Xinjiang trade with the East in 1918-1920

Since the beginning of the internal crisis in Russia, the import of its products in the Chinese province of Xinjiang virtually stopped. In turn, Xinjiang merchants who exported raw materials to Russia stopped their trading operations, fearing requisitions and seizures by the Bolsheviks. Seeking a way out of this situation, they began to actively develop ties with trading firms operating in the interior of the country, trying to receive what the Russian state provided before. At the same time, many of these traders engaged in the export of their goods from Xinjiang to the east, despite long distances. Taking advantage of the favorable situation, Chinese and foreign companies started to supply the population of Xinjiang with textiles, fancy goods, perfumes, crockery and other trifles. Contact with Central China improved the stagnant trade, especially in the eastern districts of Xinjiang (less dependent on the Russian market). However, some of the top of Xinjiang merchants that had a good income from trade with the East were concerned about the situation in the trade in the 1920s. First of all, they were disturbed by the fact that the "influx" of Chinese representatives of foreign firms in Xinjiang led to a sharp rise in raw material prices. As low raw material prices allowed to sell it in the East without losses, and the import of manufactures in the province where the price for it was high and freight charges significantly lower, merchants had an opportunity to get a good income. In addition, the purchasing power of the population decreased. In fact, after a sharp decline in import-export operations with Russia, Xinjiang province faced the problem of selling their products (forced "crisis of overproduction") rather than the lack of essential goods (they were replaced by Chinese and European supply of goods). The fact is that most of the raw materials produced in Xinjiang did not meet the European standards of quality (and, therefore, even at a low price could not afford the cost of freight) and could be used only in the Russian industrial production. However, the authorities in Xinjiang did not want to "return" relations with Russia in the old, pre-war version. Thus, due to the practical termination of relations with Russia, Xinjiang merchants turned to the development of trade with China and other countries. The volume of Xinjiang trade with the East from 1918 to the 1920s suggests that it made good profits and was effective in spite of the existing problems.

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