Economy of the Ming dynasty

The economy of the Ming dynasty (1368–1644) was the largest in the world at the time, with China's share of the world's gross domestic product estimated at 31%, and other estimates at 25% by 1500 and 29% by 1600. The Ming era is considered one of the three golden ages of China, alongside the Han and Tang dynasties.

The founder of the Ming dynasty, the Hongwu Emperor, aimed to create a more equal society with self-sufficient peasant farms, supplemented by necessary artisans and merchants in the cities. The state was responsible for distributing surpluses and investing in infrastructure. To achieve this goal, the state administration was reestablished and tax inventories of the population and land were conducted. Taxes were lowered from the high levels imposed during the Mongol-led Yuan dynasty. The government's support for agricultural production and reconstruction of the country resulted in surpluses, which were then traded in markets. This also led to the emergence of property differentiation and the growing political influence of large landowners (gentry) and merchants, ultimately weakening the power of the government.

During the middle Ming period, there was a gradual relaxation of state control over the economy. This was evident in the government's decision to abolish state monopolies on the production of salt and iron, and to privatize these and other industries such as textiles, porcelain, and paper mills. This led to the establishment of numerous private enterprises, some of which were quite large and employed hundreds of workers who were paid wages. In the agricultural sector, there was a growing trend of farms specializing in crops for the market, with different regions focusing on different crops. This also led to the expansion of market-oriented enterprises that grew crops such as tea, fruit, and industrial crops like lacquerware and cotton on a large scale. This regional specialization in agriculture continued into the Qing dynasty. Additionally, there was a shift from paying taxes in the form of products and labor obligations at the beginning of the dynasty to paying them in monetary form over time.

In addition to internal trade, foreign trade also flourished during the Ming era, but it was heavily regulated by the government in the first two centuries. The conservative attitudes of the government towards foreign trade in the early 16th century did not affect its volume, but rather led to its militarization. Eventually, China opened up connections with Europe and America and lifted government prohibitions, becoming a central hub in the global trade network. However, there were still disparities in economic development among different regions of China. As trade routes and economic centers shifted, regions such as Sichuan, Shaanxi, and others lost their significance. The decline of the Silk Road also resulted in the decline of cities like Kaifeng, Luoyang, Chengdu, and Xi'an, which were no longer on the main trade routes. On the other hand, the southeastern coastal provinces and areas along the Yangtze River and Grand Canal experienced significant growth. New cities emerged along these waterways, including Tianjin, Jining, Hankou, Songjiang, and Shanghai. The most populous cities during the Ming dynasty were Beijing and Nanjing, as well as Suzhou, which served as the economic center of China.

Towards the end of the Ming era, natural disasters and the onset of the Little Ice Age caused a significant decline in agricultural production, particularly in the economically weaker northern region of China. As a result, the regime was unable to guarantee the safety and well-being of its population, leading to a loss of legitimacy and ultimately, its collapse due to peasant uprisings.