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BRITONS V. GERMANS IN CHINA kong took some steps on their own initia- tive to investigate the inner working of about four representative German firms here. There is great danger in basing any general policy on the result of such investi- gations. These have not been carried far enough, and it would be well if the Govern- ment would seek certain advice in these matters from the commercial community.
We have two far more serious competi- tors in China than the Germans; the Japanese in the first place, and, secondly, the Chinese themselves. The strides and inroads that Japan is making into many branches of our trade by means of her cheaper labour and geographical proximity, will soon lead to her overtaking us, whether we like it or not. Further, the war has given the Japanese a wonderful chance to extend
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their trade with China and the rest of the world, and of this they have taken full advantage. It is little satisfaction for us to note that Germany is, and will be, a great- er sufferer than ourselves from Japanese competition, as Japan is now supplying most of the Chinese requirements in cheap arti- cles which were formerly obtained from Germany. In referring to the Chinese as competitors, signs are not wanting that there is in many places a distinct "China for the Chinese" movement. This is no doubt very laudable and proper, and even if the propaganda be carried on with dark ways and vain tricks, we can hardly object. Chinese competition will be a very serious. matter indeed for us in the course of time, but it has to be faced. Even now they are establishing factories and making articles. which ten years ago could only be supplied by Europe and America, It remains for
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