Investigating the History of Chinese Economics and Trade

As one of the oldest civilizations in the world, China has a rich and intriguing history of economic development and trade. Traversing from the agrarian society of ancient times to the present high-tech manufacturing economy, the Chinese story is a fascinating tale of human ingenuity. It highlights the challenges and successes of the Chinese people in navigating the course of their economic evolution.

What factors led to China's growth of a strong and influential economy? What economic strategies have been employed throughout the centuries and how have the results impacted China's place on the global economic stage? We will investigate the impressive history of Chinese economics and trade to better understand the remarkable progress that has been made over time.

Ancient China's Economic Systems

Agrarian economics have been a large part of Chinese history as early as the Shang dynasty around 1700 BC. This system hinged on small scale agriculture and the trading of grains, fabrics, and other tangible goods. Eventually these goods were used as incentives and taxes to expand their agricultural system.
Jorge Fernández @ Unsplash

The end of the Han Dynasty (220 AD) brought a shift in the political and economic power of China away from the central government and towards local government bureaucracies. This introduced a more decentralized economic structure for the Chinese people with local government officials taking responsibility for the economic needs of their population. This strategy lead to the growth of Chinese markets across the country that were independent from one another.

The Rise of Tea & Silk Trade

The tea trade was instrumental in the growth and expansion of the Chinese economy during the Han and Tang dynasties. By supplying the needs of their population, the Chinese people were able to trade tea for silver and Chinese goods for crops and spices from neighboring countries. This ushered in an era of richer economic exchange and prosperity for the region.

The Chinese people also had a long and successful history of producing and trading silk and other fine fabric goods. From the Han dynasty onwards, international trading routes were established to meet the demand for Chinese silk. Trade by land and sea connected China with Japan, Korea, India, the Middle East, and destinations throughout Europe. This booming Silk Road commerce played a significant role in the expansion of the Chinese economy and its place in the global trade community.
Jhayr Barriga @ Unsplash

The Effects of Opium Wars and Western Influence

The Opium Wars in the 19th century marked a significant change in China's economic landscape. After the first Opium War ended in 1842, the Chinese economy was opened to foreign mercantile influence. Despite the unfavorable terms imposed by the British, much of the industrial development that occurred during this era was born out of foreign occupation.

Once foreign economic involvement was initiated, much of China's agriculture, trade, and industry was estimated and extracted to the benefit of Western powers. However, this also provided a platform for China to become more exposed to new technologies and ideas, which helped to nurture the industrial development process.

The Decline of the Qing Dynasty & Communist Revolution

The decline of the Qing dynasty in the early 20th century triggered a revolutionary period for Chinese society. The Chinese Communist Party (CCP) gained control and adopted many of the Soviet economic and political practices to spur economic growth. The CCP replaced the previous ruling elite of landlords and imposed economic practices based on a collectivist and planned economy.

The CCP's primary economic objectives focused on developing trade and industrial sectors that were expected to drive the economic growth of the nation. Through infrastructural investment and targeted economic reforms, China experienced a transformation from an agrarian society to an industrial powered economy.

China's Current Economic Status

The economic practices of the CCP held a lot of promise, but the Chinese economy remained stagnant during the Mao era. It wasn't until the introduction of reforms under Deng Xiaoping in 1978 that the Chinese economy began to experience remarkable growth and progress.

Since then, China has become one of the most sought after economies in the world. It is now the world's second-largest economy and accounts for over 18% of the global GDP. China has also established itself as a global leader in the production and export of consumer electronics, machinery, and construction materials.

Conclusion

China's rise to a leading global economy has been an incredible story of gradual progress and economic innovation. As we have seen, the growth of Chinese economic power has been a product of diverse economic developments, foreign influence, and targeted governmental initiatives. Through careful planning and the exploration of various economic strategies, China has emerged from its agrarian roots to become one of the world's top economic powers.