China

The foreign presence

As a result of several wars and many treaties with China since 1842, foreign powers had acquired a variety of unusual privileges for their nationals. These became collectively known as the Unequal Treaties, and patriotic Chinese bitterly resented them. Hong Kong, Macau, Taiwan, Tibet, and vast areas in Siberia and Central Asia had been detached from China. Dependencies such as Korea, Outer Mongolia, and Vietnam had been separated. Leaseholds on Chinese territory were granted to separate powers—such as the southern part of the Liaodong Peninsula and the territory in Shandong around Jiaozhou Bay, which Japan had seized from Germany, to Japan; the New Territories to the adjacent British crown colony of Hong Kong; Macau to Portugal; and the Kwangchow (Zhanjiang) Bay area to France. Most major cities had concession areas, not governed by China, that were set aside for the residence of foreigners. Nationals and subjects of the “treaty powers” (as they became known) were protected by extraterritoriality (i.e., they were subject only to the civil and criminal laws of their own countries); this status extended to foreign business enterprises in China, which provided a great advantage in competition with Chinese firms and was enhanced when foreign factories or banks were located in concession areas under foreign protection. The Chinese had to compete with foreign ships in Chinese rivers and coastal waters, with foreign mining companies in the interior, and with foreign banks that circulated their own notes. Foreign trade also had a great advantage because there could be no protective tariff to favour Chinese products.

Christian missionaries operated many schools, hospitals, and other philanthropic enterprises in China, all protected by extraterritoriality. The separate school system, outside of Chinese governmental control, was a sore point for Nationalists, who regarded the education of Chinese youth as a Chinese prerogative. There were foreign troops on Chinese soil and foreign naval vessels in its rivers and ports to enforce treaty rights. The Chinese government, bound by a variety of interlocking treaties, was not fully sovereign in China. Past regimes had accumulated a vast foreign debt against which central government revenues were pledged for repayment. All this was the foreign imperialism against which the KMT launched its attack after being reorganized along Bolshevist lines.