Modern National Capital Au Provider The Reasons For Decline,

Hundreds of merchants who were engaged in the international trade of raw silk emerged in a small town named Nanxun in Huzhou City in Zhejiang Province in the period during the end of Qing Dynasty and the beginning of the Republic of China. They accumulated huge treasure and formed the biggest silk merchants group which was called"Nanxun Merchants"in Chinese modern history. Then they diversified into numerous businesses besides silk trade by by right of their huge wealth, which promoted the modernization of the Jiangsu,Zhejiang and Shanghai area. After the 1870s,however,Nanxun Merchants changed from consolidation to decline quickly and withdrew from the historical stage.There are various opinions on the reason of Nanxun Merchants falling down.The paper will Interprete the decline of Nanxun Merchants from three aspects:the social background,commodity value of raw silk and market competition and the weakness of Nanxun Merchants.Firstly,the Qing dynasty corruption on its policies of tariff protection and tax hindered the development of Chinese capitalism. Secondly, the western big powers forced the Qing government to sign a series of unequal treaties after the Opium War, by which they seized the sovereignty of customs duties and trade. As national capital, the Nanxun merchants fell into a much worse situation based on their previous minor status. In addition to the severe suppression from Japan and the U.S. in the international markets, it was inevitable for the Nanxun merchants to fail. Thirdly, Nanxun Merchants valued being an official above merchants and their traditional ways of doing business hinder its continuous development. From the decline of Nanxun Merchants we can draw the following lessons :Firstly, a country's independence is the basis of its commercial development; Secondly, it is the key to commercial development to pay more attention to production technology and quality and to adapt to the market demand and to master and follow the rules of international trade; Thirdly, continuously improve the quality of producers and operators,and keep pace with the times.