SFeDu
of.211, Gorgoko St., 88 
Rostov-on-Don
Russia
344002
+7 (863) 250-59-54
This email address is being protected from spambots. You need JavaScript enabled to view it.
te@sfedu.ru

TERRA ECONOMICUS

  • Home
  • Issues
  • 2022
  • No 4
  • Banking sector in China during the Nanjing decade (1928–1937) as an example of synthesis in economic policy. The role of informal ties

Banking sector in China during the Nanjing decade (1928–1937) as an example of synthesis in economic policy. The role of informal ties


TERRA ECONOMICUS, , Vol. 20 (no. 4),

The article analyzes the emergence of the Chinese banking system during the Nanjing Decade (1928–1937). Before the Nanjing Decade Chinese banking consisted of unrelated objects. Foreign banks operated in the territory controlled by the Western powers, traditional financial institutions acted in the regions, a full-fledged independent banking system operated in Shanghai, the communists issued their own currency. The author studies the development of banking system of the Republic of China and its further interaction with the real sector, considering the role of formal and informal communication channels. The role of informal practices during the implementation of the state economic policy is shown. In view of the law enforcement practice instability in regulating the interaction between the financial and real sectors of the economy, the Kuomintang Government attempted to create a new modern banking system following the Western model combining it with the institution of informal ties “guanxi”. Such a synthesis was not planned, it appeared during the reform process. People close to the government, or the party were introducing into the directorates of banks. They could hold managerial positions in several banks at the same time, implementing the state industrial policy. Thus, it was possible not only to stabilize the country’s financial sector, but to ensure significant progress in industry and commerce.
Citation: Kruglova M.S. (2022). Banking sector in China during the Nanjing decade (1928–1937) as an example of synthesis in economic policy. The role of informal ties. Terra Economicus 20(4), 75–86 (in Russian). DOI: 10.18522/2073-6606-2022-20-4-75-86


Keywords: China; guanxi; Nanjing Decade; banks; informal institutions; synthesis in economic policy

JEL codes: B15, N25

References:
  • Карнеев А.Н. (2013). Нанкинское десятилетие (1928–1937). Экономика и финансы. История Китая с древнейших времен до начала XXI века. Том 7 Китайская Республика 1912–1949. М.: Наука – Вост. лит. [Karneev, A. (2013). Nanjing Decade (1928–1937) Economy and Finance. History of China from Ancient Times to the Beginning of the XXI Century. Volume 7 Republic of China 1912–1949. Moscow: Nauka – Vost. lit. (in Russian)].
  • Кирдина С.Г. (2013). Институциональные модели финансирования реального сектора. Журнал Новой экономической ассоциации 2, 129–157. [Kirdina, S. (2013). Institutional models of real sector financing. Journal of the New Economic Association 2, 129–157 (in Russian)].
  • Кирдина-Чэндлер С.Г. (2021). Новая «старая» институционализация денежного обращения в постсоветской России. Journal of Institutional Studies 4, 6–24. [Kirdina-Chandler, S. (2021). New «old» institutionalisation of money circulation in post-soviet Russia. Journal of Institutional Studies 4, 6–24 (in Russian)].
  • Меликсетов А.В. (1977). Социально-экономическая политика Гоминьдана в Китае (1927–1949). М.: Наука. [Meliksetov, A. (1977). Socio-economic Policy of the Kuomintang in China (1927– 1949). Moscow: Science (in Russian)].
  • Меликсетов А.В. (2002). История Китая: Учебник. М.: Высшая школа. [Meliksetov, A. (2002). History of China. Moscow: Vysshaya Shkola (in Russian)].
  • Панцов А.В. (2019). Чан Кайши. М.: Молодая гвардия. [Pantsov, A. (2019). Chiang Kai-shek. Moscow: Young Guard (in Russian)].
  • Чэнь Бода. (1948). Четыре семейства Китая. М.: Государственное издательство иностранной литературы. [Chen Boda (1948). Four Families of China. Moscow: State Publishing House of Foreign Literature (in Russian)].
  • Штейн М.В. (1928). Очерки финансового кризиса в Китае. Москва; Ленинград: Государственное издательство. [Stein, M. (1928). Essays on the Financial Crisis in China. Moscow; Leningrad: State publishing house (in Russian)].
  • Arnold, J. (1934). Papers. Report for the Week Ended June 9. Stanford: CA Hoover Institution Archives.
  • Boecking, F. (2011). Unmaking the Chinese Nationalist state: Administrative reform among fiscal collapse, 1937–1945. Modern Asian Studies 2, 277–301.
  • Cheng Linsun. (2003). Banking in Modern China: Entrepreneurs, Professional Managers, and the Development of Chinese Banks, 1897–1937. Cambridge University Press.
  • Eastman, L. et al. (1991). The Nationalist Era in China, 1927–1949. Cambridge University Press.
  • Goetzmann, W. and Ukhov, A. (2001). China and the world financial markets 1870–1930: Modern lessons from historical globalization. SSRN Electronic Journal. Yale ICF Working Paper № 00-63. University of Pennsylvania.
  • Jing Yangyang (2014). Zhongguo shangye shi (The history of Chinese commerce). Beijing: Zhongguo tiedao chubanshe.
  • Kirdina, S., Vernikov, A. (2013). Evolution of the banking system in the Russian context: An institutional view. Journal of Economic Issues 2, 475–484.
  • Kong, L. (2019). Modern Chinese Banking Networks during the Republican Era. University of Adelaide.
  • Lan, R. (2015). Transformation of China’s Modern Banking System: From the Late Qing Era to the 1930s. V. 1. Enrich Professional Publishing.
  • Li Yongwei (2009). Zhongguo nanjing guomin zhengfu. Zhongyang yinhang huobi faxing zhidu shilun – yi zhengfu zhudao xia de zhidu shengcheng guocheng wei shijiao. Zhongguo shi yanjiu (The National Government of Nanjing, China. The History of the Central Bank’s Currency Issuance System. From the Perspective of the Formation Process of the Government-led System. Chinese History Research 63, 303–322 (in Chinese).
  • McElderry, A. (1976). Shanghaiʼs Old Style Banks (Chʼien-chuang), 1800–1935. Ann Arbor: University of Michigan, Center for Chinese Studies.
  • Mа Junya (2008). Traditional finance and China’s agricultural trade, 1920–1933. Modern China 3, 344–371.
  • Qiu Songqing (1997). Lüe lun nanjing guomin zhengfu de fabi zhengce. Zhongguo shehui jingji shi yanjiu (A Brief Discussion on the Fabi Policy of the Nanjing Nationalist Government. Research on Chinese Social and Economic History) 4, 79–84 (in Chinese).
  • Tamagna, F. (1942). Banking and Finance in China. International Secretariat, Institute of Pacific Relations.
  • Wang Hongsong (2020). Central banking in war times: China, 1927–1949. Madrid.
  • Weigelin-Schwiedrzik, S. (2013). Reappraising the Nanjing Decade (1927–1937): Modernizing China during the old economic crisis. International Studies in Social History 21.
  • Wright, T. (1984). Coal Mining in Chinaʼs Economy and Society, 1895–1937. Cambridge: Cambridge University Press.
  • Wright, T. (1991). Coping with the World Depression: The Nationalist government’s relations with Chinese industry and commerce, 1932–1936. Modern Asian Studies 4, 649–674.
  • Young, A. (1971). China’s Nation-Building Effort, 1927–1937: The Financial and Economic Record. Hoover Press Publications, Hoover Institution Press.
  • Yan Zhongping (1963). Zhongguo mianfangzhi shi gao (Draft history of the Chinese cotton industry). Beijing: Kexue chubanshe.
Publisher: Southern Federal University
Founder: Southern Federal University
ISSN: 2073-6606