Rethinking bazaar economy in China: are they truly low-level economic activities?

The bazaar economy has often been perceived as an inefficient and low-level form of economic activity. However, in recent years, this traditional mode of transaction has been revitalized through government policies and supported initiatives, gaining new energy in Chinas evolving market landscape. This paper examines the characteristics of bazaar economy and transformation of the bazaar economy. Findings suggest that the bazaar economy is gradually transitioning from a closed, acquaintance-based trading network toward a more open, competitive, and solid market model. Traditional mechanisms, such as trust-based credit and rapid information exchange, yet new forcesincluding tourism integration, digital platforms, and third-party certification are reshaping its direction of development which also enable bazaars to retain their cultural identity, such as bargaining and local reputation, while enhancing efficiency and attracting a wider target consumer group. Despite persistent challenges, the value generated by the development of the bazaar economy exceeds its traditional perception as a low-level economic activity. Future research should further investigate the positioning of the bazaar economy in modern markets and explore strategies to balance its traditional practices with modernization.