This thesis first sets out to investigate the origins of Chinese craft guilds and finds that there were few in existence until about a century into the Ch'ing dynasty. One reason why craft guilds seemingly arose so late may have been government unwillingness to allow their formation, this arising from fear of gatherings among the common people. Since printed sources provide few insights on guilds this study mostly uses documents inscribed on stelae which were situated at the guildhalls. A major function of craft guilds was to maintain harmony among trade members; generally they were self-governing, but in serious disputes the aid of the authorities was enlisted. Protection against oppression by minor functionaries and the general public was provided by the guilds, and they would initiate litigation on behalf of any wronged member. Each guild organized worship of the patron deity of its trade and gave material assistance to members in difficulty.

Guild membership was obligatory for anyone wishing to work and the power behind the monopolies guilds exercised was local government. Efforts were made to limit the numbers of participants in a trade in order to prevent work shortages. Business practices were standardized within each trade by the guild, the aim being to stem competition and thereby guarantee a livelihood for all who belonged. The guilds demanded high standard of workmanship and honesty, since they were anxious to maintain a good public image and avoid trouble from the local authorities. Although guilds endured well into the 1940s they had begun to decline in the late nineteenth century as competition for profit and survival intensified and members increasingly ignored rules inhibiting free enterprise. Guilds were also undercut by the removal of official support for their monopolies, once the economic philosophy of the government changed to one of development and modernization rather than mere maintenance of the status quo.