Chinese Merchants

Merchants were one of the most important groups of people in Chinese society. They supported trade both within and outside of China, created stable markets in their communities, impacted public policy, influenced government officials, and supported infrastructure projects in their communities. Despite these accolades, Chinese merchants were not just disliked but judged for their economic activity. Keep reading to find out why this was the case.

Fig. 1: Map of China

Chinese Merchant: Definition

In ancient China, social class was based on occupation. There were four major groups of people:

• gentry scholars,
• peasant farmers,
• artisans and artisans, and
• merchants and traders.

These groups are often referred to as the four occupations. The occupations are neither hereditary nor rely on the amount of money an individual has. The merchant social class is the social level made up of merchants.

Merchants played a large role in bargaining and trading. They orchestrated the creation of more stable markets in their communities, where they could sell goods to others.

Fig. 2: Ancient Chinese Mural

Merchants in Ancient China

Ancient China's social system had several levels of prestige. The emperor and the royal family were at the top of the social structure. They were the most powerful and the most wealthy.

The next level was made of civil servants. A civil servant is a government worker whose job is to serve the royal family. Civil servants were respected because they could read, write, and meddle in matters of state.

The next step below was the peasants and craftspeople. Believe it or not, peasants were respected in ancient China because they produced food for their communities. Craftspeople created goods for the members of the upper class.

Merchants were the next class. While they were rich, they were looked down upon by many in ancient Chinese society. They were disliked because they made money off of the work of other people by trading goods that others made.

The only social group below merchants was made up of servants, soldiers, and entertainers.

Merchant History

It is thought that merchants were highly regarded in Early Ancient China. Some believe that Emperor Shun had been a merchant before taking over the crown. A merchant named Guan Zhong was appointed Prime Minister. Some artifacts, like oracle bones, suggest that merchants enjoyed high social status.

Later, under imperial rule, society's view of merchants shifted. The elite ruling class saw merchants and traders as essential, establishing their societal value. However, merchants were seen as having the least value out of the four occupations. After all, some merchants had very high incomes, and others exploited farmers. Gentry scholars, peasant farmers, and artisans/craftsmen were all seen as bringing more societal value to China.

Although they were sometimes looked down upon, Chinese merchants were often wealthy and managed to wield influence upon other members of society. Merchants promoted Confucian ideas of integrity, frugality, and the importance of hard work.

The later part of the imperial period saw some scholars become merchants.

Writings from the Han dynasty describe a large amount of wealth many merchants held on to. Some owned large chunks of land, while others had large amounts of gold. Merchants who traveled between trade towns and other cities could make more money as they did not have to register as a merchant.

By the Song Dynasty (approximately 960-1279 CE), Confucian ideals have evolved to support commercialization. The followers of Confucianism supported trade as a legitimate profession as long as merchants agreed to meet certain ethical ideals. This was helpful for the Chinese merchants. The Song dynasty is known for its rapid economic growth, due in part to the Chinese merchant trade.

During the late Ming Dynasty, merchants were so successful that they often supported the government's attempts to build new infrastructures, like roads or schools. Around this time, the stigma about being a merchant disappeared. Maritime trade grew during this period.

Fig. 3: A Foo Dog at the Merchants Guild Hall at the Tianfei Temple

Chinese Merchants and the Silk Road

The Silk Road was a trade route network connecting China and other parts of the east with Europe and the Middle East.

Over time, the Silk Road grew to cover over 4,000 miles of trade routes, connecting Asia, Europe, and the Middle East. Merchants, including Chinese merchants, traveled the Silk Road to buy and trade various goods, including the ever-popular Chinese silk.

Chinese merchants used the Silk Road to transport one of China's most famous exports-Chinese silk. The silk was typically transferred to Europe, where Chinese merchants would sell it to European merchants. Chinese merchants also used the Silk Road to transport jade, precious stones, tea, and spices.

Fig. 4: The Silk Road

Importance of the Chinese Merchant

While Chinese merchants were not always looked at in a positive light, they wielded influence upon their communities and impacted the lives of many others. While they were generally more wealthy than many noble families, they received the least respect out of the four occupations. Many believed that merchants intentionally manipulated the market to increase their income.

Merchants in imperial China often owned land, which, when combined with the amount of money they had, resulted in the ability of merchants to impact public policy and influence government officials.

An example of this is infrastructure construction. Merchants were not uncommon to financially support the construction of schools, roads, and bridges.

Merchants were able to somewhat redeem themselves in the eye of the public by adopting Confucian beliefs. In imperial China, merchants promoted Confucian ideas of integrity, frugality, and the importance of hard work.

Chinese merchants were important outside of China, too. Merchants built exchange networks that allowed people to exchange ideas, beliefs, and other cultural aspects in addition to goods. Chinese merchants were a large part of the cultural and economic force behind the success of the Silk Road. Chinese merchants were important because they supported trade inside and outside the country.

Fig. 5: Ancient Chinese trade town.

Summary: Chinese Merchants

A merchant is someone who buys and sells goods produced by other people.

In ancient China, social class was based on occupation. There were four major groups: gentry scholars, peasant farmers, artisans and craftsmen, and merchants and traders. Merchants played a large role in bargaining and trading by orchestrating the creation of more stable markets in their communities, where they were able to sell goods to others.

Merchants were highly regarded in Ancient China. Later, under imperial rule, society's view of merchants shifted. The elite ruling class saw merchants and traders as essential, which established their societal value. Many outside the nobility disliked merchants, as they believed they took advantage of farmers and manipulated prices to make themselves wealthier.

Chinese merchants were often wealthy, and they managed to wield influence upon other members of society. While they were generally more wealthy than many noble families, they received the least respect out of the four occupations. Many believed that merchants intentionally manipulated the market to increase their income.

Many merchants were wealthy landowners. This resulted in the ability of merchants to impact public policy and influence government officials. Merchants were not uncommon to financially support the construction of schools, roads, and bridges.

Chinese merchants were important outside of China, too. They were significant in developing exchange networks like the Silk Road that allowed people to exchange ideas, beliefs, and other cultural aspects in addition to goods. Chinese merchants were a large part of the cultural and economic force behind the success of the Silk Road.