Shanxi merchants

( chinadaily.com.cn)

Shanxi merchants were the first businessmen in China. Their history can be dated back to the Spring and Autumn Period (770-476 BC) and the Warring States Period (475-221 BC).

They flourished during the Ming (1368-1644) and Qing (1644-1911) dynasties, ranking first among China’s commercial circles. After dominating commercial circles for 500 years, Shanxi merchants have come to represent Chinese traditional business culture, making them different than other official and gentry families.

In accordance with historical documents, Shanxi merchants are famous for their activities. They enjoyed a good reputation in the domestic market during the Ming Dynasty. In the early Qing Dynasty, with the accumulation of capital and currency, Shanxi merchants not only excelled at, but monopolized, the trade and fund procurement in Northern China.

They also went beyond Asia, reaching out to the European market. Shanxi merchants could be found in Hong Kong, Kolkata, Irkutst, Siberia, Moscow, St Petersburg, Osaka, Kobe, Nagasaki, Incheon, Tarbaghatai, Ili and Kashgar.

In order to dominate commercial circles, Shanxi merchants founded money shops, the earliest Chinese private bank, in the Qing Dynasty.

Shanxi merchants always dress simply, even though they are affluent. Confucian values and virtuous leadership has helped them deal with business relationships and family connections.

Qiao Zhiyong, one representative of famous Jin merchants

Virtuous leadership was essential to the success of Shanxi merchants. They were deeply influenced by Confucian culture and have a progressive philosophy of doing business. Confucian businessmen believe honesty is fundamental. They also value the needs of society.

Their spirit, known as “Jin merchant spirit,” focuses on entrepreneurial spirit, professional ethics and community spirit. It also permeates into Shanxi merchant awareness, organizational management and mental qualities. It can be described as the soul of Shanxi merchants.

The decline of Shanxi merchants began in the late Qing Dynasty to the early Republic of China. In addition to the invasion of foreign capitalists and the obstruction of the Qing government, not restructuring in time also led to failure. Since then Shanxi merchants have been battered, unable to restore their past success.