Traditional narratives about China’s pre-modern economy often portray a society deeply rooted in agriculture, where commerce was suppressed or viewed with suspicion by ruling authorities. The phrase “emphasizing agriculture and suppressing commerce” has long shaped scholarly and popular understandings, suggesting that imperial China’s policies hindered the growth of capitalism and commercial enterprise. However, recent historiographical research challenges this simplistic view, revealing a more nuanced economic landscape where commerce thrived alongside agriculture, and merchants adapted dynamically over centuries.

This article explores the evolution of commercial activity in China from the late imperial era, focusing on the transformation of merchants from itinerant traders into settled business communities. We will examine the historical context behind the supposed “agrarian bias,” the realities of merchant life, and the changing structures of economic activity, especially during the Ming and Qing dynasties. This analysis sheds light on how commerce contributed significantly to China’s economic vitality despite official rhetoric, enriching our understanding of China’s commercial history.

The Myth of “Emphasizing Agriculture and Suppressing Commerce”

The phrase “emphasizing agriculture and suppressing commerce” has been a cornerstone in the interpretation of China’s traditional economic policies. It implies that the state deliberately favored agricultural production as the foundation of social order and economic stability while restricting commercial activities, which were considered less virtuous or even destabilizing.

However, extensive archival research and textual analysis reveal that this phrase, especially in its combined form, scarcely appears in classical texts. Scholars like Professor Zhang Yaguang have demonstrated that the concept of “suppressing commerce” was not an institutionalized, systematic policy but rather a fragmented and occasionally applied practice. The rarity of the phrase in historical documents suggests that the “agrarian bias” was not as monolithic or as rigid as previously thought.

Indeed, the logic of “emphasizing roots and suppressing branches” found application in various sectors—agriculture, industry, and commerce alike. This indicates a more complex relationship between the state and economic activities, where commerce was not inherently viewed as harmful. Some emperors, such as Emperor Wu of the Han dynasty, did impose restrictions on merchants, but these were exceptions rather than the rule.

Significantly, from the Song dynasty onwards, the state institutionalized systematic taxation on commerce, with commercial taxes becoming nearly as important as land taxes in the fiscal system. This fiscal reliance on trade reflects the importance of commerce to the imperial treasury and undermines the notion that the government sought to stifle commercial development. Contrary to some misconceptions, merchant families even secured certain rights in the imperial examination system, including the ability to take exams in alternate locations under “merchant registration,” reflecting a measure of social mobility for commercial groups.

Merchant Mobility: From Itinerant Traders to Settled Communities

One of the most fascinating aspects of merchant history in late imperial China is the evolution of merchant behavior and settlement patterns, particularly during the Ming dynasties. Merchants transitioned from itinerant traders—referred to as “guest merchants”—to more permanent residents who established long-term business bases, a shift closely tied to the expansion and sophistication of regional markets.

### Itinerant Traders: The Hardships and Realities of Early Commerce

In the mid-Ming period, the development of markets reached a peak, and commercial activity intensified. Merchants, often traveling great distances with goods, embodied the economic dynamism of the era. These itinerant traders faced considerable hardships: they had to navigate fluctuating market prices, uncertain demand, and risks from natural disasters or banditry.

A poetic depiction from the “Hu Su Guan Gazetteer” vividly captures the precarious life of such traders:

“Travelers all love to stay at home,
Not driven by fame, but by profit they roam.
Prices too low—no reason to depart,
Prices too high—buyers come in part.
Fear to leave, for no buyers might be found,
Fear to come, for goods may not rebound.
Calculating risks, they board the ship,
Leaving parents and kin on the ship’s slip.
Storms and dangers along the way,
Bandits and fires make them pray.
Heart pounding fast, they urge the pace,
Day and night, they race the race.
Traveling on without rest,
Year after year, they face the test.”

This passage captures the constant tension between economic opportunity and personal risk that defined the itinerant merchant’s life.

In the context of limited transportation infrastructure, merchants often had to carry their own provisions, find lodging along the way—sometimes in hostile environments—and endure exposure to the elements. For example, merchants from the mountainous regions of Shanxi, known as the “Jin Merchants,” famously overcame environmental hardships by pioneering routes across formidable natural barriers such as the Yellow River and the Great Wall passes. Their journeys extended to frontier areas like the Hetao region, facilitating the integration of distant markets.

### Seasonal and Spatial Market Variability

The volatility of markets in both time and space meant that merchants had to be highly adaptable. Commodity production was often seasonal, dictating when and where merchants could operate profitably. For instance, cotton harvests in autumn attracted merchants from afar who would converge on production centers for short periods. Outside of these windows, merchants might shift to trading other goods or relocate to different regions.

This transient commercial activity reflects the fluid nature of pre-modern Chinese markets, where fixed bazaars and permanent shops were relatively rare compared to mobile trade networks. Many merchants, whether professional or part-time , pursued short-term profits and were quick to withdraw from markets when risks outweighed rewards. Investment in landed property was often seen as a safer alternative during economically uncertain times.

### From Mobility to Settlement: The Rise of Merchant Communities

As trade routes stabilized and markets matured, many itinerant merchants began to reduce their travel time and establish permanent residences in commercial hubs or regions with flourishing markets. This shift from transient trade to settled commerce was particularly notable in the Ming and Qing periods.

The reasons for this transition were manifold: increased market stability, improved transportation infrastructure, and the growth of urban centers offered merchants more predictable business environments. Settling down also allowed merchants to build social networks, engage in long-term investments, and participate more fully in local governance and cultural life.

The transition is exemplified in coastal trading cities like Ningbo, where merchant families evolved from seasonal traders into established business clans, embedding themselves within local communities. This development marks a significant departure from traditional notions of merchants as rootless wanderers and indicates a restructuring of commercial society.

The Role of Commerce in Imperial China’s Economy and Society

Contrary to earlier interpretations that depict commerce as a marginal or even detrimental activity, the historical record reveals that commerce was integral to China’s economic fabric.

### Fiscal Importance of Commercial Taxes

From the Song dynasty onward, the state increasingly relied on commercial taxes as a revenue source, placing merchants within the formal fiscal system. The near parity in importance between commercial taxes and land taxes during the Ming and Qing periods highlights commerce’s growing economic significance.

This reliance contradicts the idea of a government systematically suppressing commerce. Instead, it suggests a pragmatic approach where the state sought to harness commercial wealth while maintaining social stability.

### Social Mobility and the Merchant Class

The merchant class in traditional China was often stereotyped as socially inferior to the gentry and scholar-officials. However, the reality was more complex. Some merchant families accumulated substantial wealth and influence, enabling them to sponsor their children’s education and entry into the civil service via the imperial examination system.

The existence of special provisions allowing merchant families to take civil service exams in locations away from their registered place of origin illustrates the social permeability afforded to successful commercial families. This blurs the rigid social hierarchy often assumed in popular narratives.

### Cultural Perceptions and State Ideology

While Confucian ideology favored agriculture as the moral foundation of society, it did not uniformly condemn commerce. The perception of merchants varied across time and place, influenced by practical considerations and the evolving needs of the state. Some emperors or local officials might have criticized or constrained merchants, but these actions were situational rather than systemic.

The vitality of urban culture, the flourishing of marketplaces, and the development of commercial law all attest to a society engaged with commerce as an essential aspect of daily life.

Legacy and Modern Reflections

The reevaluation of traditional Chinese commerce challenges long-standing historiographical biases and invites a more balanced understanding of China’s economic past.

### Challenging Eurocentric Narratives

For much of the 20th century, Western scholarship portrayed China as a stagnant agrarian society, inhibited by conservative social structures and state policies that suppressed capitalist development. This narrative was partly shaped by the idea of “emphasizing agriculture and suppressing commerce.”

Contemporary research reveals that China’s economic history was far more dynamic, with a robust commercial sector that adapted and evolved over centuries. This calls for a reassessment of how capitalism and market economies emerged globally, recognizing indigenous developments rather than imposing external frameworks.

### Contemporary Relevance

Understanding the historical interplay between agriculture and commerce in China provides valuable insights into the country’s modern economic transformation. The legacy of merchant networks, regional specialization, and market integration informs the trajectory of China’s development into a global economic powerhouse.

Moreover, the historical flexibility and pragmatism of imperial economic policy offer lessons on balancing state interests with market dynamism—a theme still relevant in contemporary economic governance.

Conclusion

The traditional view of imperial China as a society that prioritized agriculture at the expense of commerce oversimplifies a complex economic reality. Merchants in late imperial China displayed remarkable adaptability, moving from itinerant traders braving uncertain markets to settled business communities that played a vital role in regional and national economies.

Far from being systematically suppressed, commerce was integrated into the fiscal and social structures of imperial China. The nuanced relationship between agriculture and commerce, state and market, challenges entrenched stereotypes and enriches our understanding of China’s economic history. This reevaluation not only corrects historical misconceptions but also enhances our appreciation for the diversity and complexity of pre-modern economies worldwide.