The Chinese government has opened small gold mines at Hai-nan, in which island silver is also found. A little gold-washing is done in the sandy beds of certain rivers, for instance, the Han river and the upper Yangtsze, above Su-chow (Suifu), Precious metals. which here goes by the name of the “Goldsand” river. The amount so extracted is extremely small and hardly pays the labour of washing, but the existence of gold grains points to a matrix higher up. The whole of south-western China has the reputation of being highly metalliferous. Gold is obtained in some quantities on the upper waters of the Amur river, on the frontier between China and Siberia. The washings are carried on by Chinese. Gold has also been found in quartz veins at P‘ing-tu, in Shan-tung, but hardly in paying quantities. There are silver mines in Yun-nan.

Manufactures.—The principal native manufactures before the competition of western nations made itself felt were—apart from the preparation of tea and other produce for the market—those of porcelain and silk. The silks and gauzes of Su-chow Silk and porcelain. and Nanking in the province of Kiang-su, and those of Hang-chow in Cheh-kiang, are highly esteemed throughout China. Silk-weaving is still carried on solely in native looms and chiefly in the cities named. The greater part of the silk spun is used in China, but a considerable export trade has grown up and 27% of the world’s supply of raw silk is from China. The reeling of silk cocoons by steam-machinery is supplanting native methods. There are filatures for winding silk at Shanghai, Canton, Chifu and other cities.

The most famous porcelain came from the province of Kiang-si, the seat of the industry being the city of King-te-chen. Imperial works were established here about the year A.D. 1000, and the finest porcelain is sent to Peking for the use of the emperor. At one time 1,000,000 work-people were said to be employed, and the kilns numbered 600. The Taiping rebels destroyed the kilns in 1850. Some of them have been rebuilt. “Activity begins to reign anew, but the porcelain turned out is far from equalling in colour and finish that of former times. At the present day King-te-chen has but 160 furnaces and employs 160,000 workmen.”[20] The common rice bowls sold throughout China are manufactured here. The value of the export sales is said to be about £500,000 yearly.

The spinning and weaving of cotton on hand-looms is carried on almost universally. Besides that locally manufactured, the whole of the large import of Indian yarn is worked up into cloth by the women of the household. Four-fifths of the clothing Cotton, &c. of the lower classes is supplied by this domestic industry. Of minor industries Indian ink is manufactured in Ngan-hui and Sze-ch‘uen, fans, furniture, lacquer ware and matting in Kwang-tung, dyes in Cheh-kiang and Chih-li, and varnished tiles in Hu-nan. Paper, bricks and earthenware are made in almost all the provinces.

Of industries on a large scale—other than those indicated—the most important are cotton-spinning and weaving mills established by foreign companies at Shanghai. Permission to carry on this industry was refused to foreigners until the right was secured by the Japanese treaty following the war of 1894-95. Some native-owned mills had been working before that date, and were reported to have made large profits. Nine mills, with an aggregate of 400,000 spindles, were working in 1906, five of them under foreign management. There are also four or five mills at one or other of the ports working 80,000 spindles more. These mills are all engaged in the manufacture of yarn for the Chinese market, very little weaving being done. Chinese-grown cotton is used, the staple of which is short; only the coarser counts can be spun.

At certain large centres flour and rice mills have been erected and are superseding native methods of treating wheat and rice; at Canton there are sugar refineries. At Hanyang near Hankow are large iron-works owned by Chinese. They are supplied with ore from the mines at Ta-ye, 60 m. distant, and turn out (1909) about 300 steel rails a day.

Commerce.

The foreign trade of China is conducted through the “treaty ports,” i.e. sea and river ports and a few inland cities which by the treaty of Nanking (1842) that of Tientsin (1860) and subsequent treaties have been thrown open to foreigners for purposes of trade. (The Nanking treaty recognized five ports only as open to foreigners—Canton,[21] Amoy, Fu-chow, Ning-po and Shanghai.) These places are as follows, treaty ports in Manchuria being included: Amoy, Antung, Canton, Chang-sha, Dairen, Chin-kiang, Chinwantao, Ch‘ungk‘ing, Chifu, Fu-chow, Funing (Santuao), Hang-chow, Hankow, I-ch‘ang, Kang-moon, Kiao-chow, Kiu-kiang, K‘iung-chow, Kow-loon, Lappa, Lung-chow, Mengtsze, Mukden, Nanking, Nanning, Ning-po, Niu-chwang, Pakhoi, Sanshui, Shanghai, Shasi, Su-chow, Swatow, Szemao, Tatungkow, Tientsin, Teng-yueh, Wen-chow, Wu-chow, Wuhu, Yo-chow.

The progress of the foreign trade of China is set out in the following table. The values are given both in currency and sterling, but it is to be remarked that during the period when silver was falling, that is, from 1875 to 1893, the silver valuation represents much more accurately variations in the volume of trade than does the gold valuation. Gold prices fell continuously during this period, while silver prices were nearly constant. Since 1893 silver prices have tended to rise, and the gold valuation is then more accurate. The conversion from silver to gold is made at the rate of exchange of the day, and therefore varies from year to year.

Table of Imports and Exports, exclusive of Bullion.