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Neither Confucius nor any Chinese thinker of the era knew about the concept of democracy. They held it evident that not everyone is created equal, and that society works in a complex gradation of responsibilities and status, so they didn't think anyone is capable of self-government and believed the masses lacked the information needed to make decisions for themselves.
China never had city-states. With more limited horizons than the Greeks, and relying on easily controllable and taxable river transport – or worse, much more inefficient land transport – local traders never accumulated enough wealth to threaten the dominant position of landholders and military leaders. In fact, outside of royal or top nobility courts, China remained curiously backward, with most of the population – including large portions of the professional class and even rural gentry – living in what amounted to basic huts and semi-subterranean dwellings as late as during Confucius’ lifetime1[1].
Friction did exist, as noble families and piss-poor peasants rose and fell in accordance with military success or defeat, then as later in China history, and new houses replaced the old ones. While Confucius himself was Minister of Justice, he had to confront a large-scale rebellion. The rebellion's leader went as far as requesting Confucius' help to overthrow the aristocratic families of Lu, and he may have failed because he didn't get such support.
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