“Umbrella Society” and Ancient Chinese Industrial and Commercial Management

Abstract

The “umbrella society” has been of the main features of China’s social structure. The “umbrella” relationship between government and business operators is not only a major social substructure but also an important method of resource allocation. This relationship has existed for a very long time. In ancient times, the three most important business management systems in China (government-run business, contractor-run business and private business) were all more or less under government control. In view of different levels of government participation in different operating systems, the government implemented corresponding protection policies for these business operators. In general, the government provided “paternal protection” for official businesses, “relative protection” for contracted businesses, and “friendly protection” for private businesses. This kind of differential protection had a profound impact on the pattern of business development in ancient China.