Besides active foreign enterprises and a (31) number of private employers, a consequential new development was the development of employment in state-owned enterprises (guanying or guanshang ). Started by some (32) Qing officials, the yangwupai, in the late nineteenth century, sizable state-owned enterprises developed primarily (33) enhancing China’s national defense. Famous industrial giants of today’s China such as the shipyards in Shanghai and heavy industries in cities like Wuhan, Nanjing, and Chongqing were built by the Qing or the Republic governments. Some of them later began to (34) considerable private investment. After World War Ⅱ, this type of stateowned employment became very important. Labor in those enterprises consisted basically (35) two tiers: a largely market-oriented allocation of blue-collar and some white-collar workers, and a mostly state allocation of most of the white-collar workers including managerial and technical personnel. The latter was a distorted labor market that featured strong (36) considerations in allocating and managing labor. Personal and kinship connections, the so-called "petticoat influence," and political (37) were the norm for this type of labor allocation pattern. In a way, it was midway between a rather crude market-oriented labor allocation pattern and the centuries-old, warm, family-based traditional labor allocation pattern. It covered a very small but important portion of the Chinese labor force, and thus (38) our attention. Later, it apparently provided the historical precedent (39) state-owned enterprises to allocate their administrative and technical cadres, even its entire industrial labor force, (40) state employees.