 Once the initial losses were written off, many of the remaining businesses became profitable.Legal frameworks were established, and export and banking industries soon took hold to funnel venture capital towards financing modern trade and industry.The political judiciousness of the Meiji leaders galvanized Japan's position in the Orient as East Asia's greatest power sustaining a powerful military that defeated the stagnant Chinese Qing Dynasty during the First Sino-Japanese War as well as vanquishing imperial rival Russia in 1905, the first major military victory in the modern era of an East Asian power over a European one.