ABSTRACT
The plight of British commercial interests in China worsened during the early months of 1950. This was partly the result of the continuing Nationalist blockade that now intensified as KMT aircraft bombed Shanghai. But the problems of the blockade were compounded by the attitude of the Communist authorities towards foreign firms. Arbitrary and potentially crippling taxation levies were imposed and firms were not allowed to lay off labour that was no longer needed. State controls were speedily established over both the supply and marketing of raw materials. With their reserves virtually exhausted a number of UK concerns reached the conclusion for themselves that it was impossible to continue. In January 1950 the manager of the Kailin Mining Administration, the largest British concern in China, informed the Chinese Government that the company intended to withdraw.
