This essay attempts to critically analyze the overall impact of colonialism on 19th and early 20th century China. Analysis has been done primarily in the context of modernization theory and world-systems theory in order to get the contrasting views at two extreme levels. In addition, the liberal market approach has also been used to balance the two extremes. It has been noted that several positive influences of colonialism on the Chinese economy and society remained limited within a small area only. Contrarily, the most devastating impact of colonialism had been on the Qing state. The forceful imperialist invasion dealt a major blow to its overall capacity to lead China as a united nation towards prosperity. In summary, this essay argues in favor of an overarching negative impact of colonialism on China.