Nazi Germany in China, 1933-1938 : an economic approach.

Abstract

Commerce was the backbone of the German economy in 1933. The state of the global economy at this time severely limited Germany's potential for economic growth and stability. This stability was undermined further by international reactions to the policies of the recently installed Nazi government. The weaknesses of the German economy were magnified by the Nazis' programs of domestic works projects and rearmament which required a strong commercial economy. To invigorate the German economy and supply it with raw materials and financial credits, Germany increased its trade relations with the Far East. China was the focus of Germany's commercial interests in the Far East from 1933-1938. China and Japanese-dominated Manchukuo were attractive to Germany, but the Japanese required that Germany cease its relations with China to obtain economic privileges in Manchukuo. Also, German representatives who negotiated for economic privileges in Manchukuo were incompetent and not trusted by the German government. China, however, provided a stable market for German exploitation. Commercial interests dictated Germany's policy in the Far East. Although Germany and Japan shared many geopolitical goals, especially world domination, the affinity between the two nations did not influence German policy in the Orient before 1938. Germany perceived Japan as a possible ally and a counter-balance to Germany's European neighbors. However, the German government did not wish to engage in relations with Japan that might damage its commercial interests in China. When Japan offered Germany a strong commercial market in Manchukuo that surpassed in quality the market offered by China, Germany severed its relations with China and oriented its policy towards Japan.