Abstract:Ever since the Opium War, the capitalist powers regarded the extraterritoriality as their safeguard mechanism. They abused this power to the economic field, which hindered the development of Chinese economy. Especially, they invested in Chinese railroad and mines, which not only grabbed the right of building, mining, loan, and management to the railroad and mines, but also ruined Chinese sovereignty, including the legal right, seriously. Meanwhile, it speeded up the process of semi-colonization of modern china.