But a third stage remains, one which in China at any rate may be reached at no distant period, when capital and organising energy may be developed within the country, either by Europeans planted there or by natives. Thus fully equipped for future internal development in all the necessary productive powers, such a nation may turn upon her civiliser, untrammelled by need of further industrial aid, undersell him in his own market, take away his other foreign markets and secure for herself what further developing work remains to be done in other undeveloped parts of the earth. The shallow platitudes by which the less instructed Free Trader sometimes attempts to shirk this vital issue have already been exposed. It is here enough to repeat that Free Trade can nowise guarantee the maintenance of industry or of an industrial population upon any particular country, and there is no consideration, theoretic or practical, to prevent British capital from transferring itself to China, provided it can find there a cheaper or more efficient supply of labour, or even to prevent Chinese capital with Chinese labour from ousting British produce in neutral markets of the world. What applies to Great Britain applies equally to the other industrial nations which have driven their economic suckers into China. It is at least conceivable that China might so turn the tables upon the Western industrial nations, and, either by adopting their capital and organisers or, as is more probable, by substituting her own, might flood their markets with her cheaper manufactures, and refusing their imports in exchange might take her payment in liens upon their capital, reversing the earlier process of investment until she gradually obtained financial control over her quondam patrons and civilisers. This is no idle speculation. If China in very truth possesses those industrial and business capacities with which she is commonly accredited, and the Western Powers are able to have their will in developing her upon Western lines, it seems extremely likely that this reaction will result.

Via: John A. Hobson, Imperialism, A Study, 1902