FOREIGN TRADE, COMMERCIAL POLICIES AND THE POLITICAL ECONOMY OF THE SONG AND MING DYNASTIES OF CHINA

The paper presents a framework to explore the trade‐off between pro‐authority and pro‐efficiency foreign trade policy. The former is exemplified by the tributary foreign trade system in Imperial China, while the latter by the government‐supervised private foreign trade. In the Song Dynasty (960–1276), a strong external enemy compelled the monarchy to choose a pro‐efficiency trade policy to finance the army, whereas during the early Ming Dynasty (1368–1644) when China was strong a pro‐authority trade policy was favoured. During the late Ming, as the dynasty weakened, accompanied by external threats and internal mismanagement, the imperial government once again chose a pro‐efficiency trade policy.