Red hat merchant (; ''hong-ding shangren''), alternatively translated as red-hat businessman, entrepreneur with red hat, refers to a

government official An official is someone who holds an office (function or mandate, regardless of whether it carries an actual working space with it) in an organization or government and participates in the exercise of authority (either their own or that of th ...

who also appears as a businessman, combining the roles of civil servant and businessman, that is, "government businessman". The term originated from the

Qing dynasty The Qing dynasty ( ), officially the Great Qing, was a Manchu-led Dynasties of China, imperial dynasty of China and an early modern empire in East Asia. The last imperial dynasty in Chinese history, the Qing dynasty was preceded by the ...

and was initially used to describe state officials who were also engaged in commercial activities. At that time, wealthy officials often wore

cap A cap is a flat headgear, usually with a visor. Caps have crowns that fit very close to the head. They made their first appearance as early as 3200 BC. The origin of the word "cap" comes from the Old French word "chapeau" which means "head co ...

s with

rubies Ruby is a pinkish-red-to-blood-red-colored gemstone, a variety of the mineral corundum (aluminium oxide). Ruby is one of the most popular traditional jewelry gems and is very durable. Other varieties of gem-quality corundum are called sapphi ...

. The typical representative of the "red hat merchant" is Hu Xueyan, a prominent businessman in the late Qing dynasty. Nowadays, the term "red hat merchant" is widely used to refer to a businessperson who benefits from good relationships with important high-level government officials. The term is also used to refer to businesspeople who hold top positions in local companies and local government financing vehicles. Through the strategy referred to by the slogan "wearing a red hat," some private entrepreneurs obtained permission from townships and villages to register their private enterprises as

township and village enterprises Township and Village Enterprises (TVEs, ) are market-oriented public enterprises under the purview of local governments based in townships and villages in China. History Before the Reform and Opening Although Chinese paramount leader Deng ...

in order to avoid and sidestep restrictions on the number of employees a small private business could have and comply.

References

Chinese business terms Political terminology in China Corruption in China {{word-stub