ELI5: Explain Like I'm 5

Shanghai International Settlement

The Shanghai International Settlement was a special area in the city of Shanghai, which was controlled and governed by various foreign countries in the late 19th and early 20th centuries. This meant that different countries had a say in how things were run in this area.

Imagine you have a big toy box that you share with your friends. Each of you has some of your toys in the box, and you all decide together how to share the toys and play nicely. This is similar to how the international settlement worked.

In the case of the Shanghai International Settlement, the foreign countries involved were mainly Great Britain, the United States, and France. They wanted to have a place where they could conduct their business and trade with the Chinese people without interference from the Chinese government, which was a different system of governing.

To create this special area, the foreign countries negotiated with China and reached an agreement. They established boundaries and rules for the international settlement, which was separate from the rest of Shanghai. Just like how you might draw a line around your play area in a park when playing with friends.

Within the boundaries of the settlement, the foreign countries built their own buildings and set up businesses. They also created their own police force and court system to maintain law and order.

Now, let's imagine that you and your friends have your own rules for playing with the toys in the shared box. For example, you might decide that everyone gets a turn to play with a certain toy, or that you have to ask permission before borrowing someone's toy.

In the Shanghai International Settlement, the foreign countries also had their own rules for trading and doing business. They established a currency called the Shanghai dollar, which was different from the Chinese currency used outside of the settlement. This made it easier for businesses to operate and conduct transactions.

The settlement grew over time, with more people from different countries coming to live and work there. It became a bustling and cosmopolitan area, with people from all over the world bringing their cultures and traditions to the settlement.

But just like any game with friends, sometimes there are disagreements and conflicts. Similarly, there were disputes between the foreign countries and China over the control and governance of the Shanghai International Settlement. Eventually, in 1943, the settlement was dissolved, and control was returned to the Chinese government.

So, in summary, the Shanghai International Settlement was a special area in Shanghai controlled by foreign countries, where they could conduct their business and trade without interference from the Chinese government. It had its own rules, currency, and governance, and brought together people from different countries in a vibrant and dynamic community.