Islamic economic teachings and the rise and decline of Hui merchants in China : an exploratory study

Abstract

Hui merchants have played an important role in the international trade and economic development of historic China. Since the arrival of their ancestors in Tang Dynasty (618-907), during the last 1300 years, Hui merchants have experienced rise, decline, and revival in the business history of China. During the Tang (618-907), Song (960-1279), and Yuan (1271-1368) Dynasties, the Hui merchants have been very successful and wealthy had almost monopolized the international trade between the China Empire and the rest of the world. After the Ming Dynasty (1368-1644), however, their business empire began to collapse gradually. Now in the 21st Century, the fast-paced globalization process has brought about intensified competition to all business across the world. Hui merchants in China are no exception. In order to survive and prosper in the non-Muslim country with a predominated secular culture, it is essential for them to learn from their past glories and decays. In our view, Hui merchants might be able to revive their glorious past in this new environment by subscribing to fundamental values of Islam. In this study, we first introduce the historical background of Hui people and Hui merchants. Their cultural practices that are associated with business and economic activities are then discussed. Last but not least, we discuss about the Cyclic Theory of Ibn Khaldun, and how his Cyclic Theory could be applied to explain the rise and decline of the Hui merchants. In sum, our study concludes that the adherence to the teachings of Islam is the most important impetus for the historic rise of the Hui merchants.