Taipei rice exporters under the impact of the Russo-Japanese War: A case study of the Chen Yuanshun Firm

The Russo-Japanese War was the first international war that Taiwan experienced after becoming a Japanese colony. However, its impact on the colony has received relatively little attention. In particular, from a microeconomic perspective, how did Japan's wartime special taxation policies, the requisitioning of commercial ships for military use, and the overall economic climate affect individual traders and firms? How did these merchants respond and make decisions under such circumstances? This study examines the impact of the Russo-Japanese War on rice exports by using the commercial correspondence of the Chen Yuanshun Firm (陳源順號), which was based in Dadaocheng (大稻埕), Taipei, from 1904 to 1906, as a primary historical source. It analyses the firm's responses to wartime taxation, shipping disruptions and insurance mechanisms. In 1899, the Chen Yuanshun Firm became one of the first companies to engage in direct trade with Japan, acting through the Nagasaki Chinese merchant Chen Ruichun (陳瑞樁) and his son. With the advent of war, it faced various temporary policies and challenges. By analysing its adaptations, this article sheds light on the business resilience of Taiwanese merchants during the war. It finds that the Chen Yuanshun Firm actively capitalized on the surge in export trade between Taiwan and Japan, facilitated by the policies of the Japanese Empire and the colonial government. The rising demand for rice led to price increases, while additional taxes and tariff protections further incentivized rice exports from Taiwan to Japan. As a result, the firm's business flourished amid the wartime economic conditions. The Chen Yuanshun Firm seized this business opportunity and quickly rose to become a major rice merchant in Taipei. However, to transport large quantities of rice to Japan, it had to navigate the challenges posed by wartime chaos in shipping and issues related to insurance.