Case of Cao Lushan v. Li Shaojin over Silk Loan

In the late 660s AD, Sogdian merchant Cao Yanyan from Chang'an lent a quantity of silk to Han Chinese Li Shaojin. After Cao Yanyan died, his younger brother Cao Lushan sued Li Shaojin in Gaochang County, demanding repayment of the principal and interest. Li contested the claim, arguing that he had already partially repaid or that the terms were different. The county court interrogated both parties and documented their testimonies. Because the case involved a foreign merchant and required careful handling, the county forwarded the records to the Anxi Protectorate for review. The surviving legal documents provide a rare glimpse into debt litigation and cross-ethnic commercial dispute resolution under Tang law.

The final verdict is not preserved in the incomplete manuscript. It is speculated that Li Shaojin was ordered to repay at least part of the debt, as Tang law generally enforced written contracts and protected creditors' rights.

Whether the loan agreement existed and its exact terms; whether Li Shaojin had already repaid part of the debt; and how to calculate the interest on the silk loan between a deceased foreign merchant's heir and a Han debtor.

This case exemplifies the Tang dynasty's commitment to legal equality in commercial matters between Han and non-Han subjects, reinforcing the stability of Silk Road trade. It demonstrates that even ordinary foreign merchants could seek justice in local Tang courts, enhancing China's reputation as a fair trading hub. The detailed court records also indicate a sophisticated bureaucratic procedure for handling civil suits involving international litigants.