The water transport patent right is the economic premise for China Merchants to compete with foreign water transport forces. Throughout the late Qing Dynasty, China Merchants always protected China's grain transportation, the last right of grain transportation, from foreign investors, and maintained the "national grain transportation", which made outstanding contributions to the food security in modern China.
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At the beginning of the establishment of China Merchants, Li Hongzhang applied for the grain transportation patent right for China Merchants, and thought that "it is necessary to allow them to transport grain at the same time so as not to crowd out foreign businessmen" (Li Ji draft, vol. 19, p. 49). )。 Later, it was further said: "Taixi countries are committed to building a strong and prosperous foundation through commerce, so they should make every effort to protect their ships." "Taking China Merchants as a prelude, raw materials and foreign companies will crowd each other, and the business is not enough to resist. Because the negotiation association is the only advantage of China, other people dare not help, so that they can stand on their own feet. " "The grain transportation in the provinces is the lifeblood of the Commercial Bureau. At present, all the local ships are loaded with commercial goods, which are squeezed by foreign ships and often lose money. If they don't transport more food, it will exist forever "("Li Ji ",the letter of the translation department, Volume 7, pp. 23-24; Play the manuscript, volume 30, page 33. )。 Obviously, the water transport franchise is an important aid provided by Li Hongzhang to China Merchants, and it is also an important economic pillar on which China Merchants relies to establish and maintain. Even foreigners in China at that time knew this very well. 1On August 8, 874, North China Good News published a commentary saying that China Merchants would not be able to continue its business unless it received revenue from water transportation (quoted from Ziweikai: Early Industrialization in China, p. 288, note 68). )。