Social Sciences in China (Chinese Edition)

No. 10, 2023

 

Coinage Reform in the Late Qing and Early Republic of China

(Abstract)

 

Xiong Changkun

 

The coinage reform in the late Qing and early Republic of China was driven by the globalization of capitalism and the international gold standard system, and was facilitated by the complicity of various forces. After the establishment of the international gold standard system, China had been suffering huge sterling deficits in the repayment of foreign debts and indemnities, and huge deficits in international trade, and China intended to solve its financial and trade problems through coinage reform. In order to eliminate tariff friction, facilitate trade and expand their interests in China, Britain, the United States and Japan demanded that China unify its monetary system. The Qing government hoped to regain the right to issue currency through external forces. After the official launch of the coinage reform, China sought help from the United States and Japan and borrowed money from an international banking syndicate. However, after the intervention of foreign powers, China gradually lost its independence on the reform. Foreign powers attempted to dominate the process of reform and intervene in China’s internal affairs by making use of special loans and attaching conditions. The coinage reform in the late Qing and early Republic of China attempted to establish a centralized monetary system, but were ultimately unsuccessful due to national and international factors.