingdao. Besides, the Chinese companies were small in scale. Before
1905, there was no modern style banks run by the Chinese and many
small Chinese companies were engaged in lending alternatively. And
not all the Chinese-owned companies in Qingdao had done well.
Quite a few of them were shut down soon after they were opened,23)
or sold out to other companies because of insufficient business
volume.24)

22) Zhuang, Weimin(2000), jindai shandong hangzhan ziben de fazhan ji qi


yingxiang [Development and Impacts of Shandongs Modern Distribution

Capital] Modern Chinese History Studies, Vol. 5, pp. 35-70.
23) Jiaozhou Bao, No. 92, July 2, 1903, p. 3.
24) Jiaozhou Bao, No. 98, July 14, 1903, p. 4.

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80 11

2. The Growth of Chinese Economic Influence after 1904

After the completion of the major transportation facilities like the


Kiautschou-Jinan railroad and the Qingdao Harbor in 1904,
considerably more Chinese businessmen appeared in Qingdao. The
opening of the whole Kiautschou-Jinan railroad on 1 June 1904 made
Qingdao a major hub. The local products that used to exit from Yantai
now turned to Qingdao instead. The tax regulation changes in 1905
administered by the Jiaozhou Customs Office further facilitated cargo
shipping between Qingdao and the inland, and caused more foreign
business and Chinese capital to converge in the area.25) According to
the report of the Jiaozhou Customs, The entry of a large number of
Chinese businessmen into Qingdao speeded up the business
development of the harbor and the town itself.26) In order to attract
the flat-bottom boats that had been stopping at Tabutou for trading,
the German Kiautschou Governors office stopped charging berthing
fee at the small harbor in Qingdao. In 1907 twenty flat-bottom boats
berthed at the small harbor for the first time.27) With the increase in
the harbor use, the area around the harbor gradually became a new
business district. The Kiautschou Post reported on 24 October 1908
that some Chinese businessmen had bought land and established

25) Originally the imported goods were taxed upon departure of the colony instead
of upon arrival at the port, i.e. paid by the Chinese retailers. Many Chinese
businessmen were unwilling to buy goods from inside the colony and it was
hard for the customs to investigate on smuggling. The revised tax law
provided that all the goods are taxed upon entering the colony, to be paid by
the importers.
26) Report on Jiaozhou Customs, 1902-1911, Imperialism and the Kiaoau
Customs, Qingdao Municipal Archives, Beijing: Archives Press, 1986, p. 107.
27) Qingdao Municipal Archives (1986), Imperialism and the Kiaoau Customs,
Beijing: Archives Press, p. 108.

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Chinese businessmen in the German-Leased Port City of Qingdao(1897-1914) 81

businesses in the new harbor area.


This period witnessed the expansion of the Chinese business range
and the flourishing of new businesses in Qingdao, such as bike repair,
silk and cotton cloth sales, restaurants, hardware, printing, finance, and
photography. Besides the advertisements for Kungtai & Cos construction
materials,28) the animal feed and seed advertisements of the Dongtai
Company at the intersection of Beijing Street and Zhili Street of
Tapaotao could also be seen in the German newspaper.29) One of
modern Chinas cancerous businesses opium houses also showed
up in Qingdao. In 1905, Ding Jingchen, Su Chen, Chen Kelian and
Liu Ziji jointly invested in the Lisheng Opium Company inside a
bakery at the east end of Beijing Street to sell the drug. Ding
Jingchen and others later withdrew, so Liu Zishan became the sole
owner of the company.30)
The sizes of the companies set up by the Chinese entrepreneurs
after 1904 were also comparatively larger than the previously
established companies. Most of them already had branches in Zhifu
(todays Yantai) or were engaged in flat-bottom boat trading in
Tabutou.31) Some of them were from other areas like Tianjin and
Shanghai with considerable capital. They set up branches in Qingdao
so as to make more profit or to take advantage of the improving
transportation conditions there. Since 1904, the new companies in

28) Kiautschou Post, 24 Oct. 1908.


29) Tsingtauer Neueste Nachrichten, 5 Mar. 1905.
30) Hu, Zhenzhong & Song, Dehui(2001), de ri qinluezhe fandu jishi [Drug
Smuggling by the German and Japanese Invaders], Essence of the Literature
and History of Qingdao: Occupation by Germans and Japanese, Qingdao
CPPCC Committee of Cultural and Historical Data, Beijing: Xinhua Press, p.
182.
31) Schrecker, John E. (1971), Imperialism and Chinese Nationalism: Germany in
Shantung, Cambridge: Harvard University Press, p. 235.

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82 11

Qingdao such as FushunTai, Yudong Tai, Yuanyuxing, and Runtaihao


are all with strong financial resources and engaged in wholesale. In
order to exploitation by foreign companies, they had purchasing agents
stationed in Osaka, Japan or Shanghai and mainly dealt with paper,
clocks and watches, pigments, cosmetics, musical instruments, food and
other foreign and Canton goods.32) The Yi Chang Ren Iron Firm at 8
Jimo Road, Tapaotao was invested by the Yichangxin General Store in
Yantai, dealing with hardware, which was the beginning of Qingdaos
Chinese-run hardware business.33) Subsequently, five more hardware
companies came into business. They all had permanent offices in
Shanghai and Hong Kong to handle purchasing, taking delivery of
goods via bank notes, and bought scrap metal from local railroad
offices and factories. Besides, part of the goods they distributed were
purchased from German companies like the Siemssen & Co..34)
Similarly, the Taishengdong Dying Firm opened around 1910 was a
branch of Taishengdong Company in Yantai, and Ruifuxiang Silk and
Cloth Store and Qianxiangyi Silk and Cloth Store were established in
1904 by the famous Meng family in Qiuxian, Shandong, who had
been running businesses in Jinan and Beijing in banking, fabric, tea,
and pawn for generations. Meng Xingzhi, the owner of the Ruifuxiang

32) Qingdao Municipal Chronicle Office (2000), Qingdao Municipal Chronicle,


Commerce, Beijing: Wuzhouchuanbo Press, pp. 128-129.
33) Wang, Cuitian(2001), Yichangren tiehang qianqianhouhou [Before an1d After
Yi Chang Ren Iron Mill], Essence of the Literature and History of Qingdao,
Commerce and Finance, Qingdao CPPCC Committee of Cultural and
Historical Data, Beijing: Xinhua Press, p. 170.
34) Zhang, Lingyun(1989), jiefang qian qingdao wujin shangye [Hardware
Commerce of Qingdao before the Liberation], qingdao gongshang shiliao
[Historical Materials on Industries and Commerce of Qingdao], Vol. 4, China
National Democratic Construction Association, Qingdao Committee and
Qingdao General Chamber of Commerce, pp. 113-115.

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Chinese businessmen in the German-Leased Port City of Qingdao(1897-1914) 83

Silk and Cloth Shop in Qingdao, had stores in Jinan, Beijing, Yantai
and Shanghai, and was the founder of the famous brand Ruifuxiang
in modern Chinese history. Meng Xingtai, founder of the brand
Qianxiangyi, opened branches at the same time in Jinan, Beijing,
Yantai, Qingdao, Tianjin, Hankou, etc.35)
Among the new companies, the number and financial strengths of
brokers storehouses (including warehouses) experienced sharp increases.
Around 1911, the number of straw plait firms rose to sixteen. In the
trading of silk, peanuts and animal products brokers storehouses also
appeared. There were sixteen Chinese-owned brokers storehouses
engaging in grain trading during the German occupation.36) Brokers
storehouse capital reached its peak during the late years of German
occupation. Most of the 160 companies that were members of the
Qingdao General Chamber of Commerce, except several banks and
loan companies, were all brokers storehouses.37) The power of
compradors declined as a result of their increasing business functions
and competitive strength; the function and influences of the former
gradually gave way to the latter in domestic and international trading.
At the beginning, brokers storehouses had relied on compradors as
go-betweens, but became independent and traded directly with foreign
companies and even replaced compradors as the new middlemen by
the early 1900.38)

35) Wang, Dirong(1989), Qingdao de xiang zi hao shangdian [Qingdaos Stores


with Xiang in the Names], qingdao gongshang shiliao [Historical Materials
on Industries and Commerce of Qingdao], Vol. 4, China National Democratic
Construction Association, Qingdao Committee and Qingdao General Chamber
of Commerce, pp. 172-173.
36) Qingdao Municipal Chronicle Office (2000), Qingdao Municipal Chronicle,
Grain, Beijing: Xinhua Press, p. 106.
37) Tahara [Tawara], Tennan(1914), Kiautschou Bay, Manchuria Daily News
Agency, p. 536.

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84 11

The Chinese businessmen played a significant role in the development


of the trading business in Qingdao and Shandong. In fact, this trend
started from the very beginning of the German occupation, when it
was mostly small Chinese and German companies that were doing
business in Qingdao, and the German businessmen focused on
consumer products consumed mostly by the colonial government while
the Chinese businessmen, on the other hand, had monopoly over the
trade with the inland.39) The six hardware companies, for example,
carried the products that could not have been supplied by Germans or
those over which Germans could not have competed in price. In
addition, they also carried the recycled metal from railway tracks,
torn-down boats and ships, used metal furniture, and scrap metal. A
small portion of the iron materials were sold to the local goldsmiths
and the large part were sold to the farming area to make farm tools
and furniture. Each company had salesmen marketing along the railway
areas in Weixian, Zhangdian, Jinan, selling the products to small shops
and vendors who transfer them to the farm users.40) The enormous
amount of trading gradually turned Qingdao into a huge commercial
trading center of China; Here, almost all the trading was in the hands
of the Chinese. The German products, on the other hand, accounted
for only a small portion of Qingdaos commercial transactions, between

38) Zhuang, Weimin,(2000) jindai shandong hangzhan ziben de fazhan ji qi


yingxiang [Development and Impacts of Shandongs Modern Distribution

Capital] Modern Chinese History Studies, Vol. 5, p. 51.
39) Schrecker, John E.(1971), Imperialism and Chinese Nationalism: Germany in
Shantung, Cambridge: Harvard University Press, p. 235.
40) Zhang, Lingyun(1989), jiefang qian qingdao wujin shangye [Hardware
Commerce of Qingdao before the Liberation], qingdao gongshang shiliao
[Historical Materials on Industries and Commerce of Qingdao], Vol. 4, China
National Democratic Construction Association, Qingdao Committee and Qingdao
General Chamber of Commerce, p. 116.

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Chinese businessmen in the German-Leased Port City of Qingdao(1897-1914) 85

6 and 8 percent of the total trading amount.41)


As the historical materials shows, the Chinese businessmen in the
German-leased Qingdao generally engaged in compradoring, services,
local products trading and contracted construction, and manufacturing
companies were relatively scarce. Thats partly because most of the
Chinese businessmen investing in Qingdao were temporary residents
rather than permanent immigrants, with families leaving behind at
hometowns, which means their stay in Qingdao was partly motivated
by a quest for quick profit. Another reason was that the German
colonial administration monopolized industries in Qingdao and
discouraged Chinese investment. They were more approving of the
Chinese acting as trade agents. More importantly, under the
circumstances of lack of capital and experience, most Chinese
businessmen had to choose the more competitive traditional types of
business. Only a small number of Chinese businessmen went for the
extremely difficult route of setting up factories. The China Alkali
Factory Ltd, established by the famous Shanghai entrepreneur Zhu
Baosan along with Other Chinese businessmen like Yu Qiaqin and a
German, was among the few. Nevertheless, the Chinese businessmen
accumulated capital and experience in Qingdao and layed a good
foundation for playing as the biggest Chinese group of social forces
after the German withdraw from Qingdao, and actively building
modern factories in the Republican ear. For example, many brokers
storehouses displayed high enthusiasm in investing in modern
manufacturing and mining industries in the 1920s.42)

41) Mhlhahn, Klaus(2005), zai mofan zhimindi jiaozhouwan de tongzhi yu



dikang 1897-1914 nian zhongguo yu deguo de xianghu zuoyong [Power and
Resistance in the Model Colony of Kiautschou: interaction between China
and Germans 1897-1914], translated by Sun Lixin, Jinan: Shandong University
Press, p. 197.

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86 11

. National and Native Place Identity of the


Chinese Businessmen in Qingdao

Living under the segregation system in the German-occupied Qingdao,


the Chines businessmens national Identity was unquestionably strengthened
by the social condition. In addition, most of the Chinese business
people moved to Qingdao from other areas without bring family
members, therefore their longing for hometowns and the identification
with the native place was extremely strong. The intertwining of these
two identities could be examined through the establishment of
organizations connecting all the Chinese businessmen living in
Qingdao, on the other hand, and the rising of huiguan (native place
associations), on one hand. It is notable that the separation and
differentiated administration of the German colonial government
prompted the Chinese businessmen in Qingdao founded the first
overall businessmen organization before the establishment of native
place associations, the internal member structure of the businessmen
organizations was built upon the basis of businessmens native place
though.

1. The Establishment of the Chinese Business Bureau

As members of a group of people who were comparatively rich and


treated with attention by the German colonial administration, the
Chinese businessmen were able to directly communicate with the
colonial government on behalf of the Chinese community and to

42) Zhuang, Weimin(2000), jindai shandong hangzhan ziben de fazhan ji qi


yingxiang [Development and Impacts of Shandongs Modern Distribution

Capital] Modern Chinese History Studies, Vol. 5, p. 69.

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Chinese businessmen in the German-Leased Port City of Qingdao(1897-1914) 87

defend the interest of the Chinese residents. The influence of the


Chinese businessmen was shown in the issue of relocating the Temple
of Sea Goddess. During the Germans large-scale replanning and
restructuring of the city following its occupation, the Germans
designated the coastal area as European residential zone with European
style constructions. The traditional Chinese towns and villages formerly
existed there were to be completely torn down, including the Temple
of Sea Goddess, a traditional Chinese temple with hundreds of years
of history. This was strongly protested by the Chinese. Chinese
businessmen such as Hu Cunyue, Fu Bingzhao liaised with other
Chinese to fight vigorously and eventually forced the Germans to give
up the plan to demolish the Temple of Sea Goddess , thus saving this
beautiful Chinese landmark.43)
The ever increasing number of the Chine businessmen, in order to
coordinate their individual action and benefits and to better deal with
the German administration, repeatedly asked the colonial government
to grant them the right to take part in the management of the Chinese
affairs and to establish a committee of the Chinese.44) Therefore, the
Kiautschou governor Truppel agreed in 1902 to the establishment of
Chinese Bureau of Commerce, so as to help systemize the business
community and evaluate the German policies on the Chinese in
Qingdao.45) The charter for the bureau stipulated that the bureau

43) Yuan, Rongsou(1924), jiaoao zhi [Jiaoao Chronicles], zhongguo jindai shiliao
congkan [Collection of Historical Materials of Modern China], Vol. 31,
complied by Shen Yunlong, Taipei: Wenhai Press Company, 1969, p. 480, p.
1324.
44) Mhlhahn, Klaus(2005), zai mofan zhimindi jiaozhouwan de tongzhi yu dikang
1897-1914 nian zhongguo yu deguo de xianghu zuoyong [Power and
Resistance in the Model Colony of Kiautschou: interaction between China
and Germans 1897-1914], translated by Sun Lixin, Jinan: Shandong University
Press, pp. 318-319.

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88 11

should have twelve board members, consisting of six businessmen


from Shandong, three from other provinces and three compradors of
foreign companies. Those from Shandong and other provinces should
own business and land in Tapaotao, Qingdao. One board chair and one
alternate chair were to be elected from the twelve members. The
bureau had four functions: first, to perform household registration for
the Chinese residences and their residents in Tapaotao, Qingdao;
second, to mediate business disputes among the business people; third,
to help resolve the disputes of the Chinese residents in family and
inheritance issues; and fourth, to discuss issues on how to enhance
business and provide convenience. In addition, when a Chinese is
arrested for violating the rules of the the German Kiautschou
administration, the bureau and its members may bail him out to
waiting outside the jail for the trial. The business location of the
bureau was at the Temple of Sea Goddess. Its funds were mainly from
the donated money collected on Chinese-owned houses, around 30
cents to 2 yuan per house. The donations from the public to the
Temple of Sea Goddess and the income from the opera performance
or diving by drawing lots in the temple also went to the bureaus
funds. These funds were spent on the employee salaries, protection of
the temples and public property, and disaster relief.
At least three points were revealed by the Charter for the Chinese
Bureau of Commerce. First, the composition of its board was based on
the local identity and the financial status of the business people in
Qingdao. The fact that the board consisted of six Shandong
businessmen, three businessmen from outside Shandong and 3
compradors suggests that Shandong businessmen outnumbered and
were more influential than businesspeople from other provinces. It

45) Mootz, Heinrich(1912), A Complete Book of Tsingtau, Qingdao, pp. 7-9.

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Chinese businessmen in the German-Leased Port City of Qingdao(1897-1914) 89

could also be seen that in 1902, the compradors were highly valued.
Second, although the bureau was only an organization of business
people, its function was not limited to business but included the
management of general Chinese affairs. It could thus be viewed as a
social organization for all the Chinese residents. For example, it
handled the burials of the Chinese in Hudaozi and other cemeteries
under the supervision of the colonial office of Chinese Affairs. 46)

Third, the bureau was under strict control by the Kiautscho


administration. The twelve initial board members were selected by the
administration, and the new board members each year also required its
approval. The leaders of the bureau must report to the administration
before each meeting; the officials of the Chinese Chancery could visit
and sit in the meetings at any time. The hiring of inspectors for the
household registration further required its approval and they must
present the registration for inspection every month. The administration
also inspected the fees to be collected from the Chinese residents and
the spending also needed to be reviewed and pre-approved by the
administration before they could be administered. Therefore, the
Bureau of Chinese Commerce was not an independent organization.
The Kiautscho Administration was using it more as an extended
department of the Chinese Chancery. However, these systematic
regulations increased the semi-governmental nature of the bureau.
The Bureau of Chinese Commerce, structured on the basis of
regional identity, played an important role in coordinating the
relationship of the Chinese businesses and the general communities. Its
board members Fu Bingzhao, Ding Jingchen, Zhang Yanshan, Zhou
Baishan and others were all influential businessmen at the time.47)

46) Qingdao Municipal Chronicle Office (1996), Qingdao Municipal Chronicle,


Civil Affairs, Beijing: China Encyclopedia Press, p. 292.

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90 11

The Jiaozhou Bao published on 17 February 1903 a notice entitled


An Unfair Practice bearing the signatures of several business owners
exposing a managing contractor who conspired with his friends to reap
profits by ripping off businesses.48) This shows that although the
Chinese businessmen came from different places, they were able to
work together to protect their common interest.
The Bureau of Chinese Commerce made attempts to improve the
business environment and the social status of the Chinese businessmen.
This was well reflected in a letter of plea by the Qingdao Chinese
businessmen to the colonial administration in 1903/1904. In this letter,
they stated that the Kiautschou administrations more attention on the
construction of Qingdao as a base for military industry in the earlier
years was harmful to the development of the colony in that it ignored
the abilities and benefits of the Chinese businesses. It emphases:

Undoubtedly, Qingdao was not built for the Chinese; and the welfare of
the free port was first and foremost for the Germans to enjoy
However, if one has any understanding of the business people among
Germans, he would see quite plainly that their interests are closely
related to the interest of the Chinese businesspeople. They cannot rely on
supplying goods solely to the Kiautschou government in the long run, but
will sooner or later have to conduct business with the Chinese
businessmen. Therefore it is indispensable to create a prosperous Chinese
city so that Germans can import and sell their products here
The
importance of the Chinese businessmen to our colony has been easily
underestimated.

47) Wang, Jiuling & Xu, Danchen(1987), qingdao shanghui lishi yange [History
of Qingdao Chamber of Commerce], qingdao gongshang shiliao [Historical
Materials on Industries and Commerce of Qingdao], Vol. 2, China National
Democratic Construction Association, Qingdao Committee and Qingdao General
Chamber of Commerce, p. 5.
48) Jiaozhou Bao, No. 77, Feb. 17, 1903, p. 3.

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Chinese businessmen in the German-Leased Port City of Qingdao(1897-1914) 91

Here by pointed out the significance of the Chinese business people


to the prosperity of Qingdao, they effectively sought to improve the
environment for Chinese businesses. They also called out in the letter
for the improvement of the earning of the Chinese laborers.

The function of the Chinese coolies in the economical development is



not as insignificant as is assumed by many To attract them, their
wages must first be set at a reasonable level, the construction capital of
millions of yuan should be spent in the right place. This alone will
warrant that many laborers will stay for long-term employment.49)

This plea letter had a strong impact on the Jiaozhou Customs


Director Ohlmer, who in turn influenced the opinions of other German
officials, thus resulting in the revision of the customs duty regulations
in 1905 in favor of the Chinese businessmen.50) Later, Qingdao did
attract more Chinese businessmen.

2. The Emergence of huiguans (Native Place Associations)

The Chinese businessmen in Qingdao were mainly from Shandong,


Tianjin, Jiangsu, Zhejiang and Guangdong provinces. With the increase
of the non-local businessmen, the huiguans started to appear in the

49) Mhlhahn, Klaus(2005), zai mofan zhimindi jiaozhouwan de tongzhi yu



dikang 1897-1914 nian zhongguo yu deguo de xianghu zuoyong [Power and
Resistance in the Model Colony of Kiautschou: interaction between China
and Germans 1897-1914], translated by Sun Lixin, Jinan: Shandong
University Press, pp. 186-187.
50) Mhlhahn, Klaus(2005), zai mofan zhimindi jiaozhouwan de tongzhi yu

dikang 1897-1914 nian zhongguo yu deguo de xianghu zuoyong [Power and
Resistance in the Model Colony of Kiautschou: interaction between China
and Germans 1897-1914], translated by Sun Lixin, Jinan: Shandong
University Press, pp. 187-192.

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92 11

city. In 1905, the Shandong and Tianjin businessmen founded the


Qi-Yan huiguan that was located between Guantao Road and Lingxian
Road in Tapaotao. The Guangdong huiguan was set up on Zhifu Road
in Tabpaotao in the same year. Businessmen from Anhui, Jiangsu,
Zhejiang and Jiangxi provinces established the San-Jiang huiguan in
1907.51) According to the Memorandum on Kiautschou Area
Development, An important facility has arisen in Qingdao as a result
of the joint efforts of the Chinese businessmen from Jiangsu, Anhui,
Zhejiang and Jiangxi. This action is considered the most prominent
mark of the increasing importance of Qingdao port. In May 1907, both
the German governor and the Chinese Governor of Shandong, Yang
Shixiang, attended the opening ceremony of this grandiose Chinese
building.52)
The huiguans were all chaired by Chinese businessmen of strong
financial power and influences. For instance, the Chairman of Qi Yan
huiguan, Hu Yuechun was one of the most respected local
businessmen, and its vice-Chairman was the owner of Chengtong
Timber Company, Zhu Jie, whose native place was Tianjin. The
Chairman of Sanjiang huiguan was the manager of Zhou Ruiji, Zhou
Baoshan, a native of Cixi, Zhejiang Province, and the Vice-Chairman
was Ding Jingchen, the owner of Yuelai Company. Guangdong
huiguan was chaired by Gu Chengzhang, a native of Xiangshan,
Guangdong, who owned Dacheng Storehouse. These three major native
place associations provided effective networking services for the

51) Yuan, Rongsou(1924), jiaoao zhi [Jiaoao Chronicles], zhongguo jindai shiliao
congkan [Collection of Historical Materials of Modern China], Vol. 31,
complied by Shen Yunlong, Taipei: Wenhai Press Company, 1969, p. 102.
52) Hmtsblatt fr das Deutsche Kiautschou Gebiet [Memorandum concerning the
Development of the Kiautschou Region], Tsingtau, Oct. 1906-Oct.1907.

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Chinese businessmen in the German-Leased Port City of Qingdao(1897-1914) 93

Chinese living in the German occupied Qingdao.


Within a huiguan network, tongxiang (people from the same native
place) helped each other. Newcomers often entered the same trade
through the network, and extended business normally after they had
become familiar with the trade. The Chinese businesses in Qingdao
had strong regional characteristics. Businessmen from Shandong mostly
engaged in trading Shandong local products, construction or ran silk
and cloth stores. The advantages of them lay in the ability of
communicating quickly with the hinterland, earning trust in Shangdong
and appreciation by the German Kiautschou government.53) Because of
the large number of Shandong business people, they were further
grouped by counties and towns and tended to hire workers from the
same native places. For example, in the Gonghexing Project Company
(later renamed Gonghexing Construction Company) founded by Gong
Shiyun from Laiyang, Shandong, most employees were Laiyang
natives.54) Taishengdong Dying Firm hired mostly people from Yantai
and Mouping since it was owned by Zhang Yanshan from Yantai with
the manager Zhou Lishan from Mouping and the other boss Wang
Dingshan from Yantai. Other employees from bookkeepers to bottom
level workers were all transferred from the Yantai headquarters office.55)
Most silk and cloth stores were held by businessmen from Zhangqiu
and Fushan.56) Those from Huangxian were known for trading gauze

53) Hmtsblatt fr das Deutsche Kiautschou Gebiet [Memorandum concerning the


Development of the Kiautschou Region], Tsingtau, Oct. 1900-Oct.1901.
54) Gong, Ziqian(1987), Gongshiyun de shengping [The Life of Gong Shiyun],
qingdao gongshang shiliao [Historical Materials on Industries and Commerce
of Qingdao], Vol. 2, China National Democratic Construction Association,
Qingdao Committee and Qingdao General Chamber of Commerce, p. 117.
55) Zhang, Xupu, Zhangyanshan he taishengdong yanliao [Zhang Yanshan and
Taishengdong Pigments], Literary and Historical Materials of Yantai, Vol. 9.
56) Wang, Dirong(1989), Qingdao de xiang zi hao shangdian [Qingdaos Stores

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94 11

and Yexian businessmen mainly distributed straw braids.57) Those from


Jimo were the first ones to have entered the printing and stationary
sectors. Xu Jingyu opened a Hongshungong Southern Paper Printing
House in 1909, ending the monopoly in printing by the Catholic
Printing House opened by the German Catholic church in 1902 on
Qufu Road.58)
Entrepreneurs from Shanghai, Jiangsu and Zhejiang mainly did
business in southern products sales, freight transportation and the
relatively new service of vehicle repairs. People like Zhuang Baokang
and Ye Chunyan, who were among the first to open the southern style
bakeries. During the German occupation, people from this area ran the
four major baking companies, among which Wankang Firm was the
best one.59) The Yuelai Hotel founded by Ding Jingchen from
Zhejiang was also well-known in Qingdao. The contemporary Popular
writer Bao Tianxiao stayed at it when passing Qingdao on his trip to

with Xiang in the Names], qingdao gongshang shiliao [Historical Materials


on Industries and Commerce of Qingdao], Vol. 4, China National Democratic
Construction Association, Qingdao Committee and Qingdao General Chamber
of Commerce, pp. 172-173.
57) Wang, Yiqun(1988), jiefang qian qingdao gongshangjie san da bangpai shili
de gaikuang [An Account of the Three Major Forces in the Qingdao
Business Arena Before Liberation], qingdao gongshang shiliao [Historical
Materials on Industries and Commerce of Qingdao], vo. 3, China National
Democratic Construction Association, Qingdao Committee and Qingdao General
Chamber of Commerce, p. 137.
58) Wang, Yiqun(2001), qingdao yinshuye de chuangshi yu fazhan [The Emergence
and Development of Qingdao Printing Business], in Essence of the Literature
and History of Qingdao, Business and Finances, Qingdao CPPCC Committee
of Cultural and Historical Data, Beijing: Xinhua Press, p. 145.
59) Sun, Zhaorui(2001), qingdao gaodian shipin ye fazhan jianshi [A Brief
History of Qingdao Food and Baking Industry], Essence of the Literature and
History of Qingdao, Business and Finances, Qingdao CPPCC Committee of
Cultural and Historical Data, Beijing: Xinhua Press, pp. 91-99.

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Chinese businessmen in the German-Leased Port City of Qingdao(1897-1914) 95

Qingzhou. Shanghai native He Rongsheng set up a automobile repair


company, He Sheng Ji, fixing cars for Germans and did construction
on the side. He had great business.60) His tongxiang Cao Haiquan,
came to Qingdao to join him at age twelve and became an apprentice
at He Sheng Ji. He appreciated Cao Haiquan for his intelligence and
ability to learn German quickly. At that time, bicycles just started to
appear in Qingdao and most who rode were the compradors and other
wealthy people. There was a demand for bike parts and maintenance.
20-year-old Cao Haiquan quit from He Sheng Ji and spent all his
savings on machine tools and other repair tools to start the Tongtai
Bike Shop at 24 Shanxi Road repairing bikes and selling imported
bike parts, and sold the British Dunlop tires, becoming the first person
to handle bike parts and repair business in Qingdao.61)
The Guangdong businessmen in Qingdao primarily dealt with the
wholesale and distribution of foreign and Canton general merchandise
and local products.62) Their companies were strong in capital and
business volume. The storehouses owned by Guangdong businessmen,
including Jingchanglong and Guangyoulong, each had an annual sale
between 1million and 1.50 million yuan.63) Businessmen from

60) Cao, Hairong & Cao Haizhen(2001), Caohaiquan yu qingdao zixingche gongye
[Cao Haiquan and the Bicycle Industry in Qingdao], Essence of the
Literature and History of Qingdao, Business and Finances, Qingdao CPPCC
Committee of Cultural and Historical Data, Beijing: Xinhua Press, p. 64.
61) Yu, Wenqin(2001), qingdao zixingche fazhan shilue [A Brief History of
Bicycle Development in Qingdao], Essence of the Literature and History of
Qingdao, Business and Finances, Qingdao CPPCC Committee of Cultural and
Historical Data, Beijing: Xinhua Press, p. 67.
62) Liu, Zhenggang & Liu, Qiang(2004), qingdai guangdong shangren zai shandong
de huodong [The economical Activities of the Cantonese businessmen in
Shandong in the Qing Dynasty], Qi Lu Journal, No. 5, p. 47.
63) Yuan, Rongsou(1924), jiaoao zhi [Jiaoao Chronicles], zhongguo jindai
shiliao congkan [Collection of Historical Materials of Modern China], volume

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96 11

Guangdong were also involved in the modern business of modern


photography and printing. In 1905, Guangdong businessman Hu
Maowen opened Huili Photographers Firm which hired German
photographers. This was one of the earliest photographers owned by
the Chinese. In 1912, Chen Naizhao purchased the equipment from the
liquidated the Jiaozhou Bao to open Yijin Printing House.64) The
Guangdong businessmen also bought local farm and craft products in
Shandong and sold foreign goods through their storehouses for
businessmen in Guangzhou and Foshan at their requests.65)
The board members of the Guangdong Clubhouse were generally
taken by the owners of large brokers storehouses. The Guangdong
compadors also played key roles in the huiguan. The compradors of
Jardine, Matheson & Co. and Butterfield & Swire Co., He Yongsheng
and Mo Jiqiao, were both board members of the Guangdong huiguan.
The establishments of regional networks brought into existence the
restaurants of regional cuisine. There were many restaurants run by
Shandong and Tianjin businessmen. Shunxinglou on Beijing Road and
Jufulou on Jimo Road were two famous Shandong food restaurants
with well-known chefs from Fushan. Yingji Restaurant on Shandong
Street was known for its authentic Guangdong cuisine and served
customers from Guangdong specifically. Jiangsu and Zhejiang cuisines
were generally referred to in Qingdao as southern cuisines, each
having its unique characteristics though.66)

31, complied by Shen Yunlong, Taipei: Wenhai Press Company, 1969, p. 823.
64) Wang, Yiqun(2001), qingdao yinshuye de chuangshi yu fazhan [The Emergence
and Development of Qingdao Printing Business], Essence of the Literature
and History of Qingdao, Business and Finances, Qingdao CPPCC Committee
of Cultural and Historical Data, Beijing: Xinhua Press, p. 145.
65) Liu, Zhenggang & Liu, Qiang, qingdai guangdong shangren zai shandong de
huodong [The economical Activities of the Cantonese businessmen in
Shandong in the Qing Dynasty], Qi Lu Journal, No. 5, 2004, p. 49.

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Chinese businessmen in the German-Leased Port City of Qingdao(1897-1914) 97

The huiguans were established for the purpose to connect folks from
the same region and to protect their interests. In modern Chinese
history, clubhouses in general performed four functions in worshiping
gods/goddess, getting-together, boosting charity and upholding community
agreements.67) The three major huiguans mentioned above, similarly,
often conducted charity events besides protecting the commercial
interests and assisting the native folks in problem-solving. In the
German occupied Qingdao, they managed community cemeteries and
held donation solicitation. According to the Jiaoao Chronicle the three
huiguans made significant efforts for the business growth of the port
city, and handled charity each year and much was done by the
folks.68) The Sanjiang Huiguan, with its large courtyard, was a nice
place for meetings. There was a stage for entertainment of the native
folks, and the courtyard once even housed a Sanjiang medical clinic.

3. Native Place Identity and National Identity

The three major huiguans had competitive relationship but also held
unified standpoints under the coordination of the Chinese Business
Bureau. Immigrants from various regions all fought for space of
survival and business. The couplet that the ex-Qing Educational
Deputy Minister Liu Tingchen wrote for the Qiyan huiguan reads,

66) Wang, Shugong(2001), qingdao de canguan ye [Restaurants in Qingdao],


Essence of the Literature and History of Qingdao, Business and Finances,
Qingdao CPPCC Committee of Cultural and Historical Data, Beijing: Xinhua
Press, pp. 109-110.
67) Yan, Changhong(1992), China Modern History of Social Customs, Hangzhou,
Zhejiang Peoples Press.
68) Yuan, Rongsou(1924), jiaoao zhi [Jiaoao Chronicles], zhongguo jindai shiliao
congkan [Collection of Historical Materials of Modern China], Vol. 31,
complied by Shen Yunlong, Taipei: Wenhai Press Company, 1969, p. 102.

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98 11

Who has assimilated the nation with rites, righteousness and cultural
relics that originated from Qi and Lu? We have come to make heroes
with passion and fervor that abounded in Yan and Zhao. This was a
good example of the competition mentality. However, this did not
cause conflicts between the huiguans but, on the contrary, they
generally appeared in unified images in the political and social life of
Qingdao under the coordination of the Chinese Business Bureau.
Members acted in uniform as representatives of the business arena.69)
The Chinese often cast their votes as a group in support of a certain
candidate in the election. Although the entrepreneurs would debate
fervently within the clubhouses, they always appeared as one outside.
This seriously frustrated the colonial government.70)
The establishments of the three major huiguans, instead of reducing
the power of the Chinese Business Bureau to coordinate the Chinese
business community, provided a quick organization platform for the
latter. The board members of the chamber usually comprised of the
persons in charge of the huiguans. As recorded by Naoaki Kaminaka,
the committee list of the Chinese Business Bureau in the year of 1908
included the big names of people chairing the huiguans, such as Ding
Jingchen, Zhang Yanshan, Hui Guichen, Gu Chengzhang, Zhu Zixin
(Zhu Jie), Zhou Baoshan, ect.71)
The boycott of German products and market strike which took place
in the German-occupied Qingdao in 1908 was an unanimous action of

69) Yuan, Rongsou(1924), jiaoao zhi [Jiaoao Chronicles], zhongguo jindai


shiliao congkan [Collection of Historical Materials of Modern China], Vol.
31, complied by Shen Yunlong, Taipei: Wenhai Press Company, 1969, p. 102.
70) Seelemann, Dirk Alexander(1982), The Social and Economic Development of
the Kiaochao Leasehold (Shantung, China) under German Administration
1897-1914, PhD Diss., Ms. Toronto, p. 64.
71) Naoaki, Kaminaka(1914), Detailed Records of Jiaozhou Bay, Tokyo, pp.
130-131.

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Chinese businessmen in the German-Leased Port City of Qingdao(1897-1914) 99

the Chinese businessmen from all the huiguans under the leadership of
the Chinese Business Bureau. This movement was a result of the
publication of Regulations for Loading, Unloading and Warehousing by
the Kiautchou Governors Office on 2 September 1908.72) This
regulation raised the charges to individual and private businesses for
their use of the harbor equipment. Meanwhile, it provided that the
harbor fees should be paid by the unloading Chinese and German
agents instead of by the shipping companies. It also ordered all the
private warehouses to shut down and gave great benefits to the
Hamburg-American Shipping Company. Moreover, to the Chinese
businessmen and small vendors it meant cost increases for imported
goods. The Chinese businessmen requested that the colonial
government amend the regulation but the request was rejected. This
led to a large-scale movement of German goods boycott and market
strike organized by the Chinese Business Bureau. The boycott lasted
from 14 September through 2 December 1908, which included a large
protest in November. Eventually on 30 September 1909, the
Kiautschou government issued a new regulation73) to reduce the fee
charges of the harbor loading and unloading services and partially met
the demands of the Chinese business people. This movement was a
show of the self-awareness of the Chinese businessmen and also
demonstrated the organizational capability of the Chinese Business
Bureau on basis of huiguans.
Out of fear for the political orientation of Chinese Business Bureau,
the German Kiautschou administration used the opportunity of the
establishment of the Qingdao Chamber of Commerce to announce the

72) Mootz, Heinrich(1912), A Complete Book of Tsingtau, Qingdao, pp. 122-131.


73) Regulations on the Harbor Warehouses, in Mootz, Heinrich(1912), A Complete
Book of Tsingtau, Qingdao, pp. 131-147.

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100 11

dissolution of the former. The latter, set up under the support of the
Qing Government had an inheriting relationship from the former but
differed in the organizational functions. The former managed other
aspects of the Chinese community besides business matters while the
latter, with the major goal of communicating business information,
providing business services and improving business efficiency,74) was
chiefly a business organization. In comparison, the business
associations set up under the call of Qing government in other regions
at that time were mostly geared toward protecting businesses,
improving education, maintaining public interests, and mediating
disputes as their goals. That is to say, those organizations had social
and organizational functions. Since the Qingdao Chamber of Commerce
was established with the approval of the Kiautschou Governors office,
the difference was likely the result of the Kiautschou Governors
unwillingness to see a business organization promoted by the Qing
government to retain any social or political management functions.
Under this circumstance, some of the social responsibilities held by the
Chinese Business Bureau were split up and handed to the three major
huiguans. For example, after the dissolution of the bureau, Qiyan,
Sanjiang and Guangdong huiguans took turns in managing Hudaozi
Cemetary until it was later placed in the charge of Qiyan huiguan.
After shutting down the Chinese Business Bureau, the Kiautschou
Governors office selected four Chinese to act as the Trusted Person
for advice on the administration of Chinese affairs. The selection was
based on the huiguans, two of the four from Qiyan huiguan, one from
Sanjiang huiguan and the other from Guangdong huiguan.75) The four

74) Announcement on Permission of Establishing Qingdao Chinese Chamber of



Commerce The Provisional Charter for Qingdao Chinese Chamber of
Commerce, in Mootz, Heinrich(1912), A Complete Book of Tsingtau,
Qingdao, pp. 110, 111-113.

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Chinese businessmen in the German-Leased Port City of Qingdao(1897-1914) 101

Trusted Person were Hu Cenyue and Zhu Jie from Qiyan huiguan,
Zhou Baoshan from Sanjiang huiguan and Gu Chengzhang from
Guangdong huiguan.76) These four people were undoubtedly important
figures among the Chinese businessmen. One subtle point to notice is
that the general director Fu Bingzhao and associate director Ding
Jingchen of the Qingdao Chinese Chamber of Commerce were not
among them. It can be inferred that they did not receive full trust
from the Kiautschou government. The German Kiautschou
administration must have deliberately tried to counter the influence of
the Qingdao Chamber of Commerce promoted by the Qing
government, by displaying trust to the important figure and the
huiguans under their influence.
Although restrained by the Kiautschou administration, the newly
emerging Qingdao Chinese Chamber of Commerce continued to
develop. As a modern organization of businessmen, it was voluntarily
joined by individual businesses rather than on the basis of the
clubhouses. It attracted many brokers storehouses and few compradors.
Among the board members, He Yongsheng was the only comprador,
and even he was elected as manager of Heshengji Company. Of the
other thirty-one board members twenty-eight were from brokers
storehouses while three were from banks.77) This seems to indicate a
close connection between the Qingdao Chinese Chamber of Commerce
and inland China. As the Qingdao Chinese Chamber of Commerce

75) Mootz, Heinrich(1912), A Complete Book of Tsingtau, Qingdao, pp. 10-11.


76) Wang, Jiuling, & Xu, Danchen(1987), qingdao shanghui lishi yange [History
of Qingdao Chamber of Commerce], qingdao gongshang shiliao [Historical
Materials on Industries and Commerce of Qingdao], Vol. 2, China National
Democratic Construction Association, Qingdao Committee and Qingdao General
Chamber of Commerce, p. 4.
77) (Japanese) Qingdao Military Office(1916), Highlights of Qingdao, Qingdao,
pp. 47-50.

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102 11

attracted a great number of companies to become its members and the


leaders of the huiguans were also board members of the chamber and
worked together in the chamber,78) it had significant influence in
Qingdao. The German administration also frequently consulted them
on important matters.79)
The development of the Chinese businesses and businessmen
organizations promoted the clear concept of national interests. From
the documents on hand, it can be seen that at least some of them
were willing to relate their economic pursuit with the protection of
national rights and interests. A letter from the China Alkali Company,
which set its factory in Qingdao in 1910, to its stock holders
contained a part worth noting, In any country like China that has just
started to adopt the trend of modernization, alkali sales will see great
increases. If we act upon this opportunity, we can take possession of
the rights and interests all by ourselves. It will only benefit our
country; therefore we should do our best to protect this type of
enterprises and encourage them with reduced taxes. Since this is
directly related to our national interests with a product high in
demand, and beneficial to the nation, why shouldnt it be promoted
with rewarding policies?80) Apparently, these Chinese businessmen
believed that the establishment of the alkali company was beneficial
both to their interests and to the nations financial interests. They were
therefore confident that the Qing government would support them with
protection or tax cuts.

78) Seelemann, Dirk Alexander(1982), The Social and Economic Development of


the Kiaochao Leasehold (Shantung, China) under German Administration
1897-1914, PhD Diss., Ms. Toronto, p. 193.
79) Forsyth, R. C.(1912), Shantung, the Sacred Province of China in some of its
Aspects, Shanghai: Christian Literature Society, p. 128.
80) China Alkali Company, Qingdao Municipal Archives, A9411, p. 48.

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Chinese businessmen in the German-Leased Port City of Qingdao(1897-1914) 103

Research by scholars on the native place associations in Shanghai


and other regions have demonstrated that local bonds were not
necessarily in conflict with nationalist feelings but rather functioned as
soil for nationalism to grow in. As was revealed by the research of
Bryna Goodman on the regional networks and nationalism in Shanghai,
regional identity as a miniature nation has shown that the development
of nationalism is unavoidably based upon the concepts of and loyalty
to existing groups.81) The case in Qingdao fit in that observation. The
only deviation was that the systematic colonial ruling of Germany
further stimulated the growth of the nationalistic identification and
feelings among the Chinese .The Chinese businessmen combined their
regional identity with their national identity and effectively defended
the benefits of their own, their native place communities and the
broader Chinese community.

. Governance Identity of the Chinese


Businessmen in Qingdao

Most of the Chinese businessmen living in the German-occupied


Qingdao conducted trade with inland Shandong or other coastal areas
of China, thus having continuous communications with cities and
regions outside Qingdao. It can be seen from the lists and
announcements published in the kiautschou-Post that Zhifu, Tianjin and
Shanghai were cities most frequented by the Chinese businessmen by
sea. For example ,the business people who departed Qingdao on 21

81) Goodman, Bryna(1995), The Locality as Microcosm of the Nation? : Native


Place Networks and Early Urban Nationalism in China, Modern China, Vol.
21, no. 4, Oct., p. 414.

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104 11

November 1908 included three for Zhifu, three for Tianjin and three
for Shanghai; Those arriving in Qingdao on the same day were from
Tianjin. Therefore, the Chinese businessmen in Qingdao were
inevitably connected with the German Kiautschou administration, the
Qing government and the Republican government who announced its
founding on 1 January 1912. The Chinese businessmen, in their
contacts and interactions with these governments, started to have
governance identity.

1. The German Kiautschou government in the Eyes of the


Chinese Businessmen

As stated earlier, the Chinese businessmen organized protests and


boycotts against the German administration to defend their interests,
but they didnt show generalized hostility towards the colonial
government in abstract terms in daily interactions. On the contrary,
their Chinese feelings and emotions were mixed with scrutiny of the
behaviour of the Germans and choices. If they identified a German
action as civilized and beneficial to the Chinese and Chinese
businessmen, they would be willing to cooperate.
One example was the Chinese businessmen support to the German
initiative of establishing the German Chinese School. According to the
report in the Jiaozhou Bao, the Chinese businessmen believed that
China and Germanys joint efforts to build a school for education was
well-intentioned and methodically-justified as well. The local
businessmen and companies were happy to support it. The Jiaozhou
Bao even made a full list of the contributors, which included almost
all the the Chinese main companies and prominent Chinese people in
Qingdao, including 138 entries with the total amount of 1560 Yuan.82)
On this list, most donors were Chinese companies. Only a few were

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Chinese businessmen in the German-Leased Port City of Qingdao(1897-1914) 105

foreign companies. The Chinese companies also donate much more


than the foreign companies. This was not only indicative of the
Chinese businessmen financial strengths at the time but also their
desire to support schools and enhance education in cooperation with
the Germans. The establishment of other schools also received strong
support from the Chinese businesspeople.83) Another example could be
seen when the German Kiautschou government established insolation
and quarantine in 1911 to prevent the plague, which was rampant in
Northern China at the time, spreading into Qingdao, the Chinese
Chamber of Commence actively made explanations of the reason to
the Chinese.
Meanwhile, the Chinese businessmen in Qingdao viewed some
German officials, especially the judicial officials positively. For
Instance, in March 1903, when the German Kiautschou Judicial Officer
were to leave Qingdao at the end of his term, some businessmen in
Tapaotao published announcement on Jiaozhou Bao to express thanks
for his work, saying that the officer had won respect from both the
business people and commoners with his cleanness and uprightness on
his job in the past few years and will be remembered by the Chinese
in Qingdao for his virtue and kind deeds.84) Because the German
judicial officials were relatively trusted by the Chinese businessmen,
having lawsuits in Qingdao became a common way for dispute
resolution as revealed by a piece of news in the Jiaozhou Bao.85)
The case of Zhao Qi vs. Deutsch-Asiatische Bank also indicated the
Chinese peoples remarks of the German judicial officials fairness.

82) Jiaozhou Bao, No. 79, March 3, 1903, p. 8.


83) Investigation on Qingdao Shufan Womens School, Xiehe News, Dec. 30,
1911, pp. 6-7
84) Jiaozhou Bao, No. 82, March 24, 1903, p. 3.
85) Jiaozhou Bao, No. 97, July 7, 1903, p. 5.

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106 11

Zhao Qi was from the prominent Zhao family in Donglai, Shandong


Province86) and a graduate from the German-Chinese School. He
worked as an interpreter for the Qingdao police office and the
Jiaozhou-Jinan Railway during the German occupation, and later
participated in the diplomatic activities like Chinese Republican
governments recovering of Qingdao and became the first director of
the Jiaoao Commercial Port Bureau from July 1925 to April 1929. In
this case, the comprador of the Deutsch-Asiatische Bank Jinan Branch,
Jing Xiangsun, disappeared with 52 thousand liang in cash from the
bank in November 1911. The bank tried to evade responsibility by
saying that the bank was not responsible for transactions through the
comprador, insisting that only deposits signed by the foreign bankers
could serve as the proof of deposits. They refused the withdrawal
requests from the Chinese customers who dealt with the comprador.
This enraged many Chinese customers, one of whom was Zhao Qis
brother, Zhao Jiquan. After fruitless attempts to get it resolved with
the bank, Zhao Qi decided to accept the call of the debtors to act as
their representative. He hired Qingdaos well-known German lawyer
Klinker and filed a complaint on behalf of 34 debtors. The banks
lawyer argued that the contract between the bank and comprador did
not set forth the power for the latter to accept deposits; the bank
therefore refused to acknowledge the deposits made through the
comprador. The plaintiff stated that the comprador accepted the
deposits in the banks name, the deposit certificates bore the banks
official stamp in Chinese, and furthermore, the bank never stated that
the certificate of deposit should have signatures of the foreign bankers.

86) Wang, Guiyun, zhaoshi wangzu yu difangzhi shiye [The Prominent Zhao
Family and cause of local Chronicles], in Laizhou Literary and Historical
Records, Vol. 7, pp. 122-129.

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Chinese businessmen in the German-Leased Port City of Qingdao(1897-1914) 107

Both sides held firm and Zhao Qi even encountered harassment by the
bank. After over a dozen court hearings, the German Consulate in
Jinan ordered the Deutsch-Asiatische Bank to pay back all the
principal interest and shoulder all the legal costs as well. The banks
appeal to the German court was denied. The plaintiffs claimed full
victory. Other debtors that followed also won their suits.87)
Zhao Qi commented on the winning as this, The nations ruled by
the law not only benefit from enforceable laws but also people who
enforce the laws. He saw the reason why the Deutsch-Asiatische
Bank, despite its power and influence, had lost its lawsuits first to the
fair judgment of the German consular and then to the German
court lay in that German laws make the German nation strong, and
the Germans who execute the law represent the spirit of a strong
nation. They do not yield even an inch to the power of the bank,
neither do they do any injustice to the weak foreign individuals. He
then pointed out, since the judgment of this suit, the effectiveness of
the German laws is enough to add infinitely high credit in its business
deals. At last he further called on, if a country strive for
self-strengthening, but only having the laws of a powerful country
while lacking the right people to execute them, it may hereby seek the
fundamental.88)
Clearly, the experience of this law case made a strong impression
on Zhao Qi. His reflections focused on the importance of having

87) For the course of this case, refer to Jiang, Mingding, hua yang zaiwu susong
an jilue [The Brief Account of the Debt Lawsuits between the Chinese and
the Foreigners], Laizhou Literary and Historical Records, Vol. 7, pp. 130-137.
88) Zhao, Qi, zixu [Autobiography], Quoted by Jiang Mingding, hua yang
zaiwu susong an jilue [The Brief Account of the Debt Lawsuits between the
Chinese and the Foreigners], Laizhou Literary and Historical Records, Vol. 7,
p. 138.

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108 11

people who can uprightly enforce the laws, and at the time when
China was paying attention to reforming and modernizing the old law
system to strengthen the country, the call for right people to execute
the laws was quite of significance. On the other aspect, one of
Germanys methods to maintain its colonial rule was setting forth a
model of its civilization. It could be seen here that the efforts made
by the German government gained some acknowledgment in the
Chinese businessmen. Nevertheless, from the standpoint of drawing on
others strong points for Chinas progress, they hoped China would
have governance of law as well and realize self-strengthening in the
end.

2. The Chinese Governments in the Eyes of the Chinese


Businessmen

As stated by the German Kiautschou governor Truppel, most of the


prominent Chinese businessmen in Qingdao held some kind of Chinese
official titles and kept close and frequent connection with the Qing
government.89) The establishment of the Qingdao Chinese Chamber of
Commerce was one obvious proof of such connections. However, as
the subject of nationalistic actions, the Chinese businessmen in
Qingdao acted out of needs to coordinate their own interests and the
benefit of other Chinese people, not alway conforming to the
bureaucratic nationalism of the Qing government and receiving the
governments support. Chinese businessmens great need for support

89) Mhlhahn, Klaus(2005), zai mofan zhimindi jiaozhouwan de tongzhi yu dikang


1897-1914 nian zhongguo yu deguo de xianghu zuoyong [Power and
Resistance in the Model Colony of Kiautschou: interaction between China
and Germans 1897-1914], translated by Sun Lixin, Jinan: Shandong University
Press, p. 201.

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Chinese businessmen in the German-Leased Port City of Qingdao(1897-1914) 109

and protection against the colonial powers did not go unnoticed by the
Qing government. For instance, it issued an edict in 1903 for the
protection of overseas Chinese merchants. Zhou Fu, the Governor of
Shandong province ordered that it be hand copied for distribution. 90)

However, such commands were not effectively enforced. Further, as far


as Shandong is concerned, the Qing government held its bureaucratic
nationalist policy on condition of maintaining friendship with the
German Kiautschou administration. It provided no support to the
boycott and market strike movement of 1908 in Qingdao. This
damaged the Qingdao Chinese businessmens faith, making them feel
that the Qing government was only trying to get more tax money
from them rather than providing support and protection. In Comparison
with the protection the German Kiautschou government provided for
the German businessmen, this produced a contrast and increased the
Chinese businessmens discontentment of the Qing government.
The lack of abundant historical records makes it hard to study in
details the discord between the Qing government and the Qingdao
Chinese businessmen, but the letters between the Chinese businessmen
and the German Kiautschou administration which were published in
the Shuntian Times on 14 February 1912 about how to welcome Sun
Yat-sens Qingdao visit revealed the views and attitudes of the Chinese
businessmen towards the Qing government and the newly-founded
Republican government. At that time, the three major huiguans and the
Qingdao Chinese Chamber of Commerce wrote in their letter to the
German Kiautschou administration suggesting a welcome session for
Sun Yat-sens visit to Qingdao:

The businessmen living in the Qingdao leasehold with your countrys

90) Jiaozhou Bao, No. 91, May 26, 1903, p. 8.

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110 11

civilized protection, enjoyed the freedom within the limit of generally


acknowledged truth and laws. The Qing government, however, instead of
protecting us, only saw us as taxpayers, leaving us nothing but painful
memories. Fortunately the whole nation is answering Mr. Sun Yat-sens
call to rebuild the country with enthusiasm; Sun as the newly elected
President of China is warmly welcomed in Shanghai, Hong Kong and
other concessions. The industrial and commercial business people living
in Qingdao are pleased that those of us from the Southern provinces
have their families and properties well protected, and those from the
northern provinces could trade with the South safe and sound. We have
scheduled a welcome session to raise the flag, set off fireworks and
express our adoration at the Sanjiang huiguan at 0:00 on the 14th. The
respectable and wise Governor, being a high official of a constitutional
country, surely understands our feelings. We will be more than grateful if
you could grant us the permission and send police to keep orders.91)

This letter shows that the Chinese businessmen living in the


German-occupied Qingdao compared the civilized protection with
justice, law and freedom from the German Kiautschou administration
to the actions of the Qing government. They believed that the Qing
government only let them pay taxes and did not fulfill its obligation to
protect and therefore filled them with disappointment and desertion.
The new republic, a result of the peoples reform efforts, should be
adored for its action of protecting the peoples life and property, and
deserve adoration from the Chinese businessmen in Qingdao and
empathy from the German Kiautschou government.
Nevertheless, the German Kiautschou Governor in his reply letter
denied the request for the welcome meeting. One of the reasons stated
in the letter was that the Kiautschou Governors Office strictly
observe a neutral stand in the Chinese affairs. It also argued that the
huiguans were for the sole purpose of business use and should not

91) Shuntian Times, No.3007, February 14, 1912.

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Chinese businessmen in the German-Leased Port City of Qingdao(1897-1914) 111

be converted to an institution of international relations.92) The


representatives of the huiguans replied again to protest,

We have received response from the Governor yesterday and heard


about your principle of neutrality. It is proof that a country of
civilized political system brings happiness to its people. However, after
we heard your teaching, we cannot help but give our statement. 1. We
agree that the huiguans were established for business purposes. But this
ceremony is to fulfill the duty of welcoming the President of our country,
a duty to every member of the nation. Patriotism is the fundamental
virtue of every business of the huiguans. Now that the Qing government
no longer performs its protective function and the President of the
republic has taken his position, wouldnt it look like we business people
dont have a home country if you do not allow us to welcome him with
flags, firworks and a meeting? We are deeply saddened by this
perspective. 2. We do not understand how a welcome session for our
nations own president could turn the huiguan into an international
relations institution and interfere with the neutrality principle. We see it
as nothing more than a welcome meeting for a president who takes care
of his people and protects their interests and properties. By law, a
welcome meeting does not violate either the German or the Chinese
laws. It is hard to tell which law serves as the basis of the denial. If
you point out the specifics, we will be willing to obey. 3. We were
appalled to read your letter asking us to do just our own duties and stay
away from any international matters. We believe that to live like a
human you have to care about your nation. To build your business you
have to have a human heart. Without a business why should we have a
huiguan? Therefore we must set the love of our nation as the very first
essence of the huiguans. By international law, nobody without a
nationality can conduct any business. Therfore the four hundred million
Chinese have given blood and life to the nation for the happiness of
their fellow Chinese and for the dignity of mankind. We are positive that
the Governor, who is well-known for his love of peace and understanding
of the progress of the world, will grant us the permission to hold the

92) Shuntian Times, No.3007, February 14, 1912.

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112 11

meeting within the limit of laws. Once we finalize the meeting time, we
will appeal again. Please send police force for order keeping.
Respectfully requested.93)

This letter displayed strong patriotic emotions. The sometime positive


comments on German Kiautschou government did not entail a change
in the national identity of the Chinese businessmen, but stimulated
more disappointment in the Qing government and more expectations in
the newly-founded Republic government to rebuild the old nation and
be able to protect the life and property of the Chinese people. The
Chinese businessmen fervently announced the number one goal of the
huiguans was to love China and acknowledge the new president,
acclaiming that welcoming the nations own president was not an
international affair, nor did it violate Germanys neutral policy or
German Kiautschou laws. At the persistent request of the Chinese
business people, the German Kiautschou Governor eventually agreed to
holding the welcome meeting.

. Conclusion

Living in the Geman-leased port city of Qingdao, the Chinese


businessmen making use of the situation that German Kiautschou
governments Qingdao plan was in need of Chinese businessmens
cooperation, actively developed their own businesses. As a result,
their number and strength increased apparently. They became an
indispensable force of Qingdaos financial life and made the German
Qingdao a business and commercial city centering around China, in

93) Shuntian Times, No.3007, February 14, 1912.

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Chinese businessmen in the German-Leased Port City of Qingdao(1897-1914) 113

economic terms. To a certain extent, it represented the success of the


concept of saving Chinas rights through businesses popular at the time.
The colonial rule by Germany stimulated the Chinese identity and
nationalist feelings among the Chinese businessmen from the opposite
direction, and prompted them to go beyond local and regional
identities and form a bigger union in their actions dealing with the
German colonial authorities. Keeping close ties with the Chinese
government officials and through the organizations including the
Bureau of Chinese Commerce, huiguans, the Chinese Chamber of
Commerce, they defended the interest of the Chinese business people
and the wider community in general under the colonial rules. While
identified that the German-leased Qingdao was reconstructed with
German characteristics and developed for the benefit of the Germans
by the German colonial authority, they stived for their presence,
influence and national interests, and thus added Chineseness to the
city, economically and socially.
On the other hand, the Chinese businessmen did not approach
specific issues with blind nationalist feelings. They screened the
German management in their daily life. They organized nationalist
protests when their specific interests and dignity were violated. They
cooperated willingly to the civilized ways in the city development
which they viewed positively. They no longer approved of the rule of
the Qing government but directed their patriotic enthusiasm, hope and
identity to the Republic that represented the modern government. They
expected the new government to protect the Chinese peoples life and
property in a civilized fashion. The Chinese businessmen and other
Chinese people jointly were willing to work towards a more civilized
strong country and made such demand to the Chinese government in
the hinterland.

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114 11

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Abstract

Chinese businessmen in the German-Leased Port City of


Qingdao(1897-1914)

Zhu, Jian-Jun

During Germanys 17 years of occupation of Qingdao, the Chinese


businessmen entering Qingdao actively developed their own businesses.
Soon they became an indispensable force of Qingdaos financial life
and made the German Qingdao a business and commercial city
centering around China, in economic terms. Stimulated by the German
colonial rule, this force formed a clear national concept on the general
and displayed nationalist activities, intertwining with but going far
beyond traditional local and regional identities among the sojourning
businessmen. However the Chinese businessmen in Qingdao did not
approach specific issues with blind nationalist identities. They screened
the German administration and management in their daily life, making
choice of their own to organize protests when their specific interests
and dignity were violated, or to cooperate to the civilized ways in
the city development which they viewed positively. By contrast, they
no longer approved of the rule of the Qing government in the
hinterland but directed their patriotic enthusiasm, hope and identity to
the newly-founded Republic government with the trust and demand
that it would protect the Chinese peoples life and property and make
China a more civilized strong country.

), German-leased(),
Key Words: Chinese businessmen(
Port City(), Qingdao(), Identity().

()(2014.6.27) / ()(2014.7.20) / (2014.7.31)

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