Hanyang Arsenal Hanyang Arsenal ( ) was one of the largest and oldest modern arsenals in Chinese history . History . Originally known as the " Hubei Arsenal " , it was founded in 1891 by one of the Qing officials , Zhang Zhidong , who diverted funds from the Nanyang Fleet in Guangdong to build the arsenal . It cost about 250 , 000 pounds sterling and was built in 4 years . On 23 April 1894 , construction was completed and the arsenal , occupying some , could start production of small - calibre cannons . It built rifles loaded with magazines , Gruson quick fire guns , and cartridges . On 14 June 1894 , an industrial accident started a fire in the arsenal that destroyed all the equipment and most of the structures in the arsenal . $ 1 , 000 , 000 in damages were reported . In July of the same year rebuilding began , and in August 1895 , all was back to normal and the arsenal started production of German " M1888 Commission rifles " , locally called " 7 . 92 cm Type 88 Mauser rifle " ( even though the Commission rifle was unrelated to the Mauser ) . At the same time , ammunition for the rifle were being produced at a rate of 13 , 000 rounds per month . 500 , 000 taels were spent annually in the arsenal , which constructed Mauser rifles and used steel from the works around Hanyang . Iron and coal mines surrounded the area . 160 , 000 Mausers were purchased by the Chinese military , along with mountain guns and small caliber versions . Smokeless powders was produced for guns at the a factory next to the arsenal . The arsenal itself built 40 Mausers a day , 6 field guns a month . Every day the following was manufactured : 300 shells , 35 , 000 rifle cartridges , 1 , 000 pounds smokeless powder . They were moved via Yangzi river until reaching Wuchang . Fortifications across China in the interior and on the coast received these weapons . During the Boxer Uprising of 1900 , the arsenal supplied the Boxers with more than 3 , 000 rifles and 1 million rounds of ammunition . In 1904 , the arsenal made several modifications to their design of the Type 88 , and , at the same time , production capacity was expanded to 50 rifles and 12 , 000 rounds of ammunition per day . For a time in 1910 , the arsenal switched to producing the " Type 68 rifle " , at a speed of 38 per day . The quality of the firearms produced in this period was generally low , because the local steel foundries were often ill - equipped and badly managed . Because of its proximity to Wuchang , the revolutionaries , during the Wuchang Uprising of Xinhai Revolution , largely equipped themselves with foreign and locally made weapons stored at this arsenal - some 7 , 000 rifles , 5 million rounds , 150 pack guns and 2 , 000 shells . The arsenal , in support of the revolution , switched into full gear and began producing weapons and ammo day and night . The Republic of China expanded the arsenal numerous times , and production soared . Quality , however , remained low . In 1917 , a training school was established alongside the arsenal . In 1921 , production began on copies of the Browning M1917 and the Mauser M1932 " Broomhandle " pistol . In 1930 , the design of the Type 88 was once again modified , extending the bayonet . In 1935 , a version of the Maxim gun — the Type 24 HMG — was being produced , based on blueprints from the German M08 . As the Imperial Japanese Army approached Hanyang and Wuhan in 1938 , the arsenal was forced to move to Hunan , with parts of its assets transferred to various other arsenals across the country . At Hunan , it continued production of the Type 88 rifle and carbine , and also Chinese version of 88 or " Type Chungcheng style rifle " . With the Allies ' victory in 1945 , orders to the arsenal gradually stopped , and , on 1 July 1947 , the arsenal was shut down . Many of the senior employees transferred to Taiwan and built the basis of today ' s Taiwan arsenals .