the village units directly. He also developed a better method for choosing talent to be governors. Under Guan Zhong, Qi shifted administrative responsibility from hereditary aristocrats to professional bureaucrats. He is also credited for creating the first official government sponsored brothel known as "女市" which funded the government treasury. During his term of office, the State of Qi became much stronger. The Zuo Zhuan records that in 660 BC, Guan Zhong urged Duke Huan of Qi to attack the small neighboring State of Xing which was under attack from Quan Rong nomads, a non-Chinese Rong tribes. Later, in 652 BC he advised the duke not to ally with a vassal ruler's son who wished to depose his father. Duke Huan often listened to Guan Zhong's sound advice such that his status amongst other Zhou vassal states rose. As a result, the duke came to be recognized as the first Hegemon or leader of the vassal alliance. In recognition of Guan Zhong's service, Duke Huan gave him the honorary title of "Godfather" (). The same title was later given to Lü Buwei by Prince Zheng, the future Qin Shi Huang. State Monopoly on Salt and Iron Under Guan's guidance several important economic reforms were introduced. He created a uniform tax code and also used state power to encourage the production of salt and iron. He believed that monopolizing the nature resources was helpful on improving the government income, with fewer complaints from the public than raising taxes. The strategy was described by himself to the Duke of Huan as "managing the mountain and the sea（官山海)", which mainly refers to iron mine from the mountain and salt from the sea. Under his policy, private business who produce salt by boiling seawater and iron by mining must sell all outputs to the government, and the government resell refined salt and iron products, with huge price gap, to all household in State of Qi. Historians usually credit Guan Zhong for introducing state monopolies controlling salt and iron. Qi-Hengshan War In the record of Guanzi Chapter 84, Duke of Huan wanted to restrain the threat from State of Hengshan () and asked Guan for solution. State of Hengshan was famous for its weapon production. Guan then ordered officials to buy arms from State of Hengshan in large quantities. After ten months, worrying that the price will continuously grow up, State of Yan, State of Dai