THE BIRTH OF A CHINESE BOURGEOISIE 725
favours of the administration notwithstanding, the paucity of public
funds and the complexity of the new techniques of production and
organization obliged the officials more often than not to seek the assistance
of the merchants.
With a tradition that went back to the origins of the empire, the mer-
chant class had blossomed forth during the economic revolution of the
middle ages: from the eighteenth century onwards it had enjoyed a
renewal of prosperity and prestige, evidenced by the increase in its
regional and professional guilds. From their long history the Chinese
merchants had inherited a high degree of competence in both the com-
mercial and the financial spheres. The complexity of the institutions, the
multiplicity of middlemen, and the specialization of functions allowed
the merchants to commercialize - without, however, controlling - the
production of the small artisans and farmers, and thus to integrate it into
a local, an inter-regional, or, more rarely, a national market.
The Chinese merchants' exceptional capacity for seizing and exploiting
every opportunity for enrichment encouraged their collaboration with
the foreigners. In the open ports investors in Western factories and
transport companies were numerous: and around 1900 the number of
compradors who had placed or were placing their talents in the service
of foreign businessmen was estimated at 20,000.f Through these profes-
sional contacts, the merchants acquired the modern techniques of manage-
ment and production. They constituted a pioneer group, open to the
outside world, and perhaps closer to the foreign communities than to
traditional Chinese society. However, far from collapsing under these
foreign contacts - as might have been suggested by the number of reli-
gious conversions, or the fetish of wearing Western apparel - the national
and social identity of the Chinese merchants asserted itself with renewed
force in the bosom of the regional guilds, the professional associations,
and - from 1904 - the chambers of commerce.
However, various obstacles slowed down the transformation of the
merchant class into a modern bourgeoisie of businessmen and industri-
alists.
These obstacles had their origin partly in the merchant tradition
itself:
for example, in the strict separation between the two networks of
marketing and production. Before the second half of the nineteenth cen-
tury, the Chinese made hardly any use of the system of 'putting-out', the
general adoption of which marked the dawn of industrial capitalism in
and early Ch'ing times', in The Institute of Economics, ed.
Conference
on
modern Chinese
economic
history,
Academia Sinica (Taipei, 1977), 33-44. On the role of the notables in urban
administration, cf. Mark Elvin, 'The administration of Shanghai 1905-1914', in M. Elvin
and G. William Skinner, eds.
The Chinese
city
between
two
worlds,
241.
7 Yen-p'ing Hao,
The comprador
in
nineteenth century
China,
bridge between
East and West, 102.
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