ABSTRACT
This chapter argues that the most serious harm came from foreign intervention. Foreign intervention had both positive and negative effects on China’s potential for industrialization. China had no tradition of valuing military strength and lacked the power to protect its industries from increased foreign intervention levels after 1897. Foreign intervention had some positive effects on China’s industrialization. China’s plan for self-strengthening took advantage of the opportunities offered by foreign intervention and followed many of the policies recommended by economic development theorists such as Albert Hirschman, Charles Kindleberger and P. T. Bauer. The delicate balance between Chinese capabilities and foreign intervention levels during the 1870-to-1911 period was the most important factor influencing Chinese industrialization efforts. Between 1870 and 1897, Chinese provincial leaders, such as Li Hung-chang, developed plans for Chinese-controlled industrialization. The Ch’ing government was persuaded to provide financial support and protection for domestically owned enterprises proposed by the self-strengthened.
