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The Chinese Cotton Industry Under Wartime Inflation

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Chapter Summary

Initiative in enterprise was a necessary counterpart to the migration of cotton mills to a far-away undeveloped interior where skilled labor was scarce, transport conditions backward, and bombings unavoidable. The Chinese inflation background shows more clearly the changes that have befallen the cotton industry: the first serious dislocation was the destruction and removal of the salvaged cotton industry to the interior; the second dislocation has been the effects of inflation. For war purposes the government had to make huge expenditures while its revenue sources diminished. To revive the cotton industry will be one of the problems of industrial reconstruction in China. To develop the home industry, the government may take measures to encourage its growth. Foreign capital will be attracted on a large scale and a goodly portion no doubt will come in the form of textile and other machinery, motor, machine tools, and spare parts.

Keywords: Chinese inflation; cotton mills; skilled labor; war



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