Works related to World War I ethnic industry

  During the period from 1914 to 1922, namely during World War I and a short period thereafter, China's national industry developed rapidly. The Xinhai Revolution overthrew the feudal monarchy of the Qing Dynasty, providing favorable conditions for the development of China's national industry. During World War I, countries such as Britain, France, Germany, and Russia were busy with war, production was destroyed, resulting in a significant reduction in the total amount of foreign goods and capital imported to China, while the total export volume increased sharply, thereby strongly stimulating the development of China's national industry.

  The light industry and daily necessities manufacturing industry developed the fastest, among which the textile industry and flour milling industry were the most prominent. From 1915 to 1922, the number of private cotton spinning mills in China increased from 22 to 64, with spindles increasing from 700,014 to 2,221,000; looms increased from 2,254 to 12,459 (or 12,553). The domestic textile industry was profitable regardless of size or location. The silk reeling industry also developed rapidly, with the number of silk reeling factories nationwide increasing from over 170 in 1913-1918 to 433, and the total number of silk reels reaching 166,754.

  The flour milling industry had an annual output of over 2 million dan before the war. From 1915 onwards, it was continuously surplus for six years, with an average annual surplus of over 1 million dan, valued at over 500,000 yuan in customs duties. Before the war, there were only over 40 flour mills nationwide, increasing to over 120 by 1921.

  In addition, light industries such as match manufacturing, papermaking, cigarette rolling, cement production, oil pressing, and sugar refining also developed significantly. Heavy industries such as coal mining, steel production, and antimony mining also grew to varying degrees. For example, coal production increased from 12,879,770 tons in 1913 to 21,318,825 tons in 1920; pig iron production increased from 267,513 tons in 1913 to 429,548 tons in 1920.

  The proportion of foreign capital and domestic capital also changed. Foreign capital accounted for 80.3% of China's total investment in 1913, decreasing to 70.4% in 1920; domestic capital increased from 19.7% in 1913 to 29.6% in 1920.

  From 1914 to 1919, national capital established 379 new factories and mines, with a total investment of 14.43 million yuan. The rapid development of China's national industry promoted the growth of the working class, with the number of industrial workers reaching around 2 million by 1919.

  From 1914 to 1920, during the First World War, was a period of further development of Chinese capitalism. In the six years from 1914 to 1919, China set up 379 new factories and mines with a total capital of 85.88 million yuan, an average of 63 new establishments per year, with new investment totaling 14.43 million yuan, all more than double the previous 19-year period. During this period, foreign capital grew limitedly, bureaucratic capital stagnated, while national capital developed rapidly.

  According to Comrade Tang Fu-sheng's recent study, the development speed of the country's main industries in 1920 compared with 1912 is as shown in Table Five.

  Table 5: Growth Rate of Main Industries of Domestic Capital

  Among them, the tobacco industry has developed rapidly due to its low base; the main industries of cotton spinning and flour have grown at a rate of 17.4% and 28.8%, respectively. The average annual growth rate of mining is 9%, but mechanical coal mining is 13.4%, while mechanical iron ore mining reaches 25.7%. The eight industrial items listed, weighted by investment amount, have an average development speed of 280.4, or a yearly rate of 13.8%; if the mining and smelting industries are excluded, the annual growth rate would be 15.3%. From all aspects, this is a period of rapid development for China's industry.

  During this period, China's industrial development was relatively fast, but it was mainly due to various accidental factors, which was different from the previous period. The war between imperialist powers led to a decrease in imports of foreign goods, reducing the pressure on Chinese domestic products, which was the main reason. At the same time, the phenomenon of gold being expensive and silver being cheap occurred, China was on the silver standard, which played a role in promoting exports. After 1916, the price of silver rebounded, but foreign prices rose, driving up domestic prices, still benefiting industrial production. During this period, import prices rose rapidly, while export prices rose slowly, that is, the scissors difference expanded, expanding by 55% from 1913 to 1930. This was unfavorable for the whole of China, especially for rural areas, as China had to export 50% more agricultural products to exchange for the same amount of foreign industrial goods as before the war. However, it was beneficial for capitalists, as exports increased and drove up industrial product exports, with machinery products accounting for 23.4% of total exports in 1920, up from 19.2% in 1910. More importantly, this price structure reflected in the domestic market led to a rapid increase in commodity prices compared to wage growth, such as the price of cloth rising by 76% from 1915 to 1920, while wages only rose by 35%. This also led to a faster rise in the prices of manufactured goods than raw materials, particularly agricultural raw materials, which fell relatively in price. As a result, industries such as cotton spinning and flour milling had high profits. These two industries were also the largest developing sectors during this period.