Development Strategies of Westernizational Modernization

Abstract

This chapter will outline the development strategies of the Westernization Movement. These strategies had two characteristics. The first is that the government was eager to promote a completed military industry. In other words, the government gave priority to the military industry during the modernization. Priority development of the military industry also drove China’s modernization to development with the government rather than private investment as the mainstay. Since the cost of the military industry and its subsidiary civil industry were high based on their complex technology and strict management requirements, civilian businessmen could not afford to invest, leading to the state’s necessary investment in these enterprises. The second is that the national industry and commerce were developed through the combination of “import substitution” and “export substitution” (export processing). However, these strategies did not reach their goals. The trade of traditional export goods including silk and tea demonstrated a shrinking trend because of the competition from other countries like India and Japan. The decline of exports made it more difficult to introduce advanced Western technology, which led to the inferior quality and high prices of substitute import goods.