During the Republican era, business activities in China spread across rural areas. This article describes a case study on the structure of business activities in Wei county, which is located in the central part of Shandong peninsula. In Wei, the establishment of a rural textile industry was followed by the growth of mechanical and dye manufacturing businesses. In particular, the production of diesel engines in the rural area was an important factor. New technologies were introduced in a number of ways, such as commercial activities, experienced workers, and individuals who studied abroad. Businesses in Wei were supported by native Chinese capitalists who were mainly involved in the textile industries and commodity trading. In the 1930s, local capitalists in Wei began to unite, which resulted in a networked capital relationship. Huafeng, Xinfeng, and Minfeng formed the core of business in Wei. At that time, the banking system in Wei was weak; hence business activities were supported by the native bankers. After 1935, the banks in Wei began to expand their businesses by lending companies money on security. In 1937, a spinning factory was planned by the banks. This was a new milestone for the Wei economy; however the plan never materialized due to the Sino-Japanese War.
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