Shanxi is also known as "Jin" for short, so we call the reputed local business people as Jin merchants. The Jin merchants refer to a group of business people active in the Ming and Qing dynasties from the 14th to 20th century. However, the earliest Jin merchants can be dated back to the Warring States period, with Yi Dun as their representative. Jin merchants had obtained nationwide reputation during the Ming Dynasty and reached their developmental peak in the Qing Dynasty, when they established operations in a wide range of industries including trade of salt, cotton, cloth, grain, oil, tea, timber, fur and down as well as finance. They had expanded their businesses from home to overseas regions, including Mongolia, Russia, Korea and Japan. They have accumulated great fortunes by doing various businesses and serving various clients.

Tea trade from Shanxi

With the establishment of a nationwide money-transfer system (pic 3), the Jin merchants successfully expanded to the financial industry during the late Qing Dynasty and became the nation's leaders in the industry. At the turn of the Qing Dynasty and the Republic of China during the early years of the 20th century, the influence of the Jin merchants began to fall as the industry became dominated by modern and foreign players and the Jin merchant's failure in reform their business modes.

A plaque with the inscription of "nationwide money transfer"

The role and contribution of Jin merchants

The Jin merchants in the Ming and Qing dynasties had strong capability in capital accumulation, wide range of operations and broad areas and long period for doing business, which are unmatchable in the business history worldwide. So the Jin merchants were known as one of world's three famous merchant groups, along with the Jewish and the merchants of Venice.

The trade map of Jin merchants at home and abroad

The trading activities of Jin merchants have boosted the development of Chinese handicraft industry, enriched the commercial culture of modern China and promoted China's trade to a new height. The Shanxi-based money-transfer business operated by Jin merchants has helped the integration of commerce and finance. By offering a safe, convenient channel for financial activities, the Jin merchants have boosted the traditional commercial industry of China to a new height.