Sino-German cooperation (1911-1941)
Encyclopedia
Between 1911 and 1941, cooperation between Germany and China was instrumental in modernizing
Modernization
In the social sciences, modernization or modernisation refers to a model of an evolutionary transition from a 'pre-modern' or 'traditional' to a 'modern' society. The teleology of modernization is described in social evolutionism theories, existing as a template that has been generally followed by...

 the industry
Industry
Industry refers to the production of an economic good or service within an economy.-Industrial sectors:There are four key industrial economic sectors: the primary sector, largely raw material extraction industries such as mining and farming; the secondary sector, involving refining, construction,...

 and the armed forces
National Revolutionary Army
The National Revolutionary Army , pre-1928 sometimes shortened to 革命軍 or Revolutionary Army and between 1928-1947 as 國軍 or National Army was the Military Arm of the Kuomintang from 1925 until 1947, as well as the national army of the Republic of China during the KMT's period of party rule...

 of the Republic of China
Republic of China (1912–1949)
In 1911, after over two thousand years of imperial rule, a republic was established in China and the monarchy overthrown by a group of revolutionaries. The Qing Dynasty, having just experienced a century of instability, suffered from both internal rebellion and foreign imperialism...

 prior to the Second Sino-Japanese War
Second Sino-Japanese War
The Second Sino-Japanese War was a military conflict fought primarily between the Republic of China and the Empire of Japan. From 1937 to 1941, China fought Japan with some economic help from Germany , the Soviet Union and the United States...

. The Republic of China, which succeeded the Qing Dynasty
Qing Dynasty
The Qing Dynasty was the last dynasty of China, ruling from 1644 to 1912 with a brief, abortive restoration in 1917. It was preceded by the Ming Dynasty and followed by the Republic of China....

 in 1912, was fraught with factional warlordism
Warlord era
The Chinese Warlord Era was the period in the history of the Republic of China, from 1916 to 1928, when the country was divided among military cliques, a division that continued until the fall of the Nationalist government in the mainland China regions of Sichuan, Shanxi, Qinghai, Ningxia,...

 and foreign incursions. The Northern Expedition of 1928 nominally unified China under Kuomintang
Kuomintang
The Kuomintang of China , sometimes romanized as Guomindang via the Pinyin transcription system or GMD for short, and translated as the Chinese Nationalist Party is a founding and ruling political party of the Republic of China . Its guiding ideology is the Three Principles of the People, espoused...

 (KMT) control, yet Imperial Japan loomed as the greatest foreign threat. The Chinese urgency to modernize
Modernization
In the social sciences, modernization or modernisation refers to a model of an evolutionary transition from a 'pre-modern' or 'traditional' to a 'modern' society. The teleology of modernization is described in social evolutionism theories, existing as a template that has been generally followed by...

 the military and its national defense industry, coupled with Germany's need for a stable supply of raw material
Raw material
A raw material or feedstock is the basic material from which a product is manufactured or made, frequently used with an extended meaning. For example, the term is used to denote material that came from nature and is in an unprocessed or minimally processed state. Latex, iron ore, logs, and crude...

s, put the two countries on the road of close relations from the late 1920s to the late 1930s. Although intense cooperation lasted only from the Nazi
Nazi Germany
Nazi Germany , also known as the Third Reich , but officially called German Reich from 1933 to 1943 and Greater German Reich from 26 June 1943 onward, is the name commonly used to refer to the state of Germany from 1933 to 1945, when it was a totalitarian dictatorship ruled by...

 takeover of Germany
Gleichschaltung
Gleichschaltung , meaning "coordination", "making the same", "bringing into line", is a Nazi term for the process by which the Nazi regime successively established a system of totalitarian control and tight coordination over all aspects of society. The historian Richard J...

 in 1933 to the start of the war with Japan
Second Sino-Japanese War
The Second Sino-Japanese War was a military conflict fought primarily between the Republic of China and the Empire of Japan. From 1937 to 1941, China fought Japan with some economic help from Germany , the Soviet Union and the United States...

 in 1937, and concrete measures at industrial reform started in earnest only in 1936, it had a profound effect on Chinese modernization and the capability of the Chinese to resist the Japanese in the war.

Early Sino-German relations

The earliest Sino-German trading
International trade
International trade is the exchange of capital, goods, and services across international borders or territories. In most countries, such trade represents a significant share of gross domestic product...

 occurred overland through Siberia
Siberia
Siberia is an extensive region constituting almost all of Northern Asia. Comprising the central and eastern portion of the Russian Federation, it was part of the Soviet Union from its beginning, as its predecessor states, the Tsardom of Russia and the Russian Empire, conquered it during the 16th...

, and was subject to transit taxes by the Russian government. In order to make trading more profitable, Germany decided to take the sea route and the first German merchant ships arrived in China, then under the Qing Dynasty
Qing Dynasty
The Qing Dynasty was the last dynasty of China, ruling from 1644 to 1912 with a brief, abortive restoration in 1917. It was preceded by the Ming Dynasty and followed by the Republic of China....

, as part of the Royal Prussian Asian Trading Company of Emden
Emden
Emden is a city and seaport in the northwest of Germany, on the river Ems. It is the main city of the region of East Frisia; in 2006, the city had a total population of 51,692.-History:...

, in the 1750s. In 1861, following China's defeat in the Second Opium War
Second Opium War
The Second Opium War, the Second Anglo-Chinese War, the Second China War, the Arrow War, or the Anglo-French expedition to China, was a war pitting the British Empire and the Second French Empire against the Qing Dynasty of China, lasting from 1856 to 1860...

, the Treaty of Tientsin
Treaty of Tientsin
Several documents known as the "Treaty of Tien-tsin" were signed in Tianjin in June 1858, ending the first part of the Second Opium War . The Second French Empire, United Kingdom, Russian Empire, and the United States were the parties involved...

 was signed, which opened formal commercial relations between various European states, including Prussia
Prussia
Prussia was a German kingdom and historic state originating out of the Duchy of Prussia and the Margraviate of Brandenburg. For centuries, the House of Hohenzollern ruled Prussia, successfully expanding its size by way of an unusually well-organized and effective army. Prussia shaped the history...

, with China.
During the late 19th century, Sino-foreign trade was dominated by the British Empire
British Empire
The British Empire comprised the dominions, colonies, protectorates, mandates and other territories ruled or administered by the United Kingdom. It originated with the overseas colonies and trading posts established by England in the late 16th and early 17th centuries. At its height, it was the...

, and Otto von Bismarck
Otto von Bismarck
Otto Eduard Leopold, Prince of Bismarck, Duke of Lauenburg , simply known as Otto von Bismarck, was a Prussian-German statesman whose actions unified Germany, made it a major player in world affairs, and created a balance of power that kept Europe at peace after 1871.As Minister President of...

 was eager to establish German footholds in China to balance the British
United Kingdom of Great Britain and Ireland
The United Kingdom of Great Britain and Ireland was the formal name of the United Kingdom during the period when what is now the Republic of Ireland formed a part of it....

 dominance. In 1885, Bismarck had the Reichstag
Reichstag (German Empire)
The Reichstag was the parliament of the North German Confederation , and of the German Reich ....

 pass a steamship subsidy bill which offered direct service to China. In the same year, he sent the first German banking and industrial survey group to evaluate investment possibilities, which led to the establishment of the Deutsch-Asiatische Bank
Deutsch-Asiatische Bank
Deutsch-Asiatische Bank was a foreign bank in China. Its principal activity was trade financing; but together with English and French banks, it also played a role in the underwriting of bonds for the Chinese government and in the financing of railway construction in China.- History...

 in 1890. Through these efforts Germany was second to Britain in trading and shipping in China by 1896.

During this period, Germany did not actively pursue imperialist ambitions in China, and appeared relatively restrained compared to Britain
United Kingdom
The United Kingdom of Great Britain and Northern IrelandIn the United Kingdom and Dependencies, other languages have been officially recognised as legitimate autochthonous languages under the European Charter for Regional or Minority Languages...

 and France. Thus, the Chinese government saw Germany as a partner in helping China in its modernization. In 1880s, German shipyard AG Vulcan Stettin built two of the most modern and powerful warships of its day—pre-dreadnought battleships Zhenyuan and Dingyuan—for the Chinese Beiyang Fleet
Beiyang Fleet
The Beiyang Fleet was one of the four modernised Chinese navies in the late Qing Dynasty. Among the four, the Beiyang Fleet was particularly sponsored by Li Hongzhang, one of the most trusted vassals of Empress Dowager Cixi and the principal patron of the "self-strengthening movement" in northern...

 that would see considerable action during the First Sino-Japanese War
First Sino-Japanese War
The First Sino-Japanese War was fought between Qing Dynasty China and Meiji Japan, primarily over control of Korea...

. After China's first modernization efforts
Self-Strengthening Movement
The Self-Strengthening Movement , c 1861–1895, was a period of institutional reforms initiated during the late Qing Dynasty following a series of military defeats and concessions to foreign powers....

 apparently failed following its defeat in the First Sino-Japanese War
First Sino-Japanese War
The First Sino-Japanese War was fought between Qing Dynasty China and Meiji Japan, primarily over control of Korea...

, Yuan Shi-kai requested German help in creating the Self-Strengthening Army and the Newly Created Army
New Army
The New Armies were the modernized Qing armies, trained and equipped according to Western standards...

 (新建陸軍; Xīnjìan Lùjūn). In addition, German assistance not only concerned the military, but also industrial and technical matters. For example, in the late 1880s, the German company Krupp
Krupp
The Krupp family , a prominent 400-year-old German dynasty from Essen, have become famous for their steel production and for their manufacture of ammunition and armaments. The family business, known as Friedrich Krupp AG Hoesch-Krupp, was the largest company in Europe at the beginning of the 20th...

 was contracted by the Chinese government to build a series of fortifications around Port Arthur
Lüshunkou
Lüshunkou is a district in the municipality of Dalian, Liaoning province, China. Also called Lüshun City or Lüshun Port, it was formerly known as both Port Arthur and Ryojun....

.

Germany's relatively benign China policy as shaped by Bismarck changed under post-Bismarckian chancellors during the reign of Wilhelm II. After German naval forces were sent in response to attacks on missionaries in Shandong
Shandong
' is a Province located on the eastern coast of the People's Republic of China. Shandong has played a major role in Chinese history from the beginning of Chinese civilization along the lower reaches of the Yellow River and served as a pivotal cultural and religious site for Taoism, Chinese...

 province, Germany negotiated in March 1898 at the Convention of Peking a ninety-nine year leasehold for Kiautschou Bay
Jiaozhou Bay concession
The Kiautschou Bay concession was a German colonial concession in Imperial China which existed from 1898 to 1914. It had an area of 552 km², it was located around Jiaozhou Bay on the southern coast of the Shandong Peninsula, which lay in the imperial province of Shandong in northern China.Jiaozhou...

 and began to develop the region. The period of the Boxer Rebellion
Boxer Rebellion
The Boxer Rebellion, also called the Boxer Uprising by some historians or the Righteous Harmony Society Movement in northern China, was a proto-nationalist movement by the "Righteous Harmony Society" , or "Righteous Fists of Harmony" or "Society of Righteous and Harmonious Fists" , in China between...

 of 1900 proved the low point in Sino-German relations and witnessed the assassination of the imperial minister to China, Baron Clemens von Ketteler and other foreign nationals. During and in the aftermath of the campaign to defeat the Boxers, troops from "each and all" participating nations engaged in plundering and looting and other excesses, but "the prime movers of the more aggressive faction were the Germans," who, with only a tiny contingent of troops then in North China wanted to exact retribution for the murder of their diplomat. On 27 July 1900, Wilhelm II spoke during departure ceremonies for the German contribution to the international relief force. He made an impromptu, but intemperate reference to the Hun invaders of continental Europe, which would later be resurrected by British propagandists to mock Germany during World War I
World War I
World War I , which was predominantly called the World War or the Great War from its occurrence until 1939, and the First World War or World War I thereafter, was a major war centred in Europe that began on 28 July 1914 and lasted until 11 November 1918...

 and World War II
World War II
World War II, or the Second World War , was a global conflict lasting from 1939 to 1945, involving most of the world's nations—including all of the great powers—eventually forming two opposing military alliances: the Allies and the Axis...

.

Germany, however, had a major impact on the development of Chinese law. In the years preceding the fall of the Qing Dynasty, Chinese reformers began drafting a Civil Code based largely on the German Civil Code, which had already been adopted in neighboring Japan. Although this draft code was not promulgated before the collapse of the Qing dynasty, it was the basis for the Civil Code of the Republic of China introduced in 1930, which is the current civil law on Taiwan
Taiwan
Taiwan , also known, especially in the past, as Formosa , is the largest island of the same-named island group of East Asia in the western Pacific Ocean and located off the southeastern coast of mainland China. The island forms over 99% of the current territory of the Republic of China following...

 and has influenced current law in mainland China
Mainland China
Mainland China, the Chinese mainland or simply the mainland, is a geopolitical term that refers to the area under the jurisdiction of the People's Republic of China . According to the Taipei-based Mainland Affairs Council, the term excludes the PRC Special Administrative Regions of Hong Kong and...

. The General Principles of Civil Law of the People's Republic of China
General Principles of Civil Law of the People's Republic of China
The General Principles of the Civil Law of the People's Republic of China is a law in the PRC promulgated in 1986 and came into force in 1987. It is intended to create a consistent framework for civil law interpretation in the People's Republic of China, and is heavily influenced by the German...

, drafted in 1985, for example, is modeled after the German Civil Code.

In the decade preceding World War I, Sino-German relations became less engaged. One reason for this was the political isolation of Germany, as evident by the 1902 Anglo-Japanese Alliance
Anglo-Japanese Alliance
The first was signed in London at what is now the Lansdowne Club, on January 30, 1902, by Lord Lansdowne and Hayashi Tadasu . A diplomatic milestone for its ending of Britain's splendid isolation, the alliance was renewed and extended in scope twice, in 1905 and 1911, before its demise in 1921...

 and the Triple Entente
Triple Entente
The Triple Entente was the name given to the alliance among Britain, France and Russia after the signing of the Anglo-Russian Entente in 1907....

 of 1907. Because of this, Germany proposed a German-Chinese-American entente in 1907, but the proposal never came to fruition. In 1912 Germany granted a six million German Goldmark
German gold mark
The Goldmark was the currency used in the German Empire from 1873 to 1914.-History:Before unification, the different German states issued a variety of different currencies, though most were linked to the Vereinsthaler, a silver coin containing 16⅔ grams of pure silver...

 loan to the new Chinese Republican Government
Republic of China (1912–1949)
In 1911, after over two thousand years of imperial rule, a republic was established in China and the monarchy overthrown by a group of revolutionaries. The Qing Dynasty, having just experienced a century of instability, suffered from both internal rebellion and foreign imperialism...

. When World War I broke out in Europe, Germany offered to return Kiautschou Bay to China in an attempt to keep their colony from falling into Allied
Allies of World War I
The Entente Powers were the countries at war with the Central Powers during World War I. The members of the Triple Entente were the United Kingdom, France, and the Russian Empire; Italy entered the war on their side in 1915...

 hands. However, the Japanese preempted that move and entered the war on the side of the Triple Entente and invaded Kiautschou during the Siege of Tsingtao. As the war progressed, Germany had no active role or initiative in conducting any purposeful actions in the Far East as the country was preoccupied with the war in Europe.

On 14 August 1917, China declared war on Germany and recovered the German concessions in Hankow
Hankou
Hankou was one of the three cities whose merging formed modern-day Wuhan, the capital of the Hubei province, China. It stands north of the Han and Yangtze Rivers where the Han falls into the Yangtze...

 and Tientsin
Tianjin
' is a metropolis in northern China and one of the five national central cities of the People's Republic of China. It is governed as a direct-controlled municipality, one of four such designations, and is, thus, under direct administration of the central government...

. As a reward for joining the Allies, China was promised the return of other German spheres of influence following the defeat of Germany. However, at the Paris Peace Conference, Japan's claims trumped prior promises to China and the Treaty of Versailles
Treaty of Versailles
The Treaty of Versailles was one of the peace treaties at the end of World War I. It ended the state of war between Germany and the Allied Powers. It was signed on 28 June 1919, exactly five years after the assassination of Archduke Franz Ferdinand. The other Central Powers on the German side of...

 assigned the modern and up-to-date city of Tsingtao
Qingdao
' also known in the West by its postal map spelling Tsingtao, is a major city with a population of over 8.715 million in eastern Shandong province, Eastern China. Its built up area, made of 7 urban districts plus Jimo city, is home to about 4,346,000 inhabitants in 2010.It borders Yantai to the...

 and the Kiautschou Bay
Jiaozhou Bay concession
The Kiautschou Bay concession was a German colonial concession in Imperial China which existed from 1898 to 1914. It had an area of 552 km², it was located around Jiaozhou Bay on the southern coast of the Shandong Peninsula, which lay in the imperial province of Shandong in northern China.Jiaozhou...

 region to Japan. Subsequent recognition of this Allied betrayal sparked the nationalistic May Fourth Movement
May Fourth Movement
The May Fourth Movement was an anti-imperialist, cultural, and political movement growing out of student demonstrations in Beijing on May 4, 1919, protesting the Chinese government's weak response to the Treaty of Versailles, especially the Shandong Problem...

, which is regarded as a significant event in modern Chinese history. As a result, the Beiyang government
Beiyang Government
The Beiyang government or warlord government collectively refers to a series of military regimes that ruled from Beijing from 1912 to 1928 at Zhongnanhai. It was internationally recognized as the legitimate Government of the Republic of China. The name comes from the Beiyang Army which dominated...

 refused to sign the Treaty of Versailles.

World War I dealt a severe blow to Sino-German relations. Long established trade connections had been destroyed, financial structures and markets wrecked; of the almost three hundred German firms conducting business in China in 1913, only two remained in 1919.

Sino-German cooperation in the 1920s

The Treaty of Versailles
Treaty of Versailles
The Treaty of Versailles was one of the peace treaties at the end of World War I. It ended the state of war between Germany and the Allied Powers. It was signed on 28 June 1919, exactly five years after the assassination of Archduke Franz Ferdinand. The other Central Powers on the German side of...

 severely limited Germany's industrial output. Its army
Reichswehr
The Reichswehr formed the military organisation of Germany from 1919 until 1935, when it was renamed the Wehrmacht ....

 was restricted to 100,000 men and its military production was greatly reduced. However, the treaty did not diminish Germany's place as a leader in military innovation, and many industrial firms still retained the machinery and technology to produce military hardware. Therefore, to circumvent the treaty's restrictions, these industrial firms formed partnerships with foreign nations, such as the Soviet Union
Soviet Union
The Soviet Union , officially the Union of Soviet Socialist Republics , was a constitutionally socialist state that existed in Eurasia between 1922 and 1991....

 and Argentina
Argentina
Argentina , officially the Argentine Republic , is the second largest country in South America by land area, after Brazil. It is constituted as a federation of 23 provinces and an autonomous city, Buenos Aires...

, to legally produce weapons and sell them. As the Chinese government did not sign the Treaty of Versailles, a separate German-Chinese Peace Treaty
Agreement Regarding the Restoration of the State of Peace between Germany and China (1921)
An agreement signed in Beijing on May 20, 1921 between the German and Chinese governments in order to restore peaceful relations following the First World War. The main reason for the treaty was that the Chinese government refrained from signing the Treaty of Versailles, since it granted the...

 was concluded in 1921.

After the death of Yuan Shi-kai, the central Beiyang Government
Beiyang Government
The Beiyang government or warlord government collectively refers to a series of military regimes that ruled from Beijing from 1912 to 1928 at Zhongnanhai. It was internationally recognized as the legitimate Government of the Republic of China. The name comes from the Beiyang Army which dominated...

 collapsed and the country fell into civil war, with various warlord
Warlord
A warlord is a person with power who has both military and civil control over a subnational area due to armed forces loyal to the warlord and not to a central authority. The term can also mean one who espouses the ideal that war is necessary, and has the means and authority to engage in war...

s vying for supremacy. Therefore, many German arms producers began looking to reestablish commercial links with China to tap into its vast market for weapons and military assistance.

The Kuomintang
Kuomintang
The Kuomintang of China , sometimes romanized as Guomindang via the Pinyin transcription system or GMD for short, and translated as the Chinese Nationalist Party is a founding and ruling political party of the Republic of China . Its guiding ideology is the Three Principles of the People, espoused...

 government in Guangzhou
Guangzhou
Guangzhou , known historically as Canton or Kwangchow, is the capital and largest city of the Guangdong province in the People's Republic of China. Located in southern China on the Pearl River, about north-northwest of Hong Kong, Guangzhou is a key national transportation hub and trading port...

 also sought German assistance, and the German-educated Chu Chia-hua (朱家驊; Zhū Jiāhuá) emerged as the most prominent and had his hands in arranging almost all Sino-German contact from 1926 to 1944. There were several reasons other than Germany's technological expertise that made it the top candidate in Sino-foreign relations. First was that Germany, having lost all of its spheres of influence following World War I, had no imperialistic interest in China anymore, and the 1925–1926 anti-foreign protests were mainly directed at Great Britain. In addition, unlike the Soviet Union, which helped with Kuomintang reorganization and opened party membership to communists, Germany had no political interest in China that could have led to confrontations with the central government. Also, Chiang Kai-shek
Chiang Kai-shek
Chiang Kai-shek was a political and military leader of 20th century China. He is known as Jiǎng Jièshí or Jiǎng Zhōngzhèng in Mandarin....

 saw German history as something that China should emulate, as the German unification
Unification of Germany
The formal unification of Germany into a politically and administratively integrated nation state officially occurred on 18 January 1871 at the Versailles Palace's Hall of Mirrors in France. Princes of the German states gathered there to proclaim Wilhelm of Prussia as Emperor Wilhelm of the German...

 was something that Chiang thought would provide valuable lessons to his own unification of China. Thus, Germany was seen as a primary force in the "international development" of China.

In 1926, Chu Chia-hua invited Max Bauer
Max Bauer
Max Hermann Bauer was a German artillery expert in the First World War and later military and industrial advisor to the Kuomintang....

 to survey investment possibilities in China and the next year Bauer arrived in Guangzhou and was offered a post as Chiang Kai-shek's adviser. In 1928, Bauer returned to Germany to make appropriate industrial contacts for China's "reconstruction" efforts and began recruitment for a permanent advisory mission to Chiang Kai-shek in Nanking. However, Bauer was not entirely successful as many industrial firms hesitated because of China's unstable political situation, and because Bauer was persona non grata for his participation in the 1920 Kapp Putsch
Kapp Putsch
The Kapp Putsch — or more accurately the Kapp-Lüttwitz Putsch — was a 1920 coup attempt during the German Revolution of 1918–1919 aimed at overthrowing the Weimar Republic...

. In addition, Germany was still constrained by the Treaty of Versailles, making direct investment involving the military impossible. Max Bauer contracted smallpox seven months after his return to China and was buried in Shanghai. Bauer's short time in China provided the foundation for later Sino-German cooperation, as he advised on the modernization of Chinese industry and army to the Kuomintang government. He argued for the reduction of the Chinese army to produce a small but elite force, and supported opening up the Chinese market to spur German production and exports.

Sino-German cooperation in the 1930s

However, Sino-German trade slowed between 1930 and 1932 because of the Great Depression
Great Depression
The Great Depression was a severe worldwide economic depression in the decade preceding World War II. The timing of the Great Depression varied across nations, but in most countries it started in about 1929 and lasted until the late 1930s or early 1940s...

. Furthermore, Chinese industrialization was not able to progress as fast as it could because of conflicting interests between various Chinese reconstruction agencies, German industries, German import-export houses and the German Army (Reichswehr
Reichswehr
The Reichswehr formed the military organisation of Germany from 1919 until 1935, when it was renamed the Wehrmacht ....

) of the Weimar Republic
Weimar Republic
The Weimar Republic is the name given by historians to the parliamentary republic established in 1919 in Germany to replace the imperial form of government...

, all of which wanted to profit from the development. Things did not pick up speed until the 1931 Mukden Incident
Mukden Incident
The Mukden Incident, also known as the Manchurian Incident, was a staged event that was engineered by Japanese military personnel as a pretext for invading the northern part of China known as Manchuria in 1931....

, in which Manchuria
Manchuria
Manchuria is a historical name given to a large geographic region in northeast Asia. Depending on the definition of its extent, Manchuria usually falls entirely within the People's Republic of China, or is sometimes divided between China and Russia. The region is commonly referred to as Northeast...

 was annexed by Japan. This incident created the need for a concrete industrial policy that aimed to create the military and industrial capability to resist Japan. In essence, it spurred the creation of a centrally planned, national defense economy. This both consolidated Chiang's rule over the nominally unified China and hastened industrialization efforts in China.

The 1933 seizure of power by the Nazi Party further accelerated the formation of a concrete Sino-German policy. Before the Nazi rise to power, German policy in China had been contradictory, as the Foreign Ministry under the Weimar
Weimar
Weimar is a city in Germany famous for its cultural heritage. It is located in the federal state of Thuringia , north of the Thüringer Wald, east of Erfurt, and southwest of Halle and Leipzig. Its current population is approximately 65,000. The oldest record of the city dates from the year 899...

 Government urged for a policy of neutrality in East Asia and discouraged the Reichswehr-industrial complex from involving directly with the Chinese government. The same feeling was shared by the German import-export houses, for fear that direct government ties would exclude them from profiting as the middleman. On the other hand, the new Nazi government's policy of Wehrwirtschaft (war economy) called for the complete mobilization of society and stockpiling of raw materials, particularly militarily important materials such as tungsten
Tungsten
Tungsten , also known as wolfram , is a chemical element with the chemical symbol W and atomic number 74.A hard, rare metal under standard conditions when uncombined, tungsten is found naturally on Earth only in chemical compounds. It was identified as a new element in 1781, and first isolated as...

 and antimony
Antimony
Antimony is a toxic chemical element with the symbol Sb and an atomic number of 51. A lustrous grey metalloid, it is found in nature mainly as the sulfide mineral stibnite...

, which China could supply in bulk. Thus, from this period on, the main driving force behind Germany's China policy became that of raw materials.
In May 1933, Hans von Seeckt
Hans von Seeckt
Johannes Friedrich "Hans" von Seeckt was a German military officer noted for his organization of the German Army during the Weimar Republic.-Early life:...

 arrived in Shanghai and was offered the post of senior adviser to oversee economic and military development involving Germany in China. In June of that year, he submitted the Denkschrift für Marschall Chiang Kai-shek memorandum, outlining his program of industrializing and militarizing China. He called for a small, mobile, and well-equipped force as opposed to a massive but under-trained army. In addition, he provided a framework that the army is the "foundation of ruling power," that the military power rests in qualitative superiority, and that this superiority derives from the quality of its officer corps.

Von Seeckt suggested that the first steps toward achieving this framework was that the Chinese military needed to be uniformly trained and consolidated under Chiang's command, and that the entire military system must be subordinated into a centralized network like a pyramid. Toward this goal, von Seeckt proposed the formation of a "training brigade" in lieu of the German eliteheer which would propagate training to other units to create a professional, competent army, with its officer corps selected from strict military placements directed by a centralized personnel office.

In addition, with German help, China would have to build up its own defense industry because it could not rely on buying arms from abroad forever. The first step toward efficient industrialization was the centralization of not only the Chinese reconstruction agencies, but also German ones. In January 1934, the Handelsgesellschaft für industrielle Produkte, or Hapro, was created to unify all German industrial interests in China. Hapro was nominally a private company to avoid oppositions from other foreign countries. In August 1934, "Treaty for the Exchange of Chinese Raw Materials and Agricultural Products of German Industrial and Other Products" was signed in which the Chinese government would send strategically important raw material in exchange for German industrial products and development. This barter agreement was beneficial to Sino-German cooperation since China had a very high budget deficit due to military expenditures through years of civil war and was unable to secure monetary loans from the international community. The agreement that led to massive Chinese export of raw material also made Germany independent of international raw material markets. In addition, the agreement expedited not only Chinese industrialization, but also military reorganization. The agreement also specified that China and Germany were equal partners and that they were both important in this economic exchange. Having accomplished this important milestone in Sino-German cooperation, von Seeckt transferred his post to General Alexander von Falkenhausen
Alexander von Falkenhausen
Alexander Ernst Alfred Hermann Freiherr von Falkenhausen was a German general. He was the head of the military government of Belgium from 1940–44 during its occupation by Germany in World War II....

 and returned to Germany in March 1935, where he died in 1936.

Finance minister of China and Kuomintang official H.H. Kung and two other Chinese Kuomintang officials visited Germany in 1937 and were received by Adolf Hitler
Adolf Hitler
Adolf Hitler was an Austrian-born German politician and the leader of the National Socialist German Workers Party , commonly referred to as the Nazi Party). He was Chancellor of Germany from 1933 to 1945, and head of state from 1934 to 1945...

. Kung and a Chinese delegation took part in King George VI's coronation
Coronation
A coronation is a ceremony marking the formal investiture of a monarch and/or their consort with regal power, usually involving the placement of a crown upon their head and the presentation of other items of regalia...

 in 1937 (Kung was by then vice prime minister, secretary of treasury and president of Central Bank of China
Central Bank of China
The Central Bank of the Republic of China , known in English from 1924 to 2007 as the Central Bank of China, is the central bank of the Republic of China . Its legal and common name in Chinese is literally translated as the "Central Bank"...

). After the coronation they visited Germany, invited by Hjalmar Schacht
Hjalmar Schacht
Dr. Hjalmar Horace Greeley Schacht was a German economist, banker, liberal politician, and co-founder of the German Democratic Party. He served as the Currency Commissioner and President of the Reichsbank under the Weimar Republic...

 and Werner von Blomberg
Werner von Blomberg
Werner Eduard Fritz von Blomberg was a German Generalfeldmarschall, Minister of War and Commander-in-Chief of the Armed Forces until January 1938.-Early life:...

.

The Chinese delegacy arrived at Berlin on June 9, 1937. Kung met Hans von Mackensen on June 10 (von Neurath was visiting eastern Europe); during the meeting, Kung pointed out that Japan was not a reliable ally for Germany, as he believed that Germany had not forgotten the Japanese invasion of Tsingtao and the Pacific Islands during World War I. China was the real anti-communist state and Japan was only "flaunting". Von Mackensen promised that there would be no problems in Sino-Germany relationship so far as he and Neurath were in charge of the Foreign Ministry. Kung also met Schacht on the same day. Schacht explained to him that the anti-Comintern pact was not an German-Japanese alliance against China. Germany was glad to loan China 100 million Reichsmark and they would not do so with Japanese.
Kung visited Hermann Göring
Hermann Göring
Hermann Wilhelm Göring, was a German politician, military leader, and a leading member of the Nazi Party. He was a veteran of World War I as an ace fighter pilot, and a recipient of the coveted Pour le Mérite, also known as "The Blue Max"...

 on June 11, Göring told him he thought Japan was a "Far East Italy" (referring to the fact that during World War I Italy
Italy
Italy , officially the Italian Republic languages]] under the European Charter for Regional or Minority Languages. In each of these, Italy's official name is as follows:;;;;;;;;), is a unitary parliamentary republic in South-Central Europe. To the north it borders France, Switzerland, Austria and...

 had broken its alliance and declared war against Germany), and Germany would never trust Japan. Kung asked Göring "Which country will Germany choose as her friend, China or Japan?", and Göring said China could be a mighty power in the future and Germany would take China as friend.

Kung met Hitler on June 13. Hitler told Kung Germany had no political or territorial demands in Far East, Germany was a strong industrial
Industry
Industry refers to the production of an economic good or service within an economy.-Industrial sectors:There are four key industrial economic sectors: the primary sector, largely raw material extraction industries such as mining and farming; the secondary sector, involving refining, construction,...

 country and China was a huge agricultural country; Germany's only thought on China is business. Hitler also hoped China and Japan could cooperate and Hitler could mediate any disputes between these two countries, as he mediated the disputes between Italy and Yugoslavia. Hitler also told Kung that Germany would not invade other countries, and was also not afraid of foreign invasion. If Russia dared to invade Germany, one German division could defeat two Russian corps. The only thing he (Hitler) worried about was bolshevism in eastern European states, being a threat to German interests and market. Hitler also said he admired Chiang because he built a powerful centralized government.

Kung met von Blomberg on the afternoon of June 13 and discussed the execution of 1936 HAPRO Agreement. Under this agreement, the German Ministry of War loaned China 100 million Reichsmarks to purchase German weapons and machines. In order to repay the loan, China provided Germany with tungsten
Tungsten
Tungsten , also known as wolfram , is a chemical element with the chemical symbol W and atomic number 74.A hard, rare metal under standard conditions when uncombined, tungsten is found naturally on Earth only in chemical compounds. It was identified as a new element in 1781, and first isolated as...

 and antimony
Antimony
Antimony is a toxic chemical element with the symbol Sb and an atomic number of 51. A lustrous grey metalloid, it is found in nature mainly as the sulfide mineral stibnite...

.

Kung left Berlin
Berlin
Berlin is the capital city of Germany and is one of the 16 states of Germany. With a population of 3.45 million people, Berlin is Germany's largest city. It is the second most populous city proper and the seventh most populous urban area in the European Union...

 on June 14 to visit the US, and returned to Berlin on August 10, one month after Sino-Japanese War
Second Sino-Japanese War
The Second Sino-Japanese War was a military conflict fought primarily between the Republic of China and the Empire of Japan. From 1937 to 1941, China fought Japan with some economic help from Germany , the Soviet Union and the United States...

 broke out. He met von Blomberg, Schacht
Schacht
Schacht is a German surname, derived from the common noun meaning "mine shaft".Those bearing it include:* Hjalmar Schacht , German financial expert during the time of Hitler* Joseph Schacht , Jewish Islamic scholar...

, von Mackensen and Ernst von Weizsäcker
Ernst von Weizsäcker
Ernst Freiherr von Weizsäcker was a German diplomat and politician. He served as State Secretary at the Foreign Office from 1938 to 1943, and as German Ambassador to the Holy See from 1943 to 1945...

, asking them to mediate the war.

Germany and Chinese industrialization

In 1936, China had only about 10000 miles (16,093.4 km) of railways, far lower than the 100000 miles (160,934 km) that Sun Yat-sen
Sun Yat-sen
Sun Yat-sen was a Chinese doctor, revolutionary and political leader. As the foremost pioneer of Nationalist China, Sun is frequently referred to as the "Father of the Nation" , a view agreed upon by both the People's Republic of China and the Republic of China...

 had envisioned for his ambition of a modernized China. In addition, half of these were in Manchuria, which was already lost to Japan and out of Kuomintang control. The slow progress of modernizing China's transportation was because of conflicting foreign interests in China, such as the 1920 New Four-Power Consortium of British, French, American, and Japanese banking interests. This consortium aimed to regularize foreign investment in China and unanimous approval was required before any of the four could provide credit to the Chinese government for building railways. In addition, other foreign countries were hesitant to provide funding because of the depression.

However, a series of Sino-German agreements in 1934–1936 greatly accelerated railway construction in China. Major railroads were built between Nanchang
Nanchang
Nanchang is the capital of Jiangxi Province in southeastern China. It is located in the north-central portion of the province. As it is bounded on the west by the Jiuling Mountains, and on the east by Poyang Lake, it is famous for its scenery, rich history and cultural sites...

, Zhejiang
Zhejiang
Zhejiang is an eastern coastal province of the People's Republic of China. The word Zhejiang was the old name of the Qiantang River, which passes through Hangzhou, the provincial capital...

, and Guizhou
Guizhou
' is a province of the People's Republic of China located in the southwestern part of the country. Its provincial capital city is Guiyang.- History :...

. These fast developments were made possible because Germany needed efficient transportation to export raw materials, and because the railway lines served the Chinese government's need to build an industrial center south of the Yangtze, in the south-central provinces. In addition, these railways served important military functions. For example, the Hangzhou
Hangzhou
Hangzhou , formerly transliterated as Hangchow, is the capital and largest city of Zhejiang Province in Eastern China. Governed as a sub-provincial city, and as of 2010, its entire administrative division or prefecture had a registered population of 8.7 million people...

-Guiyang
Guiyang
Guiyang is the capital of Guizhou province of Southwest China. It is located in the centre of the province, situated on the east of the Yunnan–Guizhou Plateau, and on the north bank of the Nanming River, a branch of the Wu River. The city has an elevation of about 1,100 meters...

 rail was built to facilitate military transport in the Yangtze delta valley, even after Shanghai and Nanking were lost. Another similar railway was the Guangzhou
Guangzhou
Guangzhou , known historically as Canton or Kwangchow, is the capital and largest city of the Guangdong province in the People's Republic of China. Located in southern China on the Pearl River, about north-northwest of Hong Kong, Guangzhou is a key national transportation hub and trading port...

-Hankou network, which provided transportation between the eastern coast and the Wuhan
Wuhan
Wuhan is the capital of Hubei province, People's Republic of China, and is the most populous city in Central China. It lies at the east of the Jianghan Plain, and the intersection of the middle reaches of the Yangtze and Han rivers...

 area. This railway would later prove its worth in the early stages of the Second Sino-Japanese War
Second Sino-Japanese War
The Second Sino-Japanese War was a military conflict fought primarily between the Republic of China and the Empire of Japan. From 1937 to 1941, China fought Japan with some economic help from Germany , the Soviet Union and the United States...

.

The most important industrial project from Sino-German cooperation was the 1936 Three-Year Plan, which was administered by the Chinese government's National Resources Commission
National Resources Commission
The National Resources Commission was a powerful organ of the Executive Yuan of the Republic of China that existed from 1932 to 1952 and was responsible for industrial development and the management of public enterprises. It was staffed entirely by technocrats who reported directly to the...

 and the Hapro corporation. The purpose of this plan was to create an industrial powerhouse capable of resisting Japan in the short run, and to create a center for future Chinese industrial development for the long run. It had several basic components such as the monopolization of all operations pertaining to tungsten and antimony, the construction of the central steel and machine works in provinces such as Hubei
Hubei
' Hupeh) is a province in Central China. The name of the province means "north of the lake", referring to its position north of Lake Dongting...

, Hunan
Hunan
' is a province of South-Central China, located to the south of the middle reaches of the Yangtze River and south of Lake Dongting...

, and Sichuan
Sichuan
' , known formerly in the West by its postal map spellings of Szechwan or Szechuan is a province in Southwest China with its capital in Chengdu...

, and the development of power plants and other chemical factories. As outlined in the 1934 barter agreement, China would provide raw materials in return for German expertise and equipment in setting up these ventures. Cost overrun for these projects was partly assuaged by the fact that the price of tungsten had more than doubled between 1932 and 1936. Germany also extended RM 100 million line of credit to the Chinese government. The Three-Year Plan also introduced a class of highly educated technocrats who were trained to run these state-owned projects. At the height of this program, Sino-German exchange accounted for 17% of China's foreign trade and China was the third largest trading partner with Germany. The Three-Year Plan had many promises, but unfortunately much of its intended benefits would eventually be undermined by the breakout of full-scale war with Japan in 1937.

Germany and Chinese military modernization

Alexander von Falkenhausen
Alexander von Falkenhausen
Alexander Ernst Alfred Hermann Freiherr von Falkenhausen was a German general. He was the head of the military government of Belgium from 1940–44 during its occupation by Germany in World War II....

 was responsible for most of military training conducted as part of the deal. Original plans by von Seeckt called for a drastic reduction of the military to 60 well-equipped and well-trained divisions based on German military doctrines, but questions as to which factions would be axed remained a problem. As a whole, officer corps trained by the Whampoa Academy up until 1927 were of marginally better quality than the warlord armies, but they remained valuable to Chiang Kai-shek for sheer loyalty. Nonetheless, some 80,000 Chinese troops, in eight divisions
German-trained divisions in the National Revolutionary Army
The German trained divisions were the elite of the infantry divisions in the National Revolutionary Army trained under Sino-German cooperation...

, were trained to German standards and formed the elite of Chiang's army. These new divisions might have contributed to Chiang's determination to escalate the skirmish at Marco Polo Bridge
Marco Polo Bridge Incident
The Marco Polo Bridge Incident was a battle between the Republic of China's National Revolutionary Army and the Imperial Japanese Army, often used as the marker for the start of the Second Sino-Japanese War .The eleven-arch granite bridge, Lugouqiao, is an architecturally significant structure,...

 to full-scale war. However, China was not ready to face Japan on equal terms, and Chiang's decision to pit all of his new divisions in the Battle of Shanghai
Battle of Shanghai
The Battle of Shanghai, known in Chinese as Battle of Songhu, was the first of the twenty-two major engagements fought between the National Revolutionary Army of the Republic of China and the Imperial Japanese Army of the Empire of Japan during the Second Sino-Japanese War...

, despite objections from his staff officers and von Falkenhausen himself, would cost him one-third of his best troops that took years to train. Chiang was suggested to preserve his strength to maintain order and fight later.

Von Falkenhausen recommended that Chiang fight a war of attrition
Attrition warfare
Attrition warfare is a military strategy in which a belligerent side attempts to win a war by wearing down its enemy to the point of collapse through continuous losses in personnel and matériel....

 with Japan as Falkenhausen calculated that Japan could never hope to win a long term war. He suggested that Chiang should hold the Yellow River line, but not attack north of that until much later in the war. Also Chiang should be prepared to give up a number of regions in northern China, including Shandong
Shandong
' is a Province located on the eastern coast of the People's Republic of China. Shandong has played a major role in Chinese history from the beginning of Chinese civilization along the lower reaches of the Yellow River and served as a pivotal cultural and religious site for Taoism, Chinese...

, but the retreats must be made slowly; Japan was to pay for every advance it made. He also recommended a number of fortifications to be constructed, near mining areas, coastal, river locations, and so on. Falkenhausen also advised the Chinese to establish a number of guerrilla
Guerrilla warfare
Guerrilla warfare is a form of irregular warfare and refers to conflicts in which a small group of combatants including, but not limited to, armed civilians use military tactics, such as ambushes, sabotage, raids, the element of surprise, and extraordinary mobility to harass a larger and...

 operations (which the Communists were adept at) behind Japanese lines. These efforts would help to weaken an already militarily challenged Japan.

Von Falkenhausen also believed that it was too optimistic to expect the Chinese National Revolutionary Army
National Revolutionary Army
The National Revolutionary Army , pre-1928 sometimes shortened to 革命軍 or Revolutionary Army and between 1928-1947 as 國軍 or National Army was the Military Arm of the Kuomintang from 1925 until 1947, as well as the national army of the Republic of China during the KMT's period of party rule...

 (NRA) to be adequately supported by armor and heavy artillery in the war against Japan. Chinese industry was just starting to modernize and it would take a while to fully equip the NRA in the fashion of the German Army (Wehrmacht Heer). Thus, he emphasized on the creation of a mobile force that relied on small arms
Small arms
Small arms is a term of art used by armed forces to denote infantry weapons an individual soldier may carry. The description is usually limited to revolvers, pistols, submachine guns, carbines, assault rifles, battle rifles, multiple barrel firearms, sniper rifles, squad automatic weapons, light...

 and adept with infiltration tactics
Infiltration tactics
In warfare, infiltration tactics involve small, lightly equipped infantry forces attacking enemy rear areas while bypassing enemy front line strongpoints and isolating them for attack by follow-up troops with heavier weapons.-Development during World War I:...

, similar to the stormtroopers near the end of World War I. German officers were called into China as military advisers, like Lt. Col. Hermann Voigt-Ruscheweyh, who acted as adviser to the Artillery Firing School in Nanjing from 1933 to 1938.http://web.archive.org/web/20091029024652/http://geocities.com/~orion47/WEHRMACHT/LUFTWAFFE/Generalmajor/VOIGT_HERMANN.html

German assistance in the military realm was not limited to personnel training and reorganization, but also involved military hardware. According to von Seeckt, around eighty percent of China's weapons output was below par or unsuitable for modern warfare. Therefore, projects were undertaken to expand and upgrade existing armories along the Yangtze River and to create new arsenals and munitions plants. For example, the Hanyang Arsenal
Hanyang Arsenal
Hanyang Arsenal was one of the largest and oldest modern arsenals in Chinese history.-History:Originally known as the Hubei Arsenal, it was founded in 1891 by one of the Qing officials, Zhang Zhidong, who diverted funds from the Nanyang Fleet in Guangdong to build the arsenal. It cost about...

 was reconstructed during 1935–1936 to bring its standards up to date. The arsenal was to produce Maxim machine guns, various 82 mm trench mortars and the Chiang Kai-shek rifle
Chiang Kai-shek rifle
The Type Zhongzheng rifle , also known as the Chiang Kai-shek/Jiang Jieshi Rifle and Type 24 after the Chinese Generalissimo Chiang Kai-Shek, was a Chinese-made copy of the German Mauser Gewehr 98, the forerunner of the Karabiner 98k. Pre-production of the Chiang Kai-Shek rifle started in August...

 (中正式; Zhōngzhèng Shì), which was based on the German Karabiner 98k
Karabiner 98k
The Karabiner 98 Kurz was a bolt action rifle chambered for the 8x57mm IS/7.92×57mm IS cartridge that was adopted as the standard service rifle in 1935 by the German Wehrmacht. It was one of the final developments in the long line of Mauser military rifles...

 rifle. The Chiang Kai-shek and Hanyang 88
Hanyang 88
The Type 88, sometimes known as "Hanyang 88", was a Chinese rifle that was issued to the National Revolutionary Army during the Second Sino-Japanese War. The name derived from the Hanyang Arsenal factory that made this rifle. The rifle had a bayonet attachment to use in close combat after a charge...

 rifles remained as the predominant firearm used by Chinese armies throughout the war. Another factory was established to produce gas masks, with plans to construct a mustard gas plant that was eventually scrapped. In May 1938, several arsenals were built in Hunan to produce 20mm, 37 mm, and 75 mm artilleries. In late 1936 a plant was built near Nanking to manufacture military optical equipment such as binoculars and sniper rifle scopes. Additional arsenals were built or upgraded to manufacture other weapons and ordnances, such as the MG-34, pack guns of different calibers, and even replacement parts for vehicles of the Leichter Panzerspähwagen
Leichter Panzerspähwagen
The Leichter Panzerspähwagen were a series of light four-wheel drive armoured cars produced by Nazi Germany from 1935 to 1944....

 series serving in the Chinese army. Several research institutes were also established under German auspices, such as the Ordnance and Arsenal Office, the Chemical Research Institute under the direction from IG Farben
IG Farben
I.G. Farbenindustrie AG was a German chemical industry conglomerate. Its name is taken from Interessen-Gemeinschaft Farbenindustrie AG . The company was formed in 1925 from a number of major companies that had been working together closely since World War I...

, and others. Many of these institutes were headed by German-returned Chinese engineers. In 1935 and 1936, China ordered a total of 315,000 of the M35 Stahlhelm, and also large numbers of Gewehr 88, 98
Gewehr 98
The Gewehr 98 is a German bolt action Mauser rifle firing the 8x57mm cartridge from a 5 round internal clip-loaded magazine that was the German service rifle from 1898 to 1935, when it was replaced by the Karabiner 98k. It was hence the main rifle of the German infantry during World War I...

 rifles and the C96 Broomhandle Mauser
Mauser C96
The Mauser C96 is a semi-automatic pistol that was originally produced by German arms manufacturer Mauser from 1896 to 1937...

. China also imported other military hardware, such as a small number of Henschel
Henschel Hs 123
The Henschel Hs 123 was a single-seat biplane dive bomber and close-support attack aircraft flown by the German Luftwaffe during the Spanish Civil War and the early to mid-point of World War II...

, Junkers, Heinkel
Heinkel
Heinkel Flugzeugwerke was a German aircraft manufacturing company founded by and named after Ernst Heinkel. It is noted for producing bomber aircraft for the Luftwaffe in World War II and for important contributions to high-speed flight.-History:...

and Messerschmitt
Messerschmitt
Messerschmitt AG was a famous German aircraft manufacturing corporation named for its chief designer, Willy Messerschmitt, and known primarily for its World War II fighter aircraft, notably the Bf 109 and Me 262...

aircraft, some of them to be assembled in China, and Rheinmetall
Rheinmetall
Rheinmetall AG is a German automotive and defence company with factories in Düsseldorf, Kassel and Unterlüß. The company has a long tradition of making guns and artillery pieces...

 and Krupp
Krupp
The Krupp family , a prominent 400-year-old German dynasty from Essen, have become famous for their steel production and for their manufacture of ammunition and armaments. The family business, known as Friedrich Krupp AG Hoesch-Krupp, was the largest company in Europe at the beginning of the 20th...

 howitzer
Howitzer
A howitzer is a type of artillery piece characterized by a relatively short barrel and the use of comparatively small propellant charges to propel projectiles at relatively high trajectories, with a steep angle of descent...

s, anti-tank and mountain gun
Mountain gun
Mountain guns are artillery pieces designed for use in mountain warfare and areas where usual wheeled transport is not possible. They are similar to infantry support guns, and are generally capable of being broken down into smaller loads .Due to their ability to be broken down into smaller...

s, such as the PaK 37mm, as well as AFV
Armoured fighting vehicle
An armoured fighting vehicle is a combat vehicle, protected by strong armour and armed with weapons. AFVs can be wheeled or tracked....

s such as the Panzer I
Panzer I
The Panzer I was a light tank produced in Germany in the 1930s. The name is short for the German ' , abbreviated . The tank's official German ordnance inventory designation was SdKfz 101 .Design of the Panzer I began in 1932 and mass production in 1934...

.

These modernization efforts proved their usefulness with the outbreak of the Second Sino-Japanese War
Second Sino-Japanese War
The Second Sino-Japanese War was a military conflict fought primarily between the Republic of China and the Empire of Japan. From 1937 to 1941, China fought Japan with some economic help from Germany , the Soviet Union and the United States...

. Although the Japanese, in the end, were able to capture the Nationalist capital at Nanjing
Nanjing
' is the capital of Jiangsu province in China and has a prominent place in Chinese history and culture, having been the capital of China on several occasions...

, the process took several months with a cost far higher than either side had anticipated. Japanese frustrations at strong Chinese resistance were vented out during the Rape of Nanking (Nanjing Massacre). Despite this loss, the fact that Chinese troops could credibly challenge Japanese troops boosted the morale of the Chinese. In addition, the cost of the campaign made the Japanese reluctant to go deeper into the Chinese interior, allowing the Nationalist government to relocate China's political and industrial infrastructure into Sichuan
Sichuan
' , known formerly in the West by its postal map spellings of Szechwan or Szechuan is a province in Southwest China with its capital in Chengdu...

.

End of Sino-German cooperation

The outbreak of the Second Sino-Japanese War
Second Sino-Japanese War
The Second Sino-Japanese War was a military conflict fought primarily between the Republic of China and the Empire of Japan. From 1937 to 1941, China fought Japan with some economic help from Germany , the Soviet Union and the United States...

 on July 7, 1937 destroyed much of the progress and promises made in the nearly ten years of intense Sino-German cooperation. Besides the destruction of industries in the war, Adolf Hitler
Adolf Hitler
Adolf Hitler was an Austrian-born German politician and the leader of the National Socialist German Workers Party , commonly referred to as the Nazi Party). He was Chancellor of Germany from 1933 to 1945, and head of state from 1934 to 1945...

's foreign policy would prove the most detrimental to Sino-German relations. In essence, Hitler chose Japan as his ally against the Soviet Union
Soviet Union
The Soviet Union , officially the Union of Soviet Socialist Republics , was a constitutionally socialist state that existed in Eurasia between 1922 and 1991....

, because Japan was militarily far more capable to resist Bolshevism. In addition, the Sino-Soviet Nonaggression Pact of August 21, 1937 definitely did not help to change Hitler's mind, despite persistent protests from the China lobby and German investors. However, Hitler did agree to have Hapro finish shipments already ordered by China, but did not allow any more orders from Nanking to be taken.

There were plans of a German-mediated peace between China and Japan, but the fall of Nanking in December 1937 effectively put an end to any mediation acceptable to the Chinese government. Therefore, all hope of a German-mediated truce was lost. In early 1938, Germany officially recognized Manchukuo
Manchukuo
Manchukuo or Manshū-koku was a puppet state in Manchuria and eastern Inner Mongolia, governed under a form of constitutional monarchy. The region was the historical homeland of the Manchus, who founded the Qing Empire in China...

 as an independent nation. In April of that year, Hermann Göring
Hermann Göring
Hermann Wilhelm Göring, was a German politician, military leader, and a leading member of the Nazi Party. He was a veteran of World War I as an ace fighter pilot, and a recipient of the coveted Pour le Mérite, also known as "The Blue Max"...

 banned the shipment of war materials to China and in May, German advisors were recalled to Germany at Japanese insistence.

This shift from a pro-China policy to a pro-Japan one was also damaging to German business interests, as Germany had far less economic exchange with either Japan or Manchukuo than China. Also, pro-China sentiment was also apparent in most Germans in China. For example, Germans in Hankow raised more money for the Red Cross than all other Chinese and foreign nationals in the city combined. Military advisors also wished to honor their contracts with Nanking. Von Falkenhausen was finally forced to leave at the end of June 1938, but promised Chiang that he would never reveal his work to aid the Japanese. On the other hand, Nazi Party organs in China proclaimed Japan as the last bulwark against communism in China.

Germany's newfound relationship with Japan would prove to be less than fruitful, however. Japan enjoyed a monopoly in North China and Manchukuo, and many foreign businesses were seized. German interests were treated no better than any other foreign interests. While negotiations were going on in mid-1938 to solve these economic problems, Hitler signed the Molotov-Ribbentrop Pact
Molotov-Ribbentrop Pact
The Molotov–Ribbentrop Pact, named after the Soviet foreign minister Vyacheslav Molotov and the German foreign minister Joachim von Ribbentrop, was an agreement officially titled the Treaty of Non-Aggression between Germany and the Soviet Union and signed in Moscow in the late hours of 23 August 1939...

 with the Soviet Union, thereby nullifying the German-Japanese Anti-Comintern Pact
Anti-Comintern Pact
The Anti-Comintern Pact was an Anti-Communist pact concluded between Nazi Germany and the Empire of Japan on November 25, 1936 and was directed against the Communist International ....

 of 1936, destroying further negotiations. The Soviet Union agreed to allow Germany to use the Trans-Siberian Railway
Trans-Siberian Railway
The Trans-Siberian Railway is a network of railways connecting Moscow with the Russian Far East and the Sea of Japan. It is the longest railway in the world...

 to transport goods from Manchukuo to Germany. However, quantities remained low, and the lack of established contacts and networks between Soviet, German, and Japanese personnel further compounded the problem. When Germany attacked the Soviet Union
Operation Barbarossa
Operation Barbarossa was the code name for Germany's invasion of the Soviet Union during World War II that began on 22 June 1941. Over 4.5 million troops of the Axis powers invaded the USSR along a front., the largest invasion in the history of warfare...

 in 1941, Germany's economic goals in Asia were conclusively put to an end.

Contact between China and Germany persisted to 1941, with elements from both sides wishing to resume the cooperation, as German-Japanese alliance was not very beneficial. However, Germany's failure to conquer the United Kingdom in the Battle of Britain
Battle of Britain
The Battle of Britain is the name given to the World War II air campaign waged by the German Air Force against the United Kingdom during the summer and autumn of 1940...

 in mid-1940 steered Hitler away from this move. Germany signed the Tripartite Pact
Tripartite Pact
The Tripartite Pact, also the Three-Power Pact, Axis Pact, Three-way Pact or Tripartite Treaty was a pact signed in Berlin, Germany on September 27, 1940, which established the Axis Powers of World War II...

, along with Japan and Italy, at the end of that year. In July 1941, Hitler officially recognized Wang Jingwei
Wang Jingwei
Wang Jingwei , alternate name Wang Zhaoming, was a Chinese politician. He was initially known as a member of the left wing of the Kuomintang , but later became increasingly anti-Communist after his efforts to collaborate with the CCP ended in political failure...

's puppet government in Nanking
Wang Jingwei Government
In March 1940 a puppet government led by Wang Jingwei was established in the Republic of China under the protection of the Empire of Japan. The regime officially called itself the Republic of China and its government the Reorganized National Government of China...

, therefore extinguishing any hope of contact with Chiang's Chinese government which had relocated to Chungking. Following the attack on Pearl Harbor
Attack on Pearl Harbor
The attack on Pearl Harbor was a surprise military strike conducted by the Imperial Japanese Navy against the United States naval base at Pearl Harbor, Hawaii, on the morning of December 7, 1941...

, China formally joined the Allies
Allies of World War II
The Allies of World War II were the countries that opposed the Axis powers during the Second World War . Former Axis states contributing to the Allied victory are not considered Allied states...

 and declared war on Germany on December 9, 1941.

Legacy

Sino-German cooperation of the 1930s was perhaps the most ambitious and successful of President Sun Yat-sen
Sun Yat-sen
Sun Yat-sen was a Chinese doctor, revolutionary and political leader. As the foremost pioneer of Nationalist China, Sun is frequently referred to as the "Father of the Nation" , a view agreed upon by both the People's Republic of China and the Republic of China...

's ideal of an "international development" to modernize China
Republic of China
The Republic of China , commonly known as Taiwan , is a unitary sovereign state located in East Asia. Originally based in mainland China, the Republic of China currently governs the island of Taiwan , which forms over 99% of its current territory, as well as Penghu, Kinmen, Matsu and other minor...

. Germany's loss of territories in China following World War I, its need for raw materials, and its lack of interest in Chinese politics, advanced the rate and productiveness of their cooperation with China, as both countries were able to cooperate on the basis of equality and economic dependability, without the imperialist undertones that marred much of other Sino-foreign relations. China's urgent need for industrial development to fight an eventual showdown with Japan also precipitated this progress. Furthermore, admiration of Germany's rapid rise after its defeat in World War I and its Fascist and militaristic ideology also prompted some Chinese within the ruling circle to fashion Fascism as a quick solution to China's continuing woes of disunity and political confusion. In sum, although the period of Sino-German cooperation spanned only a short period of time, and much of its results and promises were destroyed in the war with Japan that China was far from prepared for, it had some lasting effect on China's modernization. After Kuomintang's defeat in the Chinese Civil War
Chinese Civil War
The Chinese Civil War was a civil war fought between the Kuomintang , the governing party of the Republic of China, and the Communist Party of China , for the control of China which eventually led to China's division into two Chinas, Republic of China and People's Republic of...

, the central government relocated to Taiwan
Taiwan
Taiwan , also known, especially in the past, as Formosa , is the largest island of the same-named island group of East Asia in the western Pacific Ocean and located off the southeastern coast of mainland China. The island forms over 99% of the current territory of the Republic of China following...

. In the Republic of China on Taiwan, many government officials and ministers were trained in Germany, as were many faculties, research personnel, and military officers, such as Chiang's own adopted son Chiang Wei-kuo
Chiang Wei-kuo
Chiang Wei-kuo was an adopted son of President Chiang Kai-shek, adoptive brother of President Chiang Ching-kuo, and an important figure in the Kuomintang . His courtesy names were Jianhao and Niantang .- Early life :...

. Much of Taiwan's rapid post-war industrialization can be attributed to the plans and goals laid down in the Three-Year Plan of 1936.

See also

  • National Revolutionary Army
    National Revolutionary Army
    The National Revolutionary Army , pre-1928 sometimes shortened to 革命軍 or Revolutionary Army and between 1928-1947 as 國軍 or National Army was the Military Arm of the Kuomintang from 1925 until 1947, as well as the national army of the Republic of China during the KMT's period of party rule...

  • Whampoa Military Academy
    Whampoa Military Academy
    The Nationalist Party of China Army Officer Academy , commonly known as the Whampoa Military Academy , was a military academy in the Republic of China that produced many prestigious commanders who fought in many of China's conflicts in the 20th century, notably the Northern Expedition, the Second...

  • Chiang Kai-shek
    Chiang Kai-shek
    Chiang Kai-shek was a political and military leader of 20th century China. He is known as Jiǎng Jièshí or Jiǎng Zhōngzhèng in Mandarin....

  • German-trained divisions in the National Revolutionary Army
    German-trained divisions in the National Revolutionary Army
    The German trained divisions were the elite of the infantry divisions in the National Revolutionary Army trained under Sino-German cooperation...

  • German East Asia Squadron
    German East Asia Squadron
    The German East Asia Squadron was a German Navy cruiser squadron which operated mainly in the Pacific Ocean between the 1870s and 1914...

  • History of China
    History of China
    Chinese civilization originated in various regional centers along both the Yellow River and the Yangtze River valleys in the Neolithic era, but the Yellow River is said to be the Cradle of Chinese Civilization. With thousands of years of continuous history, China is one of the world's oldest...

  • History of the Republic of China
    History of the Republic of China
    The History of the Republic of China begins after the Qing Dynasty in 1912, when the formation of the Republic of China put an end to over two thousand years of Imperial rule. The Qing Dynasty, also known as the Manchu Dynasty, ruled from 1644 to 1912...

  • Military of the Republic of China
    Military of the Republic of China
    The Republic of China Armed Forces encompass the Army, Navy, Air Force, and Military Police Force of the Republic of China . It is a military establishment, which accounted for 16.8% of the central budget in the fiscal year of 2003...

  • Second Sino-Japanese War
    Second Sino-Japanese War
    The Second Sino-Japanese War was a military conflict fought primarily between the Republic of China and the Empire of Japan. From 1937 to 1941, China fought Japan with some economic help from Germany , the Soviet Union and the United States...

  • Sino-German relations
    Sino-German relations
    Sino-German relations were formally established in 1861, when Prussia and the Qing Empire concluded the first Sino-German treaty during the Eulenburg Expedition. Ten years later, the German empire was founded and the new state inherited the old Prussian treaty...

  • Warlord era
    Warlord era
    The Chinese Warlord Era was the period in the history of the Republic of China, from 1916 to 1928, when the country was divided among military cliques, a division that continued until the fall of the Nationalist government in the mainland China regions of Sichuan, Shanxi, Qinghai, Ningxia,...

  • Whampoa Military Academy
    Whampoa Military Academy
    The Nationalist Party of China Army Officer Academy , commonly known as the Whampoa Military Academy , was a military academy in the Republic of China that produced many prestigious commanders who fought in many of China's conflicts in the 20th century, notably the Northern Expedition, the Second...


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