In the first half of the 20th century, Shanghai was unlike any other city on earth. It was carved into three separate zones: the International Settlement, run by a council of British and American businessmen; the French Concession, administered by the French consul; and the original Chinese city. Different laws, languages, and customs operated side by side within the same city limits. This unusual structure made Shanghai a magnet for foreign capital, migrants seeking work, and anyone chasing opportunity in the Far East.

By the early 1900s, Shanghai’s commercial streets were already buzzing with activity. Nanjing Road served as the city’s main artery of trade, flanked by shops, trading houses, and later massive department stores like Wing On and Sincere. These stores stocked everything from imported luxury goods to traditional silks and even featured rooftop amusement parks to draw in customers. The Bund, along the Huangpu River, was lined with grand European-style banks and hotels, where foreign businessmen and wealthy Chinese merchants connected China to global markets.

Banking was central to Shanghai’s rise. As telegraph technology expanded trade communications, financial institutions multiplied rapidly. By the early 20th century, Shanghai had become one of the Far East’s leading financial hubs, attracting both Western banks and Chinese institutions eager to profit from the city’s booming commerce.

Not everyone in Shanghai lived inside the polished foreign concessions. Just beyond the modern storefronts, local markets thrived. Fishermen, farmers, and butchers arrived daily to sell their goods near neighborhoods like Hongkou. Most Chinese residents lived in shikumen houses — two- or three-story stone buildings blending Chinese and Western architecture — arranged along narrow alleyways called longtangs. These alleyways were where daily life actually happened: cooking, raising children, socializing with neighbors.

Infrastructure kept pace with the city’s growth. In 1907, workers began laying rails for Shanghai’s first streetcar line along Nanjing Road. The line ran 6.04 kilometers, stretching from Jing’an Temple to the Shanghai Club Building. Electric trams soon shared the streets with automobiles and the ever-present rickshaws pulled by hand.

Industry was another pillar of Shanghai’s economy. Textile mills and silk factories produced goods for both domestic sale and export. The Jardine Silk Factory, operating in the early 1910s, was among the most significant early industrial operations, sending silk to markets across the world. The foreign concessions provided a relatively stable environment for these businesses, even as political upheaval swept through the rest of China during and after the 1911 Xinhai Revolution.

Shanghai was also the birthplace of Chinese cinema. By the 1920s, the city had 40,000 theater seats, and audiences packed venues to watch wuxia martial arts films and family dramas. The Star Film and Theater School, founded in 1922, trained some of the era’s most celebrated performers and produced many of the most successful films of the decade.
![At the beginning of the 20th century, movies were one of the most important entertainments for people in Shanghai. In the 1920s, Shanghai had 40,000 theater seats, extremely high attendance, and the most popular movies were wuxia [martial arts] and family dramas. Photo is of the office of the Star Film and Theater School that was founded in 1922. This company made many of the most successful films of the time as well as trained a group of the most dazzling stars of the Shanghai Bund.](https://www.bygonely.com/wp-content/uploads/2025/06/Shanghai_Life_20th_Century_7.jpg)
Among the stars the Shanghai entertainment scene produced, Zhou Xuan stood out. Known as the “Golden Voice,” she began her career performing with the Bright Moonlight Singing and Dancing Troupe before becoming a major film actress, eventually taking the lead role in 43 films.

For Shanghai’s wealthy class, entertainment extended well beyond the cinema. Tennis, horse racing, and membership in exclusive jockey clubs were all markers of high-society life. Ballrooms and nightclubs filled with jazz — a sound brought to the city by American and Filipino musicians — attracted glamorous crowds every night of the week.
![Apart from films, sports competitions and the like had also become a pursuit of high society. They never tired of tennis, horse racing and similar sports. Quite a few foreigners established jockey clubs and such organizations here [in Shanghai]. Photo is of three sisters awaiting the start of a tennis match. .](https://www.bygonely.com/wp-content/uploads/2025/06/Shanghai_Life_20th_Century_9.jpg)
Along the riverbank promenades and commercial districts, Shanghai’s reputation as a “paradise for adventurers” was on full display. The city’s unique political setup and prime geographic position had made it the trading capital of the Far East. Merchants who came to Shanghai arrived with one philosophy: do business big, or not at all.

On the streets, commerce was everywhere and unceasing. Even foreign soldiers stationed in Shanghai became part of the city’s street economy. Peddlers sold cigarettes, food, and sundries to anyone who would buy, navigating the space between the formal economy of the concessions and the informal hustle of the city’s working poor.

By the 1930s, Nanjing Road had become one of the most visually dense commercial streets in Asia. Signs for shops, restaurants, and entertainment venues stacked from street level to rooftop on both sides of the road. The advertising industry had grown sophisticated and aggressive, with buses on the Bund completely covered in commercial placards by 1935.

Shanghai’s docks were the engine behind much of this wealth. The port handled enormous volumes of cargo moving in and out of China. Dock workers unloaded everything from watermelons to full locomotive engines, including train cars, railroad ties, and steel rails supplied by the United Nations Relief and Rehabilitation Administration.

For the workers hauling those goods, life was brutal. Dock laborers, factory workers, and the city’s large population of rickshaw pullers lived in makeshift huts or overcrowded tenements on the edges of the concessions. Millions had migrated from the countryside seeking work, and many found only grinding poverty. The rickshaw pullers were among the most visible of these workers — transporting people and goods through crowded streets for bare wages while the Bund glittered nearby.

Foreign residents also shaped the city’s social fabric. The first British arrivals came in 1843 — just 26 businessmen and missionaries. By 1935, over 6,000 British expatriates lived in the International Settlement alone. Hotels like the Shanghai Hotel catered to this community, serving as social hubs where deals were struck and alliances formed.


The Japanese occupation began in 1937 and reshaped the city dramatically. During the War of Resistance, Shanghai became a no-visa entry point — an unusual wartime refuge sometimes called the “Casablanca of the East.” Jewish refugees fleeing Nazi-controlled Europe arrived in significant numbers. However, Japan eventually imposed strict controls on the Jewish population at Germany’s request, confining thousands to a designated ghetto in the Hongkou district.

After Japan’s defeat in 1945, Shanghai returned to a fragile normalcy. Advertising billboards went back up on the city’s streets, promoting films, stage shows, and consumer goods. Street vendors, newsstands, and rickshaw pullers returned to their posts as if the occupation had simply paused ordinary life.


By 1947, Time and Esquire magazines sat alongside local newspapers at sidewalk newsstands in Shanghai. The city’s appetite for both local and international media reflected how connected it remained to the outside world, even as civil war between the Nationalist government and Communist forces intensified across China.


The late 1940s brought deep instability. Strikes shut down factories, inflation made everyday goods unaffordable, and the civil war edged closer to the city’s streets. Yet Shanghai’s surface life continued in surreal fashion — sheep crossed the main road from the business district to the Bund one June morning in 1947, stopping traffic, as if the city itself refused to acknowledge the chaos closing in around it.

By May 1949, the end was near. Market stalls in Shanghai were still selling everyday goods — branded pots stamped with “555” — on May 1st. Within two weeks, Communist forces had surrounded the city, and the Nationalist government began its retreat. The era that had made Shanghai the most cosmopolitan city in Asia was drawing to a close.





