Chinese Merchants in Japan and Korea

Abstract

In the mid-19th century, Chinese merchants moved to the treaty ports of Japan and Korea to expand the domestic commercial network abroad. They made significant profits by importing and distributing British cotton clothes via Shanghai to Japan and Korea. While Chinese merchants in Japan remained purely economic immigrant groups, those in Korea took an active political role since their advance to Korea on business was part of an effort by the Qing dynasty to strengthen its influence in Korea. Before the Mukden Incident in 1931, Chinese merchants in Kobe, Japan, engaged in trade with China and Southeast Asia and continued to be a powerful commercial group in Asian trade. However, Chinese merchants in Korea suffered from business crisis earlier on. They were hit hard by the sharp decline in import trade from China, which was their primary business, due to Japan’s protective tariff policy introduced in 1924. Until 1930s, both Chinese merchants in Japan and Korea were forced to gradually revise their business strategies to sell Japanese products in Greater China and Korea. The outbreak of the Sino-Japanese War in 1937 turned out to be a decisive blow to the already struggling businesses of the Chinese merchants in Japan and Korea.