Sheng Hsuan-huai And China Merchant’ Steam Navigation Company(1885-1902)

During the period of Westernization Movement, Li Hung-chang established the China Merchants’Steam Navigation Company (C.M.S.N.Co) in1872along with the process of industry transferred its activities from military to civil fields. The establishment of C.M.S.N.Co based on the policy of kuan-tu shang-pan and adopted share-holding system which learned from the experience of western countries. Through reorganization in1885, Sheng Hsuan-huai had replaced Tong King-sing and Hsu Jun, the compradors from Xiangshan, as official supervisor was in charge C.M.S.N.Co, this change marked the end of merchant management and reflected the coming of a new age of kuan-tu shang-pan which had lasted more than twenty years.After Sheng Hsuan-huai accepted the appointment, he had consolidated his position and proclaimed the kuan-tu shang-pan policy in writing simultaneously through implemented various measures, such as took back steamship assets, requested loan from the Hong Kong and Shanghai Banking Corporation (HSBC) and made new statute. In the early period of his term, Sheng Hsuan-huai adjusted the company’s management model, improved steamship scheduling system and shipwreck rescue system, and branched out business. In addition, he successfully redesigned the organization and management of C.M.S.N.Co during1890to1893. After internal reform had done, Sheng Hsuan-huai gradually turned his attention on the outside. He led C.M.S.N.Co to compete with two foreign companies, Indo-China Steam Navigation Company and China Navigation Company. Finally, he forced the two companies signed a contract with C.M.S.N.Co. In the later period of his term, under the background of Sino-Japanese War, Sheng Hsuan-huai made the decisions of changing flags of steamship during the wartime, adjustment of convergent policy and large investment in outside business. These decisions had both positive and negative influences to C.M.S.N.Co. The analysis of history about China Merchants’Steam Navigation Company in the period of kuan-tu shang-pan (1885-1902) indicates that Sheng Hsuan-huai as an entrepreneur who managed the C.M.S.N.Co as the typical example of modern enterprises, his management measures deserve affirmation and praise, but to some extent, his management contained traditional even under-developed factors. However, if we consider the entire China’s situation in the late Qing Dynasty period, we would have more compassion and understanding about Sheng Hsuan-huai and his company’s predicaments, constraints and mistake.