Research On Chinese Textile Industry During The Great Depression

The outbreak of the global economic crisis in1929-1933and the great depressi on after several years spread all over the world. Both of them triggered the recession of the world economy. Owing to implement the silver standard,China showed significant difference with the gold standard countries in the influence of the great depression. The cotton textile industry which Occupies an important position in the Chinese industry is labor-intensive industries. At the same time,it is also the important import substitution industry. Because it is closely linked with the traditional agriculture, therefore, after the global economic crisis and the depre-ssion continued for several years, the cotton textile industry has suffered different effects.Based on the collected literature, through quantitative analysis and comparis-on of the development of Chinese cotton textile industry before and after the depression, this paper explores the external environments for the development of Chinese cotton textile industry during the great depression, and the problems existing inside of chinese cotton textile industry, and the influences and impacts that both of the external environments and inside problems on the development of Chinese cotton textile industry.1IntroductionThis section briefly introduces the topic purpose, significance of the topic and research methods, and summarizes the existing literature review, put forward the innovation of this paper and the further research ideas and direction on this basis.2Analysis of the development of Chinese textile industry before and after the Great DepressionFirstly, through combing the course of development Chinese cotton textile Industry, This chapter finds out the development characteristics. On this basis, it introduces the influences and impacts that the global economic crisis in1929-1933and the great depression after several years on Chinese cotton textile industry. By comparing the two historical stages of Chinese cotton textile industry production in1895-1929and1929-1936, sales and earnings, this chapter illustrates the influence degree of the cotton textile industry in China suffered during the great depression.3Analysis of the development of Chinese cotton textile industry by the exter-nal market environment during the Great DepressionThe external market environments this chapter has choosed includes the monetary system during the Great Depression, phagocytosis that foreign capital makes on chinesecotton textile industry, atrophy of cotton textile products market caused by Sino Japanese war. Fluctuations in the price of silver, and silver free outflow of Chinese cotton textile industry produce profound influence on internati-onal trade and International balance of payments accounts. Foreign capitals flow from dumping to set up factories. by issuing sector lending facilities, they not only earn a high interest,but also take the opportunity to appropriate Chinese cotton textile factory; The Sino Japanese War makes cotton textile market in the northeast and coastal to fall, and Chinese manufacturers to transfer to the mainland market, it explains that Chinese semi colonial and characteristics have deepened, and for the national capital, basically no market can be self-contained.4Internal problems during the Great Depression existed in Chinese cotton textile industryThe internal problems this paper selects include backward production technol-ogy of Chinese cotton textile industry, natural disasters and the destruction of war, uneffective support of the government. The backward production technology makes Chinesecompanies difficult to compete with foreign enterprises in the competition. Natural disasters and civil war makes the production of destruction, decline in people’s living standards, decline in purchasing power, and then it makes the cotton textile product demand to fall. The government has failed to pro-vide effective support to the Chinesecotton textile enterprises. For enterprises, it is difficult for them to obtain cheap loans from the bank. The enterprises lack a good development environment.5Conclusions and implications of this paperThrough the quantitative comparison the development of cotton textile indust-ry during the great depression, from the outside, inside the two factors to analyze problems, as we can see, Chinese cotton textile industry during the Great Depress-ion hit, due to internal problems, external shocks caused by the common. Silver pri-ces, natural disasters, wars, both at home and abroad, domestic and foreign capital for the cotton textile industry swallowed, the government is unable to provide support for phagocytosis effectively the problem of perplexing intertwined,com-mon oppressed when Chinese backward cotton textile industry, the lack of capital support, production sales fluctuated with production, sales environment change, these factors are undoubtedly to the Great Depression Chinese cotton textile industry a heavy blow.Through the study of this article, it is concluded revelation:monetary system and the economy of a country is closely related, Which will have an important inf-luence on the international trade, international investment, the domesticcurrency reserves and currency stability of a country;Under the condition of open economy’,improving the technological content of products, reducing product cost and impr-oving product competitiveness are the key.Not only through international trade, foreign direct investment is also the cause of domestic attention, encourage competitive enterprises "going out" to obtain foreign advanced technology or the use of abundant natural, resources abroad.In addition, with the rapid development of virtual economy today,our futures, stock markets should be given the same attention, through the development of an early warning mechanism to carry out strict supervision;in the fierce competition, the government should increase support for national industry,strive for a favorable environment for the developme-nt of its, make domestic enterprises and foreign competition.