After the realm of Emperor Tung Chih of Tsing Dynasty, the trade of China went gradually into a serious situation. In view of the exotics flooding into the domestic market, livelihood going from bad to worse and the Westerner becoming rich by means of commercial connection, far-sighted men presented the com-mercial warfare advocacy. Considering that Western nations got rich by means of commercialism, the far-sighted men advocated winning the enemy by commercialism instead of the stratagem of fighting for life; based on the trade situation, they advised the government to improve export, increase the value of import, establish industry and imitate foreign merchandise in order to lower the import. By doing so, our country would nationally become rich and powerful. So it was the strong commercialism in tone. Under the reason of boycotting foreign goods, textile and steel were established one by one in China. However, in the beiginning of the industry in China, it was operated by businessmen but supervised by the government, which was very detrimental to its development. The government of Tsing Dynasty had no positive industrial policy and the conservatives hindered the work of improving the circumstances of indus-trial development very often. Before the first Sino-Japanese War, the industry in China was in the infant stage and grew at a low speed. After the war, as foreign businessmen were entitled to establish plants in China freely, it stirred up the efforts of economic-self-salvation among the Chinese. Furthermore, due to the reform and constitutional movement, the significance of industry was believed by the people. At the end of the realm of Emperor Kuang Hsi, Tsing Dynasty decided to initiate the industrial and commercial development, set up the Ministry of Commerce, promulgated the patent Regulations and the state for the encourage-ment of businessmen whereby the development of industry in China was encouraged.