Open Door Policy

Open-Door Policy is a term used in international relations. It means that powerful countries have equal opportunities to trade with colonial or developing countries. When countries agree to observe the Open-Door Policy in an area, they simply agree to permit their merchants and investors to trade freely there.

John Hay, United States secretary of state, started the idea of the Open Door in 1899. At that time, several Western powers had special interests in China. Each power was trying to get all the trading rights for itself. Hay sent notes to the competing powers, asking them to maintain complete equality for all nations that wished to trade with China. The competing powers accepted Hay's proposal, and they signed treaties agreeing to observe the Open-Door Policy.

Contributor: Robert J. Pranger, Ph.D., Managing Editor, Mediterranean Quarterly; Adjunct Prof., American Univ.

The Open Door in the Far East

Although Americans were reluctant imperialists, the United States was an important Pacific power after 1898, and American businessmen had inflated ambitions to tap what they thought was the huge Chinese market. The doors to that market were being rapidly closed in the 1890s, however, as Britain, France, Russia, and Japan carved out large so-called spheres of influence all the way from Manchuria to southern China. With Britain's support (the British stood to gain the most from equal trade opportunities), on Sept. 6, 1899, Secretary of State Hay addressed the first so-called Open Door note to the powers with interests in China; it asked them to accord equal trade and investment opportunities to all nationals in their spheres of interest and leased territories. With considerable bravado, Hay announced that all the powers had agreed to respect the Open Door, even though the Russians had declined to give any pledges. On July 3, 1900, after the Boxer Rebellion—an uprising in China against foreign influence—Hay circulated a second Open Door note announcing that it was American policy to preserve Chinese territorial and political integrity.

Such pronouncements had little effect because the United States was not prepared to support the Open Door policy with force; successive administrations to the 1940s, however, considered it the cornerstone of their Far Eastern policy. President Theodore Roosevelt reluctantly mediated the Russo-Japanese War in 1905 in part to protect the Open Door as well as to maintain a balance of power in the Far East. When Japan attempted in 1915 to force a virtual protectorate on China, President Woodrow Wilson intervened sternly and in some measure successfully to protect Chinese independence. Victory for American policy seemed to come with the Nine-Power Treaty of Washington of 1922, when all nations with interests in China promised to respect the Open Door.
 

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