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Economy during the Sino-Japanese War (1937-1945)

author:Enthusiastic kumquat A
Economy during the Sino-Japanese War (1937-1945)

On November 14, 1941, the Japanese bombed buildings and city streets in Chongqing.

1. Wartime economic system

(1) In October 1938, Guangzhou and Wuhan fell. On October 29, 1937, the Nationalist Government decided to move westward to Chongqing, and by the end of the Battle of Wuhan, the central organs had been moved to Chongqing one after another. Since then, the northwest and southwest with Chongqing as the center have become the rear of the War of Resistance Against Japan. By the end of 1938, the Japanese invaders had occupied 1/3 of China's land and 92% of its industrial production capacity, and the richest areas of China had fallen into the hands of the enemy.

(2) Borrowing from countries that supported China's war of resistance.

The first to actively support China's war of resistance was the Soviet Union, Stalin was afraid of being caught between the fascists and hoped that China would drag Japan, so Chiang Kai-shek wrote to Stalin for help, and Stalin immediately promised that the weapons would be sent to the Sino-Soviet border for free, and there were three loans, with low interest rates, and they were quickly in place, but after signing a neutrality treaty with Japan, they were no longer active. The United States took over from the Soviet Union and supported China's War of Resistance in the stalemate stage, which was very active, and the national army was beautified, hoping that China would hold back the Japanese army and reduce the pressure on the Pacific theater.

Economy during the Sino-Japanese War (1937-1945)

(3) Control of finance. First of all, to prevent a run, in March 1938, the North China United Reserve Bank was established, conspiring to exchange counterfeit currency for legal tender to arbitrage foreign exchange, and bring down the financial affairs of the Nationalist Government. The National Government decreed that the foreign exchange required by banks should be approved by the Central Bank. Foreign banks ignored it, so with the black market price, the fiat currency fell from 1 shilling and 2 pence to 8 pence in half a year, and the depreciation of the fiat currency accelerated. In 1942, the Nationalist Government borrowed $500 million from the United States, so it abandoned the connection between the fiat currency and the British pound and pegged it to the U.S. dollar, with 1 U.S. dollar equal to 20 yuan of fiat currency.

(4) Inflation. 1939 was a watershed year when hyperinflation began. Military expenditures over the years were 1.388 billion yuan in 1937, 698 million yuan in 1938, 1.611 billion yuan in 1939, and 39.39 billion yuan in 1940. 1.2 billion yuan, 6.617 billion yuan in 1941, 15.216 billion yuan in 1942, 42.943 billion yuan in 1943, 131.081 billion yuan in 1944, and 1,060.196 billion yuan in 1945. Huge military expenditures have resulted in fiscal deficits. The number of coins issued increased at an accelerated rate, from 100 in 1937 to 560 in 1940, 5,357 in 1943, and 28,289 in 1945.

Economy during the Sino-Japanese War (1937-1945)

Harrison Foreman photographing the ruins of a building that was blown up by the Japanese army. 1942 year

(5) Control industry. On October 29, 1937, the Military Commission issued a directive on the establishment of an exclusive organization for agriculture, mining, industry and commerce, and established a committee for the adjustment of agriculture, industry and mining, and trade within the Military Commission. The "Regulations on the Administration of Agriculture, Mining and Commerce in Extraordinary Periods" amended and promulgated on October 6, 1938 is another important document for the control of industry, and the regulations stipulate that 47 major agricultural and mining industrial products are materials under the management of the Ministry of Economic Affairs during extraordinary times. In March 1938, the Ministry of Economic Affairs was established, and the Ministry of Economics, including electrical, mining, railway, heavy industry, light industry, and state-owned industry and mining, was under the control of the Ministry of Economy.

In order to solve the problem of self-sufficiency in liquid fuels, the production of power alcohol was started. In September 1938, the Sichuan Alcohol Factory in Neijiang was completed and put into operation. In February 1940, the Zizhong Alcohol Factory was also completed and put into operation. During the Anti-Japanese War, nine alcohol factories were set up, with an annual output of 280,000 gallons of alcohol in 1939. In 1944 it was nearly 3 million gallons, and in 1945 it increased to 4 million gallons.

(6) Enterprise relocation. At that time, the vast majority of industry was concentrated in coastal areas. According to the factory registration statistics of the Ministry of Industry of the Nationalist Government in 1937 on the eve of the Anti-Japanese War, there were a total of 3,935 factories that met the standards stipulated in the Factory Law, that is, there were more than 30 motives or workers, and 2,998 were distributed in the six provinces of Hebei, Shandong, Jiangsu, Zhejiang, Fujian, and Guangdong, as well as Tianjin, Weihaiwei, Qingdao, and Shanghai, accounting for 76% of the total, and 2,336 were located in the three provinces and cities of Jiangsu, Zhejiang, and Shanghai in the lower reaches of the Yangtze River delta, accounting for 56% of the total.

Economy during the Sino-Japanese War (1937-1945)

In September 1937, the equipment of the relocated factories in Shanghai arrived in Wuhan one after another, and Wuhan became the new center of relocation, and 42 relocated machine factories resumed work in Wuhan, producing a large number of grenades, mortar shells, mines, mines and other military equipment, which not only solved some economic difficulties, but also supported the Anti-Japanese War. By March 1938, the Japanese had occupied Nanjing, Anqing, and Jiujiang one after another, and traced their westward advances, and Wuhan was on the verge of battle. By the time the Battle of Wuhan was about to begin in June, the center of gravity had shifted to Chongqing. Yichang became a transit point. Some of them moved to Hunan, Shaanxi, Yunnan and other places. Before the fall of the Three Towns of Wuhan on October 25, the 66 machine factories that had been relocated in Shanghai and the factories in Wuhan had been evacuated. By the time Yichang fell in 1940, the second internal relocation came to an end.

According to the statistics of the Ministry of Economic Affairs of the Nationalist Government in 1943, from 1938 to the end of 1942, a total of 639 private factories were relocated from Shanghai, Qingdao, Wuhan and other places to Sichuan, Hunan, Shaanxi, Guangxi, Yunnan and other provinces, with 120,000 tons of machinery and equipment, and more than 12,000 skilled workers.

On August 5, 1937, Shanghai Daxin Iron and Steel Plant, in its report to the Resources Committee, pointed out that the factory had been able to produce steel materials for trains, tank car parts, and steel shells for aircraft bombs, and proposed: "At this last moment, I sincerely hope that the trained workers and complete equipment of the whole factory will serve the state and serve as the supply of steel materials for transportation machinery." "Kou Shen is in danger, please Jun Hui quickly give guidance, so that the strength of the people can be preserved, and the long-term war of resistance can reach the final victory." "Serving the country" and serving the "long-term war of resistance" reflects the common aspiration of many national enterprises that put the interests of the country and the nation first.

Economy during the Sino-Japanese War (1937-1945)

(7) Establish state-owned enterprises to support the War of Resistance.

The corporate activities of the Resources Committee strengthened the material strength of China against Japanese aggression. The enterprises affiliated to the SAC are all enterprises that require a large amount of funds, are risky, have a slow capital turnover and are difficult to make profits, but their products are indispensable for supporting the War of Resistance Against Japan. The wartime enterprise activities of the Assets Supervision and Administration Committee, like other industrial enterprises in the rear, were "the best answer to the destruction of industry by the Japanese invaders, and also the most powerful weapon for the mainland to support the war of resistance." The wartime enterprise activities of the SAIC played a certain role in changing the industrial layout and the seriously irrational structure of the industrial sector in old China.

Before the Anti-Japanese War, the capital of heavy industries such as smelting, machinery, chemicals, and building materials accounted for only 20% of China's industrial capital, while the capital of the two means of subsistence industries, textiles and food, accounted for 53%, and light industries developed abnormally, especially cotton spinning, flour, and cigarettes. During the War of Resistance Against Japanese Aggression, the amount of capital in smelting, machinery, hardware, and chemical industries accounted for 57% of the total capital. The amount of capital in the textile and food industries fell to 22%, and for the first time, China established an independent industry. The achievement of such changes is inseparable from the corporate activities of the SAOC. The wartime enterprise activities of the SAC also cultivated a number of scientific, technical and managerial personnel needed for the development of modern industry.

Economy during the Sino-Japanese War (1937-1945)

(8) Monopoly policy. In order to increase fiscal revenue, to control materials, and to try to control prices through material control, the Nationalist Government established a monopoly sale of salt, sugar, tobacco and matches in 1942.

Dong Biwu said, "In order to increase taxes, the Ministry of Finance has engaged in monopoly sales and control, and every commodity has been monopolized, and the price has increased accordingly, and it is not open to the public in the market, and the black market is popular everywhere." As a result, only a group of corrupt officials and corrupt officials colluded with the corrupt profiteers to hoard and hoard, and both the state and the people were extremely distressed. ”

After the match monopoly was sold, the price rose from 2 yuan to 8 yuan per small box, and later to more than 20 yuan. Monopoly goods have led to a continuous increase in general prices.

Economy during the Sino-Japanese War (1937-1945)

(9) Unified purchase and sales policy. The policy of unified purchasing and sales is a financial measure in the form of wartime material control. Unified purchase and sales of materials are divided into two categories: export commodities and daily necessities. The Trade Committee of the Ministry of Finance is responsible for the unified purchase and sale of tea, tung oil, pig bristles, raw silk and wool among export commodities, and the unified purchase and sale of tungsten, antimony, tin, mercury and other mineral products is sponsored by the Natural Resources Committee.

Some achievements have been made in the control of flower gauze. From 1941 to 1942, the Bureau purchased only 345,000 quintals of cotton, and from 1943 to 1945, it purchased 1,250,000 quintals of cotton, 223,000 pieces of machine yarn, 869,000 quintals of native yarn, 5,117 thousand pieces of cotton cloth, and 2,020 thousand horses of native cloth. For example, in the Fifth Theater of Southern Henan and Northern Hubei Province, local native cloth was purchased to solve the problem of military uniforms.

The government has made a lot of money by lowering the purchase price and raising the official price for sale, and the black market price is even higher, but the common people are more exploited, and the high-ranking officials and nobles hoard and make a lot of money.

(10) The field endowment is changed to levy in kind. Because of the depreciation of the currency and the lack of money in the hands of the peasants, in 1941 the Executive Yuan ordered the expropriation in kind. There are more than 200 titles. Later, there was a levy, that is, the tax levied in 1943 was exhausted, and the tax levied in 1944 and 1945 was exhausted.

Economy during the Sino-Japanese War (1937-1945)

Migrant workers who build roads

2. The expansion of bureaucratic capital

(1) Establishment of a new factory. The Nationalist Government built quite a few factories in the rear, and I will cite just two.

1] Dadukou Iron and Steel Plant. In March 1938, the Resources Committee and the Ordnance Industry Administration of the Ministry of Military Affairs jointly formed the Iron and Steel Plant Relocation Committee, which was responsible for the demolition and relocation of equipment from Hanyang Iron and Steel Plant, Daye Iron and Steel Plant, Liuhegou Iron Works and Shanghai Iron and Steel Plant. In September of the same year, the Dadukou Iron and Steel Plant was built in the south of Chongqing, and in May 1940, the 20-ton iron-making furnace was the first to be opened, and in 1941-1942, the 100-ton iron-making furnace and various steel production equipment were also put into operation. In addition, five iron and steel enterprises were established, and from 1938 to 1945, the SAIC produced a total of 76,331 tons of iron, accounting for 15% of the rear iron production, and 24,077 tons of steel, accounting for 51% of the rear.

Economy during the Sino-Japanese War (1937-1945)

The original site of heavy steel

2] Central Machinery Factory. During the Anti-Japanese War, the SAIC set up a total of 5 electrical appliance factories, the most important of which was the Central Machinery Factory. The factory was originally planned to be set up in Xiangtan, but it was decided to move to Kunming in February 1938 and put into operation in September 1939. There are 903 machine factories in the rear, which is the only all-round factory. It has produced two sets of 2,000 kilowatt power station complete sets of equipment, which was the largest generator manufactured in China at that time, setting a precedent for the production of complete sets of power station equipment in China; It has produced various specifications and models of prime mover, lifting equipment, vehicle equipment, lathes, milling machines, drilling machines, printing machinery, textile machinery, etc. Although the quantity is limited, the technology and quality are the highest in the rear. The Central Machine Plant has equipped many peer enterprises. The machinery industry of the SAC has played an important role in the development of the rear mechanical and electrical industry.

Economy during the Sino-Japanese War (1937-1945)

In 1938, a workshop of the Central Machinery Factory (now Kunming Machine Tool Factory) was relocated

(2) Infiltration. The Nationalist Government and the bureaucratic capitalists, especially the bureaucratic capitalists of the Confucian and Song dynasties, tried their best to use the power of the political power and the economic advantages, especially the state banks controlled by them, to invade private enterprises and expand their sphere of influence.

China Power Steel Mills are jointly run by the Ministry of Economic Affairs, the Yunnan Provincial Government and businessmen; The Central Paper Mill was formerly known as Longzhang Paper Mill, after the "August 13" incident, it was moved from Shanghai to Sichuan, and in 1941, the Central Trust Bureau took over with 11 million yuan, and was renamed the Central Paper Mill; Mingliang Coal Mine is the largest coal mine in Yunnan, and in 1939, the Capital was added by the Resources Committee, and it was reorganized into a joint venture between the government and business, and later purchased commercial shares and changed to a purely state-owned enterprise. The Northern Yunnan Copper Mine was jointly established by the State-owned Assets Supervision and Administration Commission and the Yunnan Provincial Government in 1939.

In 1940, Liu Hongsheng founded the China Woolen Textile Factory in Ba County, Sichuan, and repeatedly asked the Nationalist Government for loans, although he agreed, but stipulated that the bureaucratic capital group, which was dominated by the State Bank, had the right of priority to invest, and the chairman of the board of directors was Song Ziliang, the representative of the bureaucratic capital group, and Liu Hongsheng was the general manager, and stipulated that the financial power was held by the representative of the bureaucratic capital group. Liu said: "I was a big boss in Shanghai, and I became a little guy in Chongqing." In May 1940, Liu Hongsheng's China Match Raw Materials Company in Changshou County asked for a loan of 2 million yuan from the Ministry of Finance, but the Ministry of Finance insisted on joining the official shares. In April 1941, the extraordinary general meeting of shareholders was forced to accept 1 million yuan of official shares, plus 1 million yuan of private shares, for a total of 2 million yuan. The directors of the official shares took control, and the company was changed to a "special company".

During the Anti-Japanese War, the largest enterprise in the rear was the China Industrial Company, a joint venture between government and business. The predecessor of this company was Huaxi Xingye Company, which was founded in 1934 by Chongqing industrial and commercial giants. In 1938, Hu Ziang, the manager of Huaxi, asked the Nationalist Government for a loan, but Kong Xiangxi did not agree to the loan, but took the opportunity to put forward the idea of reorganization. When the China Industrial Company was established in July 1939, the official shares accounted for 81% of the total capital, and Kong was not satisfied, and by 1943, this proportion had increased to 95%.

Economy during the Sino-Japanese War (1937-1945)

3. Large rear economy

(1) Foreign trade. After the outbreak of the Pacific War, the Japanese army not only closed the export of Vietnam, but also closed the Yunnan-Burma Highway, and foreign trade almost came to a standstill. Only the Hump route can bring in a little arms and bring out a little high-value local products.

In 1937, the main export commodities controlled by the Nationalist Government, tungsten sand, antimony, tin, tung oil, tea, pig bristles, silk, and wool were exported to the Soviet Union and the United States worth 10.63 million US dollars, 24.81 million US dollars in 1938, 11.39 million US dollars in 1939, 13.03 million US dollars in 1940, 37.14 million US dollars in 1941, 16.28 million US dollars in 1942, and 21.31 million US dollars in 1943. $14.59 million in 1944 and $7.89 million in 1045 (January-August). The export of these commodities has maintained China's credit in repaying its debts, enabled China to obtain military products without the use of foreign exchange, and has helped to maintain its combat effectiveness and stabilize its finances.

(2) Transportation. After the fall of Wuhan, the Chongqing Nationalist Government only mastered 2,300 kilometers of 11,400 kilometers of railways, 670,000 tons of steamships and 500,000 tons. After the Nationalist Government moved its capital to Chongqing, the Ministry of Railways was merged into the Ministry of Communications, focusing on international transportation to ensure the transportation of war materials.

1] Yunnan-Burma Highway. At the end of 1937, the Nationalist Government mobilized 150,000 migrant workers to build the Yunnan-Burma Highway from Kunming to Lashio, Burma, with a total length of 1,146 kilometers, 959 kilometers in China, of which 411 kilometers from Kunming to Xiaguan had already been built in 35 years. The section from Shimonoseki to Wan Town, which borders Myanmar, is 548 kilometers long, and it crosses the Yangbi River, Lancang River, and Nu River along the line, and passes through the Hengduan Mountains and lofty mountains. After a year of hard work by Chinese engineers and technicians and 150,000 migrant workers, the whole line was finally opened to traffic as scheduled in November 1938. After the Japanese cut off the Yunnan-Vietnam Road in June 1940, this road became the only channel for international transportation in the southwest, and by April 42, a total of more than 450,000 tons of materials had been transported.

2] Stilwell Highway. In April 1942, the Japanese army captured Burma, and the Burma Road was cut off. The Nationalist Government decided to cooperate with Britain and the United States to build the China-India Highway ("Stilwell Highway") from Ledo in Assam, India, through Myitkyina in Burma to Baoshan in Yunnan Province. Construction began in December 1942, and the terrain through which the road passes is complex, the climate is harsh, uninhabited, and the conditions are extremely difficult. After the hard work of Chinese, Burmese and Indian migrant workers and Chinese and American officers and soldiers, it was completed in January 1945, with a total length of 1,072 kilometers. During the construction of this road, it played an important role in supporting the counteroffensive in northern Burma and western Yunnan.

Economy during the Sino-Japanese War (1937-1945)

3] Southwest Highway Network. One of the major achievements of transportation construction during the Anti-Japanese War was that the Nationalist Government adopted the policy of improving old roads and building new roads at the same time, and built a southwest highway transportation network with Guiyang as the center.

The old roads that have been improved to varying degrees include: Guiyang-Hengyang, Guiyang-Changde-Changsha, Chongqing-Qijiang-Qianjiang-Yuanling-Changsha, Chongqing-Chengdu, Chongqing-Guiyang-Kunming and other highways. Among them, the line of Chongqing, Guiyang and Kunming runs through Yunnan, Guizhou and Sichuan provinces, which not only communicates the connection between Chongqing, the seat of the national government, and the political and economic center of the southwestern provinces, but also connects the southwest hinterland with the international transportation line, and is the most important and busiest trunk line. The Sichuan-Shaanxi Highway (Xi'an-Baoji-Hanzhong-Guangyuanzhong, which was basically completed in June 11936) is the main traffic artery connecting the southwest and northwest. The new highways are mainly auxiliary lines and connecting lines of trunk lines, such as the South Yunnan Line (Leshan-Xichang-Huili-Xiangyun), the East Sichuan-Yunnan Road (Kunming-Bijie-Longchang), and the Neile Line (Neijiang-Leshan) are the connecting lines that cross the central Sichuan District and the Chengdu-Chongqing and Lenan lines.

Economy during the Sino-Japanese War (1937-1945)

4] Water transport. During the War of Resistance Against Japanese Aggression, the inland shipping of Sichuan, Hunan and Guangxi achieved great development.

In March 1938, the Nationalist Government proposed that "waterway transportation is cheaper, and more waterways in the southwestern provinces can be used, and more ships should be actively channeled and prepared, so as to make up for the shortage of road and railway transportation." The Nationalist Government has done some work in improving the navigation conditions of the rivers, such as dredging the Jinsha River, Fujiang River, Jialing River, Chuanjiang River, Xiangjiang River, Zijiang River, Yuanjiang River, and other rivers, blowing up reefs, building fiber roads, installing navigation beacons, and building winch beach stations, and opening up 5,227 kilometers of new steamship routes, reaching 12,968 kilometers.

Economy during the Sino-Japanese War (1937-1945)

5] Post transport. Post transportation is the traditional transportation system on the mainland, and before the Anti-Japanese War, this kind of post transportation, which mainly relied on manpower and animal power, still played an important role in economic life. After the start of the Anti-Japanese War, the railway fell and Haikou was blocked, and in October 1938, the National Conference on Land and Water decided: "Use the transportation of manpower and animal power throughout the country to make up for the shortage of machinery". The Ministry of Communications set up a pack-up management office in Chongqing to handle pack-up transportation.

Syria (Fu, now Yibin) Kunming (Ming) line, is the traditional caravan traffic line between Sichuan and Yunnan, opened in April 1939, this is the first post line opened during the Anti-Japanese War, a large number of cotton yarn, horseheads, tea, haberdashery, gasoline, diesel, copper cake, explosives, etc. are transported to Syria through this line, and there are many export materials transported to Kunming through this line. This year also opened up Guiqian (Liuzhou to Erhe), Sichuan-Guizhou (Chongqing to Liuzhai via Guiyang), Sichuan-Shaanxi (Guangyuan to Baoji), Sichuan-Kang-Yunnan (Leshan to Xichang, Kangding), Shanghai (Zhou) Kunming (Ming) line. There are a number of large stations and a number of small stations, and there are accommodation stations along the way. The personnel involved in the post transport can get a certain income, the freight rate per ton kilometer is 36 yuan, and the freight can be 3.24 yuan for a person carrying 30 kilograms and walking 30 kilometers at a station. The international post transport basically traveled along the Yunnan-Burma Highway, because the cars often broke down halfway because they often had no fuel and broke down halfway, and more than 20,000 tons of military materials and export materials were transported by manpower and animal power. In 1940, for example, the total amount of domestic post transport materials reached 128.42 million tons, while the total number of automobiles was only 350,000 tons.

(3) Development conditions. Competition from foreign capital has decreased, military demand has increased, high profits have stimulated, mainly inflation, rising prices of industrial products, stagnation of exports of agricultural products, and cheap raw materials.

Economy during the Sino-Japanese War (1937-1945)
Economy during the Sino-Japanese War (1937-1945)
Economy during the Sino-Japanese War (1937-1945)

It is characterized by a small scale, less capital, more heavy industry, and more bureaucratic capital than the private sector.

Economy during the Sino-Japanese War (1937-1945)

(4) Decline. In 1942, the number of private industrial factories peaked at 1,077, dropped to 977 in '43, and to 533 in 1944. The average capital of the newly established factories (converted into pre-war currency) was 60,000 yuan in 1940, 29,000 yuan in 1941, and 4,000 yuan in 44 years. The news of the closure of private industries has been heard in the newspapers from time to time, and there were 871 factories in Chongqing, and more than 270 factories stopped work and reduced production in 1943.

The main reasons are hyperinflation, the influence of control policies, the erosion of bureaucratic capital, and excessive taxation.

(5) The development of Minsheng Company.

The ships of China Merchants and Sanbei Company that retreated into the Sichuan River were relatively large and had a deep draft, which was not suitable for navigation on the Sichuan River. Most of the Minsheng companies are small boats, with shallow drafts, suitable for Sichuan River navigation, and ushered in its development. At that time it had 46 ships of 19,700 tons, which was later increased to 116 ships of 30,000 tons. However, almost all of its parts and oil are imported, and this has been particularly difficult since the Japanese blockade of the coast. Kong Xiangxi and Song Ziwen both wanted to intervene, but Lu Zuofu withstood the pressure and insisted on doing it himself.

Economy during the Sino-Japanese War (1937-1945)

From 1937 to 1945, a total of 2.7 million strong men of the Sichuan army were transported out of Sichuan, 300,000 tons of munitions, a large amount of military rations, and salt were transported out of Sichuan to resist the war, and nearly 200,000 tons of materials were transported into Sichuan. During the entire Anti-Japanese War, Minsheng Company sacrificed 110 people, lost 69 large and small ships, and lost 200 million yuan in property. Minsheng Machinery Factory, which often buys, repairs, and salvages ships while making losses, has hired a large number of technicians who have been exiled to Sichuan, and has designed and manufactured dozens of ships by itself, and has achieved great development.

Economy during the Sino-Japanese War (1937-1945)

Lu Zuofu

4. The economic plundering of the Japanese territory

(1) The economy of the Northeast colonies.

1] Implement the economic system of Manchukuo. Controlled by the Kwantung Army, with Japanese capital as the core, the so-called "New Economic Order of the East Asian Co-Prosperity Sphere" was established.

2] Military spending. Military. Before the outbreak of the Pacific War, it was paid for domestically, and after the outbreak it was organized by Manchukuo. 1.34 billion yuan in 1942, 1.79 billion yuan in 1943, 2 billion yuan in 1944, and 3.9 billion yuan in 1945. Source of income (thousand yuan)

Economy during the Sino-Japanese War (1937-1945)

3] Prices.

Economy during the Sino-Japanese War (1937-1945)

4] Finance. The banks of the Nationalist Government were hijacked, the Manchurian Industrial Bank was established, counterfeit currency was issued, and residents were forced to save.

5] Plundering traffic. It plundered 6,300 kilometers of railways in Northeast China, built 36 railways of 5,200 kilometers to meet the needs of the war of aggression, and transported minerals and native products in Northeast China to sell to the West.

6] Plundering the mining industry. In 1934, the Manchuria Coal Mine, Petroleum and Gold Mining Joint Stock Company was established, and the Manchuria Mining Development Joint Stock Company was established the following year.

Economy during the Sino-Japanese War (1937-1945)

Japan is short of oil and has received Western sanctions, so it uses shale oil smelting in Northeast China to store 5.5 billion tons of shale oil in Fushun, and Japan opens an oil refinery with an annual output of 150,000 tons. The second is coal-to-liquid, the northeast is rich in coal deposits, and Japan uses German equipment to establish a coal liquefaction plant. In 1933, Japan established the Anshan Iron and Steel Works, with an annual output of 3.3 million tons of pig iron, 2.83 million tons of steel ingots, 1.35 million tons of steel and 10.39 million tons of iron ore.

Economy during the Sino-Japanese War (1937-1945)

7] Plundering industry. The Japanese account for 97% of private companies in Tohoku.

Economy during the Sino-Japanese War (1937-1945)

8] Plundering labor. The so-called foreign workers in Manchukuo are actually North China laborers, 80-150 per year. Special laborers are more than 6,000 prisoners of war captured by the Japanese army. The showdown labor force in Manchukuo is about 600,000 per year.

Economy during the Sino-Japanese War (1937-1945)

9] Plundering the land. Before the First Sino-Japanese War, Japan began to emigrate to Tohoku in large numbers, and after the Russo-Japanese War, the company set a goal of 500,000 immigrants, and the company provided sufficient land. After 918, armed immigrants and collective immigrants appeared, and the million-household immigration plan was introduced. One of the sources of land is to buy at a lower price, and the other is to open up wasteland. The specific method is to requisition the Chinese in the northeast to open up the wasteland, and the Japanese to cultivate all the land. The actual migration is about 320,000 people, covering an area of more than 2.28 million hectares.

Economy during the Sino-Japanese War (1937-1945)

The Japanese army conscripted laborers to carry supplies

10] Plundering agricultural products. Purchase soybeans, wheat, sorghum, etc. at very low prices. In 1939, compulsory requisition of agricultural products began.

11] Control of foreign trade.

12] Opium monopoly. Rehe built an opium production base managed by Japan and expanded to Northeast China, with an average annual average of about 8,000 hectares.

Economy during the Sino-Japanese War (1937-1945)

The Japanese army is counting the supplies purchased

(2) The economy of the colony in Kannai

1] Institutions. After the occupation of North and Central China, Japan established the Koya Academy, the North China Development Company, and the Central China Revitalization Company.

Founded in 1935 and fully funded by the Manchurian Railway, ZTE is a "national policy organ", the so-called "forming a circle of economic influence between Japan, Manchuria, and China and promoting the economic cooperation between Japan and China". Follow the Japanese army and take over the coal, electricity, iron, chemical industries, etc. Of the 208 military-managed enterprises in the occupied areas, 61 were entrusted to the management of the Zhongxing Company, and the coal mines taken over resumed production the following year. In November 1938, the North China Development Company and the Central China Revitalization Company were established, and the North China business of Zhongxing Company was transferred to the North China Development Company, and the Central China business was transferred to the Central China Revitalization Company.

2] Features. After the 77 Incident, it was called plane development; After the outbreak of the European War, it was changed to focus on development, plundering important resources such as salt, cotton, coal, and iron; After the outbreak of the Pacific War, the yen bloc was pieced; After 1944, it was changed to super-focused management. He proposed the colonial policy of industrial Japan and agricultural China.

3] Plan. In November 1940, the "Outline of Japan's Manchurian and Chinese Economic Construction" was promulgated, Japan developed the weapons industry, precision industry, heavy industry and chemical industry, the puppet Manchukuo focused on the development of mining and power industry, and the puppet Nationalist Government developed mining, salt industry, fiber industry, and miscellaneous products industry, the so-called fiber industry is cotton planting and its preliminary processing, sheep raising industry and its preliminary processing, that is, the Chinese colonial economy serves Japanese industry.

4] Plundering the financial sector. The first is to rob banks and their cash, gold and silver, etc., the second is to print legal tender to disrupt the finances of the Nationalist Government, and the third is to issue military bills and counterfeit currency. Japan led the establishment of banks such as the Mengjiang Bank-Tonghe Industrial Bank, the China United Reserve Bank, the Huaxing Commercial Bank, and the Central Reserve Bank to engage in currency wars with the Nationalist Government and the CCP.

Economy during the Sino-Japanese War (1937-1945)

5] Plundering the mining industry. Japan's "North China Economic Work" program focuses on coal, followed by cotton, wool, iron, leather, etc. There are five forms: military management, entrusted management, joint operation, leasing, and buying.

In order to ease the contradictions, in February 1940, Japan divided the coal mines in North China into seven regions and implemented the principle of "one industry, several societies." The basic situation of the coal industry is as follows: Datong area, Manchurian iron monopoly; In the Jiaoji area, Shandong Mining, a subsidiary of Manchurian Railway, has a monopoly; In the Zhongxing area, the Mitsui mine monopolies; Dawenkou area, Mitsubishi Mining monopoly; In the Taiyuan area, Okura Mining monopolized; In the Jingcheng area, the coal mine of Beidao is monopolized; Cixian area, Meiji mining monopoly. All of these mines have investment from the North China Development Corporation.

In 1933, the British forced the British to hire Japanese as Qinhuangdao port advisers, and hired Japanese Manchurian railway staff to serve as advisers to the general manager of the Kailuan coal mine, so that this largest coal base in North China could only expand mining, sales, and export to the "yen group" according to the Japanese plan. On January 8, 1941, the day of the outbreak of the Pacific War, he was taken over by the North China Dispatch Army. In this way, by the end of 1941, the Japanese had completed control of the main coal mines in North China.

Economy during the Sino-Japanese War (1937-1945)

In 1939, the Central China Revitalization Company merged Huainan Coal Mine and Datong Coal Mine to form Huainan Coal Mine Co., Ltd. There are many iron ores in Central China, and Daye Iron Mine was established in Japan, and iron ore such as Dangtu Iron Ore and Taochong Iron Mine were all shipped to Japan. The blast furnace in central China can only use poor-quality coal to smelt poor-quality iron ore.

Japan itself could have produced salt, but in order to save Japanese land, more than 650,000 acres of salt pans were opened up along the coast of China's occupied areas to dry salt, and all of them were shipped to Japan. 980,000 tons in 1937, 1,130,000 tons in 1938, 1,280,000 tons in 1940, 1,470,000 tons in 1941, and 1,680,000 tons in 1943...... As a result, there is a shortage of salt in the Chinese market, and the price is very high.

6] Plundering of enterprises. Before the war, there were 90 Chinese merchant yarn factories, 61 in the occupied areas, and 54 plundered by the Japanese invaders.

Shenxin No. 8 Factory is the latest factory of Rongjia Equipment, and its products can compete with Japanese yarn. After the Japanese planes bombed and strafed indiscriminately, Toyota Yarn Factory sent Japanese ronin to beat 126 worsted spinning machines one by one with heavy hammers. When the Japanese learned that the Shenxin No. 3 Factory had made military uniforms for the soldiers of the Anti-Japanese War, they hated it to the core, and burned the factory with sulfur gunpowder and diesel fuel, and all of them were destroyed.

In order to support Wang Jingwei's puppet Nationalist government, the Japanese army claimed that the military management enterprises would be returned to China, but they would have to pay storage fees and repair fees, and accept Sino-Japanese cooperation. Rong Desheng preferred to destroy and evacuate, and resolutely did not cooperate with Japan, and the eighth factory was nominally returned, but it was still occupied by the Toyota Yarn Factory until the Japanese surrendered.

Economy during the Sino-Japanese War (1937-1945)

7] Plundering traffic. The North China Affairs Bureau was set up by the Manchurian Railway to take charge of the North China Railway. As a result of internal strife, in 1939 the North China Transportation Company was established, including railways, highways, and waterways.

8] Plundering of agricultural products. The focus is on cotton, which is purchased at a low price. The second is grain, which controls rice grains. The sweeping policy and the three-light policy have caused decay.

9] Trade. Only the United States has the ability to supply cotton, tobacco, chemicals, etc. to the occupied areas. After the outbreak of the Pacific War, the volume of trade fell sharply. The trade between the occupied areas and Japan was greatly exceeded, because the foreign exchange in the occupied areas was robbed, and Japan restricted the export of goods to China and exported them to other countries to earn foreign exchange.

Economy during the Sino-Japanese War (1937-1945)

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