The Collapse of Traditional Forces and the Birth of a New Army

In the wake of the devastating Taiping Rebellion (1850–1864), the Qing dynasty faced an existential crisis. Its traditional military forces—the Eight Banners and Green Standard Army—proved shockingly ineffective against the rebel forces. Despite repeated changes in leadership, these armies suffered humiliating defeats, exposing systemic corruption and incompetence.

Emperor Xianfeng, desperate for solutions, issued an edict in 1852 empowering provincial gentry to organize local militia forces known as tuanlian (团练). Among the 45 appointed militia commissioners was Zeng Guofan, a Confucian scholar-official then mourning his mother’s death in Hunan. Initially reluctant to abandon filial rites, Zeng was persuaded by his friend Guo Songtao with a powerful argument: “You once aspired to bring order to the empire. How can clinging to ancient rituals serve your sovereign now?” This appeal to pragmatism over tradition marked a turning point—not just for Zeng, but for Qing military history.

Building the Xiang Army: Structure and Innovation

Zeng’s first task in Changsha was consolidating existing militia forces. He integrated three battalions of Xiangyong (湘勇, “Hunan Braves”) under commanders like Luo Zenan and Wang Xin, totaling 1,000 men. Drawing inspiration from Ming dynasty general Qi Jiguang’s anti-pirate tactics, Zeng implemented revolutionary reforms:

1. Organizational Overhaul:
– Unlike the decentralized Green Standard Army, the Xiang Army adopted a clear hierarchy: 15 infantry battalions (5,000 troops) and 10 naval divisions (5,000 sailors).
– Naval forces featured specialized vessels: 40 kuai xie (fast attack ships), 50 chang long (reserve ships), and 50 scout boats.

2. Recruitment Philosophy:
– Soldiers were required to provide personal guarantees (baojie), effectively using family ties as collateral against desertion.
– Preference was given to “strong, young farmers” over urban recruits deemed “slick or bureaucratic.”

3. Discipline and Training:
– Officers were chosen for competence, not connections. Zeng demanded leaders who were “fearless, hardworking, and free from empty rhetoric.”
– Daily drills emphasized obedience, with harsh penalties for infractions.

By February 1854, the Xiang Army had grown to 17,000 personnel—a force so formidable that the Qing court, while reliant on it, grew suspicious. Emperor Xianfeng even dispatched monitors to watch Zeng’s movements.

The Xiang Army’s Campaigns and Political Transformation

Originally conceived as a regional peacekeeping force, the Xiang Army’s role expanded dramatically when deployed beyond Hunan. Its victories at Xiangtan (1854) and Jiujiang (1855) showcased its superiority over Qing regulars. However, this success came with unintended consequences:

– From Militia to National Army:
Funded by provincial treasuries yet operating nationally, the Xiang Army blurred lines between local and imperial forces. Its political influence grew as Zeng’s officers assumed governorships in conquered territories.

– Institutional Legacy:
The army’s meritocratic structure inspired later reforms, including Li Hongzhang’s Huai Army and Yuan Shikai’s New Army—key players in China’s 20th-century upheavals.

The Lifeline: Creation of the Likin Tax System

Parallel to military reforms, fiscal innovation emerged from necessity. With traditional revenues collapsing, adviser Qian Jiang proposed taxing domestic commerce—a radical departure from Qing reliance on land taxes and tariffs.

– Pilot to Policy:
In 1853, official Lei Yixian tested a 1% levy (likin) on rice traders near Yangzhou, raising 20,000 strings of cash in six months. By 1854, the system spread nationwide.

– Structural Impact:
– Mobile vs. Fixed Taxes: Huoli (活厘) taxed goods in transit; banli (板厘) targeted shops.
– Revenue soared, averaging 10 million taels annually during the Taiping War—equivalent to 1/3 of pre-war state income.

Yet the system bred corruption. Local officials often imposed arbitrary surcharges, stifling economic recovery. As one critic noted, “Every checkpoint became a bottleneck for extortion.”

Cultural and Social Repercussions

The Xiang Army’s rise reshaped Qing society in unexpected ways:

– Gentry Militarization:
Scholar-officials like Zeng legitimized arms-bearing among elites, eroding Confucian disdain for military careers.

– Regionalism Ascendant:
Hunanese identity flourished as the Xiang Army’s success bred local pride. This fed into broader centrifugal forces weakening central authority.

– Economic Distortions:
Likin taxes, while funding victory, fragmented China’s market. Goods might cross a dozen tax zones between provinces, hampering industrialization.

Legacy: From Qing Crisis to Modern China

The Xiang Army’s story is one of paradoxical outcomes:

1. Short-Term Salvation, Long-Term Erosion:
It saved the Qing from the Taiping threat but accelerated regional power shifts that doomed centralized rule.

2. Template for Warlordism:
Personal loyalty in Zeng’s forces foreshadowed 20th-century warlord armies. His protégés—like Li Hongzhang—became kingmakers.

3. Fiscal Precedent:
Likin endured until 1931, illustrating how crisis measures become entrenched. Modern China’s VAT system retains echoes of its structure.

As historian Philip Kuhn observed, “The Qing won the Taiping War but lost the peace that followed.” In innovating to survive, the dynasty unwittingly planted seeds of its eventual dissolution—and of China’s turbulent journey toward modernity.