The Order was founded by the Guangxu Emperor on 7 February 1882 as an award for outstanding services to the throne and the Qing court.

[2] Traditionally the Chinese court did not have an honours system in the Western sense; however hat buttons, rank badges, feathers and plumes were routinely awarded by the Emperor to subjects and foreigners alike prior to and after the introduction of the Order of the Double Dragon.

Other symbols of imperial authority - mountains, clouds, plum blossoms and characters with providential meanings - were added to variations of the designs over time.

The much higher ranking of translators and other civil servants in the system compared to even the wealthiest Western industrialists and businessmen was in part reflecting of the traditional Chinese antipathy towards profit-seeking and commercial individuals, compared the honourability accorded to civil service.

Despite patriarchal traditions however, foreign women were bestowed the order, including Canadian missionary Leonora King and American artist Katherine Carl.