The Waterway That United a Nation

The Grand Canal stands as one of history’s most ambitious feats of engineering—a monumental waterway that stitched together the vast and varied landscapes of China. Stretching from the political heart of Beijing in the north to the economic hub of Hangzhou in the south, it bridged countless east-west flowing natural rivers, forming an intricate aquatic network centered on the canal itself. This labyrinth of waterways became the lifeblood of commerce, enabling merchants and trade guilds to transport goods across the empire with unprecedented efficiency. As an ancient Chinese proverb aptly observed, “All the world’s bustle is for profit; all the world’s rush is for gain.” The bustling banks of the Grand Canal became a stage where merchants pursued wealth and, in doing so, ignited prosperity along its shores.

Constructed and expanded over centuries—with major contributions from the Sui, Yuan, and Ming dynasties—the canal was more than a trade route; it was a symbol of imperial power and logistical mastery. It integrated agricultural surpluses from the south with administrative and military needs in the north, ensuring stability and cultural exchange across regions. For generations, it served as the backbone of China’s economy and a catalyst for urban growth, commercial innovation, and social transformation.

From Imperial Supply Line to Public Artery

For much of its early history, the Grand Canal functioned primarily as an imperial supply line, commonly referred to by commoners as the “Tribute River” or “Grain Transport River.” Each year, the government shipped millions of dan of grain from the fertile Yangtze Delta to the capital, feeding the court, bureaucracy, and garrison armies. This system, known as the caoyun or grain tribute system, was the canal’s original raison d’être.

A pivotal shift occurred during the late Song dynasty, when financial pressures led the government to reduce stipends for canal transport troops. To offset their losses, authorities permitted these soldiers to engage in limited private trade—carrying a quota of local products on official vessels for sale along the route. This policy, continued and expanded under the Ming and Qing dynasties, transformed the canal from a closed imperial corridor into a vibrant public thoroughfare. What was once a restricted channel for state use evolved into a dynamic artery of private commerce, stimulating markets, encouraging entrepreneurship, and giving rise to powerful merchant communities.

Jining: The Commercial Nexus of the North

Strategically positioned at the canal’s hydrological summit—the “ridge of the river”—Jining emerged as the linchpin of the entire waterway. Its elevation meant that north-south traveling vessels had to lower their sails and await their turn at the complex lock system. Many were authorized to offload cargo there for distribution to surrounding counties, making Jining the busiest port in northern China and the region’s primary goods distribution center.

From the Yuan dynasty onward, Jining served as the administrative headquarters of the Grand Canal, earning the title “Capital of China’s Canal.” As the saying went, “If Jining is open, the whole river flows; if Jining is blocked, the whole river halts.” The city attracted imperial attention, hosted high-ranking officials, and became a political and commercial crossroads. Its docks were crowded with masts and sails; its shores piled high with merchandise. It grew into a metropolis where “carriages and horses met at the crossroads of the realm, and merchants gathered from all great cities.”

The Rise of the Jining Merchant Group

Shandong, the home province of Confucius, long upheld values that emphasized righteousness over profit and agriculture over commerce. Prior to the mid-Ming era, few Shandong residents engaged in business. However, the opening of the Grand Canal triggered a dramatic shift. As commercial opportunities flourished along the waterway, Shandong locals increasingly turned to trade, eventually forming the Shandong Merchant Group, one of China’s ten great mercantile coalitions.

Jining merchants stood at the forefront of this transformation. Pragmatic, shrewd, and fiercely competitive, they carved out a dominant position in the regional economy. Even the powerful Shanxi merchants, who monopolized markets throughout much of canal territory, struggled to gain a foothold in Jining. As the Qing scholar Bao Shichen noted, “Shanxi merchants profit from usury across the land, yet Jining alone does not tolerate them.”

A prominent figure among Jining’s business elite was Sun Yuting, an official-merchant who exemplified the blend of political connection and commercial acumen. Along with partner Leng Changlian, he acquired a small Suzhou-style sauce shop founded by Dai Yutang, renaming it “Gusu Yutang” or Yutang Sauce Garden. Under their management, the enterprise expanded in scale and product range. By the late Qing dynasty, its pickles were selected as imperial tribute. Empress Dowager Cixi, upon tasting them, reportedly exclaimed, “Truly renowned throughout the capital and provinces—their flavor surpasses even Jiangnan’s!” The brand grew into a comprehensive business dealing in liquor, grains, medicines, pastries, and even operating its own banking houses.

Yangzhou: Where Canal and Culture Converged

As the poet Bai Juyi wrote, “The Bian River flows, the Si River flows, all the way to the ancient ferry at Guazhou.” Guazhou lay within Yangzhou, a city situated at the intersection of the Grand Canal and the Yangtze River. From the Tang dynasty onward, merchants—both domestic and foreign—flocked to Yangzhou via the canal, making it the nation’s most prosperous commercial and industrial center. To Tang poets, its splendor was incomparable: “Of all the bright moonlit nights under heaven, two-thirds belong to Yangzhou.”

In the Qing era, Yangzhou’s fortunes became tied to the salt trade. A saying circulated: “When salt merchants thrive, Yangzhou prospers.” Yangzhou’s salt merchants ranked among the wealthiest individuals in the empire, benefiting from government-granted privileges under the salt monopoly system. Using yanyin—official salt trading certificates—they bought salt cheaply at coastal yards, transported it to Yangzhou, and sold it at massive markups across six southeastern provinces.

In the year 1772 alone, Yangzhou salt merchants sold over 1.52 million yin of salt. Purchased at 0.64 taels of silver per yin at the coast, the price rose to about 1.82 taels in Yangzhou after adding transport and tax costs. By the time it reached retail markets, the price soared to around 10 taels—a more than tenfold increase. Annually, Yangzhou salt merchants earned over 15 million taels of silver, contributing more than 6 million taels in salt taxes—approximately 60% of the national total. In a year when China accounted for 32% of global economic output, Yangzhou’s salt tax alone represented 8% of the world’s economy.

Jiang Chun: The Emperor’s Merchant Friend

Among these tycoons, none was more illustrious than Jiang Chun, a Huizhou merchant who achieved the rare distinction of becoming a “commoner who interacted with the Son of Heaven.” His legendary status was cemented by two feats: “building a white pagoda overnight and hosting Emperor Qianlong six times.”

As lore recounts, Emperor Qianlong was touring Yangzhou’s Slender West Lake when he remarked near the Five Pavilion Bridge, “This resembles Beihai in the capital, but it lacks a white pagoda.” Overhearing this, Jiang Chun bribed the emperor’s attendants to sketch Beijing’s pagoda and then marshaled resources to construct a replica before dawn. The next day, Qianlong returned to find the pagoda standing magnificently. Upon learning of Jiang’s overnight endeavor, the emperor marveled, “They say Yangzhou’s salt merchants are the wealthiest under heaven—indeed, it is no exaggeration.”

Extravagance and Economic Impact

The salt merchants were notorious for their lavish lifestyles. Huang Taixiang, a mid-Qing merchant, was said to feed his chickens ginseng. Another merchant couple demanded dozens of tables laden with hundreds of dishes for each meal; servants would remove any dish the diners shook their heads at, and if all were rejected, an entirely new menu was prepared. Some merchants kept hundreds of horses, each costing tens of taels daily to maintain. One bought every tumbler doll in Suzhou for 3,000 taels and dumped them into a river, clogging the waterway. In perhaps the most telling anecdote, a poor scholar married a former maid of a salt merchant. When he asked her to stir-fry leeks with pork, she smiled and said he likely couldn’t afford it—in her previous household, the dish required meat sliced from the cheeks of ten pigs.

This extravagance, while excessive, fueled Yangzhou’s economy. Salt merchants were the primary patrons of urban consumption, funding gardens, theaters, academies, and temples. They elevated Yangzhou into a center of art, cuisine, and intellectual life. As one historian noted, they “shouldered the city’s internal demand,” transforming Yangzhou into a glittering testament to the power of commerce.

Legacy of the Canal and Its Merchants

The Grand Canal did more than move goods—it moved history. It enabled the rise of merchant empires, reshaped urban landscapes, and facilitated cultural exchanges that enriched Chinese civilization. Cities like Jining and Yangzhou owe their historical prominence to the waterway and the entrepreneurs who harnessed its potential.

Today, the Grand Canal remains a symbol of ingenuity and interconnection. Its legacy endures in the culinary traditions of brands like Yutang Sauce Garden, the architectural marvels of Yangzhou, and the enduring spirit of Chinese commerce. As a UNESCO World Heritage Site, it continues to inspire awe and remind us of the profound ways infrastructure and enterprise can shape human destiny.

In retracing the stories of the Jining merchants and Yangzhou salt traders, we uncover a chapter of history where water, wealth, and wisdom converged—creating a vibrant tapestry of ambition, innovation, and cultural splendor along the banks of the world’s greatest canal.