Abstract
This paper takes the formation of Chinese commodity economy during the Spring and Autumn Period and the Warring States Period as a concrete example, microscopically to prove the theory of historical materialism about the production capacity, especially its components - the principle that technology determines the social economic structure (industry, transaction, market and so forth). During the Spring and Autumn Period and the Warring States Period, the invention of iron and the progress of smelting techniques enabled the iron farm tools to be spread, therefore the agricultural production capacity was improved remarkably. On one hand, the improvement of production capacity caused the individual peasant families to separate from the clan community, and they started to work as independent producers. On the other hand, the farm surpluses started to appear. These improvements prepared the conditions for the appearance of the initial commodities. As a result of the increasing demands of iron, the former governmental industry structural framework was destroyed, and the privately operated iron handicraft manufacturing started to appear. In addition, the use and the spreading of iron tools enabled the handicraft industries, such as the salt industry, the textile industry etc., to develop and also to liberate themselves from the rules and regulations of the clan community. Thus, the privatization of the production means and the spontaneous social division of labor provided the conditions for the commodity productions. Taking the iron and salt as a priority, the multitudinous products of labor turned to the commodities. At the same time, the preparation of roads and waterways expanded the scope of the commodity exchanges. The city prosperity and the merchants' activities further promoted the developments of the commodity economy. The appearance of currency was the symbol of the formation of the commodity economy.
