In the meanwhile a National Government came into power in China, which was in no mood to tolerate the special position of the foreigners in China. The nationalist troops only clashed with the foreign residents at a number of places.

However, a section of the Chinese led by Chiang Kai Shek were not in favour of wipping up anti-foreign feeling to such an extent. Chiang Kai Shek tried to marshall this anti-foreign feeling with a view to exert necessary diplomatic pressure on the foreign powers for securing certain concessions.

He told the foreign powers that the funda­mental danger to the foreigners and their property was due to “insistence on condition which are at once a humiliation and a menace to nation that has known greatness and is today conscious of renewed strength.” He appealed to the Chinese people not to molest foreigners and promised to take necessary steps for the termination of unequal treaties through procedure.

Within next three years, China was able to achieve tariff autonomy. In 1929 China indicated her intention to abolish extra-territoriality by arguing that “since extra-territoriality is antiquated and detrimental, it should be abandoned, particular since China now has courts, modern prisons and codes of law.” Though USA and other powers were reluctant to concede this demand of China and even issued serious warning, the Chinese Foreign Minister announced:


“…for the purpose of restoring her inherent jurisdictional sovereignty, on and after January 1, 1930, all foreign nationals in the territory of China who are now enjoying extra-territorial privileges shall abide by the laws, ordinances and regulations duly promulgated by the central and local governments of China.”

However, China could not actually implement the above threat due to her involvement in a civil war.