During the late nineteenth and early twentieth centuries in East Asia a number of new commercial treaties were signed between Western countries and Asian countries. These treaties were one of the responses to changes in the existing system of tribute ...
During the late nineteenth and early twentieth centuries in East Asia a number of new commercial treaties were signed between Western countries and Asian countries. These treaties were one of the responses to changes in the existing system of tribute relations which had historically shaped the system of order within the region. As a result of those treaties a new, complex system of trading relations came into place between the ports, and in that new environment merchants from Qing China and overseas Chinese merchants extended their commercial networks. In this essay I will examine the financial network that linked Kobe, Osaka, Seoul, Inchon and Shanhai during this period, a network that had been created by Shanxi native banks (piaohao) in Shanghai. Based on that examination I will critically review earlier literature which had been based on assumptions about bilateral trading relations, and show how Shanghai came to be the center for financial settlement for trade among various East Asian ports.