The Commerce and Economy of Ancient China

Abstract

Initially, commerce did not play an important role in ancient China. However, starting from the 6th century bce, China experienced unprecedented growth in this area. Land became privatized and a highly sought-after commodity, contracts began to be widely used in transactions, some sort of market network emerged, and merchants started to exert influence on society. This transformation was due to the various reforms and policies that reshaped the overall structure of ancient Chinese economy and emancipated the strength of merchants. Furthermore, the sophistication and advancement of agriculture meant ordinary farmers had a surplus of labor and products, providing them with incentives to go to market.