On Sheng Xuanhuai's Ideas On Industry And Practice

Sheng Xuanhuai is one of the chief participants in the mordern westernization movement, and is a businessman who has played an important part in the development of modern economy. Not only did he take an active part in the establishment, superintendent and management of modern westernization enterprises, he also made research on how to vitalize the industry, develop the Chinese economy and promote the national enterprises . His contains in his idea on industry not only theoretical analysis and suggestions about the relevant policies, but also some practical management strategies. Therefore, it is significant today to explore into its historical development and the lessons that we can draw from his activities.This paper falls into six sections. Firstly, the paper investigates into the cause of the formation of Sheng Xuanhuai's idea on industry. The thoughts of learning for use that he got from his family and the booming of westernization laid a strong foundation for the formation of his idea on industry and practice. The practice of his management of the enterprises in name of government supervision and merchant operation is the precondition for the formation of his idea as such. The trends to save the country with industry and the vicissitudes of the economical environment both at home and abroad are the main factors to make his idea mature.Secondly, this paper analyzes and comments on his endeavors and his thoughts on enriching the country with industries, including the general idea of following, learning from and competing with the foreigners, and that of developing the land, transportations, smelting irons and reducing the taxes.The paper in the third section elaborates on Sheng Xuanhuai's thoughts and practice on business management, including the use of talents, optimization of the management system, his emphasis on financial management and the renewal of theconcept of management.Fourthly, his idea of borrowing money from abroad and the relevant activies are discussed in terms of his activities of getting loans and his motivation of making use of the foreign investment.Section five is an analysis to his suggestion to develop the modern banks.Finally, the paper makes a general comment to Sheng Xuanhuai's idea of industry and the relevant activities. On the one hand, this section explains the inevitable failure of his activities because of the limit of his class; on the other hand, it also makes prominent the positive significance, for his idea materializes the rational nationalism, promotes the modernization of the national enterprises and at the same time contributes to the development of the modern Chinese economic thoughts.