Rediscovering Analytical Rigor in Traditional Economic Thought: The “Second Integration” and the Making of a Chinese School of Economics

Cheng Lin*1,2, Zhou Rui3, Chen Xudong1,2

1 School of Economics, Shanghai University of Finance and Economics (SUFE)

2 Institute for the Development of Chinese Economic Thought, SUFE

3 School of Humanities, SUFE

Abstract: Does traditional Chinese economic thought possess genuine analytical rigor? This question lies at the heart of any serious evaluation of its theoretical value and historical significance. It also matters for understanding how best to preserve, build on its remarkable achievements, and develop its intellectual legacy. Critics such as Schumpeter and Taylor have long argued that the economic reasoning found in ancient China cannot compare with that of classical Greece or medieval Europe. Yet this view often reflects the narrow assumptions of mainstream economics, defining analysis almost entirely in terms of market exchange. As a result, it tends to overlook traditions built around statecraft, governance, and the management of economic order. A careful re-examination and Sino-Western comparative analysis of key thinkers—including Mencius, Guanzi, and Sima Qian—tells a different story. Rooted in China’s distinctive cultural and philosophical heritage, traditional Chinese economic thought not only contains the analytical dimensions (as defined by Schumpeter) but also displays a broader and more diverse set of economic reasoning. Notably, its systematic depth and intellectual precision were, in many respects, remarkably advanced. Therefore, advancing the construction of a Chinese school of economics in the new era under the framework of the “Second Integration”, i.e., integrating the basic tenets of Marxism with China’s fine traditional culture, should, and indeed can draw essential insights from this analytical tradition.

Keywords: traditional Chinese economic thought; analytical rigor, Second

JEL Classification Codes: B11; A10; Z13

DOI: 10.19602/j.chinaeconomist.2026.01.03