In November 1897, two German missionaries were murdered by a mob in Shantung Province, China.  In response, German naval forces occupied the port city of Tsingtau, and the German government used the occupation to press the Chinese government for a long-term lease of the port and the surrounding area. In March 1898, Germany and China entered into a 99-year lease under which Germany would control both sides of the entrance to Kiautschou Bay, as well as the islands within. Around this leased territory would be a small neutral zone which would, in effect, also be under German control.

The circumstances surrounding the creation and use of this private postmark aren’t clear, though from the text of the postmark and the card on which it was used, it is presumed to have been used to commemorate the Schützenkorp’s Karneval celebration in Tsingtau on 21 February 1903.