The New Inquiry For The Causes Of Decaying Raw Silk Exportation In The Republic Of China

Raw silk is the most important export in the Republic of China.China used to be the biggest raw silk exporter in the world.With the development of Japanese mechanical silk reeling industry in the late 19th century.Japanese raw silk takes place of Chinese raw silk in the internation silk market.Although Chinese mechanical silk reeling industry has developed rapidly in the Republic of China.Chinese raw silk’s share of exportation shrank steadily.Finally,under the Great Depression,Chinese silk industry got into a recession.In the mid of 1930s,Chinese raw silk export has recovered.But the Anti-Japanese War interrupted the recovery.There are many reasons for the decline of raw silk export.Such as the backward of production,lacking of government effectiveness,the obstruction of monopoly and the competition of Japanese silk.In this paper,the breakthrough piont is market structure.Using market structure changes to analyze the failure of raw silk export.In the early 20th century,the main capitalist countries entered into imperialism.The monopoly organization becomes the main part in the international competition.The form of competition has changed.The form of competition is changed from the free competition of many manufacturers to the competition among a few monopolies.Competing for raw material and sales market has become the main ways of competition.So the competition gets more complicated and intense.The maximization of manufacturer’s interests is not only constrained by cost and technology,but also influenced by the market structure.The main capitalist countries have their own financial magnate which control banks and industries.Therefore,the market structure of this period also became an oligopoly market.This paper analyzes the competition methods of international silk market by statistics and comparative research.It illustrates that under the changing market structure,the difficult development of the raw silk exportation and the cause of failure.There are major reasons for failure:the product differentition,the shrinkage of sales market share,the incompetency of financial system in the Republic of China and the obstruction of monopoly.Facing the monopoly capital,the capitalist economy of the Republic of China cannot compete with it.It also reflects the insufficiency of capitalist economy development and the failure of social modernization in the Republic of China.