Naigaiwata kept its position of being the most advanced cotton spinning company in technology and management and value addition of product during the inter-war days. Its competitiveness in technology and management were developed in-house by the local factories in Japan and were transferred to its factories in China through a large number of Japanese expatriates. It also adapted part of its labor management to fit the local situation in China. However, Naigaiwata did not allow the promotion of the Chinese from the rank and file to the administrative position. These practices were considered the uniqueness of local management of Japanese cotton spinning firms in China before the end of Second World War.