The 1960s saw the rise of the Chinese corporation and the Chinese businessman. Though there were companies that were 100% private, the major companies were all government owned, either in part or in full. Many of these companies were founded and run by former politicians. The most famous of these companies was Minkuo Electronics, founded by former Premier H. H. Kung in 1951. For the first few years they mostly manufactured radios. But in 1956 the company opened its first television factory in Zhengzhou, Henan. In the late 1950s, many landlords were given shares in the company as compensation during land reform. Due to government subsidies and wages in China being low, Minkuo electronics was able to cheaply produce television sets, which is what the company became famous for.
Minkuo Electronics would not turn a profit until 1960. In 1962, 80-year-old CEO H. H. Kung retired. T. V. Soong, who had just briefly served as ambassador to the United States, was given control of the company. Soong was the brother-in-law of both H. H. Kung and Chiang Kai-shek. Under Soong’s leadership, the company grew rapidly, as profit margins soared and new factories were built. More and more Chinese could afford a TV, even if the many still could not. By 1965, over 50,000,000 Chinese households had a television, with over 90% of them manufactured by Minkuo. Minkuo televisions would soon be exported, first to other countries in Asia, and then to the world. Minkuo electronics played an important role in Chinese diplomacy during the 20th century.
Weng Wenhao, another former premier, returned to the world of business after leaving politics. He became the CEO of North China Petroleum, which extracted oil in China’s Northeastern provinces. His company’s oil wells were sometimes targeted by Communist insurgents within China, and they had to be heavily guarded by the army. Weng Wenhao’s previous career as a geologist helped him with his new position. China would not be among the world’s major oil producers, however. The number of miners in the country would dwarf the number of oil workers. There were gold mines, silver mines, aluminum mines, lead mines, zinc mines, tungsten mines, etc. However, iron and coal would be the most heavily mined resources in China by far.
Jingxing Zhengfeng Coal Mine Co., Ltd. was a major coal mining corporation based in Hebei Province. The corporation was founded as a government enterprise in 1912, but mining in the area went back to the Song Dynasty. During the chaotic period of the early Republic of China, ownership of the mines frequently changed hands. During the Second World War, the mines were occupied by Japan. After the resumption of the Chinese Civil War, the area was on the front lines of the fighting between the Nationalists and Communists. Thus, it wasn’t until the 1950s that China would be able to make money off of the mines again. Member of the Legislative Yuan Li Zhuchen became CEO in 1954.
(Left: Li Zhuchen, right: miners in Jingxing)
Iron mines could be found throughout China, and were an important part of the Chinese economy in the mid-20th century. The iron mines were overwhelmingly located in the Northern part of the country. These mines had to be guarded by the army, not just to defend against local Communist insurgents, but also against the Chinese Communist exiles in Mongolia. The iron itself was shipped to factories to make steel. Miao Jiaming was China’s biggest steel magnate, owning steel mills across the country. In addition, he owned tin mines and banks in Southern China, particularly in his home province of Yunnan. While most of the prominent figures involved in state-run business were members of the Kuomintang, Miao was a political independent.
One of the early owners of the Jingxing Zhengfeng coal mines was Gao Xingqiao, a non-politician. He switched to real estate after the government confiscated the mines in 1918. He invested in shopping malls in Tianjin. His son, Gao Bohai, took over the family business in 1948. He expanded into hotels, and also owned movie sets and TV stations. They did a significant amount of business in places like the Philippines, Malaysia, and Indonesia, where there were large numbers of overseas Chinese. The Gao family would be an early example of successful businessmen who were not working in the government, making them an exception to the general trend of the times. Of course, they were not the only non-government businessmen in China. Several famous restaurant chains would be founded in the 1960s, though most of them would take a few decades to expand beyond their provinces and across the country.
(Tianjin Quanyechang, built in 1928, one of the many Gao family properties)