While technically, ancient Chinese culture did not have a true caste system, there were divisions according to education, occupation, and family background that kept various segments of the society from co-mingling. And, there was discrimination based on these differences.

Scholars were considered the highest order of society. They were admired, revered and respected. This group called Shi, were the elite class of society, and between the years 1046 and 256 BC, were also called Confucians. Belonging to a social structure known as the Fengjian, these learned individuals were the true aristocrats in a world where the majority of the population were uneducated, since they held the knowledge that would ultimately contribute the most to their culture and country.

The economy, as well as the survival of China was based on agriculture, and even though they were regarded as the peasant class, the farmers and landowners, known as Nong came in second in importance. They fed the people, and produced products that were vital to the economy. As a class, they were not the most educated or the richest, however they were honored as the class that sustained the nation.

While it might seem as though some of the most important people would be those with particular talents, craftsmen and artisans, known as Gong, were not in the top two classes. These were the creators of the art most associated with China. These talented people were responsible for traditional and intricate Chinese art, architecture, and even inventions. Seldom landowners themselves, they often worked directly for the government. Their knowledge and skills were passed down to family members or apprentices.

Merchants and traders were the fourth class. Known as Shang, they were responsible for keeping the trade moving between China and other countries. Although their jobs were vital in maintaining a ready supply of goods to the country, and to commerce, their position in the traditional society was not particularly high. In a culture where producing was more vital than selling, they were somewhere on the bottom of the social structure. Even though they were often rich and powerful, they were not particularly liked or trusted.  By the Ming Dynasty, however, their importance became more and more apparent, the structure changed somewhat, and the merchants were elevated to the same class level as the landowners.

Eventually, the factors that made each class more or less important changed, and the differences between them became less noticeable. Unlike some other cultures, these classes were not nearly as stringent.