Concession means that one country leases part of its territory to another country according to the treaty. The word concession appears in Chinese for 1860s. Concession should be based on Chinese and foreign documents and treaties, with clear geographical boundaries, and foreign residents in the area should exercise independent and perfect administrative and judicial systems.

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China's concession system was based on the earliest Shanghai concession and influenced other concessions. The most important feature of concession is internal self-management. Instead of sending a governor from the leasing country, a municipal administration agency, the Ministry of Industry and Commerce, was established to perform municipal administration, taxation, police, public works, transportation, health, public utilities, education, publicity and other functions. It also has the dual functions of western city council and city hall.

In China, it refers to the abbreviation of leased land forcibly acquired by imperialist powers in China through unequal treaties in modern history, mostly located in port cities.