Open Door Policy
Open Door Policy
In the first few years of the twentieth century, several of the world's major countries were trying to establish international influence. Japan, Germany, and France were in competition with the United States to become the supreme dominating power.
In an effort to guarantee that Chinese ports would remain open to American business (at the time, China was not recognized as a sovereign [self-governing] nation among the major powers), President William McKinley (1843–1901; served 1897–1901) authorized an “Open Door” policy to China. This policy put China on equal status with the United States in terms of trade and business. There would be no restrictions or tariffs (taxes) on Chinese products sold in the United States or vice versa, and the United States would support an independent China.
The policy became useless at the end of World War II (1939–45), when China was recognized as an independent nation. As such, no country had the right to influence or attempt to exclude it from trade. By 1949, China had become a communist country, and the Open Door policy was rejected. Communism is an economic theory in which all goods and services are owned and controlled by the government. There is no private ownership of business and no competition. The government did not wish to promote foreign trade or investment. Despite its demise, the Open Door policy remains one of the most important foreign policies ever issued by the federal government.