The Competition Between Domestic Capital And Foreign Capital In Modem Chinese Shipping Industry

The late Qing Dynasty was in the era that never faced for thousands of years thatmany powerful enemies invaded.These sense of fantasy originated by the collapse of atraditional agricultural society and the reconstruction of a new industrial civilizationsociety. That was a long historical process. Standing on the view of the whole world, thesuffering late Qing Dynasty was far behind Europe and the United States in respect of thetechnical, organizational, and the establishment of system,which made the survival anddevelopment of national capital not only compete with foreign capital but also follow theexample of the foreign system inevitably.The late Qing Dynasty’s shipping industry had became the focus of foreign capitalfor the close links of the trade and shipping. After the invasion of the foreign shippingindustry, compared to our traditional shipping industry, foreign shipping industry had thetechnical advantage.And the form of share stock can make these shipping company beable to raise capital and widely spread the risk.The institutional strengths was unmatched.A series of unreasonable treaty, grab tariffs, taxes and other privileges that Chinesegovernment signed would undoubtedly became another advantage of foreign capital inthe development of the shipping industry. The Chinese first national industrial andcommercial enterprise the China Merchants’ Steam Navigation Co. was born as theopposites of foreign capital.In the competitive process with foreign capital, the ChinaMerchants’ Steam Navigation Co. acquire all industries of Shanghai Steam NavigationCo. in1877,and seized the opportunity to make the enterprise develop rapidly.This article focus on the events that China Merchants’ Steam Navigation Co. tookover Shanghai Steam Navigation Co.Based on the historical facts,the article gives acomplete account of the entire process. Then studying the events’ intrinsic motivation.Discussing some controversial event such as estimation problem and the capital risk andthe influence of joint-stock.The history shows the overview of the shipping industry.Andwe can learn experience from it for Chinese enterprises in foreign acquisitions.