Quartzite, fresh green fur; gravel road, ringing mule bell; small village, busy business.

Ancient Chenzhou merchants (also known as “Guiyang merchants”, “Zixing merchants” ) stepped outside of the mountains of south Hunan via the paths in fields, hills, and ancient villages. They travelled all over China even some other countries as Spain, Japan, Siam, Southeast Asian countries, and etc. and spread their businesses as salt, cotton (cloth), grain, pawn, wood, wine, and etc.there.

Chenzhou merchants refer to the merchants and merchants groups registered in former Chenzhou government.

Chenzhou merchants were initiated from Shang Dynasty, gained great improvement in Tang and Song Dynasty, and enjoyed prosperous time in Ming Dynasty. It was one of the eight merchants groups of Hunan province. It once covered 1/3 total assets of Hunan province. Due to their diligent spirit, they were famous as “water mules people”.

In the late Qing Dynasty, the influence of Chenzhou merchants became weaker for the collapse of feudal economy and even perished in late Republic of China.

In recent years, Chenzhou merchants brand was rejuvenated along with the development of reform and opening up. Chenzhou merchants have some new stories.

Rejuvenation

In November 1978, “rural household-responsibility system” which was firstly handled out in Xiaogang village, Anhui province indicated the beginning of China’s reform and opening up. All Chinese people followed it afterward.
“Chenzhou merchants” which kept quiet for years was surging.

The materials were in shortage during the transitional period from planned economy to market economy and most of the products were replied on import and dispatched as planned, which was quite hard to meet people’s demands. 

Guangdong was once the main window for import and export with HK and Macau. Some brave and intelligent Chenzhou people started to travel between Guangdong and Chenzhou. They bought some household products even second hand autos to resell in mainland and earn the profit accordingly.

In 1982, 28-year-old Sun Yi who was a worker of Chenzhou Road Machinery Plant submitted to the plant to retain the job without salary and then started his transportation business by borrowing 20,000yuan from his friends and relatives.

At the beginning, Sun’s quotation was 0.2yuan/ton/km and the main products he delivered were cigarettes and teas to Guangdong and Guangxi province.

Actually, on the consideration of the road condition and 3-day trip, the quotation was much lower. Sun tried his best to gain more profits by bargaining with his clients. He gained all cost back in years.
Due to Chenzhou city is closer to Guangdong province. It did not just benefit with its rich commercial atmosphere, but attract visitors from HK. According to the record, some visitors from HK, Macau, and Guangdong province went to Chenzhou to enjoy the snow.

Some private businessmen from Zhejiang province handled “private to state-owned companies” business in Chenzhou city. That business referred to sell some products as industrial axles, and some accessories produced by the private factories to Chenzhou state-owned companies.

From 1978 to 1984, due to the influence of other places and local people’s willingness to be wealthy, Chenzhou private businesses were more prosperous. Different private businesses were operated by local people.
During those six years, the state-owned companies were qualified to sell their products which helped to open a “second track” of materials circulation- unplanned track. Many state-owned companies of Chenzhou city started to sell their products as planned and a large number of products “made in Chenzhou” were sold nationwide.

As time goes by, more and more Chenzhou people launched their businesses in late 1980s’ and early 1990s’. “Chenzhou non-ferrous” which was mainly on the mining and smelting of rare metals as coal, gold, silver, thallium, and etc. was promoted rapidly.

Huang Jianguo who is now 65-year old retained the job but suspended the salary and sold 50,000-yuan tiles to Guangdong province, which was his first pot of gold. In following years, he supplied coals to the concrete and casting factories of Guangdong province.

Huang also helped his younger brother to open a thallium plant on the basis of the well-developed small hydropower stations of Chenzhou city. The products manufactured by the factory were sold well in the coastal provinces of China.
In 1997, Huang got involved in the planning of a Chenzhou municipal tourism festival.

The leapfrog from non-ferrous industry to cultural industry, Huang’s transformation indicated the industrial development process of Chenzhou city after the reform and opening up. From 1990s’, the market information was becoming more transparent and the trade order was more regulated, which helped to promote Chenzhou city’s business to be improved rapidly. At the meantime, more types of businesses were available in Chenzhou city: in 1991, the first dancing hall- Aiqinhai was opened; in 1992, the first commercial residential community- Nanling Villa was on the exchange; in 2001, the first commercial residential community with houses- Mingguiyuan was on the exchange.

“Li Jiangxing who handled recycling of gold and silver, Jiang Benxin who handled rolling gate……” Tu Yaoshan who used to be Vice Chairman of Chenzhou Association of Industry and Commerce was sunk into the memories of businessmen of Chenzhou city.

30 years have passed on the process of Chenzhou’s rejuvenation of commerce, and now great achievements were gained by the city: till the end of 2015, there are 176,300 market entities available in Chenzhou city which was 41,800 more than the end of 2013; the registered capitals and operation funds were amounted to 183.352billion yuan. 555,100 people operated their private businesses which was 131,000 more than 2013.