Private commerce in the West Han Dynasty was able to compete with the State because its important role in promoting agricultural and handicraft production, strengthening regional distribution of production, actualizing social reserves and helping monetize State finance. The level of economic growth in the day restricted the general scale of commerce and limited the space of growth of private commerce. As a result, conflicts between interests of the State and private merchants led to implementation of a commerceoppressing policy to transfer merchant profits from private merchants to the State. In such conflicts, the State as the leading party found the best strategy and realized a strategic balance between the State and private merchants.

the West Han Dynasty private commerce; the State; competition