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"official-supervision merchant-management" (A). The formula went like this: the reform-minded officials provided the political patronage - they bargained with Beijing for charter, franchise, monopoly or tax concessions for the enterprises, and the merchants provided the capital and management. Concerning merchants' ability to raise capital, their credibility came not from the enterprises they set up, but from their own reputations, as well as from the political patronage which they managed to establish. Some of the most famous of these merchants in the western affairs movement were such Hong Kong compradors as the Tang Jingxing (Tang King-sing) brothers.
This kind of business environment made China unique when compared to Europe. Historically, the political fragmentation of Europe, and the frequent wars it led to, had forced the kings and the princes to be bound by their commercial commitments - one refusal to repay their debts meant that the princes would find tremendous difficulty in raising funds for the next war. In China, on the contrary, the Emperor needed not to (and actually had not) surrendered his right to interfere into the market; the government was not bound by legislation it made. Several incidents which occurred in the fifteenth century help to illustrate these divergences. Firstly, while the Ming Emperor abolished the national debt (in the form of salt certificates) overnight in 1667, the King of England was forced to grant his debtors a charter for the formation of a national bank (the Bank of England). Secondly, while the four Atlantic states (Spain, Portugal, France, England) were competing for overseas expansion and experiencing the “Age of Discovery”, the Chinese Emperor issued an edict to stop all his subjects from going overseas in 1667, just three years after the famous Zhenghe fleets (Tr Admiral) arrived at Malaya. Business endeavours in Europe were first protected by privileges granted by the Kings (in the forms of charter or monopoly) as in the case of the East India Company. This practice was later developed into a kind of rights guaranteed by legislation (company laws). In China, with the prohibition of sea-going, overseas trades were restricted in the forms of tribute, smuggling and piracy. No legislations were developed in China to guarantee and to protect commercial endeavors. An easy alternative for the Chinese merchants, therefore, was to rely on personal networks. On this, China and Europe went their separate ways. While the feudal society in Medieval Europe based on the ties of allegiance to a local land-owning aristocracy for protection, in China, authority was nominally resided in the central