Song Dynasty Government-run Industrial And Commercial Auction Mechanism

Song, a famous dynasty in ancient China, is characterized by its economic prosperity. The increasing development of social economy promoted competitive trading ways to appear in almost all economy fields. People in Song Dynasty described these economic activities as Maipu(Pumai), Chengmai(Qingshe,Qingmai), Chengdian(Qingdian) and Chenglan(Lanmai,Jielan,Chengbao), which in turn embody, in a quite precise way, the market bidding activities in that period. Competition as an economic phenomenon in human society was not an existence by nature, but an inevitable outcome of commodity economy. It generated with commodity economy, and became more and more fiercely with the development of commodity economy. Competition range is very wide, including resources, talents, and market. Competition forms varied greatly too, including auction, bidding, price competition etc. The bidding activities in Song Dynasty were based on its unique social historical conditions. Compared with earlier dynasties, the main source of fiscal revenue gradually changed from field taxes to business, alcohol and salt tax. As was known to all, Song dynasty didn't restrict field trading, which resulted in frequent field exchange, thus field becoming one of the main commodity in market trading. Meanwhile, relationship between peasants and the land began to relax, many peasants got rid of the bondage of land, began to multiply themselves from single status as peasant to a compound trinity identity:small-scale peasant, handicraftsman, and businessman. In the class struggle between landlords and peasants, peasants started to form their own economic thoughts, putting forward the claim of "Even Distribution of Wealth", greatly impacted the government-managed economic system. As peasants'economic thoughts appeared and rural economy developed, urban and rural economy contacted more and more closely, and market competition started to manifest its functions. It follows that the private management thoughts of industry and commerce were gradually accepted, and some official business was involved with private management, with advanced scale. As a result, competition existed commonly in commercial and industrial area, almost in every sector of the social economy at that time, such as agriculture, industry, handicraft industry, business, government purchase, etc. The bidding activities in Song Dynasty developed quickly and were widely applied. Many activities even had a sense of modern competition. The bidding activities' program of Song Dynasty was very standardized, similar to the modern bidding and tendering, usually including tendering, bidding, evaluation, winning. In order to guarantee smooth bidding activities, the Song Dynasty provided corresponding system security and legal protection. The market competition has great advantages, such as survival of fittest, reconfiguring of social resources, improving capital gains, etc. However, a coin has two sides. Where is competition, where is various restrictions to competition and unfair competition following. The bidding activities in Song dynasty was no exception, having a positive role in effectiveness, convenience, competitiveness, and production, but also bringing about many problems, such as government's over-taxation and unfair bidding activities. This is not only caused by competition itself, but also resulted from government intervention. After all, the end of industrial and commercial bidding activities was for the government at that time. This government-oriented nature determined the role of market bidding mechanism could not well to play out. Once it endangered the interests of the centralized government, competitive action would be intentionally weakened. That is why the bidding mechanism in Song Dynasty never developed to the degree of specialization. However, this cannot deny its status and role in social and economic field of the Song Dynasty. As an economic phenomenon appeared one thousand years ago, the bidding activities still deserved compliment, which injected fresh blood for economic development and provided new vitality for economic prosperity. It not only activated the Song Dynasty's economy and increased fiscal revenue, but also satisfied quite a number of military needs. Thus bidding mechanism was the indispensable important part of economic prosperity in Song Dynasty. Although bidding activities effectively supplemented government revenues, and played the corresponding role in the people's livelihood, its status and role should not be overestimated. It is just the important supplement of the official economic field, and always served for the government-controlled economy, which served for and intervened by centralized government.