Research On The Relationship Between Shanxi Merchants And Jinhua Textile Company In Republic Of China

The Shanxi businessman,who was once the “chief executive of the Chinese business and financial industry,” created miracles in the history of Chinese and foreign commerce,obtained huge commercial profits,accumulated rich material wealth,and cultivated a large number of business elites.With the decline of Shanxi merchants,a group of Shanxi businessmen broke through the traditional management principles and used their strong capital accumulated by business profits to invest in modern national industry.Under the influence of the “industrial saving the nation” trend of thought,they invested in modern national industry and quickly shifted from the circulation field to the production field.Jinhua Textile Company was initiated and founded under the background of the decline of traditional Shanxi merchants and the seeking for transformation.The establishment and development of Jinhua Textile Company are closely related to the traditional Shanxi businessmen.This paper takes "Jinhua Textile Corporation Limited" as a case to discuss the modern transformation of Shanxi merchants in the late Qing Dynasty and the early days of the Republic of China,from the relationship between Shanxi businessmen and Jinhua Textile Company to explore the performance of "New" in Shanxi Merchant's Modernization Transformation in the establishment and development of Jinhua Textile Company.With the transformation of the Shanxi businessman ' s investment thoughts,the original investment was used to purchase land,invest finance,consume luxury,and donate large amounts of capital to invest in the Jinhua Textile Company,which has innovatively achieved the transition from traditional commercial capital to modern industrial capital.Some traditional merchants have the early forms of modern national bourgeoisie.Driven by the trend of “save the country through industry”,some Shanxi merchants keep pace with the times,activelystudy and introduce advanced Western production technologies and management experience,and promote the adoption of advanced technologies and management methods of Jinhua Textile Company.Jinhua Textile Company adopts a stock limited liability system and creatively realizes the transition from the traditional “ limitless responsibility system” to the modern company's “limited liability system”.The method of capital raising has realized the transformation from the traditional Shanxi merchants' internal fundraising to the public offering of shares.The production mode has transformed from the“ traditional handicraft ” production mode to the “ mechanized production ”.In business management,under the impetus of Shanxi merchants,it broke through the traditional exchange money shop management system and introduced Western advanced management models.It broke through the geographical constraints of personnel appointment and dismissal,and achieved a modern enterprise operating model that was essentially different from the traditional Shanxi merchant's exchange money shop.