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When it came to theYuan Dynasty(1271-1368), the business activities were inevitably affected by war to some extent. Nevertheless, the separation of Song, Liao, and Jin ended with the unification of Yuan, which actually enlarged the territory of business activities. From theTravel Journal ofMarco Polo we could learn that, "Merchants original from Taiyuan to Pingyang (Linfen) spread all over China, acquiring huge benefits."

The rise of Shanxi merchants could be dated back to the "Kai ZhongPolicy" in Ming Dynasty, in which government officials commissioned merchants to transport food supplies. Besides, Shanxi had rich mineral resources, while the handicraft and manufacturing industries also achieved considerable scale, which provided a substantial base for the merchants' development.

At the same time, due to the dense population in southern Shanxi, merchants had to travel to other parts of China to gain their living. As a result, Shanxi merchants could be found all over China. Once there was a saying inBeijingthat "Most of the rich merchants inBeijingcome from Shanxi."

The business competition became ever more furious over time. So to strengthen their own power, Shanxi merchants began to organize into merchants group. At first, it was the rich merchants who employed local business people. Later, it developed into "Dong Huo Zhi," which was similar to the current joint stock system. This pioneering work of Shanxi merchants was the reason why their organization could last for a long time.

Although Shanxi merchants emerged as a regional group in the Ming Dynasty, yet it was in theQing Dynastythat they enjoyed their full bloom, with the set up of the guildhall as a symbol. The guildhall was designed for the communication and connection of Shanxi people at the beginning; later it became an organization of self-protection for the merchants.

 The Strongest Merchants Group: InQing Dynasty

Shanxi merchants became one of the, if not the most, successful and powerful merchants groups in China. They were viewed as equals to Italian merchants in world economic history. The development of business not only brought people wealth, but also changed the traditional belief of "He who excels in study can follow in the career of an official."

The saying went that, "It's better to have a connection in ateahousethan to have a large amount of money" and "To be a government official is not as good as to work in a tea house or bank."Teahousesand banks were both hot industries at that time.

In the Qing Dynasty, Shanxi merchants were listed at the top of merchants groups in China, with a good reputation in Asia and even Europe. They excelled especially in three industries: camel teams, ship teams, and draft banks.