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PALGRAVE MACMILLAN ASIAN BUSINESS SERIES
Family Business in
China, Volume 1
A Historical Perspective
Ling Chen · Jian An Zhu ·

Hanqing Fang
Palgrave Macmillan Asian Business Series
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Business School
University of Leeds
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Ling Chen · Jian An Zhu · Hanqing Fang
Family Business
in China, Volume 1
A Historical Perspective
Ling Chen Jian An Zhu
Zhejiang University Zhejiang University City College
Hangzhou, Zhejiang, China Hangzhou, Zhejiang, China
Hanqing Fang
Business and Information Technology
Missouri University of Science
and Technology
Rolla, MO, USA
ISSN 2661-8435 ISSN 2661-8443 (electronic)

Palgrave Macmillan Asian Business Series
ISBN 978-3-030-51394-8 ISBN 978-3-030-51395-5 (eBook)
https://doi.org/10.1007/978-3-030-51395-5
© The Editor(s) (if applicable) and The Author(s), under exclusive license to Springer Nature
Switzerland AG 2021
This work is subject to copyright. All rights are solely and exclusively licensed by the Publisher,
whether the whole or part of the material is concerned, specifically the rights of translation, reprinting,
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The use of general descriptive names, registered names, trademarks, service marks, etc. in this
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Acknowledgments
We would like to express our deep and sincere gratitude to the Ministry of
Education Youth Foundation of Humanities and Social Sciences, China for
the funding (ID: 19YJC630238) that supports this study. We also thank
Lv Jin Shui Family Business Research Foundation of Zhejiang University
for supporting the translation of the manuscript.
v
This book series has two volumes. This introduction is for Volume 1, which
draws more attention to the past of family, family business and business
family in China. Volume 2 puts more emphasis on the present and future of
family business and business family in China.
Contents
1 Introduction 1
Family Business in China 1
Research Motivation and Theoretical
Framework 3
References 12
Part I Social Foundation of Family System in Ancient

China
2 Household and Family 17

Concept of “Family” in China 17
Solidarity Relations in Chinese Family 22
References 28
3 Family: Economical, Social, and Educational

Functions 29
Economic Functions 29
Social Functions 32
ix
x Contents
Educational Functions 33
References 35
4 Characteristics of Chinese Family System 37

Introduction 37
Lineage (宗族) 38
Patriarchy and Patrimonialism (男权家长) 46
Household Division and Wealth Inheritance (诸子均分) 50
Family as a Model for the State (家国同构) 57
Interdependence Among Four Dimensions 59
References 60
Part II Households and Family Lineages in Modern

China (1850–1949)
5 Society and Family Lineages in Modern China (Qing

Dynasty) 65
6 Transformation of Family Lineages in Modern China

and the Rise of Family Enterprises 71
Introduction 71
The Rong Family of Wuxi 74
References 79
7 Two Cycles of Development of Family Enterprises

in Modern China 81
First Cycle 81
Second Cycle 86
The Cao Family of Pudong, Shanghai 89
Reference 91
8 Modern Chinese Family Lineages and the State 93

Contents xi
Part III Evolution of Family System Before and After

the Reform Era
9 The Rise of Family Business in China Before 1949 99

Background 99
New Era Family Entrepreneurs 101
Rong Brothers: A Case of New Era Family Enterprise 104
References 131
10 Dynamics of Family Enterprise Before and After

the Reform Era 133
Introduction 133
Family System Before 1977 134
Eliminating Households: A Social Experiment 135
Family Household in People’s Commune 137
Dynamics of Family System After 1977 141
Rise of Family Business in Contemporary China: A Case
of Mao Family 163
References 175
11 Conclusion 177
Index 179
List of Figures
Fig. 1.1 Overarching theoretical framework 8

Fig. 1.2 Geographical distributions of cases 12
Fig. 6.1 The basic genealogy of the Rong family 77
Fig. 9.1 Zongjing Rong’s family tree 113
Fig. 9.2 Desheng Rong’s family tree 114
Fig. 9.3 Rong family members and their jobs in the family
enterprise 123
Fig. 10.1 “Are People from Wenzhou really Stupid?” Migration
of Businesspersons From Wenzhou 160
Fig. 10.2 The Mao family tree 167
xiii
List of Tables
Table 9.1 High-Level positions in the Rong family enterprise 124

Table 10.1 Household structures in five cities in China 153
Table 10.2 Housework between Husband and Wife, China 157
xv
1
Introduction
The history mirrors both thriving and calamity (以史为鉴, 可以知兴替).

—Li, Shimin, Emperor Taizong of Tang (唐太宗李世民, 566–635 )
Family Business in China

There is an increasing recognition that family firms are the dominant
form of business organization (La Porta et al. 1999). Gersick et al. (1997)
estimate that up to 80% of worldwide enterprises are family owned while
La Porta et al. (1999) suggest that most of the economies are controlled
by a limited number of wealthy families. It is found that 44% of publicly
corporations in major European countries (Facccio and Lang 2002) and
up to 33% of the S&P 500 in the United States (Anderson and Reeb
2003) are controlled by families.
Just like other economies, family firms are strongly prevalent, if not
more so, in China (Sharma and Chua 2013). Unlike other economies,
family businesses in China are greatly affected by the derived Confucian
© The Author(s) 2021 1

L. Chen et al., Family Business in China, Volume 1, Palgrave Macmillan
Asian Business Series, https://doi.org/10.1007/978-3-030-51395-5_1
2 L. Chen et al.
culture, excessive marketization, as well as the seemingly endless insti-

tutional supervision by a transitional Chinese government. In fact, the
literature largely suggests that the prevalence and prosperity of Chinese
family firms are due to many contextual features which include, but
are not limited to, information asymmetry (Lu et al. 2013), relational
strength (Song and Wang 2013), guanxi networks (Dou and Li 2013)
and ownership concentration (Deng et al. 2013).
The literature also highlights that the Chinese context provides a valu-
able yet unique opportunity to study family business for a number of
reasons. To begin, business in China is particularly tied to the central
role that family plays; hence the substantial influence of family involve-
ment in business might be further pronounced (Liden 2012). This makes
family governance as the “default” setting in which entrepreneurs begin
their business ventures. This also makes the family business as the most
common form to transfer family wealth and social status from one gener-
ation to another. In addition, as the Confucian culture strongly supports
the value of family ties in maintaining group solidarity and social
order (Gupta and Levenburg 2010), family-centered concerns might be
given higher priority in affecting business decisions compared to those
in Western economies. In addition, family firms in China were often
created by the first-generation founders who started the business shortly
after the 1978 “Open-up and Reform” (Huang 2008). This generation
has reached the age of retirement, and family-centered concerns such as
emotional attachment to the original business and intra-family succes-
sion might become particularly strong (Pistrui et al. 2001). Finally, as
the market competition intensifies, family business leaders often struggle
to find a way to develop new products, processes, markets, or sources
of supply (Schumpeter 1934), for the purpose of remaining competitive
in the market. Thus, family business in China also represents a valuable
opportunity to study the importance of market competition on family
firm behaviors and performances.
Some might doubt that family businesses might hinder the feasi-
bility of an equitable distribution of wealth that could eventually hinder
economic reform. Others, in opposition, claim that the younger genera-
tion in control of Chinese family firms tend to be more entrepreneurial
compared to the first-generation family leaders, and might even stimulate
1 Introduction 3
economic potential by engaging in more innovative ways of doing busi-

ness. Today, there is considerable myth and much curiosity concerning
knowledge about family business in modern China, as well as a prevailing
eagerness to learn about it. In fact, family business theorists, educators,
and practitioners could benefit from a thorough investigation of Chinese
family business traditions and experiences by taking a closer look at its
past history, present status, and future prosperity.
Research Motivation and Theoretical

Framework
The most fundamental motivation behind this book series is to develop
a theoretical framework that connects the past, the present and the
future of family business and business family in China, with an emphasis
on unfolding the historical legacy, articulating the current status, and
presenting feasible recommendations to family business researchers and
practitioners for future challenges.
Given “family” as the most basic economic and social unit in China,
also given the interaction between societal forces and family system, we
use family sociology as the primary theoretical lens in developing our
framework. We also include an anthropological angle highlighting the
Confucian norms and values that guide people’s behaviors in China.
Finally, given the emphasis on the “past-present-future,” we also include
a historical angle in the framework. Thus, our theoretical framework
can be best interpreted as an inter-disciplinary approach composed of
sociological, anthropological and historic perspectives in studying family
business and business family in China.
In the following section, we will discuss sociological studies on family
with a focus on its unique features and why applying a sociological
perspective in combination with other theoretical lens might expand our
understanding of Chinese family business and business family.
4 L. Chen et al.
Sociological Perspectives in Studying Family
Sociology can be defined as a research discipline of social science with

a focus on social activities, social relationships, and social interactions
(Calhoun 2002). As a social science, sociology attempts to study social
life as a whole, while other social disciplines often emphasize certain
aspects of social life (Giddens et al. 1996). For instance, history studies
the historical aspects whereas political science studies political aspects.
Thus, it is sociology that provides an “overarching” theoretical interpre-
tation that connects all social aspects together and presents a compre-
hensive picture regarding how our society and our social lives look like
(Giddens et al. 1996).
Family has long been a focus in the sociology. In fact, family soci-
ology1 can be defined as a research area devoted to the study of family as
a basic institution in the very center of social life (Scanzoni and Scanzoni
1976). Accordingly, family can be defined as a socially recognized group
usually joined by blood, marriage, or adoption that serves as the most
basic unit in a society (Chambers 2012). Common assumptions in family
sociology include the universality of family, the inevitable variation of
family forms, and the necessity of family for integrating individuals into
social life (Treas et al. 2017).
Historically, family sociology is generally concerned with the forma-
tion, maintenance, growth, and dissolution of family structure and
kinship ties (Huber and Spitze 1988). Much of work presented fami-
lies in structure and process as in the roles of parents and the process of
parenting, various types such as nuclear and extended families, internal
dynamics such as tensions in the family system, or basic life processes
such as division of household labor. Some of the classic topics in family
sociology include role differentiation among family members; family size,
age and ethnicity; diversity of family forms; interaction among family
members and its economic and social influences; social class and social
mobility; the effect of social change on the family; among others.
1 Sociologyof family, sociological study on family, and family sociology are interchangeably used
in this book.
1 Introduction 5
New topics are certainly emerging, and research continues to inves-

tigate the new social trends aligned with family system. The recent
development of family sociology expanded to incorporate a variety of
topics related to gender, sexuality, intimacy, cross-culture, emotion, and
anything that can be conceptualized to be family-related (Huber and
Spitze 1988). Today, family sociology grows to become one of the largest
research fields in sociology with a wide range of topics. Also, family
sociology has a historical focus in its orientation to changes, trends,
and patterns in social changes and social reforms. While a review of
the historical development of family sociology is beyond the scope of
the book, it is important to recognize four definitive features of family
sociology.
To begin, family sociology treats the family as “dependent variable ”
in terms of its connections with various social causes, and “independent
variable” in terms of its connections with various social outcomes. This
means, family sociology not only explores various antecedents that might
affect the basic formation and variation in the family system, also it
explores the social consequences of changes and variations in the family
system (Bales and Parsons 2014). For instance, several family studies in
the middle of twentieth century focused on the impact of the Depres-
sion on family structure, the migration of families from the country to
the city aligned with the industrialization in the United States, and the
rise of single-parent families (Furstenberg 1966; Greenfield 1961). At the
same time, family sociologists also recognize the power of family system
in affecting social matters, and relevant topics here include the economic,
political, and social consequences stemming from the changing role of
woman, the changing structure of the family, as well as the changing
form of marriage (Kanter 1977).
The second feature is the “openness” of family sociology aligned with
other research disciplines. In fact, given the width of coverage in the soci-
ology, it is not surprising that family sociology has often been combined
with other sociology disciplines in explaining a variety of different topics
such as poverty, crime, social inequality, and other at the societal level
(Becker and Rau 1993). In this kind of interdisciplinary studies, family
is often used as the basic unit of analysis, and a variety of different
social phenomenon was interpreted as either causing or being caused by
6 L. Chen et al.
dynamics in the family system. For instance, in their book “The Polish
Peasant in Europe and America,” Thomas and Znaniecki (1918) used
the family as the “unit of analysis” in explaining the process of urban-
ization and industrialization as well as the migration of Polish peasants
from rural to urban areas. In addition, research disciplines that go beyond
sociology also adopt certain concepts from family sociology, such as the
idea of family labor differentiation in family economics (Becker 1981).
Nonetheless, such a feature might also stem from the fact that, earlier
family sociology studies were often empirically driven and descriptive in
nature (Esping-Andersen 2000; Tudor 2013; Warshay 1971).
Third, family sociology often features a “bottom-up” approach in
which researchers emphasize the aggregative effect of lower-level actives
such as family structure on higher-level social phenomenon such as
economic development, social reform, social mobility and migration
(Klein and White 1996). In this regard, family sociology is born as a
multilevel research area. As an example, one of the most classic focuses
in family sociology is how the formation of the family as well as interac-
tions among family member would affect the family’s social class, defined
as social stratification in which people are grouped into a set of hier-
archical social categories based upon income, wealth, social status, and
derived power (Jencks et al. 1972). Such a focus is often coupled with
inquires on the mobility of the family within or between layers or tiers
in the hierarchy of social stratification as well as overall inequality in the
society.
In final, family sociology has the focus on comparative studies in
its very heart (Glaser 1965). Indeed, a large number of family soci-
ology studies were comparative within and between cultures, economies,
communities, or even between past and present (Gauthier 1998). Some
studies even compare families by race, geography, income, and occupa-
tion in one single economy or community (Huber and Spitze 1988). For
the purpose of this book, we will make a comparison of family business
in China with family business in Western context.
1 Introduction 7
Theoretical Framework in the Book
As mentioned above, this book applies an interdisciplinary approach

where we use the family sociology as the primary theoretical lens
in combination with anthropological and historical perspectives. The
anthropological perspective is included because family system and conse-
quently family business and business family in China are often affected
by traditional rituals and customs rooted in Confucian values and norms.
The focus on anthropology helps address some “soft” issues such as
religiosity, tradition, rituals, or culture in family business and business
family. The historical perspective implies that what is present stems from
the past, while what is future stems from the present. The inclusion of a
historical perspective highlights the importance of cultural and economic
legacy as well as certain historical moments such as the up and down of
“One-Child Policy” in affecting family formation and structure in China,
which eventually contribute to the heterogeneity of the behaviors and
performances in Chinese family firms.
Figure 1.1 summarizes our theoretical framework. Before we explain
all dimensions included, it is important to note that such a theoret-
ical framework is carefully chosen for several reasons. First, to follow
the tradition of family sociology, family system is located at the very
center of the model. That means, it is the family system that adapts
to the changes in the external context, also it is the formation and
variation in the family system that contribute to idiosyncratic yet hetero-
geneous behaviors and performances in family firms. Second, we choose
to emphasize four definitive features of family system in China, which
independently or interactively differentiate Chinese family system from
those in the Western context. We will further discuss these four features
in the following section. Third, according to the model, the influences of
external context on family business can be divided into two distinctive
paths. That means, not only external context might directly affect family
business which has been well documented in the family business litera-
ture (Wright et al. 2014), there is also an indirect effect mediated by the
family system.
8
External Context Family System Family Business

Institutional System Individual, Household Corporate Governance
L. Chen et al.
Economic Environment and Lineage Strategic Behavior

Market Competition Patriarchy and Corporate
Culture Patrimonialism Entrepreneurship
Household Division and Performance
Wealth Inheritance
Family as a Model for
the State
Past Present Future
Fig. 1.1 Overarching theoretical framework

1 Introduction 9
Forth, the model also highlights reciprocal causality, which is relatively

rare in the management especially in the family business literature. The
model suggests that not only the external context might affect family
system; also family system might collectively affect the dynamics in the
context. Such a rationale is consistent with studies in public policy which
highlights the importance of modifying government regulations to better
address concerns stemming from the family systems such as declined
family size and the rise of nontraditional families (Myrdal 1968). Such a
reciprocal causality also exists in the relationship between family system
and family business (and business family). In fact, the literature has long
called for studies addressing the influences of the business on family
system, which is also aligned with the research focus on “non-economic
performance” or the realization of family-centered noneconomic goals
based upon the family’s control in business.
Finally, the model includes a historical perspective, which can be
simply summarized as “the past affects the present which will affect the
future.” This angle further highlights the dynamic nature of the model:
all three components (context, family, and family business) and their
causal interactions are developed in a path-dependent yet dynamic
manner. For instance, a thoroughly understanding of China’s family
system in present must be based upon the exploring of historical lega-
cies or events that contribute to the formation of family system in the
past.
Major Dimensions in the Theoretical Model
As shown in Fig. 1.1, the three major dimensions included in the model
are external context, family system, and family business. The external
context includes institutional system related to government agency and
industrial association; economic environment with dynamics in economy
growth; market environment coupled with severe competition and fast-
paced industrial life cycle; and last but probably the most important, the
unique Chinese culture which stems from the legacy of Confucian values
as well as other traditions and customs. Note that a large portion of book
10 L. Chen et al.
chapters will be dedicated to explaining rationales behind the rise and fall
of family businesses and business families from 1850 to the present. Such
a periodic range covers the late Qing Dynasty (1850–1912), Republic of
China (1912–1949), and People’s Republic of China (PRC, 1949-now).
In the book, Chapters 5, 6 and 7 will discuss the late Qing and Republic
of China periods, and Chapters 8 and 9 will focus on the PRC period.
Also, since the founding moment of PRC, we have observed numerous
historical events contributing to changes in almost all aspects of social
life, and of course family business and business family are not the
exception. Hence, China, family in China, and family business and busi-
ness family in China should better be conceptualized as a combination
of “old” and “new.” The “old” refers to those dimensions stemming
from and rooted in historical and cultural legacies. The “new” refers to
social changes stemming from the Communist and Socialist governance
and ideology aligned with the Communist Party, dramatic economic
development, as well as critical government policies such as “Gender
Equity Movement” and Cultural Revolution. Or as Levy highlighted
(1949, p. 41), readers should be cautious in differentiating “traditional”
China from “transitional” China, although a thorough understanding of
“transitional” China must be based on rationalizing “traditional” China.
Also, we carefully chose four shared features that differentiate family
system in China from family system in western countries. These are (1)
lineage; (2) patriarchy and patrimonialism; (3) bounded equal division of
household; and (4) family as a model for the state. These four features are
representatives of family structure, family’s governing principal, family
inheritance principal, and the relation between the family and the state,
respectively, hence they become a solid theoretical ground that can be
used to discuss the distinctiveness of family in China and in the Western
context.
When discussing the historical development of family firms or enter-
prises in China, we have used a number of cases to further support our
arguments. In order to enhance the conclusiveness of case analyses, we
have carefully chosen those cases from family firms or business fami-
lies in different life stages, in different historical eras, also located in
1 Introduction 11
different geographical areas in China. Figure 1.1 illustrates the geograph-

ical locations of the cases. Note that we intentionally chosen cases from
the mainland China also from other territories where some immigrant
Chinese business families choose to start their businesses. Also, for some
cases, we have collected longitudinal information such that we are able
to thoroughly discuss both the dynamics in business and the evolvement
in the family over time. As audience might notice, most of cases we have
included are from the coastal areas such as Yangtze Delta and the Pearl
River Delta. It is possible that advanced economic and institutional envi-
ronments in those coastal areas might affect the characteristics of family
firms residing in these areas. For family firms, whether their idiosyncratic
features stem from the local cultures and family traditions, or from the
better industrial infrastructures or market systems? What might be the
future prospect of these family firms? While this book intends to address
some of these questions, it should be noted that family business studies
in China are still in an early stage of development. We truly hope that
this book can serve as a modest spur to motivate more scholars joining
in this promising yet important research area.
In the end, we also include a number of strategic decisions and
firm performances as the final “outcomes” of family involvement in
business in the Chinese context. Issues related to corporate gover-
nance, strategic behaviors, corporate entrepreneurship and performance
in Chinese family business will be addressed in Volume 2 of this book
series (Fig. 1.2).
12 L. Chen et al.
Fig. 1.2 Geographical distributions of cases
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Part I
Social Foundation of Family System
in Ancient China
2
Household and Family
Concept of “Family” in China

Three Aspects of the “Family”
The concept of “family” used in this book—the Chinese term jia

(Chinese: 家)—refers to a unit of members related to each other by
blood, marriage, or adoption featured by culturally defined role differen-
tiations and solidarity among family members, the ownings of common
property, the sharing of common production and common consump-
tion, as well as the practice of common social activities (Eastman 1989;
Lang 1946).
When talking about family, there are three different aspects which
provide three distinctive implications of the so-called family relation-
ship also the whole family system. Firstly, the basic form of family is
built upon marriage. While part of the marriage is driven by human
nature, marriage is also defined and protected by social norms and
legal regulations. Thus, marriage by definition implies certain rights and
responsibilities shared by its participants—in common cases, husbands
and wives.

18 L. Chen et al.
Secondly, family relationships also the overall family system are

strengthened by blood or biological connections. Note that as a social
unit, while admittedly most family members share father–son, mother–
daughter, or this sort direct biological relationships, sometimes some
family members may not share blood or marriage relationships with
others. Examples here include adopted children, fictive kinship and
pseudo-family relationships. Thus, certain family relationships might go
beyond marriage or blood relationships.
Finally, family is a basic social unit, and family members carry the
rights and responsibilities of being one part of the family. As Engels
noted, “(t)he terms father, child, brother and sister are no mere honorary
titloes, but carry with them absolutely definite and very serious mutual
obligations, the totality of which forms an essential part of the social
constitution of these peoples” (1972, p. 33). That is to say, the family
relationships here are not merely biological bonding featured by DNA
and marriage, but also mutual rights and responsibilities defined by
prevailing social norms and values. Here, family is viewed not only
as a physical location in which a group of individuals live together
and share every piece of joys and sorrows in their lives. Also, the
family is a social unit which carries the social function of regulating
each members, the economic function of production and consumption,
the emotional function of supporting each other, even the intellec-
tual function such that—along with the name of the family—certain
culture-based family-centered traditions and values can be passed into
late generations.
It is of particular importance to recognize the social aspect of “family”
in ancient China, probably more important compared to the marriage or
biological aspects of the family. In fact, Chinese family can be concep-
tualized as a social unit in which family members’ roles and solidarity
relations are defined by the underlying Confucian values, an economic
unit in which the living members produce and consume in common,
also a cultural unit where the family is responsible for performing
certain anthropological rituals such as ancestor worship for the well-
being of both living and deceased members. In another word, if some
Chinese family member who is not willing to follow the family-centered
thousand-year-inherited traditions and norms which all stem from the
Confucian culture, then by the governing rules in the society this

member might not be accepted as one part of the family. In Chapter 3,
we will further discuss the economic, social, and educational functions
of family in ancient China.
Chaxu Geju: Managing Concrete Social Circles

in China
Based on his observations on rural China in 1940s, sociologist Xiaotong

Fei developed a theory of Chinese society that builds on the idea of
Chaxu Geju (the difference mode of association). Here, “Cha” refers to
horizontal social relations, in the sense of distances between individuals
in concentric social networks, and the term “Xu” refers to the vertical
dimension, in the sense of a rank order. “Geju” means pattern of social
relations. Thus, the direct translation of the term Chaxu Geju means the
patterns of social relations that vary in both social distances and orders.
In Fei’s words, “families in the West are organizations with distinct
boundaries. If a Western friend writes to you saying that he will ‘bring
his family’ to visit you, you know very well who will be coming with
him. In China, however, this sentence is very ambiguous. In England
and America, a family will include the man, his wife, and his children
who have not yet grown up. If he is bringing only his wife, he does not
use the word family. In China, we often see the sentence ‘The whole
family will come’ (hedi guanglin), but few people can tell what family
members should be included in the word di (family). In Chinese, the
word jia (family) is used in many ways. Jialide (the one at home) can
mean one’s wife. Jiamen (kinsmen) may be directed at a big group of
uncles and nephews. Zijia-ren (my own people) may include anyone
whom you want to drag into your own circle, and you use it to indi-
cate your intimacy with them. The scope of zijiaren can be expanded or
contracted according to the specific time and place. It can be used in a
very general way, even to mean that everyone under the sun is a jia (one
family)” (Fei et al. 1992, p. 62).
Fei proposes the term “group pattern” for describing Western society,
meaning that Western societies emphasize ties to abstract collectives as
20 L. Chen et al.
compared to Chinese society, which emphasizes relations among concrete

people (what Fei calls “social circles”). In a famous remark, Fei described
social relations in China as the ripples that appear in a lake when pebbles
are thrown into it; the ripples overlap and interfere with each other. Fei
claimed that “social relationships in China possess a self-centered qual-
ity” (1992, p. 63), as each individual draws a concrete web of his or her
own social relations, and nodes (individuals) are centers of circles that
can expand or shrink. This claim indicates that, although there might
be some overlap among individuals’ self-centered networks, “(n)o two
people in the world can have entirely the same set of relatives…… (t)wo
brothers certainly would have the same parents, but each brother would
have his own wife and children” (1992, p. 64).
Additionally, the concrete social circles surrounding self-centered
nodes represent the order of intimacy that the focal individual perceives
toward social connections surrounding him or her. The closer to the
center, the higher extent of perceived intimacy or so-called “Ziji-Ren”
(my own people).
According to Fei, the notion of family in western social science cannot
be directly applied to China, because in China the boundary of family
is fuzzily defined and open-ended, adapting to the functional needs that
emerge in specific social and economic context. Using Fei’s words, “(i)n
Chinese society, the most important relationship—kinship—is similar
to the concentric circles formed when a stone is thrown into a lake.
Kinship is a social relationship formed through marriage and repro-
duction. The networks woven by marriage and reproduction can be
extended to embrace countless numbers of people—in the past, present,
and future. The same meaning is implied in our saying ‘Everyone has
a cousin three thousand miles away,’ with three thousand miles indi-
cating the vastness of kinship networks. Despite the vastness, though,
each network is like a spider’s web in the sense that it centers on oneself ”
(1992, pp. 62–63).
In addition, Fei believed that the concept of private/public domain as
well as the perception of “ziji-ren” (my own people) are all relative. In
his own word, “(t)he scope of zijia-ren can be expanded or contracted
according to the specific time and place” (1992, p. 65). Thus, standing
on the behalf of his/her own family, it can be said that the neighbor-
hood is less “intimate” compared to the kinship family. Thus, it can even
be argued that “a person who sacrifices his lineage for the sake of his
family is performing a public duty” (p. 66), also “(w)hen he sacrifices his
country in struggling for the interests and rights of his own small group,
he is still acting on behalf of the public, which is now defined as the small
group itself ” (p. 66). On the other hand, selfishness can be achieved by
moving outward across concrete social circles.
Fei’s Chaxu Geju (1992) provides a fundamental explanation of ratio-
nales ales behind Chinese people’s social interactions especially those
living in rural China. It also helps explain for average Chinese why the
focus is often placed on his/her own families rather than the community
or overall social matters.
Boundary of Chinese Family
In general, the concept of “family” in China includes family members

that go beyond the Western stereotype of family. In the Western context,
a nuclear family refers to a family household founded by the marriage
of a man and a woman, and enlarged by the birth of their children.
In contrast, as a result of the dictates of familism in ancient China, a
Chinese husband and wife often felt impelled to have at least one son and
preferably more, and all sons together with their wives and grandchildren
should if at all possible continue to live within a single household. In fact,
the “ideal” sense of family or jia in China can be best described as “five
generation under one roof ,” although only a small portion of households
reach this size. That is to say, compared to the Western stereotype of
family, the ideal “family” in China is larger in size and more complex in
solidarity relations among its members.
Also highlighted by the definition of “family” mentioned above, in
Ancient China the inclusion of members into the family is largely defined
by the Confucian values. Among all, the most prevailing notion of “fam-
ily” comes from the norm of nine grades of relations (Chinese: 九族).
In general, the nine grades of relations classifies members that can be
legitimately included as members of a family system or even a family
22 L. Chen et al.
lineage. Two most prevailing interpretation of nine grades of relations

were: (1) nine generations from great-great-grandfather down to great-
great-grandchildren; and (2) four generations from the paternal line,
three from the maternal line, and two from the wife’s. Historically, the
notion of nine grades of relations had been widely used by government
authorities for award, punishment, and annihilation.
One motive behind the extension of family system is the unique rela-
tionship between family and individual. In the West, the family often
serves the basic function of raising and preparing individual before he/she
goes out into the world and becomes a full member of the society. As a
result, family often experiences break-up when children reach adulthood,
depart from the original family, and start to build their own nuclear fami-
lies. In another word, the family system in the Western society exists to
nurture junior family members. The situation in the traditional Chinese
context is the exact opposite: the purpose of family members especially
junior males is to nurture and continue the family, which is often aligned
with shared family surname, history and antecedents. Or as Baker put,
“there is an underlying assumption in Chinese thinking on the family
that there is such a thing as a ‘Continuum of Descent’…Decedent is
a unity, a rope which began somewhere back in the remote past, and
which stretches on to the infinite future,” and “the individual alive is the
personification of all his forebears and all his descendants yet unborn”
(1979, p. 26). Hence, it is not a surprise to see Baker concluded that
“individual was dominated by the family (in China)” and “the actions
of individuals were geared to the requirements of the (Chinese) family”
(1979, p. 27).
Solidarity Relations in Chinese Family

Solidarity relations in the family system refer to the various relations
between two family members. In ancient China, there are three family
relations highlighted in Wu-Lun (Chinese: 五伦) or Five Human
Relationships emphasized by Confucian values and institutionalized by
the law and the state government. Wu-Lun includes: Ruler-minister,
father–son, elder brother–younger brother, husband–wife, and friend–

friend. For the interest of this book also regarding their relevance to
family business and business family in China, we focus on four soli-
darity relations among family members, including (1) father–son; (2)
husband–wife; (3) mother–son; and (4) brother–brother.
Note that, although the mother–son relationship is not included in
Wu-Lun, it is still of particular importance to Chinese families. This
is because, mother often fulfills the function of educating children, and
often serves as the emotional tie that binds all family members together.
After the father dies, all the sons are supposed to respect the mother, and
the mother is expected to guide the sons in important family matters.
Hence, we include the discussion of mother–son as an important type
of solidarity relationships in the Chinese family. Also note that, beside
mother–son relationship, the other three types that we will further elab-
orate below can be viewed as “prototypes” of relationships that Chinese
individuals might experience in the society. That means, the family
system can be conceptualized as a pre-school which provides the basic
social rules and norms of interacting with others such that junior family
members can be better prepared before entering into the society.
Father–Son
Given the dominance of patriarchy (father or oldest male as the head

of the family), patrilineality (family membership derives from and be
recorded through the husband’s and father’s lineage), and patrilocality
(married couple resides with or near the husband’s parents) in China,
it is not surprising that the father–son relation is of vital importance to
the whole family. The father, in many cases also the head of a patriarchal
family, often perceives his son as his continuation, and hence might place
high priority on critical matters relevant to the long-term prosperity of
the family, which includes mentoring, training, supporting, finding the
son a wife, leaving some inheritance, and establishing moral standard for
the son and other family members. In fact, for male family members
in China, it is assumed that his biggest responsibility is to continue
the family line along with his father and ancestors by giving birth and
24 L. Chen et al.
nurturing younger generation. This can be best explained by the Mencius

“of the three unfilially acts the greatest is to lack posterity” (不孝有三无
后为大).
Interestingly, the content of the relation between father and son is
often expressed in two extremes. On one hand, if the son shows obedi-
ence to his father, then the father is assumed to respond with kindness,
which is expected to strengthen the filial piety in the side of the son.
This scenario can be best described as “a father should be kind and sons
should be filial.” On the other hand, as the head of the family, the father
is often obligated to establish the moral standard for the whole family,
and to command punishment to certain family members when neces-
sary. That is to say, the father is expected to be “stern and dignified” to
his son especially when the son acts in a violation of moral codes or of
the son’s obligation to the family, whereas at the same time the mother
is often portrayed as being “gentle and compassionate.”
In fact, the principal of filial piety in the father–son relation places
more emphasis on the son’s duty of obedience rather than the father’s
position of superiority. Also, the son’s obedience from a Confucian
perspective is often regarded as unconditional, unless the father performs
immoral actions then the son is obligated to dissuade the father.
Husband–Wife
Different from the western context in which the husband–wife relation

is often located in the center of the family system, in China the relation
is by no means as important and probably not as strong as other soli-
darity relations such as the one between father and son. In fact, wife’s
status in a Chinese family is often dependent upon her bonding with
her son (s), especially when the son or one of the sons becomes the head
of the family. In general, the wife is expected to take care of the house-
hold, raise the children, and promote the overall well-being of the whole
family, although such activities are under the direction of the husband’s
mother or the wife’s mother-in-law. When mother-in-law dies, the wife
is expected to take her function and direct the future daughter-in-law.
It is worth mentioning that the division of labor in the “ideal” family

also follows the solidarity between husband and wife. Men are often
responsible for production works such as planting and seeding in agricul-
ture, while women are left for household works. The training of children
is often differentiated by sex, such as boys are trained by husband and
girls by wife. The oldest man of the oldest generation takes over the
overall family management as well as the exchange between the family
and outsiders.
The strength of the bonding between husband and wife is also asym-
metrical by nature. That means, from the wife’s view the relation has
greater importance compared to the husband’s view, and the nature of
the relation is often subject to the husband’s command. As far as the
husband’s parents still live, the husband is assumed to place lower priority
on the husband–wife relation compared to his relations with his parents.
Nonetheless, in any matter relevant to the young generation, the bonding
between husband and wife become quite strong, and the husband is
expected to support his wife in such matters.
Also note that, the Confucian norm tends to be very explicit in terms
of the “Seven Grounds for Divorce” (Chinese: 七出之条), clarifying seven
conditions that the husband can although not necessarily need to divorce
the wife. These conditions include (1) not obedient to the in-law parents;
(2) childless; (3) adultery; (4) jealousy; (5) (severe) disease; (6) gossip;
and (7) theft. As a reflection of the prevailing patriarchy in ancient
China, the husband can divorce if he finds or suspects that the wife is
having an affair; while at the same time the wife is not supposed to
show jealousy toward the husband’s relations with other wives or even
concubines. An ideal wife, on the other hand, is expected to urge the
husband getting another wife or concubine in face of a childless marriage.
Nonetheless, the Confucian value also highlights three exceptions under
which the husband should not divorce the wife despite the wife has met
one or more conditions according to the “Seven Grounds for Divorce.”
The three exceptions include (1) her parents passed away and she has
nowhere to return; (2) she completed a full three-year mourning for a
parent-in-law; and (3) her husband was poor when they married, and is
rich now.
26 L. Chen et al.
Another fundamental difference between China and the West is that,

the marriage is neither built upon nor strengthened by the romantic love
between the husband and the wife. In the West, romantic love is consid-
ered as the funding component of a marital relationship especially in the
very beginning. As a comparison, in China the marriage is the outcome
of a negotiation between parents of both families, and the husband and
wife are informed to get married although very likely both have never
met each other before. After the wedding, the couple’s relation is mainly
driven by the husband’s commanding and the wife’s respect toward the
husband.
Mother–Son
In general, mother is supposed to take a gentle, caring, and compas-

sionate role, whereas the father figure more symbolizes dignity and
sternness. As the Book of Rites (礼记) summarized “Here now is the affec-
tion of a father for his sons- he loves the worthy among them, and places
on a lower level those who do not show ability; but that of a mother for
them is such, that while she loves the worthy, she pities those who do
not show ability: the mother deals with them on the ground of affection
and not of showing them honor; the father, on the ground of showing
them honor and not of affection” (Lang 1946, p. 29).
In this regard, the father is often portrayed as a figure of authority in
the family, while mother is expected to take a “soft” role in raising the
child, taking care of the whole family, and developing affective bonding
among family members. Hence, it is not surprising to see that, in an ideal
Chinese family, the mother is not responsible for educating and disci-
plining children. Nevertheless, in some cases when the father passes away,
the mother might take a more active role with more responsibilities. One
famous example here is the mother of Mencius who changed the resi-
dence location three times to save her son from disturbing influences.
Another example is the mother of General Fei Yue1 (Chinese: 岳飞), who
according to historical record and legend tattooed four Chinese charac-
ters jin zhong bao guo (精忠报国, serve the country with the utmost
loyalty) across Fei Yue’s back in order to encourage her son to join the
army and defend the country against the Mongols.
Interestingly, the tension between mother and son often comes
from the frustration between mother-in-law and daughter-in-law. As
mentioned above, daughter-in-law is often supervised by her mother-
in-law, and the daughter-in-law owes complete obedience and respect to
her mother-in-law. At the same time, mother-in-law owes her daughter-
in-law nothing in return, merely bearing the responsibility of ensuring
daughter-in-law in a reasonably good state such that daughter-in-law can
still bear the duty of child birth.
Brother–Brother
The solidarity relation between brothers is one of the most important

bonding among family members, only next to that between father and
son. In theory, the brother–brother relation should be highly cooperative,
as brothers are obligated to mentally and materially support each other.
Also, younger brother is expected to show obedience to elder brother,
although the age-based obedience is considered less important compared
to the brothers’ mutual support to one another.
One critical scenario also highly relevant to family business and busi-
ness family is when the father dies, the eldest brother is expected to
take a head position although such an endeavor is often accompanied
with the splitting of the family afterwards. Indeed, the whole family
often experiences family splitting after the death of the father whereas all
brothers claim their legal shares of the family’s property. The temporarily
of “brother consortium” and the splitting of the family stem from the
difficulty of mutual adjustment among brothers. Indeed, the role of
1 FeiYue was a Chinese military general in Southern Song Dynasty (AD 1103–1142). He was
best known for his leading of victory in the wars in the twelfth century between Southern
Song and the Jurchen-ruled Jin. In ancient China, Fei Yue was often seen as a patriot and a
hero. Since his death Yue Fei has evolved into a paragon of loyalty in Chinese culture.
28 L. Chen et al.
eldest brother and the role of family head differ dramatically. Also, the
father’s head position was developed and strengthened when all sons were
relatively young, while the eldest brother does not have such a long term
to strengthen the legitimacy of the head position. In addition, younger
brother do not have time to adjust for the eldest brother’s new position
as well as the power and authority aligned with the position. Hence, the
institutionalized right of all brother claiming their shares and the tradi-
tion of (bounded) equal household division provide a peaceful mean in
which the challenges in such scenario can be resolved.
Nevertheless, although being temporary in existence, the format of
“brother consortium” still has its value for three reasons. To begin, such a
“brother consortium” creates a buffering period when important matters
related to household division can be further discussed and negotiated
among bothers. In addition, it establishes a ground where under-aged
brothers can grow into adults. In final, it is also a useful means to impress
outsiders that the family and within family members are still united.
References
Baker, H. D. (1979). Chinese Family and Kinship (p. 49). New York: Columbia
University Press.
Eastman, L. E. (1989). Family, Fields, and Ancestors: Constancy and Change in
China’s Social and Economic History, 1550–1949. OUP Catalogue.
Engels, F. (1972). The Origin of the Family, Private Property, and the State. New
York: Pathfinder.
Fei, H. T., Fei, X., Hamilton, G. G., & Zheng, W. (1992). From the Soil: The
Foundations of Chinese Society. Berkeley: University of California Press.
Lang, O. (1946). Chinese Family and Society (pp. 134–154). New Haven: Yale
University Press.
3
Family: Economical, Social, and Educational
Functions
Economic Functions
Self-sufficiency
Despite of its long history, the economy in Ancient China had long
been dominated by the nationwide focus on agriculture. Accordingly,
the family system in ancient China can be termed as economically “self-
sufficient” in both production and consumption. That means, for the
basic needs of agricultural goods, the peasant family is able to produce
by itself, and what has produced are largely consumed by family members
after the land rent and tax takeaway. The cooperation between families is
also limited, and largely focusing on the exchange of life and production
necessity as well as neighbor cooperation in economic activities such as
wheat gathering in the peak season.
As Levy (1949) highlighted, the self-sufficient nature helps strengthen
the stability of family structure in China over centuries, because “a rela-
tively slight decrease in the degree of such self-sufficiency was likely
to mean a disproportionately great increase in the number of contacts
with outsiders both regards production and consumption” (Levy 1949,
p. 210). This self-sufficiency also justifies the importance of having
30 L. Chen et al.
female family members in charge of supportive activities such as cooking,

sewing, care of the children, and others.
On the side of consumption, although what the average family
produces is theoretically sufficient for the family consumption, there are
important costs to note. Levy (1949) highlighted that landlord rent, tax
payment, and exchange of life items as important expenses that might
affect the economic self-sufficiency of the family.
Land Attachment
Partially due to the agricultural nature of Chinese society, attachment to

land has been emphasized by many scholars as a distinctive component
to family in China (Baker 1979; Eastman 1989). The ownership of land
assures that the family can operate as a production unit, also the land
itself might be connected with other anthropological activities such as
ancestor worship. Hence, unless threaten by external forces, it is relatively
rare to see a Chinese family moving to another place of residence. In
these days, the purchasing of land and real estate property has been a
distinctive feature of Chinese businessperson even in foreign territory.
Petty Capitalism
In the book “China’s Motor: A Thousand Years of Petty Capitalism”

(1996), American historian Hill Gates argues that since Song Dynasty
there exist two modes of production in Chinese society operated in
a manner of complementarity. The first is the “Petty Capitalist Mode
of Production” which was characterized by the marketing activities of
millions of families or family lineages in which the labor of kin was
used to produce goods for the market. The other type is the “Dominant
Tributary Mode of Production” which involves the parallel existence of a
village class and a sociopolitical structure which exploited the former by
exacting a tribute. Some examples here include royal lands, royal minerals
of certain strategic resources such as salt and iron. Calling the count-
less petty capitalists as “China’s motor,” Gates argues that it is the petty
capitalism that contributes to the vitality of economic activities in China.
3 Family: Economical, Social, and Educational Functions 31
The recognition of “petty capitalism” in ancient China reminds us

that, besides being a self-sufficient unit attached to the land, Chinese
families are also productive units which have played an active role in
market exchanges. Nevertheless, due to the dominant power of the
threatening and extractive state, petty capitalists by nature were inclined
to keep their enterprises small and familial. Evading taxes and avoiding
political action, these family enterprises thus “perpetuated the gulf
between themselves and power” (p. 275). As we will further discuss in
the section “Family as a Mode of the State” Chapter 4, petty family capi-
talists in China often intend to “maintain a distance” from the powerful
state government.
Business Family in Ancient China
As one essential part of petty capitalism, business families in ancient

China were mostly small in size. But there were some exceptions in
which some business or commercial families created and accumulated
a huge amount of wealth, even documented as “rich as a state.” While a
successful business family is surely impressive by any mean, the visibility
of the wealth might put the family in a dangerous situation, as the wealth
might bring in the envy and hostility from other families even from the
federal government.
One of the earliest records is the Records of the Historian: Money-
makers (史记: 货殖列传) by Szuma Chien (BC 145–ca. BC 91). In this
masterpiece, Szuma recorded Li, Fan (范蠡, BC 636–BC 448) who was
a successful prime minister of Kingdom of Yue before he resigned and
chose to start a new career as a merchant. As noted by Szuma, “Mr. Fan
Li was a good manager, a sound judge of men, able to take advantage
of the times. Three times in nineteen years he accumulated a thousand
pieces of gold, and twice divided these between distant relatives and those
in want. He was, in fact, a rich philanthropist. Later, when he grew old
and infirm, he turned over his affairs to his sons and grandsons, who
carried on and developed his business until they had millions. Thus he
was called Lord Chu of Tao and his name became a byword for a rich
man” (Yang and Yang 1979, p. 414).
32 L. Chen et al.
Social Functions
Ancestor Worship
One important social function of family in ancient China—also largely

distinctive from the West—is ancestor worship. The practice of ancestor
worship can be traced to Shang Dynasty which was over one thousand
years before the rise of Christianity. In general, ancestor after death was
considered as powerful gods who can give or withhold the success in
hunting, agriculture, warfare, and other activities, while natural disaster,
defeat, sickness, and death were viewed as their penalties to decedents
(Baker 1979).
One fundamental difference between after-life spirits in China and
gods in the West is that ancestor spirits were subject to common human
needs such as eating, clothing, sheltering, money spending, and sexual
appealing. Hence, the relation between the dead and the living is mutual
dependent: the living depends on the dead for supernatural assistance
while the dead depends on the living for the material supplies. Note
that the ritual of ancestor worship is inherently connected with the
“Continuum of Descent” mentioned in Chapter 2. That is, if the living
understands that they have after-life, and their after-lives depend on the
supply offered by the unborn, then it is reasonable to link the quality
of their after-life with their current fertility. So the prevailing ideal of
“hundred sons and thousand grandsons” can be understood as a reflec-
tion of the living’s concern on after-life. As a comparison, although
religious worship can also be seen in the Western culture, the emphasis
is commonly placed on the living, and social rituals are to a larger extent
orientated to the future rather than to the past.
Chinese historian, Prof. Zhaoguang Ge of Fudan University,
Shanghai, argues that, the attention to ancestors is the definitive feature
of family household in China, also marked as the very origin of Chinese
culture. As Ge notes (2014, p. 86), “when traditional Chinese considered
their ancestors, themselves, and their sons and grandsons, they would feel
that their life stream flowed on without end. And when they thought that
they were a part of this stream of life, that they had a family and were
3 Family: Economical, Social, and Educational Functions 33
not alone, they would feel that the meaning of their lives was expanding
so much that it filled the whole universe. Grave and tomb burials, ances-
tral shrines and memorial halls and sacrifices were the stately occasions
and places that confirmed and strengthened the meaning of their lives.
They brought the continuation of kinship lines and the transmission of
culture together as one unit; only when family and lineage bloodlines
and cultural traditions were so united could they form the foundation of
an ethnic ‘identity’”.
Note that ancestor worship in Chinese family can also be understood
as a social activity that strengthens the “status quo” of power struc-
ture in the family system and accordingly enhances the cohesion among
family members. For instance, the senior generation might be viewed as a
threshold to ancestor spirits, hence their status can be further legitimized
by the worship. Also, the worship might help strengthen the principle of
filial piety by highlighting the monitoring of the dead upon the living.
Educational Functions
Family Education
Family is the first place that child receives his/her education in terms of
his/her position in the society and in the family as well as the appro-
priate manners and behaviors he/she is supposed to use in various social
settings. The content of family education covers the general knowledge
of the values, norms, and habits of the family and of the society, as
well as the behavioral disciplining such that children can conform to the
prevailing social norms and values.
In ancient China, family education can start as soon as the child
reaches two-, three- or four-years old. At this age, the child might be
told stories by mother or senior generation such as grandmother, and
one of the most used sources is the Twenty-Four Examples of Filial Piety,
which collects several examples of exceptional sacrifices made by children
for their parents. Another important message in story-telling is that, chil-
dren can learn in a very early stage that they are obligated to put family
34 L. Chen et al.
first no matter of the situation. Besides filial piety and the priority of the
family, a child near the age of four starts to learn the proper manners
in settings inside and outside of the family, such as respecting the status
of grandparents, parents, elder (male) sibling, and nonfamily members
such as government officials. Child was also taught greetings, apologies,
and other social manners. It should be noted that, just like the West
the family is the first place where Chinese child receives the training of
discipline.
Different from the contemporary western culture, physical punish-
ment such as beating has been commonly used in ancient China
especially those executed by fathers toward boys. When the boy grows
up, he is expected to self-discipline his own behavior when interacting
with others. As instructed by the Analects of Confucius ( 论语), “I daily
examine myself on three points: whether, in transacting business for
others, I may have been not faithful – whether, in intercourse with
friends, I may have been not sincere – whether I may have not mastered
and practiced the instructions of my teacher.”
Lineage/Clan School
At the age of four to sixteen years old, the boys begin to go to school.
It is relatively common that the family might employ a tutor if afford-
able before the school year. The boys often go to the lineage or clan
school which is largely founded as a common property of families under
the same surname and the same ancestor. Physical punishment is also
commonly used in lineage school. As a comparison, girls might receive
some education but largely from the mother or grandmother at home. In
fact, the ancient Chinese has long discouraged the education for women,
claiming that “of no talent is a woman’s virtue” (Chinese: 女子无才便
是德). In another word, going to lineage or clan can be considered as a
boy’s privilege.
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Paramount news. No. 89. By Paramount Pictures. Inc. 1 reel. ©
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R580646.
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26Jul47; United Artists Television, Inc. (PWH); 5Aug74; R583123.
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R583125.
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8Jul74; R583196.
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R583201.
8Jul74; R583201.
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R583371.
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Family Business in China Volume 1 A Historical Perspective 1St Ed Edition Ling Chen Full Chapter

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Family Business in China, Volume 1: A

Historical Perspective 1st ed. Edition

Ling Chen · Jian An Zhu ·

More information about this series at

ISSN 2661-8435 ISSN 2661-8443 (electronic)

Part I Social Foundation of Family System in Ancient

2 Household and Family 17

3 Family: Economical, Social, and Educational

4 Characteristics of Chinese Family System 37

Part II Households and Family Lineages in Modern

5 Society and Family Lineages in Modern China (Qing

6 Transformation of Family Lineages in Modern China

7 Two Cycles of Development of Family Enterprises

8 Modern Chinese Family Lineages and the State 93

Part III Evolution of Family System Before and After

9 The Rise of Family Business in China Before 1949 99

10 Dynamics of Family Enterprise Before and After

Fig. 1.1 Overarching theoretical framework 8

Table 9.1 High-Level positions in the Rong family enterprise 124

The history mirrors both thriving and calamity (以史为鉴, 可以知兴替).

Family Business in China

© The Author(s) 2021 1

culture, excessive marketization, as well as the seemingly endless insti-

economic potential by engaging in more innovative ways of doing busi-

Research Motivation and Theoretical

Sociological Perspectives in Studying Family

Sociology can be defined as a research discipline of social science with

New topics are certainly emerging, and research continues to inves-

Theoretical Framework in the Book

As mentioned above, this book applies an interdisciplinary approach

External Context Family System Family Business

Economic Environment and Lineage Strategic Behavior

Past Present Future

Fig. 1.1 Overarching theoretical framework

Forth, the model also highlights reciprocal causality, which is relatively

Major Dimensions in the Theoretical Model

different geographical areas in China. Figure 1.1 illustrates the geograph-

Fig. 1.2 Geographical distributions of cases

Calhoun, C. (2002). Dictionary of the Social Sciences. Oxford: Oxford Univer-

Concept of “Family” in China

The concept of “family” used in this book—the Chinese term jia

© The Author(s) 2021 17

Secondly, family relationships also the overall family system are

Confucian culture, then by the governing rules in the society this

Chaxu Geju: Managing Concrete Social Circles

Based on his observations on rural China in 1940s, sociologist Xiaotong

compared to Chinese society, which emphasizes relations among concrete

Boundary of Chinese Family

In general, the concept of “family” in China includes family members

lineage. Two most prevailing interpretation of nine grades of relations

Solidarity Relations in Chinese Family

father–son, elder brother–younger brother, husband–wife, and friend–

Given the dominance of patriarchy (father or oldest male as the head

nurturing younger generation. This can be best explained by the Mencius

Different from the western context in which the husband–wife relation

It is worth mentioning that the division of labor in the “ideal” family

Another fundamental difference between China and the West is that,

In general, mother is supposed to take a gentle, caring, and compas-

The solidarity relation between brothers is one of the most important

female family members in charge of supportive activities such as cooking,

Partially due to the agricultural nature of Chinese society, attachment to

In the book “China’s Motor: A Thousand Years of Petty Capitalism”

The recognition of “petty capitalism” in ancient China reminds us