The city of Tianjin considers itself the original home or birthplace of Chinese industrial revolution. Modern industry started there with Tianjin Machine Factory which was established by the Qing government during the Self-Strengthening Movement. Afterwards, Yuan Shikai promoted new policies in Tianjin. Numerous modern industrial enterprises mushroomed in Hebei New District in the northern bank of the Hai River. Including Zhou Xuexi, many industrialists established large enterprise groups that were managed by merchant and supervised by the government. By the beginning of the 20th century, Chinese private enterprises were booming. Among them is the most representative Yongli Alkali Factory which won the gold award and certificate in Philadelphia, the U.S. in 1926 by the sodium carbonate it produced. The factory was praised as "the symbol of developing important chemical industry of the Republic China". The development of Tianjin's modern industrial and the establishment of the Concessions in Tianjin contributed to the rapid expansion of modern Tianjin to become the biggest city and center of industry and commerce in northern China, as well as the second biggest city of industry, finance and trade in China. The development of Tianjin modern industry mainly went through four stages: initial period, evolution period, booming period and occupied period. Because of the industrial boom of Tianjin modern industry, the government of Tianjin built The Tianjin Museum of Modern Industry in Divergence estuary for commemoration.
Initial Period
The initial period of Tianjin modern industry refers to the Self-Strengthening Movement after its port opening. Under the influence of Self-Strengthening Movement, from 1866, the Qing government gradually established a wide range of military industries in Tianjin and its surrounding areas. In order to deal with foreign trade, the QIing government also set a position of Sankou Trading Minster (changed into North Trading Minster in 1870, post held by Viceroy of Zhili ). Tianjin then became the core area of Li Hongzhang's northern base, and this period is the initial period of Tianjin modern industry development.
The military industries established by Westernization Group
After the Second Opium War, the Self-Strengthening Movement in Qing Dynasty began to flourish, and the "Westernization Group" started to establish government-sponsored industries leading by military industry. In 1867, a North Trading Minster called Chong Hou gained a land of 22 hectares near to Jiajia Gu Dao where is located in the area that is 18 kilometers from the old town of Tianjin. He entrenched and constructed a 4950-meter-long wall to build the eastern department of Tianjin Machine Factory. This gunpowder plant of the factory, often been called "Dong Ju Zi", was the earliest and biggest military industry of China at that time. This department provided northern provinces with guns and cartridges for military use, and also offered military materials for the Northern Fleet after the establishment of Beiyang Fleet. After Chong Hou, Viceroy of Zhili and North Trading Minster Li Hongzhang took over Tianjin Machine Factory, made it develop rapidly and become a large-scale military industrial factory covering machine manufacturing, metal refining, casting, hot working, basic chemistry, ship repair, etc. The eastern department of Tianjin Machine Factory gained the reputation of "One of the biggest machine factories in the world" at that time.
In order to enhance coastal defense, the Qing government assigned Li Hongzhang to establish Beiyang FleetDagu shipyard in Tianjin i 1880. Dagu shipyard is the first shipyard in the North of modern China, and is called "the three major bases of Beiyang Fleet" with Lüshun Military Harbor and Weihai Liugong Island. It was for repairing the warships of Beiyang Fleets, and started producing munitions from 1890.