The economic system in China rested on a free market and cash nexus. Landowners were able to buy and sell their land. Farmers owned their land, rented it, or worked as laborers. Almost all other economic activity was also private. However, there were still many monopolies.

In the Qing dynasty, salt was the most important commodity. The government's support of the economy helped the situation, and there were few restrictions on trade except with foreigners. There were taxes on land, produce, and trade, but these were kept light. When the dues rose, it was a
sign on government misrule.

This system encouraged initiative and efficiency, and when the population did not press too heavily on resources and the government was effective, it contributed to the creation of a vigorous economy. There was an agricultural revolution in the Qing in crops and techniques, and progress continued. Throughout the period, the best seed, new crops and various technical improvements spread with amazing speed from wherever they were introduced. There was also an efficient use of manpower and animals. Natural fertilizer was used and plumbing systems were brought into the farms.

Along with agricultural growth, industry and commerce also boomed. The chief products were consumer good: textiles, food products, porcelain, and items for home consumption. There was also a well-developed banking system resting on the market town and smaller cities. There was active overseas trade. This included thousands of ships that carried up to one thousand tons, with crews of over two hundred.

The economy eventually took a downturn because of the government became extremely strict with the society. They intervened to prevent rebellion. After this, many people turned to political and social activism.

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Schrecker, John. The Chinese Revolution in Historical Perspective. Westport, Connecticut: Greenwood Press, 1991.