page_title: Qing dynasty
section_title: Economy
hierarchical_section_title: Qing dynasty / Economy
caption_attribution_description: English: A copper (brass) cash coin from the Manchu Qing Dynasty.
context_page_description: The Qing dynasty, officially the Great Qing or commonly known as China, was the last imperial dynasty of China. It was established in 1636, and ruled China proper from 1644 to 1912. It was preceded by the Ming dynasty and succeeded by the Republic of China. The multiethnic Qing empire lasted for almost three centuries and formed the territorial base for modern China. It was the fourth largest empire in world history in terms of territorial size.
  The dynasty was founded by the Manchu Aisin Gioro clan in Manchuria. In the late sixteenth century, Nurhaci, originally a Ming vassal, began organizing "Banners" which were military-social units that included Manchu, Han, and Mongol elements. Nurhaci united Manchu clans and officially proclaimed the Later Jin dynasty in 1616. His son Hong Taiji began driving Ming forces out of the Liaodong Peninsula and declared a new dynasty, the Qing, in 1636. As Ming control disintegrated, peasant rebels led by Li Zicheng conquered the capital Beijing in 1644. Ming general Wu Sangui refused to serve them, but opened the Shanhai Pass to the Banner Armies led by the regent Prince Dorgon, who defeated the rebels and seized the capital.
context_section_description: By the end of the 17th century, the Chinese economy had recovered from the devastation caused by the wars in which the Ming dynasty were overthrown, and the resulting breakdown of order. In the following century, markets continued to expand as in the late Ming period, but with more trade between regions, a greater dependence on overseas markets and a greatly increased population. By the end of the 18th century the population had risen to 300 million from approximately 150 million during the late Ming dynasty. The dramatic rise in population was due to several reasons, including the long period of peace and stability in the 18th century and the import of new crops China received from the Americas, including peanuts, sweet potatoes and maize. New species of rice from Southeast Asia led to a huge increase in production. Merchant guilds proliferated in all of the growing Chinese cities and often acquired great social and even political influence. Rich merchants with official connections built up huge fortunes and patronized literature, theater and the arts. Textile and handicraft production boomed.
  The government broadened land ownership by returning land that had been sold to large landowners in the late Ming period by families unable to pay the land tax. To give people more incentives to participate in the market, they reduced the tax burden in comparison with the late Ming, and replaced the corvée system with a head tax used to hire laborers. The administration of the Grand Canal was made more efficient, and transport opened to private merchants. A system of monitoring grain prices eliminated severe shortages, and enabled the price of rice to rise slowly and smoothly through the 18th century. Wary of the power of wealthy merchants, Qing rulers limited their trading licenses and usually refused them permission to open new mines, except in poor areas. These restrictions on domestic resource exploration, as well as on foreign trade, are held by some scholars as a cause of the Great Divergence, by which the Western world overtook China economically.
  During the Ming–Qing period (1368–1911) the biggest development in the Chinese economy was its transition from a command to a market economy, the latter becoming increasingly more pervasive throughout the Qing's rule. From roughly 1550 to 1800 China proper experienced a second commercial revolution, developing naturally from the first commercial revolution of the Song period which saw the emergence of long-distance inter-regional trade of luxury goods. During the second commercial revolution, for the first time, a large percentage of farming households began producing crops for sale in the local and national markets rather than for their own consumption or barter in the traditional economy. Surplus crops were placed onto the national market for sale, integrating farmers into the commercial economy from the ground up. This naturally led to regions specializing in certain cash-crops for export as China's economy became increasingly reliant on inter-regional trade of bulk staple goods such as cotton, grain, beans, vegetable oils, forest products, animal products, and fertilizer.
caption: Xián Fēng Tōng Bǎo (咸豐通寶) 1850–1861 Qing dynasty cash coin. A copper (brass) cash coin from the Manchu Qing dynasty
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