ABSTRACT
China's defeat by Japan on land and sea during the war of 1894-95 brought serious repercussions. The Treaty of Shimonoseki, as this latest settlement was called, also authorized Japan to operate factories in Chinese cities. The defeat by Japan deeply wounded China's pride. The humiliation was so shocking that the public reaction in China swung to extremes. Still, for China the greatest difficulty arose from the war indemnity. The 'spheres of influence' were established in China by Britain, France, Germany, Russia, and Japan. At the turn of the century China was subject to the domination of a host of foreign powers. Chinese fortifications along the coast to Beijing, including the Dagu Fortress, were razed, and foreign legations in the capital were permitted to station troops for their self defense. Foreign concessions in Chinese cities organized international trade for the short-term interests of the merchants rather than the long-term development of the nation as a whole.
