October 1875 reported to Ting that it was necessary to fortify the ports of Chefoo and Weihaiwei. His suggestion was approved and the fort at Chefoo was constructed (1876–78) under his supervision. For a time in 1876 he served as acting intendant at Chefoo in charge of foreign trade relations, and helped Li Hung-chang who was in Chefoo in September in connection with the Margary affair (see under Ts'ên Yü-ying).
In 1880 Ting Pao-chên, then governor-general of Szechwan, strongly recommended Chang Yin-huan as widely informed and unusually talented. Hence in 1881 Chang was appointed intendant at Wuhu, in charge of the customs at that part. During his administration revenue increased and efficiency was improved. This led to a strong recommendation in his favor by Li Hung-chang. In 1884, after I-hsin [q. v.] and several other members of the Tsung-li Yamen had been dismissed, owing to their unwillingness to resist by arms French encroachments in Annam, the Central Government was in need of experts on foreign affairs. Chang Yin-huan was called to Peking for an audience which took place on June 8, 1884. He so pleased Empress Hsiao-ch'in [q. v.] that he was given the rank of a third grade official and was appointed a probationary member of the Tsung-li Yamen. Later he was given the concurrent post of a sub-director of the Court of Sacrificial Worship. These honors, however, offended numerous officials at Court who regarded Chang as an upstart who had entered officialdom by purchase and not by the usual competitive examinations. In those days, moreover, any official possessing knowledge of foreign affairs was suspected by ignorant and officious courtiers as a likely traitor. Informed as he was, Chang probably expressed himself freely on foreign affairs and so evoked the jealousy and distrust of his colleagues. Early in September nine members of the Tsung-li Yamen were reprimanded for having sent to the intendant at Shanghai, Shao Yü-lien (see under Ch'ung-hou), a telegram, the wording of which was considered incorrect or inappropriate. As the ones who probably framed the telegram, Chang and Ch'ên Lan-pin (see under Jung Hung) and several other members were discharged from the Yamen. But later in the same year Chang was sent to Chihli as intendant of the Ta-ming Circuit. After serving in that capacity for a year he was appointed Minister to the United States of America, Peru, and Spain (1885).
Upon receiving his instructions Chang Yin-huan went first to Canton to consult Chang Chih-tung [q. v.] on problems concerning Chinese laborers in America, most of whom came from the Canton area. In March 1886 he left Canton for America, his retinue comprising, among others, the following men: Jui-yüan 瑞沅 (H. 仲蘭), son of Kung-t'ang (see under Ch'i-shan); Liang Ch'êng 梁誠 (T. 震東), who later became minister to the United States (1902-07); and Hsü Chüeh 許珏 (T. 靜山, H. 復庵, 1843–1916), who later became minister to Italy (1902–05). Chang reached Washington in April and continued the negotiations begun by his predecessor, Chêng Tsao-ju 鄭藻如 (T. 玉輯, d. 1894), concerning mob attacks on Chinese laborers living on the West Coast and elsewhere. These laborers were at first encouraged to come to California, as shown in the Burlingame Treaty of 1868. But as time went on labor agitators stirred up anti-Chinese sentiments which were utilized by politicians to their own advantage. The treaty of 1880 (see under Li Hung-tsao) recognized the right of the United States Government to "regulate, limit or suspend the coming of Chinese laborers to the United States, but not to prohibit it". Students and tourists were not affected by this treaty. Although in 1884 Congress enacted laws suspending for ten years the immigration of Chinese laborers, and regulated the coming and going of those already in the country, mob attacks went on unabated. Several riots occurred in 1885, the most serious taking place in September at Rock Springs, Wyoming, where at least twenty-nine Chinese miners lost their lives, and the property damages ran to U.S. $147,748—this being the figure presented to the State Department by Chêng Tsao-ju, together with an account of the incident and a demand that the rioters be punished and the victims indemnified. The Secretary of State, Thomas F. Bayard (1828–1898), disclaimed any legal obligation for indemnity, but promised to persuade the President to recommend that Congress grant pecuniary relief to the sufferers out of "generosity and pity". In March 1887 Chang Yin-huan received full payment for damages and sent the money to the West Coast for distribution to the victims. Some of the claims were found to have been submitted twice, with the result that $480.75 was left undistributed, and that sum Chang promptly returned to the State Department. Thereupon he went to Spain where he
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