History of Rail Transport in China - Republic of China

Republic of China

The building of railways had profound effect on the society and politics of late imperial China. From the 1890s to 1905, nearly all railways in China were planned, financed, built and operated by foreign powers with concessions from the Qing Government. To help local economies develop and retain earnings from railways, the Qing government in 1904 permitted local provinces to organize their own railway companies and raise funds by selling shares to the public. The government in Sichuan, for example, also levied a special tax on land owners, who were given share certificates in the Sichuan-Hankou Railway Company. In May 1911, the Qing government sought to nationalize these locally controlled railway companies and pledge their railway concessions to foreign banks in exchange for loans. The nationalization order provoked fierce public opposition that led to the Railway Protection Movement, which contributed to the outbreak of the Xinhai Revolution. Troops sent to Sichuan from neighboring Hubei weakened defenses in Wuhan where revolutionaries launched the Wuchang Uprising. After founding the Republic of China on January 1, 1912, Dr. Sun Yat-sen agreed to cede the provisional presidency to Yuan Shikai in exchange for the latter's assistance in securing the abdication of Qing court. Sun believed that a national railway network was key to the modernization of China. He sought and received from Yuan Shikai, the portfolio of railway development the new republic.