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Chapter 21
Documents on Liu Hongsheng's Match Enterprises:
Introduction and Glossary
:~u ~ !:1:. 1~J~ tt ~
Liu Hongsheng (or Liu Hung-sheng; also known as 0. S. Lieu, 1888-1956) was one of the most
prominent and successful entrepreneurs of the Republican period. Liu was involved in many
industries, such as mining, cement, wool, and banking. Liu's singular success in match
manufacturing earned him the accolade "King of Matches" (huochai dawang ;k~:k±).
Liu attended St. John's College (later St. John's University) in Shanghai for one year. He
married the daughter of Yeh Cheng-chung (Ye Chengzhong :f.nt~, 1840-99), a pioneer in
Chinese match manufacturing and owner of the Xiechang Match Company (Xiechang huochai
gongsi ijl {§ :k.~-0--if]). Later, Liu established the Hung Sung Match Company (Hongsheng
huochai gongsi ~~;k.~-0-if.l) in 1924. In 1927 Liu traveled to Europe and the United States to
study Western business practices. Although this selection of documents focuses on Liu' s efforts
to create a joint-venture company in the match industry, Liu was interested in joint ventures in
other industries as well.
Chinese match manufacturing, like many indigenous industries, blossomed during World
War I. After the war, however, Chinese manufacturers were hampered by continued domestic as
well as international obstacles. Foreign competitors in match manufacturing, especially Swedish
and Japanese firms, were armed with superior capital and technology, and Chinese manufacturers
were also less competitive in terms of economies of scale. Moreover, they faced transportation
bottlenecks, political instability, and labor strife.
In 1927 Liu Hongsheng and fellow Chinese manufacturers responded to their eroding
competitive edge by forming a trade association (tongye gonghui lfi] :f.-0-"t), and by petitioning
the local government and the new National Government for relief. On one front, Liu negotiated
mergers with the Yingchang (~{§)and Zhonghua (if~) match companies. This effort culminated
in the formation in 1930 of the China Match Company (Da Zhonghua huochai gongsi :kif ~ k
~ -0--§] ), which accounted for one-quarter of total match production in China. On another front,
Liu and fellow manufacturers petitioned the government for a trade association-run monopoly
(gongmai -0- Jf). However, manufacturers and the government could not agree on whether the
government or the private firms would run the monopoly. The scheme also faced vigorous
protests from Western manufacturers and governments. Liu's vision of a national match combination
did not come to fruition until 1936.
The following selections illustrate Liu's efforts to create a larger and more Western-style
match company from existing companies. They also show how Liu attempted to involve the
government in managing the domestic market in order to circumvent foreign competition. For
basic biographical information on Liu Hongsheng, see Howard Boorman, ed., Biographical
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Dictionary of Republican China. (New York: Columbia University Press, 1968), 3: 398-400;
Min guo renwu dacidian ~ I A #J :.k fff ~ (Biographical dictionary of the Republican period)
. (Shjijiazhuang: Hebei renmin chubanshe, 1991), p. 1457; Zhongguo renming dacidian: dangdai
renwujuan t:f I A~ :.ktiiJ~: lt1~A#J~ (Chinese biographical dictionary: contemporary
personages) (Shanghai: Shanghai cishu chubanshe, 1992), p. 570; Li Shengping, ed., Zhongguo
jinxiandai renming dacidian t:f I :il[JJL 1~A~ :.kfff~ (Biographical dictionary of Chinese in
modern times) (Beijing: Zhongguo guoji guangbo chubanshe, 1989), p. 179; Who's Who in
China, 5th ed. (Shanghai: China Weekly Review, 1932), p. 167; Zhang Qifu and Shu Heng, eds.,
Huochai dawang Liu Hongsheng k~:.k.£~~~~ (Liu Hongsheng, the King of Matches) (Henan:
Henan renmin chubanshe, 1990, 1993); Liu Nianzhi, Shiyejia Liu Hongsheng zhuanliie: huiyi
*-
wade fuqin -J ~ ~~ ~ ~ 1tl!l§.- @]'It =BChapter 21 Documents on Liu Hongsheng's Match Enterprises
Document 1 (vol. 2, p. 25)
*
Letter from Liu Hongsheng to Chen Yuanlai
:Wl~ ~ ~ 3k '*-)Jffi I®
In general, a Chinese letter contains three main sections: salutation (such as 7\.fi- dajian, j$J~
junjian, and MT' gexia), body, and closing. The body of the letter is further divided into an
opening phrase (such as A:l!Zft$. jiuwei yajiao or *'~'ll;t shishen huainian), a courtesy
expression (such as ~4r cizhe, R liS! ciyin, or R#t cijiang), the substance of the letter, and a
courtesy expression to signal the end of the letter (such as tf1t &. duanci or *41
fengfu). The
closing section of the letter is divided into a greeting (such as :/Uft:.i:JiJ\.~ jingsong da'an) and a
signature. The salutation, opening phrase, courtesy expression, greeting, and signature all denote,
with some variations, the type of correspondence and the relationship between sender and reader.
Not all letters necessarily conform to the standard formulas. The editors of the letters from which
these selections were taken saw fit to dispense with many formulaic courtesy expressions and
greetings. For more information, see James C. P. Liang, Lloyd Haft, and Gertie Mulder, Business
and Correspondence Chinese (Dordrecht, Holland: Foris Publications, 1983).
Chen Yuanlai was in Kobe, Japan, when Liu wrote to him.
*11? shenhu Kobe
PEl han letter
~ di I (conventionally used by a speaker or
writer to refer to himself)
~f" ji~myu in view of
~9¥~:$-:l: Iianhe shiye joint enterprise, trust, combine
~~ yuru and moreover
.g.IJ wuguo my country (China)
)(~:l: huochai ye match industry
/f:t!R bu zhen unable to prosper, backward
220
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~~ y!wei in order to; to consider, think
ilkll yu tu attempt to, want to
fFJJ:t t6ngye same trade or business
*JJU~ da guim6 large-scale
rang neng only (until) then can ...
shly1 therefore, hence; by this means
qifijian during the autumn
heblng merger
dangjing already
~t~~~. taolun weiym1nhul discussion committee
Jdf.nl dagang outline
yijue to deliberate and decide
sl thereafter
sul zhl then causing it to ... ; consequently
ylshen increasingly serious
jfji kewei in imminent danger
hu Shanghai
ch6uyl to deliberate, arrange, settle
d!zhl zhi ce strategies for resistance
yinzhi thereby
bur6ng huo huan must not be delayed
221
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zhlshU send a letter
jiu'an former proposal, former issue
-~
Jtk:XT'z~ yao tianxia zhi xlng to be extremely fortunate
*/_, [j) _z_J~\ situ zhi xin for selfish purposes
longduan to monopolize
c6ng da chu yuan chu to take into account all factors and
zhu6xiang consider the long term
daju overall situation
hulyu to be so kind as to give
1~ bl so that
~M ... £-~ shu ... jichu establish ... foundation
~t~ wengu stabilize; stable, .solid
ruishang Swedish merchants
ze xlng shen yi thus, I would be extremely grateful
222
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Document 2 (vol. 2, p. 26)
Letter from Chen Yuanlai to Liu Hongsheng
I!JtUJ!U$. ~ ;f!fl? :fllu #b ~ iJ
Chen Yuanlai's reply (from Kobe) to Liu Hongsheng's letter of January 3, 1930.
fu to answer, to reply
pengdu to read with reverence
taihan your (esteemed) letter
zhr xr yYshi respectfully noted everything
jici ... sh:fq1 at this time of ...
shangzhan trade war
fierce
zY yli hou zhe ll yu h6ng those with the most resources have the
most power
jinzhan development
erru cunn ... and seek survival
m:fnsheng the people's livelihood
rlyong bixu zhl pin daily necessities
qi so far, up till now
IDE ... ll jL .. qie both ... and ...
0\. iz:.1t- ::fifE Mt renll ge bu xHingm6u isolated from each other and without
cooperation
223
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kainin with deep feeling
~MtJJ9f1} gaom6u shengsuan clever and superb calculation and planning
7¥U ~ ~~ ~ B.gu6 fumin to benefit the nation and the people
~~j[J\_ guangming zhengda guileless and aboveboard
~&)£ wuji deeply
yide yixin with one heart and one mind, with one
idea and will
}J~t lim6u to make every effort to
~tl ziinni your venerable drafts
1t fu to turn over to
~M wuqi to be sure to do something, make sure to
do something
tuoxie to compromise and accommodate
yizhi unanimity, consensus
y6u suo xinxing particularly fortunate and overjoyed
bichu my humble place (company)
quqian houjiao hasten to await your instructions
jietan interview
shihe would be grateful if ...
224
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Document 3 (vol. 2, p. 27)
Letter from Jia Shiyi to Liu Hongsheng
~~**M*$~*W±·~--~~
f:/t dongjun Mr. Dong
'ti wei but
g5ngmai
~· monopoly
IH}1~i~ ,jtJt ltte de genggai having received the gist of the plans
~~ canzhao to refer to, consult; in light of
100. 17~ t5ngll general practice
~1* zhu6 dii to adopt after deliberation
=Ilh't nijiu completed formulation (of a draft); to
draw up
~~ dio'an a draft
(this horizontal stroke in a Qing or
Republican document is often used to
initiate an item in a list; it does not
necessarily have anything to do with
numbering)
••
~tt
zhuanmai
weitu5
monopoly
to entrust
~i- gonghui association, union, league, society
-~i zhangcheng charter, rule, regulation
225
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qm'in ze rights and responsibilities
jut! specific, concrete
y1 because of
B.h~ti advantages and disadvantages; benefit and
loss
xlmu detailed items
hetong contract, agreement
chao feng to copy and respectfully present to you
ji q1 chazhao please immediately note
zlyang wording
awaiting
tt4 @9 zhenzhu6 deliberation and adjustment
~ti duzhan monopoly, to monopolize
fft~ d!chu in contravention of, in conflict with
l?} ... ~~ y1 ... mingy! in (under) the name of, in the capacity as
cuoci wording of a letter
zhuanxuan zhi yudl room to maneuver
flifeng send the enclosed to you
shuaichen to state frankly
yljian personal assumption, a hypothesis,
personal ideas (which are usually not
true or sound)
would be grateful for ...
226
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Document 4 (vol. 2, p. 28)
Appendix A: Outlines of the Conditions Governing the Match Monopoly (extracts)
em-)
x~•••)!7d~ em~)
~tu!1i
Yl.~ maimai qm1n right to buy and sell; sales monopoly
-'tJI-T zhuan shilyu belongs exclusively to
IDL~ shuoming explanation
}JUz guiding to stipulate
?JT )I suoshil to belong ... to
~;_~ y!wei take as, is regarded as
tR-* genben base, basis, foundation,
~it zhfxfng to implement, to carry out
jE)c m- ?JT ~ z._ ... zhengfil suo she zhi ... agency established by the government
1'-f guanshu
_i_~ zhilguan to take charge of
_i_ ~ "X" 1' -f zhilguan "X" guanshil the government agency/agencies that is/are
in charge of X
.f.Jji shlxiang affair, matter
~~ diaocha to investigate; investigation
.IfL'{jf pfngjia to regulate prices
ti:Hl~J zhaoshang to invite merchants
fl.l baomai to have exclusive selling rights
227
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iKtJif chengb~m to undertake
liltJt gong buying qiu demand exceeds supply
1£L l?J . . . ~ ~&. dan y! ... wei xian only within the limits of ...
lJLi:f xianyou now existing
**
1fd.:f
zhangben
danshu
advanced arrangements
proviso
Mdf blngrei is not
~A shuru to import
:i!P jlnkou to import
~1m haiguan customs, maritime customs
ilt:t jmshu the entire amount, completely
~it jl.cun to store temporarily
228
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fushe affiliated, attached
zh!dl.ng to appoint, assign; assigned, designated
cangku warehouse
zhuommg to consider
xuj1 supply and demand
anzhao on the basis of
ddl. order, sequence
f-±5] pingjun average, on the average
Iii ... Y5z J: you ... shoumai purchased by ...
'f#:i&L-T>JChapter 21 Documents on Liu Hongsheng's Match Enterprises
Document 5 (vol. 2, pp. 29-30)
Appendix B: Temporary Regulations Granting the Match Trade Association
Monopolistic Rights (extracts)
cllft .=..) ~~-*-~~-t• J:x~tti-r•~i ctoo~)
hW,it shixing to execute, carry out, put into operation
q~~ de zhao can follow in accordance with
~«<
J•tt.. :El jingH to manage
;ltd~ chengxHio contract to sell
t:!Ji
/', zhi zhun only allow
#.~'t zonghuJ. federation of trade unions
IN, jJ. since, as
FlP ji then, accordingly
-100 l?jJ:_ yige yishang more than one
*/ffrP~ ruo bunid if it is not so
;IW.~~
Yf,)L' jJ.ngxiao to compete for markets
MiL chengll to establish
~at suishi at any time
5J& Jl pai yuan to dispatch officials
i5-xn guyi hence it is appropriate
J:.ift:i zhuguan guanshu government office in charge, responsible
office
230
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if.t~ jHincha to inspect
~§ zh~mgmu accounts
:t~ mHinzhl. so as not to
~~ zhengyl. dispute(s)
1-fjE)c xingzheng administration
j3;i- ••• :9r chu ... wru except ...
~t-t weitu5 to entrust
M1~ qiman to expire
1t1J gujia to appraise, assess the price of
1~# chiicun to store
diankuan to advance money; money advanced
gu6ku state treasury
hedmg to check and decide
taWJ5i xieshang fa (method of) consultation and negotiation
M~iii chunyl. net profit
g(p ji namely
¥lWJJ baochoii pay, reward
~:t kaizhi expenses, expenditure
:trt~ yousiin decrease, harm
jiadmg arrange or assume for the time being
yidai so as to wait for
231
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~~ sancheng 30 percent (each~= 10%)
B)C R gailiang to improve
zhipei to allocate, use, spend
232
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Document 6 (vol. 2, p. 31)
Appendix C: Chinese-Swedish Treaty (extracts concerning monopolies)
em.=..) !=f J#fl1~*~ !=f ~• • if ~m ±..1~x
JlJl feizh! abolish
1tf1JJ hangshang Cohong merchants (in 1720, Chinese
merchants in Canton formed a trade
monopoly called the Cohong (iHt))
~~ duzhan to monopolize
~~q~ sh!de only ... can
~~ nuowei Norway
f[~ chenmin subjects (i.e., of a state, kingdom, empire,
etc.)
*iiliA IJJ:l.Z... Jt y,(
t:r ' _,.,. tm shU chii ru pill zhi maimai the import or export trade
~R 1ll~ xianzhl. restrictions
~il.rl zuai to hinder, impede
233
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Document 7 (vol. 2, p. 32)
Appendix D: Chinese-French Treaties (extracts concerning monopolies)
00~)~~-~~~--~~~-~
~4fifi teqmin privileges
WJ$it1± shangshi huishi trade union or association
1~t:!J* duzh~m ye monopolies
±Jtpg jingnei within the boundaries
~)1.:~
i'i)Z. shezhi establish
w yi and, also
fiB twintl organization
it cha it is found that, we find that
I ~iE~Jff gu6min zhengfU National Government
lfJt guanshui customs duty
234
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Document 8 (vol. 2, p. 33)
Letter from Lu Hongji to Liu Hongsheng
miD ~iE}{JN Jl;tiE}{:tf~ ~~t"~~~~i_ w
-~p yijie regarding the matter of ...
it I. da.lan to have received and read
~ Zl now
Jt~ ziinzhu as requested
llffif- flifeng to enclose and send (to you)
ifj-& sizhang head of the department
~3ziE gaizheng to revise
tNJ dangju the authorities
ti~ tuicheng to display sincerity
:t ... ±__J.t you ... zhllu to be concerned over something
~~- ±__ T- ft{i shenzhl yu sh1 to be cautious from the beginning
~1ft-~* meiqiao shangye American merchant businesses (in China)
~-.·:tit yu ... youwei does not comply with ...
%W-~ hezhonggu6 republic (here referring to the United
States)
1±1! renbi~m freely, without interference
if± du to prevent
-PL:Jl baolan to monopolize
235
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hac hi to dominate
qm1nxian rights
gu1 your (honorific)
tepai jHiosheyuan specially appointed negotiator (in foreign
affairs), special commissioner of the
Ministry of Foreign Affairs stationed in
a certain province
tf)tj shanyong to do something without authorization
~06 sh1b1 certainly will
Ill*#,~ #'y} gu6j1 jiiiren international dispute(s)
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