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During a lot of the nineteenth century China was constantly fighting with foreign countries over their land. Because of the advancements in technology the foreign army's weapons would take out entire imperial Chinese armies. The emperor of the Ch'ing Dynasty desperately wanted a way to get rid of the foreign powers from their land for good. The foreign powers were Austria, France, Germany, Great Britain, Italy, Japan and Russia and they all claimed to have trading rights and even own some of the Chinese territory. The foreign countries had divided the land into spheres to separate themselves from each other. But, when the United States gained the Philippines from the Spanish American War it became another Asian power also. Since China was so close to the Philippines a lot of American business men were hoping to benefit from China's many resources.

During this time the United States Secretary of State John Hay came up with the idea of negotiating the situation of the land with the other powers in order to preserve equal industrial and commercial privileges in China. And so, he created the "Open Door" policy since the US people would most certainly not support any methods of force because of the Philippines war that had just passed. The "Open Door" policy basically guaranteed every power equal trading rights and would prevent any countries from discriminating against another in its territory. He distributed the idea to all of the Asian powers and asked them if they would support his idea. In reply all the Asian powers refused to commit without the consent of everybody and when John Hayes received the same response from everybody he declared formally that the "Open Door" Policy that would support the Chinese territorial and administrative integrity would not interfere with the free use of ports within their spheres of influence in China was now officially an international policy in 100.

This policy specifically was first advanced by the US in the "most favored nation clause" of the treaties finished with China after the Opium War. The "Open Door" policy of 18 did three specific things besides urging all the Asian powers involved in the spheres of influence in China to declare that all nations will have equal treatment of their commerce and navigation inside these spheres. The first was that a nation would not interfere with any treaty, port or interest of any other nation within its own sphere of influence. The second is that the Chinese tariff applied to all the merchandise that landed or was shipped to all the ports and the money would be collected by the Chinese government. And lastly, third, a nation cannot levy any harbor dues higher than what that nation levies on its own boats, and no higher charges on railroads either.

This policy was created by Secretary of State John Hayes to protect and guard the lives and property of American citizens everywhere in China and aiding to prevent turmoil and chaos in China. The US wanted to find a resolution that would create a safe and peaceful China, maintain Chinese territorial and administrative existence, and protect all the rights that the Asian powers were guaranteed by treaty and international laws, and uphold the principle of equal and impartial trade with all parts of the Chinese Empire.

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While the negotiations were going on for the policy not many Chinese people were thinking of cooperating with the foreign powers. The Boxer Rebellion was formed to "expel all foreign devils" from China. This was a secret society formally called the Fists of Righteous Harmony. There were thousands of members that believed that they had magical power and that foreign artillery couldn't harm them. Because they practiced martial arts the foreigners called them the "Boxers". This society also believed that "spirit soldiers were going to rise up from the dead and join them in battle. These Boxers roamed the country attacking Christian missionaries and Chinese converts. The foreign diplomats tried to get the Emperor to stop the rebellion but she was secretly supporting it and did nothing to stop them. Finally after almost two months of attacking the Boxers were defeated when the US marines and soldiers and sailors from eight countries. They looted the towns and city's on their way to Beijing all while fighting off Boxers along the way. They ransacked the Forbidden City and destroyed the Ch'ing Dynasty. Since he US was a part of the victory in Beijing they participated in the settlement that came right afterward. Hay requested an expanded "Open Door" policy that would not just include the spheres of influence but all part of China, and that the powers should preserve China's territory and government. The other countries agreed with this and the "Open Door" policy permitted foreign access to China's market right up until World War II.

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