Gray Markets in the Great Leap: Prosecuting “Profiteering” in Liangshan County, Shandong, 1958–1960

Abstract

This article uses legal archives from Liangshan 梁山 county, Shandong, to explore the ambiguous position of rural markets in China during the Great Leap Forward campaign (1958–1962). These testimonies, though sparse, show that negotiations at a local, indeed personal, level underpinned the symbiosis between the “second economy” of illicit trade and the party-state’s putatively socialist political economy. Liangshan’s gray market bridged the gap between the party-state’s Sputnik promises and catastrophic realities, contributing twofold to the party-state’s political survival. First, illicit commerce helped famine survivors, including local cadres, obtain desperately needed sustenance; these cadres’ support of trading villagers despite top-down restrictions on such transactions likely helped them retain local moral authority after the Leap. Second, the intermittent formal prosecution of “profiteers” in the ritualized space of the county courtroom projected justice, stability, and coercive power, which also contributed to the party’s continuing hold on authority.