It was the location of the tax office and customs authorities, because of its proximity to the Grand Canal, 30 kilometres (19 mi) east, by which rice and grains arrived in Beijing from the south.
The Chinese government had long denied the European countries and the United States a diplomatic presence in the imperial capital of Beijing.
However, the Convention of Peking after China's defeat in the Second Opium War of 1856–60, required the Qing dynasty government to permit diplomatic representatives to live in Beijing.
[6] In the late 19th century the eleven foreign delegations were scattered among modest Chinese houses and opulent palaces inhabited by Manchu princes.
"[7] Legation Street in 1900 was still "a straggling unpaved slum of a thoroughfare, along which one occasionally sees a European picking his way between the ruts and puddles with the donkeys and camels.
"[8] A number of foreign enterprises in addition to the legations had been established in the quarter, including two large stores catering to Europeans, two foreign banks, the Jardine Matheson trading house, the Imperial Maritime Customs offices, managed by an Englishman, Robert Hart, and the Swiss-run Hotel de Pekin.
Article VII of the Protocol said that "the quarter occupied by the legations shall be considered as one specially reserved for their use and placed under their exclusive control, in which Chinese shall not have the right to reside and which may be made defensible."
[12] Foreign soldiers patrolled the streets of the Legation Quarter, and Chinese houses and property had been expropriated or purchased.
Missionaries, tourists, artists, soldiers, and businessmen came in larger numbers to visit or reside in the Legation Quarter.
The ubiquitous Protestant missionaries, mindful of the anti-missionary and anti-Christian fervor of the Boxers, began to turn away from proselytizing, and more toward education, health, and women's issues in attempting to accelerate a century of very slow progress in achieving their goal of making China into a Christian nation.
Rather the population that Beijing attracted included, in addition to the diplomats working in the Legations and the soldiers guarding them, a sizable number of scholars, artists, and aesthetes, especially in the early 1930s.
For the Europeans or Americans visiting or living in the Legation Quarter, it was a familiar environment of paved streets, western architecture, lawns, trees, social clubs, bars and restaurants.
Relationships between foreigners and Chinese were mostly superficial, with few successful efforts to "bridge the gap which separates white & yellow.
In 1924, the Chinese government recognized the government of the Soviet Union and the majority of White Russians in China who refused to become Soviet citizens were rendered stateless, thus subject to Chinese law unlike other Europeans, Americans, and Japanese living in China who enjoyed the principles of extraterritoriality.
[23] Although some of the White Russians arrived with their fortunes intact, most were penniless and due to ethnic prejudices and their inability to speak English were unable to find jobs.
A League of Nations survey in Shanghai in 1935 found that 22% of Russian women between 16 and 45 years of age were engaging in prostitution to some extent.
The White Russian women mostly worked in the "Badlands" area adjoining the Legation Quarter on the east, centered on Chuanban Hutong (alley).
"[26] The people of the Legation Quarter suffered a series of political shocks: the fall of the Qing dynasty in 1911 to Yuan Shikai, the warlord era from his death in 1916 until 1928 when Chiang Kai-shek and the Republic of China army consolidated its rule over China and the growing influence of an increasingly aggressive Japan.
World War II in East Asia properly began on July 7, 1937, when Japanese and Chinese soldiers clashed in the Marco Polo Bridge Incident.
[29] The Japanese attack on Pearl Harbor on December 8, 1941 (Asian time) foiled the planned evacuation.
The group, ranging in age from six months to 85 years old and including many missionaries, doctors, scholars, and businessmen, were allowed to take only what they could carry and were marched past Chinese crowds assembled to see the humiliation of the foreigners.
[31] After World War II, some of the internees at Weixian returned to Beijing and attempted to re-establish pre-war institutions such as the Peking Union Medical College.
Nevertheless, as Beijing's most significant collection of Western-style buildings, the area is a tourist destination, is protected by municipal artifact preservation orders, and now features several fine dining restaurants, including one located in the former American legation,[6] and retail shops.