Development of Mathematics in Ancient China
"Chinese mathematics," was defined by Chinese in ancient times as the "art of calculation" (suan chu). This art was both a practical and spiritual one, and covered a wide range of subjects from religion and astronomy to water control and administration.
The history of China is
filled with many periods marked by florishing culture and civilization, and others marked
by competition and war between dynasties and invaders (see History
Time Table). By the year 1000 AD, the Chinese had invented seismographs to
measure earthquakes. The Chinese also had ships big enough to sail around the world, but
do not do so. The had a magnetic needle and used it for navigation in 1119. The Chair
becomes commonplace in China at this time, and China had developed many other inventions
in science and technology, including gunpowder, paper money, moveable type, and blast
furnaces capable of producing cast iron. Among China’s books were the New and More
Detailed Pharmacopoeia of the Khai-Pao Reign Period.
The first true evidence of mathematical activity in China can be found in numeration symbols on tortoise shells and flat cattle bones (commonly called oracle bones, dated from the Shang dynasty (14th century B.C.).
These numerical inscriptions contain both tally and code symbols which are based on a decimal system, and they employed a positional value system. This proves that the Chinese were one of the first civilization to understand and effenciently use a decimal numeration system. Early Chinese mathematics had a great influence on other later civilizations, in India, Japan, Korea and other counties.
Shang Numerals
The Shang numerals for the numbers one through nine were:
Indeed, the numeration system used in the modern world had
its origins 34 centuries ago in Shang China (see map of China). However,
mathematics in China began much earlier in the development of the
Chinese Calendar, 
flood-control measures, 
administration, and so on.
The need to control the flood-prone rivers of China, such as the Yangtze and Yellow Rivers, was an important factor in the development of mathematics in ancient China. The problem of providing a safe environment in a water-dependent society were solved using science and mathematics, including the construction of canals, dams, etc.
The Legend of Lo Shu
According to ledgend, a mythological Emperor Yu received a divine
gift from a Lo river tortoise. The gift was in the form of
diagrams called Lo shu, which was believed to contain the principles of Chinese mathematics. One
diagram, the magic square, was thought to posess magical qualities, and led to the
development of the dualistic theory of Yin and Yang 
Yin represens even numbers (2, 4, 6, 8, 10...) and Yang represents odd
numbers (1, 3, 5, 7, 9, 11...).
The Chinese also discovered the concept of zero (see The Discovery of Zero)and invented a wide variety of mechanical aids like counting boards, and wrote numerous mathematics texts to aid them in mathematical calculation.
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