Peasants were oppressed in China and certainly exploited, but they were also honored and celebrated in the official ideology of the state. In the eyes of the scholar-gentry, peasants were the solid productive backbone of the country, and their hard work and endurance in the face of difficulties were worthy of praise. Merchants, however, did not enjoy such a favorable reputation in the eyes of China’s cultural elite. They were widely viewed as unproductive, making a shameful profit from selling the work of others. Stereotyped as greedy, luxury-loving, and materialistic, merchants stood in contrast to the alleged frugality, altruism, and cultured tastes of the scholar-gentry. They were also seen as a social threat, as their ill-gained wealth impoverished others, deprived the state of needed revenues, and fostered resentments.

Such views lay behind periodic efforts by state authorities to rein in merchant activity and to keep them under control. Early in the Han dynasty, merchants were forbidden to wear silk clothing, ride horses, or carry arms. Nor were they permitted to sit for civil service examinations or hold public office. State monopolies on profitable industries such as salt, iron, and alcohol limited merchant opportunities. Later dynasties sometimes forced merchants to loan large sums of money to the state. Despite this active discrimination, merchants frequently became quite wealthy. Some tried to achieve a more respectable elite status by purchasing landed estates or educating their sons for the civil service examinations. Many had backdoor relationships with state officials and landlords who found them useful and were not averse to profiting from business connections with merchants, despite their unsavory reputation.