Chinese Economies
A brief history of the trade and commerce of China.
Foundations of the Chinese Economy
China’s economic history has influenced global affairs for thousands of years. Traditionally, much of its industry was directed toward feeding a large population and protecting them from invasion. Early civilizations practiced sophisticated agriculture, silk production, and bronze working. Peasant farmers in service to a local lord raised staple crops of millet and rice as well as food animals such as pigs, ducks, and chickens. Feudal estates supported small kingdoms, which commissioned luxury items and bronze or iron tools and weaponry from pools of artisans.
The Qin dynasty, the first to unify China, saw the gradual erosion of feudal lords and their separate economies. Emperor Qin Shi Huang facilitated trade by standardizing currency and weights and beginning a number of public infrastructure projects. Under Qin rule, Chinese laborers built canals, roads, and the earliest sections of the Great Wall of China. The Han dynasty continued the progress of the Qin, most notably by opening the Silk Road. The Silk Road, as its name suggests, exported silk westward from China. In turn, the Chinese imported horses and other rare trade items. Its early maritime routes extended as far as the Roman Empire and Egypt. Despite competition from the Byzantine Empire, the quality of Chinese silks ensured a long and lasting trade relationship between East and West.
The Silk Road and Yuan Dynasty
Trade, while occasionally interrupted by internal strife, flourished during the Tang and Song dynasties. This era saw major advances in industry, particularly agriculture and iron production, and administration through woodblock printing. Paper currency grew alongside a large merchant class, and peasant farmers enjoyed a period of equal land distribution and taxation. This era of relative stability came to an end in the 13th century, when the expanding Mongol Empire set its sights on Song China.
The Yuan dynasty, founded by Kublai Khan in 1271, brought both devastation and prosperity to China. The Mongol armies were brutal in their subjugation of Chinese provinces. Tens of millions are thought to have died within a few short decades. Less clear is how many perished in war and how many to disease. As Kublai and his successors worked to strengthen trade, the caravans of the Silk Road carried the Bubonic plague with them. The disease would reach Europe through Genoan trading ports, killing about half of its population and forever altering world history. Meanwhile, the Mongol Empire connected the Middle East and China like never before.
Later Dynasties and the Opium Wars
Mongol rule in China, though influential, proved brief. The Ming dynasty, founded by a peasant in 1368, privatized national industries. This caused a surge of wealth within the empire and a period of naval superiority. Despite these gains, the Ming leadership pursued increasingly isolationist policies. They barred most foreign trade, instead emphasizing agricultural output and infrastructure. During the 1600s, the Ming government defeated the Dutch in a series of naval battles. The Dutch merchants were seeking to open the nation to trade, but China remained isolated. As a consequence, China failed to compete with European powers in maritime exploration. Colonial Europe amassed immense wealth and power through its ventures around the globe. In time, the United Kingdom in particular turned its eye to China.
The first major clash between the two empires came about through the opium trade. The British, seeking leverage over Chinese markets, funneled large quantities of the Indian-grown drug into the country. For the Chinese, this meant growing internal addiction and trade imbalances. China banned the opium trade in 1839, and the British went to war to preserve their industry. The First Opium War lasted until 1842. It ended with the Treaty of Nanking and the opening of Chinese ports to foreign trade. Britain claimed the city of Hong Kong as its own territory, A further Chinese defeat in the Second Opium War only further weakened the Qing dynasty.
Economic Revolution in China
By the early 20th century, China possessed little autonomy, and its wealth was being siphoned into foreign coffers. The position of the Qing emperors grew unsustainable. In 1912, a revolution overthrew Qing rule and established the Republic of China in its place. The Republic attempted to modernize on several fronts, but it could not withstand the pressures of civil war and Japanese invasion. In 1949, the Communist Party of China swept into power. Its government led by Mao Zedong implemented land reforms and seized control of national industries. The “Great Leap Forward,” a movement meant to boost agriculture and industry, ended with widespread famine in the 1960s.
By the 1980s, China had recovered from economic disaster and looked instead to the future. It allowed partial privatization of industry and increased market participation. This blend of socialist and market policies led to a massive boom period. The nation grew to be a major manufacturing exporter and foreign investor, creating in its wake a large middle class with access to modern consumer goods. China is currently on track to become the largest economy in the world. Maintaining that momentum, curbing pollution, and balancing income inequality among its citizens remain major challenges to the nation’s economic future.
References
Babones, Salvatore. “China's Middle Class Is Pulling Up the Ladder Behind Itself.” Foreign Policy, Foreign Policy, 1 Feb. 2018, foreignpolicy.com/2018/02/01/chinas-middle-class-is-pulling-up-the-ladder-behind-itself/.
Dollar, David. “China's Economic Challenges: Implications for India & the US.” Brookings, The Brookings Institution, July 2017, www.brookings.edu/wp-content/uploads/2017/07/2nd_modi_o_dollar.pdf.
Gernet, Jacques. A History of Chinese Civilization. Cambridge University Press. 1996.
Gunde, Richard. Culture and Customs of China. Greenwood Publishing. 2002.
Newman, Jacqueline. Food Culture in China. Greenwood Publishing. 2004.
O'Brien, Fergal. “China to Overtake U.S. Economy by 2032 as Asian Might Builds.” Bloomberg, Bloomberg, 26 Dec. 2017, www.bloomberg.com/news/articles/2017-12-26/china-to-overtake-u-s-economy-by-2032-as-asian-might-builds.
“The World Factbook: CHINA.” Central Intelligence Agency, Central Intelligence Agency, 12 July 2018, www.cia.gov/library/publications/the-world-factbook/geos/ch.html.
Von Glahn, Richard. An Economic History of China. Cambridge University Press. 2016.
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