On July 1, 1923 the Exclusion Act was passed preventing Chinese immigrants from entering Canada. Efforts were made to stop the Act from passing, but due to the speed at which the bill was passed, it was impossible to stop it. Ironically, Canada celebrated Dominion Day on July 1, while Chinese in Canada called it "Humiliation Day".

Despite the Exclusion Act, the Chinese communities continued to grow in both population and spirit. The rich helped the poor. Support neworks were developed by clans and associations to help one another.