ABSTRACT
A description of the Chinese commercial system is beset by a problem of definition, because in contemporary China it is hard to draw the dividing line between trade and taxation. While a part of the harvest is taken by the state without payment as agricultural tax in kind, and therefore clearly falls into the category of taxation, a further share is compulsorily bought by the state at prices below free market levels, thus partaking of the nature of both trade and taxation. The close connection between trade and taxation is seen in the fact that ever since 1954 both have come under the same office of the State Council and under the same department of the Central Committee of the Party. Agricultural taxation and the compulsory procurement of farm produce will be dealt with in Chapter 13, although these topics must necessarily be mentioned when describing the organization of trade.
