Experiment With Sound Waves

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See more activities in: Fifth Grade, Physical Science

Every time a sound is produced it emits a sound wave. You can
picture the shape of sound as a wave on the ocean: the sound

starts at one end of the wave and spreads out. By the time the
wave reaches the shore you can hear it.
For a home example of this phenomenon, take a rubber band and
spread it tightly between your fingers. Now strum the rubber
band. The movement of the band creates vibration, or sound
waves. This experiment will demonstrate how sound travels, using
nothing more than a spoon and a string.

What You Need:

Metal spoon
30 inches of kite string (40 inches for an adult)

What You Do:

1. Tie the handle of the spoon at the midpoint of the string.
2. Wrap the ends of the string around your index fingers
(pointer fingers).
3. Place your fingers in your ears.
4. Lean over so that spoon hangs freely and swing the spoon so
it taps against a door.
5. Hit the door again, this time harder.
What did you hear? Was it a soft sound like a bell, and then a
louder sound like a church bell? The sound came because the
spoon vibrated, causing sound waves to travel up the string and
into your ears. The loudness or quietness of the sound depends
on the amplitude (height of the wave).

Good Vibrations
Experiment: To examine (hear and feel) sound vibrations!
Materials:

You will needA Partner.

A balloon.

Method:
What you have to do1) Blow up the balloon.
2) Hold it against your
ear.
3) Ask your partner to
press their lips against
the balloon and speak.
4) Repeat steps 3 and 4
but this time you
should speak and your friend should listen.

Results:
Did you discover what we did?
You can hear the vibrations through the balloon and you can feel them.
You can feel your own voice through your lips as the balloon's skin vibrates
against them.

Conclusions:
Sound is created when an object moves and the air around it vibrates
creating sound waves.

LIGHT Experiment 7: Square Circle Illusion Materials: Physics 3

Journal, pencil, Science notebook square piece of cardboard, push
pin, tape, ruler, Illusion WS
Procedure:
TASK 1
Cut a piece of cardboard into a two inch square.
Mark a dot EXACTLY in the center of the square.

 Draw two dark lines approximately like the ones shown.

Push a pushpin through the center point as shown.
Use a small piece of tape to secure the pin to the cardboard.
Spin it on the tabletop.
Describe what you see in your Physics 3 Journal.

Sound Waves Experiment

This science experiment is fun and easy to do. It is designed to teach

kids how sound travels from one end to another. With the help of a
long string and two plastic cups, kids will learn to create their own
working telephone. They will have fun carrying out this activity as they
learn how sound waves are created and how sound travels through
air. This exciting experiment can be used by the kids when playing
with each other. It will surely enliven the learning process in kids.
http://www.turtlediary.com/kids-science-experiments/sound-wavesexperiment.html

Larynx Laughs!

Experiment: To examine how the larynx or voice box vibrates as we speak.

Materials:

You will needYourself.

Your hand.

Method:

What you have to do 1)Place your hand firmly mid way on your throat.
2) Say 'aghhhh!' for as long as you can.

Results:
Did you discover what we did?
You can feel your throat vibrating!

Create a Paper Banger!

Experiment: To create a loud bang with paper!

Materials:

You will needA sheet of paper about 30 x 40 cm.

Method:

What you have to do1) Fold the longest edges of the paper together, and open it out again.
2) Fold down each of the four corners to the first center fold.
3) Fold the paper in half along the first centre fold.
4) Fold the paper in half again and then open it out.
5) Fold down the two top corners.
6) Fold the paper back to make a triangle shape.
The banger is ready now.
7) Grip the banger firmly by the two top corners.
Swish it down sharply with a quick flick of the wrist.

Results:
A loud bang occurs!

Talking String!

Experiment: To prove / examine how sound can travel through objects.

Materials:

You will needTwo pieces of tracing paper.

One pencil.
Sticky tape.
String.
Two rubber bands.
Two paper clips.
Two cardboard tube.

Method:

What you have to do1) Fold a piece of tracing paper over one end of each tube.
2) Fix it with a rubber band.
3) Pull the paper tight and tape it to the tubes.
4) Thread the string through both holes.
5) Tie a paperclip to each end to stop the string slipping back through.
6) Use the tubes as a simple telephone.

7)Hold one tube to your ear and listen while your friend speaks softly into
the other tube.

Results:
What happens?

Conclusions:

Why do you think this is happening?

What happens when you place cotton wool into the tubes?
Why?

Economic history of China before 1912

From Wikipedia, the free encyclopedia
Jump to: navigation, search
For developments from 1912 onwards, see Economic history of China (1912
1949) and Economic history of China (1949present).

A Chinese dragon seen floating among clouds, engraved on a golden canteen dated to
the 15th century, during the Ming dynasty (13681644 CE)
The economic history of China stretches over thousands of years and has undergone
alternating cycles of prosperity and decline. China had, for most of the last two
millennia, the world's largest and most advanced economy [1][2] In the 18th
century, Adam Smith claimed China had long been one of the richest, that is, one of
the most fertile, best cultivated, most industrious, most prosperous and most urbanized
countries in the world.[3] China's history is usually divided into three periods: The preimperial era, consisting of the era of before the unification of Qin, the early imperial
era from Qin to Song, and the late imperial era, marked by the economic revolution
that occurred during the Song dynasty.
By roughly 10,000 BCE, in the Neolithic Era, agriculture was practiced in China.
Stratified bronze-age cultures, such as Erlitou, emerged by the third millennium BCE.
Under the Shang (c. 16001045 BCE) and Zhou (1045771 BCE), a dependent labor
force worked in large-scale foundries and workshops to produce bronzes and silk for
the elite. The agricultural surpluses produced by the manorial economy supported
these early handicraft industries as well as urban centers and considerable armies. This

system began to disintegrate after the collapse of the Western Zhou in 771 BCE,
preceding the Spring and Autumn and Warring stateseras.
As the feudal system collapsed, much legislative power was transferred from the
nobility to local kings. A merchant class emerged during the Warring States period,
resulting in increased trade. The new kings established an elaborate bureaucracy,
using it to wage wars, build large temples, and perform public works projects.
Thisnew system rewarded talent over birthright; important positions were no longer
occupied solely by nobility. The adoption of new iron tools revolutionized agriculture
and led to a large population increase during this period. By 221 BCE, the state of
Qin, which embraced reform more than other states, unified China, built the Great
Wall, and set consistent standards of government. [4] Although its draconian laws led to
its overthrow in 206 BCE, the Qin institutions survived. During the Han Dynasty,
China became a strong, unified, and centralized empire of self-sufficient farmers and
artisans, though limited local autonomy remained.
The Song dynasty (9601279 CE) brought additional economic reforms. Paper
money, the compass, and other technological advances facilitated communication on a
large scale and the widespread circulation of books. The state's control of the
economy diminished, allowing private merchants to prosper and a large increase in
investment and profit. Despite disruptions during the Mongol conquest of 1279, the
population much increased under the Ming dynasty and Qing dynasty. In the later
Qing period, China's economic development began to slow and Europe's rapid
development since The Renaissance.[5] Adam Smith thought China had been long
stationary before 18th century. While some historians like Carol H. Shiue and
Wolfgang Keller conclude that, in 1750, productivity in the most developed regions of
China was still on a par with that of Europe's Atlantic economy,[6] other historians like
Angus Maddison hold that the per-capita productivity of western Europe had
surpassed that of all other regions during this period. [7]

Economy of the Han dynasty

From Wikipedia, the free encyclopedia
(Redirected from Economy of the Han Dynasty)

An Eastern-Han golden belt hook, hammered and chiseled with designs of mythical
animals and birds
This article
contains Chinese text.Without
proper rendering support, you may
see question marks, boxes, or other
symbols instead ofChinese
characters.
The Han dynasty (206 BC 220 AD) of ancient China experienced contrasting periods of economic
prosperity and decline. It is normally divided into three periods: Western Han (206 BC 9 AD),
the Xin dynasty (923 AD), and Eastern Han (25220 AD). The Xin regime, established by the
former regent Wang Mang, formed a brief interregnum between lengthy periods of Han rule.
Following the fall of Wang Mang, the Han capital was moved eastward from Chang'an toLuoyang. In
consequence, historians have named the succeeding eras Western Han and Eastern Han
respectively.[1]
The Han economy was defined by significant population growth, increasing urbanization,
unprecedented growth of industry and trade, and government experimentation with nationalization.
In this era, the levels of minting and circulation of coin currency grew significantly, forming the
foundation of a stable monetary system. The Silk Road facilitated the establishment of trade and
tributary exchanges with foreign countriesacross Eurasia, many of which were previously unknown
to the people of ancient China. The imperial capitals of both Western Han (Chang'an) and Eastern
Han (Luoyang) were among the largest cities in the world at the time, in both population and area.
Here, government workshops manufactured furnishings for the palaces of the emperor and
produced goods for the common people. The government oversaw the construction of roads and
bridges, which facilitated official government business and encouraged commercial growth. Under
Han rule, industrialists, wholesalers, and merchantsfrom minor shopkeepers to wealthy
businessmencould engage in a wide range of enterprises and trade in the domestic, public, and
even military spheres.
In the early Han period, rural peasant farmers were largely self-sufficient, but they began to rely
heavily upon commercial exchanges with the wealthy landowners of large agricultural estates. Many
peasants fell into debt and were forced to become either hired laborers or rent-paying tenants of the
land-owning classes. The Han government continually strove to provide economic aid to poor
farmers, who had to compete with powerful and influential nobles, landowners, and merchants. The
government tried to limit the power of these wealthy groups through heavy taxation and bureaucratic

regulation.Emperor Wu's (r. 14187 BC) government even nationalized the iron and salt industries;
however, these government monopolies were repealed during Eastern Han. Increasing government
intervention in the private economy during the late 2nd century BC severely weakened the
commercial merchant class. This allowed wealthy landowners to increase their power and to ensure
the continuation of an agrarian-dominated economy. The wealthy landlords eventually dominated
commercial activities as well, maintaining control over the rural peasantsupon whom the
government relied for tax revenuesmilitary manpower, and public works labor. By the 180s AD,
economic and political crises had caused the Han government to become heavily decentralized,
while the great landowners became increasingly independent and powerful in their communities.

Variations in currency[edit]

Further information: History of the Han dynasty and Government of

the Han dynasty
During the early Western Han period, founding Emperor Gaozu of
Han (r. 202195 BC) closed government mints in favor ofcoin
currency produced by the private sector.[9] Gaozu's widow Empress L
Zhi, as grand empress dowager, abolished private minting in 186 BC.
She first issued a government-minted bronze coin weighing 5.7 g
(0.20 oz), but issued another, weighing 1.5 g (0.053 oz), in 182 BC.
[9]

The change to the lighter coin caused widespread inflation, so in 175

BC Emperor Wen of Han (r. 180157 BC) lifted the ban on private
minting; private mints were required to mint coins weighing exactly
2.6 g (0.092 oz).[9] Private minting was again abolished in 144 BC
during the end of Emperor Jing of Han's (r. 157141 BC) reign.
Despite this, the 2.6 g (0.092 oz) bronze coin was issued by both
central and local commandery governments until 120 BC, when for
one year it was replaced with a coin weighing 1.9 g (0.067 oz).[10] Other
currencies were introduced around this time. Token money notes
made of embroidered white deerskin, with a face value of 400,000
coins, were used to collect government revenues.[10] Emperor Wu also
introduced three tin-silver alloy coins worth 3,000, 500, and 300

bronze coins, respectively; all of these weighed less than 120 g

(4.2 oz).[10]

A wushu () coin issued during the reign of Emperor Wu (r. 14187 BC),
25.5 mm (1 in) in diameter

In 119 BC, the government issued the bronze wushu () coin

weighing 3.2 g (0.11 oz); the coin remained the standard currency in
China until the Tang dynasty(618907 AD).[11] During the brief
interruptive Xin dynasty (923 AD) of Wang Mang(45 BC 23 AD), the
government introduced several new denominations in 7, 9, 10, and 14
AD. These new units (including bronze knife money, gold, silver,
tortoise, and cowry shell currencies) often had a market price unequal
to their weight and debased the value of coin currency.[12] Once the
widespread civil wars following Wang's overthrow abated,
the wushu coin was reintroduced by Emperor Guangwu of Han (r. 25
57 AD) in 40 AD at the instigation of Ma Yuan (14 BC 49 AD).
[12]

Since commandery-issued coins were often of inferior quality and

lighter weight, the central government closed all commandery mints in

113 BC and granted the central government's Superintendent of
Waterways and Parks the exclusive right to mint coins.[13] Although the
issue of central government coinage was transferred to the office of
the Minister of Finance (one of Nine Ministers of the central
government) by the beginning of Eastern Han, the central
government's monopoly over the issue of coinage persisted. [14]

Gary Lee Todd (Ph.D. in History from University of Illinois at UrbanaChampaign and Professor of History at Sias International
University in Xinzheng, Henan, China) provides the following images
of coins issued during the Western Han and Xin periods on his
website:[15]

A coin issued during the reign of Empress L Zhi(r. 187180 BC), 34 mm

in diameter

A coin issued during the reign of Emperor Wen of Han (r. 180157 BC),
24 mm in diameter

A coin issued during the early reign of Emperor Wu of Han (r. 14187 BC),
made of lead and issued before the government monopoly was installed;
this coin is 22 to 23 mm in diameter.

A wushu coin issued during the reign ofEmperor Xuan of Han (r. 7449
BC), 25.5 mm in diameter

A coin issued during theregency of Wang Mang(69 AD), 28 mm in

diameter

A knife-shaped coinissued during the reign ofWang Mang (923 AD)

A spade-shaped coin issued during the reign ofWang Mang (923 AD)

A coin issued during the reign of Wang Mang (923 AD), 20 mm in

diameter
Circulation and salaries[edit]

A Han dynasty bronze mold for making wuzhu () coins; the latter featured a
square hole in the center so that strings could pass through and thus allow one to
carry many coins at once.

Merchants and peasant farmers paid property and poll taxes in coin
cash and land taxes with a portion of their crop yield.[16] Peasants
obtained coinage by working as hired laborers for rich landowners,
in businesses like breweries or by selling agricultural goods and
homemade wares at urban markets.[17] The Han government may
have found collecting taxes in coin the easiest method because the
transportation of taxed goods would have been unnecessary.[18]
From 118 BC to 5 AD, the government minted over 28,000,000,000
coins, with an annual average of 220,000,000 coins minted (or
220,000 strings of 1,000 coins).[19] In comparison, the Tianbao

period() (742755 AD) of the Tang dynasty produced

327,000,000 coins every year while 3,000,000,000 coins in 1045 AD
and 5,860,000,000 coins in 1080 AD were made in the Song
dynasty (9601279 AD).[19] Coin cash became the common measure
of wealth during Eastern Han, as many wages were paid solely in
cash.[20] Diwu Lun () (fl. 4085 AD), Governor of Shu Province
(modern Sichuan), described his subordinate officials' wealth not in
terms of landholdings, but in the form of aggregate properties worth
approximately 10,000,000 coin cash.[21] Commercial transactions
involving hundreds of thousands of coins were commonplace.[21]
Angus Maddison estimates that the country's gross domestic
product was equivalent to $450 per head in 1990 United States
dollarsa sum that was above subsistence level, and which did not
significantly change until the beginning of the Song dynasty in the
late 10th century.[22] Sinologist Joseph Needham has disputed this
and claimed that China's GDP per capita exceeded Europe by
substantial margins from the 5th century BCE onwards, holding that
Han China was much wealthier than the contemporary Roman
Empire.[23] The widespread circulation of coin cash enriched many
merchants, who invested their money in land and became wealthy
landowners. The government's efforts to circulate cash had
empowered the very social class which it actively tried to suppress
through heavy taxes, fines, confiscations, and price regulation
schemes.[18]

Taxation, property, and social class[edit]

Landowners and peasants[edit]

Further information: Society and culture of the Han dynasty

A female servant and male advisor dressed in silk robes, ceramic figurinesfrom
the Western Han Era

After Shang Yang (d. 338 BC) of the State of Qin abolished the
communal and aristocratic well-field system in an effort to curb the
power of nobles, land in China could be bought and sold.
[24]

Historical scholars of the Han dynasty like Dong Zhongshu (179

104 BC) attributed the rise of the wealthy landowning class to this
reform.[24] The Han Feizi describes these landowners' use of hired
labor in agriculture, a practice dating back to the 3rd century BC,
possibly earlier.[24] Some landowners owned small numbers of
slaves, but many relied on peasant tenant farmers who paid rent
with a portion of their agricultural produce.[3][25] More numerous than
tenants, small landowner-cultivators lived and worked

independently, but often fell into debt and sold their land to the
wealthy.[3] The court official Chao Cuo (d. 154 BC) argued that if the
average independent landowning family of five could cultivate no
more than 4.57 hectares (11.3 acres) of land and produce no more
than 2,000litres (530 US gal) of grain annually, then natural
disasters and high taxation rates would force many into debt, to sell
their land, homes, and even children, and to become dependent
upon work as tenant farmers for the wealthy.[26]
Officials at the court of Emperor Ai of Han (r. 71 BC) attempted to
implement reforms limiting the amount of land nobles and wealthy
landowners could own legally, but were unsuccessful. [27] WhenWang
Mang took control of the government in 9 AD, he abolished the
purchase and sale of land in a system called King's Fields ().
This was a variation of the well-field system, where the government
owned the land and assured every peasant an equal share to
cultivate.[28] Within three years, complaints from wealthy landowners
and nobles forced Wang Mang to repeal the reform.
[28]

After Gengshi (r. 2325 AD) and Guangwu (r. 2557 AD) restored

the Han dynasty, they relied on the service of great landholding

families to secure their position in society. Many of their government
officials also became wealthy landowners.[29]

A Han pottery model of a roofed water well with a bucket

By the late Eastern Han period, the peasantry had become largely
landless and served wealthy landowners. This cost the government
significant tax revenue.[29] Although the central government
under Emperor He of Han (r. 88105 AD) reduced taxes in times of
natural disaster and distress without much effect upon the treasury,
successive rulers became less able to cope with major crises. The
government soon relied upon local administrations to conduct relief
efforts.[30] After the central government failed to provide local
governments with provisions during both a locust swarm and the
flooding of the Yellow River in 153 AD, many landless peasants
became retainers of large landowners in exchange for aid.[31] Patricia
Ebrey writes that the Eastern Han was the "transitional period"
between the Western Hanwhen small independent farmers were
the vast majorityand theThree Kingdoms (220265 AD) and
later Sixteen Kingdoms (304439 AD), when large family estates
used unfree labor.[32]
The Yellow Turban Rebellion of 184 AD, the slaughter of the
eunuchs in 189 AD, and the campaign against Dong Zhuo in 190

AD destabilized the central government, and Luoyang was burnt to

the ground.[33] At this point, "... private and local power came to
replace public authority."[32]

Low-fired green-glazed pottery figure of a duck from the time of the Eastern Han
Era

Eastern-Han ceramic figurines of an ox-drawn cart, a horse, and human figures,

found in a tomb at Luoyang

The Han Chancellor and King of Wei Cao Cao (155220 AD) made
the final significant attempt to limit the power of wealthy landowners.
Cao Cao established government-managed agricultural colonies for
landless commoners; in exchange for land and cheap equipment,
the farmers paid a portion of their crop yield.[34] In the 120s BC,
Emperor Wu had attempted to establish agricultural colonies in the

northwestern frontier of the newly conquered Hexi Corridor (in

modern Gansu). 600,000 new settlers farmed on these state lands
using seeds, draft animals and equipment loaned by the
government.[35] An imperial edict in 85 AD ordered the local
governments of commanderies and subordinate kingdoms to
resettle landless peasants onto state-owned lands, where they
would be paid wages, provided with crop seeds, loaned farming
tools and exempted from rent payments for five years and poll taxes
for three years.[36] The edict also allowed peasants to return to their
nativecounties at any time.[36] Subsequent governments of the Three
Kingdoms established agricultural colonies on these models.[37]
Tax reforms[edit]

Because small landowning families represented the mainstay of the

Han tax base, the Han government attempted to aid and protect
small landowners and to limit the power of wealthy landlords and
merchants.[38] The government reduced taxes in times of poor
harvest and provided relief after disasters.[39] Tax remissions and
crop seed loans encouraged displaced peasants to return to their
land.[39] An edict in 94 AD excused displaced peasants from paying
land and labor service taxes for a year upon returning to their own
farms.[40] The land tax on agricultural production was reduced in 168
BC from a rate of one-fifteenth of crop yield to one-thirtieth, and
abolished in 167 BC. However, the tax was reinstated in 156 BC at

a rate of one-thirtieth.[41] At the beginning of the Eastern Han, the

land tax rate was one-tenth of the crop yield, but following the
stabilization following Wang Mang's death, the rate was reduced to
the original one-thirtieth in 30 AD.[42]
Towards the end of the Han dynasty, the land tax rate was reduced
to one-hundredth, with lost revenue recouped by increasing
the poll and property tax rates.[43] The poll tax for most adults was
120 coins annually, 240 coins for merchants, and 20 coins for
minors aged between three and fourteen years. The lower taxable
threshold age for minors increased to seven years during the reign
of Emperor Yuan of Han (r. 4833 BC) and onwards.
[44]

Historian Charles Hucker writes that underreporting of the

population by local authorities was deliberate and widespread, since

this reduced their tax and labor service obligations rendered to the
central government.[45]

A Western-Han ceramic figurine of a mounted cavalryman, 2nd century BC

Though requiring additional revenue to fund the HanXiongnu War,

the government during Emperor Wu of Han's reign (14187 BC)
sought to avoid heavy taxation of small landowners. To increase
revenue, the government imposed heavier taxes on merchants,
confiscated land from nobles, sold offices and titles, and established
government monopolies over the minting of coins, iron
manufacture and salt mining.[38] New taxes were imposed on the
ownership of boats, carts, carriages, wheelbarrows, shops and
other properties. The overall property tax for merchants was raised
in 119 BC from 120 coins for every 10,000 coins-worth of property
owned to 120 coins for every 2,000 coins-worth of property owned.
[46]

Tax rates for almost all commodities are unknown, except for that

of liquor. After the government monopoly on liquor was abolished in

81 BC, a property tax of 2 coins for every 0.2 litres (0.05 US gal)
was levied on liquor merchants.[16]
The sale of certain offices and titles was reintroduced in Eastern
Han by Empress Dowager Deng Suiwho reigned as regent from
105121 ADto raise government revenues in times of severe
natural disasters and the widespread rebellion of the Qiang
people in western China.[47] The sale of offices became extremely
corrupt under the eunuch-dominated government of Emperor Ling
of Han (r. 168189 AD), when many top official posts were sold at
the highest bidder instead of being filled by vetted candidates who

had taken Imperial examinations or attended the Imperial University.

[48]

Conscription[edit]

Further information: Government of the Han dynasty and Corve

Painted ceramic cavalrymen and infantrymen, Western Han dynasty

Two forms of mass conscription existed during the Han period.

These were civilian conscription (gengzu ) and military
conscription (zhengzu ). In addition to paying their monetary
and crop taxes, all peasants of the Western Han period aged
between fifteen and fifty-six were required to undertake mandatory
conscription duties for one month of each year. These duties were
usually fulfilled by work on construction projects.[49]
At the age of twenty-three years male peasants were drafted to
serve in the military, where they were assigned to infantry, cavalry,
or navy service.[49] After one year of training, they went on to perform
a year of actual military service in frontier garrisons or as guards in
the capital city.[49] They remained liable to perform this year of
service until the age of fifty-six.[49] This was also the age when they
were dismissed from their local militias, which they could join once

they had finished their year of conscripted service.[50] These nonprofessional conscripted soldiers comprised the Southern Army
(Nanjun ), while the Northern Army (Beijun ) was
a standing army composed of paid career soldiers.[51]
During the Eastern Han, peasants could avoid the month of annual
conscripted labor by paying a tax in commutation (gengfu ).
This development went hand in hand with the increasing use of
hired labor by the government.[52] In a similar manner, because the
Eastern-Han government favored the military recruitment of
volunteers, the mandatory military draft for peasants aged twentythree could be avoided by paying a tax in substitution.[53]
Merchants[edit]

Gilded bronze animal figurines from the Han dynasty, including a horse,
elephant, cow, and unicorn

There were two categories of Han merchants: those who sold goods
at shops in urban markets, and the larger-scale itinerant traders
who traveled between cities and to foreign countries.[54] The smallscale urban shopkeepers were enrolled on an official register and
had to pay heavy commercial taxes.[54] Although these registered
merchants were taxed, an edict of 94 AD ordered that landless

peasants who had to resort to peddling were to be exempted from

taxation.[40]
Itinerant merchants were often wealthy and did not have to register.
[54]

These itinerant merchants often participated in large-scale trade

with powerful families and officials.[54] Nishijima writes that most of

the biographies of "wealthy men" in the Records of the Grand
Historian and Book of Hanwere those of itinerant merchants.[54]
In contrast, registered marketplace merchants had a very low social
status and were often subject to additional restrictions.[55] Emperor
Gaozu passed laws levying higher taxes, forbidding merchants from
wearing silk, and barring their descendants from holding public
office. These laws were difficult to enforce.[55] Emperor Wu targeted
both the registered and unregistered merchants with higher taxes.
While registered merchants were not allowed to own land, if they
broke this law their land and slaves would be confiscated.
[55]

However, wealthy unregistered merchants owned large tracts of

land.[56] Emperor Wu significantly reduced the economic influence of

great merchants by openly competing with them in the marketplace,
where he set up government-managed shops that sold commodities
collected from the merchants as property taxes.[38]

Economy of the Song dynasty

From Wikipedia, the free encyclopedia
(Redirected from Economy of the Song Dynasty)

A small section of the Qingming Shang He Tu(Along the River During Qingming
Festival), a large horizontal scroll painting by Zhang Zeduan, early 12th century.
For over three centuries, China's economy during the Song Dynasty (9601279) experienced
unprecedented changes. From a long-run, economic growth point of view, the most notable change
was the increased pace of technological innovation. Moveable print, explosive gunpowder, waterpowered mechanical clocks, the use of coal as a source of fuel for a variety of industries, pound
locks and many other technological innovations appeared and developed to higher levels of
sophistication than previously seen. Indeed,it is now widely held among historians of science and
technology that China during the Song Dynasty was the world's technological leader. In north China,
the main fuel source for ceramic kilns and iron furnaces shifted from wood to coal. The archeological
evidence and written sources have conclusively generated a consensus among experts on this
point. In addition, a general consensus among Song historians has emerged which contends that
both per capita income and population in China experienced unprecedented and considerable
increases throughout the Song Dynasty. This observation, as well as a large number of other
indicators, has led some scholars to conclude that England was not the first country to experience
economic growth. Ronald A. Edwards, an economic historian of China's Song Dynasty, has made
this point in a recent paper.[1] The eminent historian of Song Dynasty China, Mark Elvin, has argued
that during the Song Dynasty China went through revolutions in farming, water transport, money and
credit, market structure and urbanization, and science and technology.[2] Economists have been
increasingly pointing to the mounting evidence that England was not the first country to experience
increases in both per capita product and population - China's Song Dynasty is arguably the best
example. Most notable of these economists is Nobel Prize winner Edward C. Prescott. [3] Others
include Kent Deng, Jack Goldstone, Eric L. Jones, Morgan Kelly, Angus Maddison, Stephan L.
Parente, Jan de Vries and others.[4]
During the Song dynasty there was also a notable increase in commercial contacts with the outside
world, with merchants engaging in overseas trade through investments in trading vessels, which
undertook trade at ports as far away as East Africa. This period also witnessed the development of
the world's first banknote, or printed paper money (see Jiaozi, Huizi), which was established on a
massive scale. Combined with a unified tax system and efficient trade routes by road and canal, this
meant the development of a truly nationwide market in China. Although much of the revenue in the
central government's treasury was consumed by the needs of the military, the taxes imposed on the
rising commercial base in China refilled the monetary coffers of the Song government. [5] For certain
production items and marketed goods, the Song government imposed monopolies in order to boost
revenues and secure resources that were vital to the empire's security, such as chemical
components for gunpowder.

Economic Crops[edit]

Song dynasty tribute tea, the big dragon cake

Cotton was introduced from Hainan Island into central China. Cotton
flowers were collected, pits removed, beaten loose with bamboo
bows, and drawn but tinto yarns and weaved into cloth called
"jibei"."[12] The cotton jibei made in Hainan has great variety, the cloth
has great width, often dyed into brilliant colors, stitching up two pieces
make a bedspread, stitching four pieces make a curtain[13] Hemp was
also widely planted and made into linen. Independent mulberry farms
flourished in the Mount Dongting region in Suzhou. The mulberry
farmers did not make a living on farmland, but instead they grew
mulberry trees and bred silkworm to harvest silk.
Sugarcane first appeared in China during the Warring States period.
During the Song dynasty, Lake Tai valley was famous for the
sugarcane cultivated. Song writerWang Zhuo described in great detail
the method of cultivating sugarcane and how to make cane sugar flour

from sugarcane in his monography "Classic of Sugar" in 1154, the first

book about sugar technology in China.[14]
Tea plantation in the Song dynasty was three times the size that it was
during the Tang dynasty. According to a survey in 1162, tea plantations
were spread across 66 prefectures in 244 counties.[15] The Beiyuan
Plantation (North Park Plantation) was an imperial tea plantation in
Fujian prefecture. It produced more than forty varieties of tribute tea
for the imperial court. Only the very tip of tender tea leaves were
picked, processed and pressed into tea cakes, embossed with dragon
pattern, known as "dragon tea cakes".[16]
With the growth of cities, high value vegetable farms sprung up in the
suburbs. In southern China, on average one mu of paddy farm land
supported one man, while in the north about three mu for one man,
while one mu of vegetable farm supported three men.[17]
Flower nurseries also flourished. Peony was the favorite of the rich
and powerful. Up to ninety varieties of peony were cultivated. Jasmine
and crabapple from Persia were also cultivated.
Organization, investment, and trade[edit]

A Song painting on silk of twoChinese cargo ships; Chinese ships of the Song period
featured hulls withwatertight compartments.

During the Song dynasty, the merchant class became more

sophisticated, well-respected and organized than in earlier periods of
China. Their accumulated wealth often rivaled that of the scholarofficials who administered the affairs of government. For their
organizational skills, Ebrey, Walthall, and Palais state that Song
merchants:
...set up partnerships and joint stock companies, with a separation of
owners (shareholders) and managers. In the large cities, merchants
were organized into guilds according to the type of product sold; they
periodically set prices and arranged sales from wholesalers to shop
owners. When the government requisitioned goods or assessed taxes,
it dealt with the guild heads.[18]
Although large government-run industries and large privately owned
enterprises dominated the market system of urban China during the
Song period, there was a plethora of small private businesses and
entrepreneurs throughout the large suburbs and rural areas that
thrived off the economic boom of the period. There was even a large
black market in China during the Song period, which was actually
enhanced once the Jurchens conquered northern China and
established the Jin dynasty. For example, around 1160 AD there was
an annual black market smuggling of some 70 to 80 thousand cattle.
[19]

There were multitudes of successful small kilns and pottery shops

owned by local families, along with oil presses, wine-making shops,

small local paper-making businesses, etc.[20] There was also room for

small economic success with the "inn keeper, the petty diviner, the
drug seller, the cloth trader," and many others.[21]

A Northern Song (9601127) era painting of a water-powered mill for grain, along
with river transport.

Rural families that sold a large agricultural surplus to the market not
only could afford to buy more charcoal, tea, oil, and wine, but they
could also amass enough funds to establish secondary means of
production for generating more wealth.[22]Besides necessary
agricultural foodstuffs, farming families could often produce wine,
charcoal, paper, textiles, and other goods they sold through brokers.
[22]

Farmers inSuzhou often specialized in raising bombyx mori to

produce silk wares, while inFujian, Sichuan, and Guangdong farmers

often grew sugarcane.[22] In order to ensure the prosperity of rural
areas, technical applications for public works projects and improved
agricultural techniques were essential. The vast irrigation system of
China had to be furnished with multitudes of wheelwrights massproducing standardized waterwheels and square-pallet chain
pumps that could lift water from lower planes to higher irrigation
planes.[23]

For clothing, silken robes were worn by the wealthy and elite
while hemp and ramie was worn by the poor; by the late Song period
cotton clothes were also in use.[22] Shipment of all these materials and
goods was aided by the 10th century innovation of the canal pound
lock in China; the Song scientist and statesman Shen Kuo (1031
1095) wrote that the building of pound lock gates at Zhenzhou
(presumably Kuozhou along the Yangtze) during the 1020s and 1030s
freed up the use of five hundred working laborers at the canal each
year, amounting to the saving of up to 1,250,000 strings of cash
annually.[24] He wrote that the old method of hauling boats over limited
the size of the cargo to 300 tan of rice per vessel (roughly
17 t/17,000 kg), but after the pound locks were introduced, boats
carrying 400 tan (roughly 22 t/22,000 kg) could then be used.[24] Shen
wrote that by his time (c. 1080) government boats could carry cargo
weights of up to 700 tan (39 t/39,000 kg), while private boats could
hold as much as 800 bags, each weighing 2 tan (i.e. a total of
88 t/88,000 kg).[24]
Foreign trade[edit]

A Longquan-ware celadonvase from the 13th century.

Sea trade abroad to the South East Pacific, the Hindu world, the
Islamic world, and the East African world brought merchants great
fortune.[25] Although the massive amount of indigenous trade along
the Grand Canal, the Yangtze River, its tributaries and lakes, and
other canal systems trumped the commercial gains of overseas trade,
[26]

there were still many large seaports during the Song period that

bolstered the economy, such asQuanzhou, Fuzhou, Guangzhou,

and Xiamen. These seaports, now heavily connected to the hinterland
via canal, lake, and river traffic, acted as a long string of large market
centers for the sale of cash crops produced in the interior.[27] The high
demand in China for foreign luxury goods and spices coming from the
East Indies facilitated the growth of Chinese maritime trade abroad
during the Song period.[28] Along with the mining industry, the
shipbuilding industry of Fujian province during the Song period
increased its production exponentially as maritime trade was given

more importance and as the province's population growth began to

increase dramatically.[19] The Song capital atHangzhou had a large
canal that connected its waterways directly to the seaport at Mingzhou
(modern Ningbo), the center where many of the foreign imported
goods were shipped out to the rest of the country.[29] Despite the
installation of fire stations and a large fire fighting force, fires
continued to threaten the city of Hangzhou and the various businesses
within it.[30] In safeguarding stored supplies and providing rented space
for merchants and shopkeepers to keep their surplus goods safe from
city fires, the rich families of Hangzhou, palace eunuchs, and
empresses had large warehouses built near the northeast walls; these
warehouses were surrounded by channels of water on all sides and
were heavily guarded by hired night watchmen.[31] Shipbuilders
generated means of employment for many skilled craftsmen, while
sailors for ship crews found many opportunities of employment as
more families had enough capital to purchase boats and invest in
commercial trading abroad.[32] Foreigners and merchants from abroad
had an impact on the economy from within China as well. For
example, many Muslims went to Song China not only to trade, but
dominated the import and export industry and in some cases became
officials of economic regulations.[33][34] For Chinese maritime merchants,
however, there was risk involved in such long overseas ventures to
foreign trade posts and seaports as far away as Egypt.[35] In order to
reduce the risk of losing money instead of gaining it on maritime trade
missions abroad:

A 10th or 11th century Longquanstoneware vase from Zhejiangprovince, Song

dynasty.

[Song era] investors usually divided their investment among many

ships, and each ship had many investors behind it. One observer
thought eagerness to invest in overseas trade was leading to an
outflow of copper cash. He wrote, "People along the coast are on
intimate terms with the merchants who engage in overseas trade,
either because they are fellow-countrymen or personal
acquaintances...[They give the merchants] money to take with them
on their ships for purchase and return conveyance of foreign goods.
They invest from ten to a hundred strings of cash, and regularly make
profits of several hundred percent."[36]

A celadon plate from Yaozhou,Shaanxi, 10th to 11th century.

The author Zhu Yu wrote in his Pingzhou Ketan (; Pingzhou

Table Talks) of 1119 AD about the organization, maritime practices,
and government standards of seagoing vessels, their merchants, and
sailing crews. His book stated:
According to government regulations concerning seagoing ships, the
larger ones can carry several hundred men, and the smaller ones may
have more than a hundred men on board. One of the most important
merchants is chosen to be Leader (Gang Shou), another is Deputy
Leader (Fu Gang Shou), and a third is Business Manager (Za Shi).
The Superintendent of Merchant Shipping gives them an unofficially
sealed red certificate permitting them to use the light bamboo for
punishing their company when necessary. Should anyone die at sea,
his property becomes forfeit to the government...The ship's pilots are
acquainted with the configuration of the coasts; at night they steer by
the stars, and in the day-time by the sun. In dark weather they look at
the south-pointing needle (i.e. the magnetic compass). They also use
a line a hundred feet long with a hook at the end which they let down
to take samples of mud from the sea-bottom; by its (appearance and)
smell they can determine their whereabouts.[37]
Foreign travelers to China often made remarks on the economic
strength of the country. The later Muslim Moroccan Berbertraveler Ibn
Batutta (13041377) wrote about many of his travel experiences in
places across the Eurasian world, including China at the farthest
eastern extremity. After describing lavish Chinese ships holding

palatial cabins and saloons, along with the life of Chinese ship crews
and captains, Batutta wrote: "Among the inhabitants of China there
are those who own numerous ships, on which they send their agents
to foreign places. For nowhere in the world are there to be found
people richer than the Chinese".[38]
Salaries and Income[edit]

Wealthy landholders were still typically those who were able to

educate their sons to the highest degree. Hence small groups of
prominent families in any given local county would gain national
spotlight for having sons travel far off to be educated and appointed as
ministers of the state. Yet downward social mobility was always an
issue with the matter of divided inheritance. Suggesting ways to
increase a family's property, Yuan Cai (11401190) wrote in the late
12th century that those who obtained office with decent salaries
should not convert it to gold and silver, but instead could watch their
values grow with investment:
For instance, if he had 100,000 strings worth of gold and silver and
used this money to buy productive property, in a year he would gain
10,000 strings; after ten years or so, he would have regained the
100,000 strings and what would be divided among the family would be
interest. If it were invested in a pawn brokingbusiness, in three years
the interest would equal the capital. He would still have the 100,000
strings, and the rest, being interest, could be divided. Moreover, it
could be doubled again in another three years, ad infinitum. [39]

Shen Kuo (10311095), a minister of finance, was of the same

opinion; in his understanding of the velocity of circulation, he stated in
1077:
The utility of money derives from circulation and loan-making. A village
of ten households may have 100,000 coins. If the cash is stored in the
household of one individual, even after a century, the sum remains
100,000. If the coins are circulated through business transactions so
that every individual of the ten households can enjoy the utility of the
100,000 coins, then the utility will amount to that of 1,000,000 cash. If
circulation continues without stop, the utility of the cash will be beyond
enumeration.[40]
Considerable scholarship has been concentrated on researching the
level of living standards during the Song dynasty. A recent study by
economic historian Cheng Minsheng estimated the average income
for lower-class laborers during the Song dynasty as 100 wen a day,
about 5 times the estimated subsistence level of 20 wen a day and a
very high level for preindustrial economies. Per capita consumption of
grain and silk respectively was estimated by Cheng to be around 8 jin
(about 400 g each) a day and 2 bolts a year, respectively.[41]
Gunpowder production[edit]

The earliest known written formula for gunpowder, from theWujing

Zongyao manuscript compiled in 1044.

During the Song period, there was a great deal of organized labor and
bureaucracy involved in the extraction of resources from the various
provinces in China. The production of sulfur, which the Chinese called
'vitriol liquid', was extracted from pyriteand used for pharmaceutical
purposes as well as for the creation of gunpowder.[49] This was done by
roasting iron pyrites, converting the sulphide to oxide, as the ore was
piled up with coal briquettes in an earthenware furnace with a type of
still-head to send the sulfur over as vapour, after which it would solidify
and crystallize.[50] The historical text of the Song Shi (History of the
Song, compiled in 1345 AD) stated that the major producer of sulfur in
the Tang and Song dynasties was the Jin Zhou sub-provincial
administrative region (modern Linfen in southern Shanxi).[51] The
bureaucrats appointed to the region managed the industrial
processing and sale of it, and the amount created and distributed from
the years 996 to 997 alone was 405,000 jin (roughly 200 tons). [51] It
was recorded that in 1076 AD the Song government held a strict
commercial monopoly on sulfur production, and if dye houses and
government workshops sold their products to private dealers in the
black market, they were subject to meted penalties by government
authorities.[50][51] Even before this point, in 1067 AD, the Song
government had issued an edict that the people living
in Shanxi and Hebei were forbidden to sell foreigners any products
containingsaltpetre and sulfur. This act by the Song government
displayed their fears of the grave potential of gunpowder weapons

being developed by Song China's territorial enemies as well (i.e.

the Tanguts and Khitans).[50]
Since Jin Zhou was in close proximity to the Song capital at Kaifeng,
the latter became the largest producer of gunpowder during the
Northern Song period.[51] With enhanced sulfur from pyrite instead of
natural sulfur (along with enhancedpotassium nitrate), the Chinese
were able to shift the use of gunpowder from an incendiary use into an
explosive one for early artillery.[52] There were large manufacturing
plants in the Song dynasty for the purpose of making 'fire-weapons'
employing the use of gunpowder, such as fire lances and fire arrows.
While engaged in a war with the Mongols, in 1259 the official Li
Zengbo wrote in his Ko Zhai Za Gao, Xu Gao Hou that the city
of Qingzhou was manufacturing one to two thousand strong ironcased bomb shells a month, dispatching to Xiangyang and Yingzhou
about ten to twenty thousand such bombs at a time. [53] One of the main
armories and arsenals for the storage of gunpowder and weapons
was located atWeiyang, which accidentally caught fire and produced a
massive explosion in 1280 AD.[54]
The world's first paper money[edit]

Huizi currency currency, issued in 1160.

The central government soon observed the economic advantages of

printing paper money, issuing a monopoly right of several of the
deposit shops to the issuance of these certificates of deposit. [60] By the
early 12th century, the amount of banknotes issued in a single year
amounted to an annual rate of 26 million strings of cash coins.[63] By
the 1120s the central government officially stepped in and produced
their own state-issued paper money (using woodblock printing).
[60]

Even before this point, the Song government was amassing large

amounts of paper tribute. It was recorded that each year before 1101
AD, the prefecture of Xinan (modern Xi-xian,Anhui) alone would send
1,500,000 sheets of paper in seven different varieties to the capital at
Kaifeng.[72] In that year of 1101, the Emperor Huizong of Song decided
to lessen the amount of paper taken in the tribute quota, because it
was causing detrimental effects and creating heavy burdens on the
people of the region.[73]However, the government still needed masses
of paper product for the exchange certificates and the state's new

issuing of paper money. For the printing of paper money alone, the
Song court established several government-run factories in the cities
of Huizhou, Chengdu, Hangzhou, and Anqi.[73] The size of the
workforce employed in these paper money factories were quite large,
as it was recorded in 1175 AD that the factory at Hangzhou alone
employed more than a thousand workers a day.[73] However, the
government issues of paper money were not yet nationwide standards
of currency at that point; issues of banknotes were limited to regional
zones of the empire, and were valid for use only in a designated and
temporary limit of 3-year's time.[63][74] The geographic limitation changed
between the years 1265 and 1274, when the late Southern Song
government finally produced a nationwide standard currency of paper
money, once its widespread circulation was backed by gold or silver.
[63]

The range of varying values for these banknotes was perhaps from

one string of cash to one hundred at the most.[63] In later dynasties, the
use and enforcement of paper currency was a method undertaken by
the government as a response to the counterfeiting of copper coins. [75]
The subsequent Yuan, Ming, and Qing dynasties would issue their
own paper money as well. Even the Southern Song's contemporary of
the Jin dynasty to the north caught on to this trend and issued their
own paper money.[63] At the archeological dig at Jehol there was a
printing plate found that dated to the year 1214, which produced notes
that measured 10 cm by 19 cm in size and were worth a hundred
strings of 80 cash coins.[63] This Jurchen-Jin issued paper money bore
aserial number, the number of the series, and a warning label that
counterfeiters would be decapitated, and the denouncer rewarded with
three hundred strings of cash.[76]

The economy of the Ming dynasty (1368-1664) of China was the

largest in the world during that period. It is regarded as one of China's
three golden ages (the other two being the Han and Song periods).
The period was marked by the increasing political influence of
the merchants, the gradual weakening of imperial rule,
and technological advances.
Coinage[edit]

Despite issuing paper money in the early part of the dynasty, the Ming
ended up using silver as a means of exchange in their economy; this
is due to the massive inflow of silver into the Ming economy
throughout the dynasty. The amount of silver used by the Ming
economy was extraordinary; the Zheng clan, which was a major clan
of merchants in the late Ming, regularly engaged in transactions of
several million taels, at a time in which English traders considered
tens of thousands of pounds an extraordinary fortune. However,
both coin and paper money were used throughout the Ming dynasty.
Ming demand for silver was such that at one point most of the output
of the mines of Peru went straight to Ming China.
Weakening of the state[edit]

During the Ming, the controls imposed on the economy were gradually
relaxed. State monopolies on salt and iron ended as these and other
industries were privatized. Taxes were reduced from the high levels
under the Mongol Yuan, and the Ming had one of the lowest tax rates
(per person) in the world. The entire foreign trade, which was
estimated at up to 300 million taels, provided the Ming with a tax of
only about 40,000 taels a year. When the Wanli Emperor sought to

increase the salt tax, his measures were opposed by violence and the
eunuchs he sent to collect the tax were beheaded by local officials.
Sprouts of capitalism[edit]

Investment and capital moved off the land and were poured into
ventures. Continuing the trend from the Song, Ming investors poured
large amounts of capital into ventures and reaped high profits. Many
Chinese scholars believe the Ming was the dynasty in which the
"sprouts of capitalism" emerged in China, only to be suppressed by
the Qing.

Economic history of China (191249)

From Wikipedia, the free encyclopedia
(Redirected from Economic history of China (19121949))
For developments before 1912, see Economic history of China before 1912. For economic history
since 1949, seeEconomic history of China (1949present).
After the fall of the Qing Dynasty in 1912, China underwent a period of instability and disrupted
economic activity. During theNanjing decade (19271937), China advanced in a number of industrial
sectors, in particular those related to the military, in an effort to catch up with the west and prepare
for war with Japan. The Second Sino-Japanese War (19371945) and the following Chinese civil
war caused the collapse of the Republic of China and formation of the People's Republic of China.[1]

A bill from 1930, early ROC

The Republican era was a period of turmoil. From 1913 to 1927, China disintegrated into regional
warlords, fighting for authority and causing misery and disrupting growth. After 1927, Chiang Kaishek managed to reunify China. The Nanjing decade was a period of relative prosperity despite civil
war and Japanese aggression. The government began to stabilize tax collection, establish a national
budget, sponsor the construction of infrastructure such as communications and railroads, and draw
up ambitious national plans, some of which were implemented after 1949. In 1937, the Japanese
invaded and laid China to waste in eight years of war. The era also saw boycott of Japanese
products. After 1945, the Chinese civil war further devastated China and led to the withdrawal of the
Nationalist government to Taiwan in 1949. Yet the economist Gregory Chow summarizes recent
scholarship when he concludes that "in spite of political instability, economic activities carried on and
economic development took place between 1911 and 1937," and "in short, modernization was taking
place." Up until 1937, he continues, China had a market economy which was "performing well,"
which explains why China was capable of returning to a market economy after economic reform
started in 1978.[2]

Currency of the Republic of China[edit]

The currency of China was initially silver-backed, but the nationalist

government seized control of private banks in the notorious banking
coup of 1935 and replaced the currency with the Fabi, a fiat
currency issued by the ROC. Particular effort was made by the ROC
government to instill this currency as the monopoly currency of China,
stamping out earlier Silver and gold-backed notes that had made up
China's currency. Unfortunately, the ROC government used this
privilege to issue currency en masse; a total of 1.4 billion Chinese
yuan was issued in 1936, but by the end of the second Sino-Japanese
war some 1.031 trillion in notes was issued.[11] This trend worsened
with the outbreak of the Chinese Civil war in 1946. By 1947, some
33.2 trillion of currency was issued as a result of massive budget
deficits resulting from war (taxation revenue was just 0.25 billion,
compared with 2500 billion in war expenses). By 1949, the total
currency in circulation was 120 billion times more than in 1936. [12]

The Chinese war economy (1937-1945)[edit]

Coal mining at Fushun, Liaoning, c. 1940, operating under the control of the
Japanese

In 1937, Japan invaded China and the resulting warfare laid waste to
China. Most of the prosperous east China coast was occupied by the
Japanese, who carried out atrocities such as the Rape of Nanjing in
1937 and random massacres of whole villages. The Japanese carried
out systematic bombing of Chinese cities, and the Nationalist armies
followed a "scorched earth" policy of destroying the productive
capacity of the areas they had to abandon to the Japanese. In one
Japanese anti-guerilla sweep in 1942, the Japanese killed up to
200,000 civilians in a month. 2-3 million civilians died in a famine in
Henan in 1942 and 1943. Overall the war is estimated to have killed
between 20 and 25 million Chinese. It severely set back the
development of the preceding decade.[13] Industry was severely
hampered after the war by devastating conflict as well as the inflow of
cheap American goods. By 1946, Chinese industries operated at 20%
capacity and had 25% of the output of pre-war China. [14]
The war brought about a massive increase in government control of
industries. In 1936, government-owned industries were only 15% of
GDP. However, the ROC government took control of many industries

in order to fight the war. In 1938, the ROC established a commission

for industries and mines to control and supervise firms, as well as
instilling price controls. By 1942, 70% of the capital of Chinese
industry were owned by the government.[15]
Hyperinflation, civil war and the relocation of the republic to Taiwan [edit]

Following the war with Japan, Chiang acquired Taiwan from Japan
and renewed his struggle with the communists. However, the
corruption of the KMT, as well as hyperinflation as a result of trying to
fight the civil war, resulted in mass unrest throughout the
Republic[16] and sympathy for the communists. In addition, the
communists' promise to redistribute land gained them support among
the massive rural population. In 1949, the communists captured
Beijing and later Nanjing as well. The People's Republic of China was
proclaimed on 1 October 1949. The Republic of China relocated to
Taiwan where Japan had laid an educational groundwork. [17] Taiwan
continued to prosper under the Republic of China government and
came to be known as one of the Four Asian Tigers due to its
"economic miracle", and later became one of the largest sources of
investment in mainland China after the PRC economy began its rapid
growth following Deng's reforms.[18]

Economic history of China (1949present)

From Wikipedia, the free encyclopedia
This article is about the People's Republic of China. For the Republic of China, see Economic
history of Taiwan (1949present).

This article needs additional citations for verification. Please

help improve this article by adding citations to reliable sources.
Unsourced material may be challenged and removed. (December

2010)
See also: Economy of China

Trends in the Human Development Index of China, 1970-2010

China's economic system before the late-1990s, with state ownership of certain industries and
central control over planning and the financial system, has enabled the government to mobilize
whatever surplus was available and greatly increase the proportion of the national economic output
devoted to investment.
Analysts estimated that investment accounted for about 25 percent of GNP in 1979, a rate
surpassed by few other countries. Because of the comparatively low level ofGNP, however, even
this high rate of investment secured only a small amount of resources relative to the size of the
country and the population. In 1978, for instance, only 16 percent of the GNP of the United
States went into gross investment, but this amounted to US$345.6 billion, whereas the
approximately 25 percent of China's GNP that was invested came to about the equivalent of US$111
billion and had to serve a population 4.5 times the size of that in the United States. The limited
resources available for investment prevented China from rapidly producing or importing advanced
equipment. Technological development proceeded gradually, and outdated equipment continued to
be used as long as possible. Consequently, many different levels of technology were in use
simultaneously (see Science and technology in China). Most industries included some plants that
were comparable to modern Western facilities, often based on imported equipment and designs.
Equipment produced by Chinese factories was generally some years behind standard Western
designs. Agriculture received a smaller share of state investment than industry and remained at a
much lower average level of technology and productivity. Despite a significant increase in the
availability of tractors, trucks, electric pumps, and mechanical threshers, most agricultural activities
were still performed by people or animals.
Although the central administration coordinated the economy and redistributed resources among
regions when necessary, in practice most economic activity was very decentralized, and there was
relatively little flow of goods and services between areas. About 75 percent of the grain grown in
China, for instance, was consumed by the families that produced it. One of the most important
sources of growth in the economy was the improved ability to exploit the comparative advantages of
each locality by expanding transportation capacity. The communications and transportation sectors
were growing and improving but still could not carry the volume of traffic required by a modern
economy because of the scarcity of investment funds and advanced technology.
Because of limited interaction among regions, the great variety of geographic zones in China, and
the broad spectrum of technologies in use, areas differed widely in economic activities,
organizational forms, and prosperity. Within any given city, enterprises ranged from tiny, collectively
owned handicraft units, barely earning subsistence-level incomes for their members, to modern
state-owned factories, whose workers received steady wages plus free medical care, bonuses, and
an assortment of other benefits. The agricultural sector was diverse, accommodating well-equipped,
"specialized households" that supplied scarce products and services to local markets; wealthy
suburban villages specializing in the production of vegetables, pork, poultry, and eggs to sell in free

markets in the nearby cities; fishing villages on the seacoast; herding groups on the grasslands
of Inner Mongolia; and poor, struggling grain-producing villages in the arid mountains
of Shaanxiand Gansu provinces. The economy had progressed in major ways since 1949, but after
four to five decades experts in China and abroad agreed that it had a great distance yet to go.
Despite formidable constraints and disruptions, the Chinese economy was never stagnant.
Production grew substantially between 1800 and 1949 and increased fairly rapidly after 1949. Before
the 1980s, however, production gains were largely matched by population growth, so that productive
capacity was unable to outdistance essential consumption needs significantly, particularly in
agriculture. Grain output in 1979 was about twice as large as in 1952, but so was the population. As
a result, little surplus was produced even in good years. Further, few resources could be spared for
investment in capital goods, such as machinery, factories, mines, railroads, and other productive
assets. The relatively small size of the capital stock caused productivity per worker to remain low,
which in turn perpetuated the economy's inability to generate a substantial surplus.