 Japanese mills had the advantage of better technology and more capital, while Chinese mills were limited due to management inefficiency, lack of organization, and financial weakness.In particular, the Japanese mills were able to survive the depression in the 1930s because they had stronger and more stable financial backing.Furthermore, in Shandong, which is still industrially important today, the Japanese had the advantage of the significant transportation and utilities infrastructure developed by the Germans when they used the city as a port for trade.