Research On The Relationship Of Jiangzhe Entrepreneur And The National Government (1927-1949)

Liuhongsheng was a typical representative among Jiangsu and Zhejiang entrepreneurs who changed from comprador into national entrepreneur during the republic of china. In the three stages, before the anti-japanese war , during the Anti-Japanese war, and after the victory of the war, the characteristic of the relation between Liuhongsheng and the National Government was different. In the first 10 years of the war, Liuhongsheng business activities are concentrated in multi-national Shanghai, the relation between the Liuhongsheng and Nanjing government was closed because of his comprador identity .He is also the representative of the Ningbo Group, a very powerful Group in Shanghai, so he could contact with the various local forces. Therefore, under the rule of first ten years of the Nationalist government,to carry out the business activities, the relation between Liuhongsheng and the Nanjing government was neither friendly nor aloof.in some degree. After the Anti-Japanese War broken, Liuhongsheng went to rear area to found the industrial base. This period Liuhongsheng business activities are concentrated in Chongqing as the center of the rear area. Rear traditionally was weak in industrial base, so the Government needs the industrial entrepreneurs to develop the rear economic, while in the rear Liuhongsheng ran enterprises but he lacked the fund and social networks. In such circumstances, they needed each other so it could form a cooperative relationship between government officials and businessmen: cooperating to found the only Chemical Industries - China match factory, Inc., a woolen mill in China Ltd., as well as Liuhongsheng was invited by government as the general manager of the company. Such cooperation between government officials and businessmen make a win-win situation: On the one hand, for the Government, it could increase the revenue to meet the rear of product supply, and improve the economic power of the War of Resistance Against Japan; On the other hand, for Liuhongsheng it could enhance the strength of his company, increase in the number of enterprises, and expand the geographical scope. After the victory of the Anti-Japanese War, the relation between the Liuhongsheng and Nanjing government drifted apart because of the civil war policy of the Government and the plundering of its economic policy. At the beginning of the victory of the war, there appeared some good conditions for the development of private business: the domestic market started to recover; the enterprises and assets which were occupied by the enemy were confiscated; all other foreign capital investment in China because of the war damage was extremely weakened; because of the temporarily still maintain cooperation with the KMT, china had some degree of peace. In such circumstances Liuhongsheng with confidence and expectations from Chongqing as the center rear area came back to Shanghai in an attempt to revitalize the enterprises Treasures. He used relief after the National Government Department chief executive and the duties of the Director of the Shanghai seek to restore the development of their own enterprises. However, in the beginning of the victory of the war, the government implemented the open door policies, such as foreign exchange laissez-faire economic policies, so the United States goods were flooded into the domestic market. Liuhongsheng enterprises were affected by a predicament. The Government accepted the enemy's efforts for the state-owned textile factory and competed with the private for profit. It made Liuhongsheng expectations of the Government into a disappointing .In February 1947, Nanjing in order to control the economy and balance the payment, the government carried out emergency control measures. Liuhongsheng enterprises were impacted by the control measures, and were in difficulties .In August 1948, to save the financial and economic crisis, the National Government implemented monetary reform, issued Jinyuanquan, forcible acquisition of civil especially owners of private enterprises of gold, silver and foreign exchange, Liuhongsheng enterprises were looted seriously. Such predatory economic policies, and the National Government in the collapse of military and political corruption, the national government makes Liuhongsheng ultimate despair. He also felt the Communist Party of suspicion and fear. Before the liberation of Shanghai, he chose to go to Hong Kong. the relationship between Liuhongsheng and the Government is a microcosm of the relationship between Jiangzhe entrepreneurs and the National Government.