At the periphery of the Chinese empire, a group of innovative
entrepreneurs built companies that dominated the Chinese salt trade and
created thousands of jobs in the Sichuan region. From its dramatic
expansion in the early nineteenth century to its decline on the eve of
the Sino-Japanese War in the late 1930s, salt production in Zigong was
one of the largest and one of the only indigenous large-scale industries
in China. Madeleine Zelin recounts the history of the salt industry to
reveal a fascinating chapter in China's history and provide new insight
into the forces and institutions that shaped Chinese economic and social
development independent of Western or Japanese influence. Her book
challenges long-held beliefs that social structure, state extraction,
the absence of modern banking, and cultural bias against business
precluded industrial development in China.
Zelin details the novel ways in which Zigong merchants mobilized capital
through financial-industrial networks. She describes how entrepreneurs
spurred growth by developing new technologies, capturing markets, and
building integrated business organizations. Without the state
establishing and enforcing rules, Zigong businessmen were free to
regulate themselves, utilize contracts, and shape their industry.
However, this freedom came at a price, and ultimately the merchants
suffered from the underdevelopment of a transportation infrastructure,
the political instability of early-twentieth-century China, and the
absence of a legislative forum to develop and codify business practices.
Zelin's analysis of the political and economic contexts that allowed for
the rise and fall of the salt industry also considers why its success
did not contribute to "industrial takeoff" during that period in China.
Based on extensive research, Zelin's work offers a comprehensive study
of the growth of a major Chinese industry and resituates the history of
Chinese business within the larger story of worldwide industrial
development.
