ABSTRACT
This chapter analyses the effects-both positive and negative-of the international and national environments on China’s industrialization efforts from 1870 to 1897. Three major factors influenced the industrialization potential of non-Western countries during the late nineteenth century: the international environment, a country’s sovereignty level, and a country’s domestic resources and leadership. In order to achieve industrialization, leaders needed sovereignty to develop plans and mobilize sufficient domestic resources to overcome domestic obstacles and utilize opportunities from the international environment. China’s sovereignty was greatly reduced because it was unable to defend itself against Western military intervention. Chinese officials used China’s remaining sovereignty and resources to try to increase China’s wealth and power through economic self-strengthening. The proposed enterprises, made possible by the importation of foreign technology, were in core economic sectors that could gain maximum advantage of forward and backward linkages. The government also developed economic policies in support of specific self-strengthening enterprises.
