Canton System
Encyclopedia
The Canton System served as a means for China
to control trade with the west within its own country. Seen from the European view, it was a complement to the Old China Trade
.
an traders and citizens to Macau
, European trade spread throughout China. The Canton System limited the ports in which European traders could do business with China. It also forbade any direct trade between European merchants and Chinese civilian
s. Instead, the Europeans, generally employees of major trading companies (most importantly the British East India Company
) had to trade with an association of Chinese merchants known as the Cohong
. The European (and soon the American) presence was restricted to the Thirteen Factories
on the harbour of Canton
(Guangzhou) during the trading season, but the foreign traders were permitted to remain on Chinese soil at Macau
in the off-season (a mitigation of earlier Chinese restrictions on trade, which had banned foreign residence in the off-season).
The first trade that existed with China was for silk
s, porcelain ("fine china") and most lucratively tea
. It was the incredible financial deficit caused by European demand for tea that spurred the British to begin shipping opium
to China from its colonies in India - the only commodity besides silver
bullion that Chinese merchants would accept in bulk.
Despite Britain's growing apprehension at the Canton System, revenue from opium eased British resentment, and the system remained intact until the Opium Wars
, which established "treaty ports
" in accordance with the Treaty of Nanjing. Each of these ports was governed, not by Chinese laws, but rather the laws of the country controlling the port.
became a full-fledged British Colony, many of the merchants would be led by a newer generation of western hong merchants
. Many of these companies would become the back bone of the young Hong Kong economy
.
China
Chinese civilization may refer to:* China for more general discussion of the country.* Chinese culture* Greater China, the transnational community of ethnic Chinese.* History of China* Sinosphere, the area historically affected by Chinese culture...
to control trade with the west within its own country. Seen from the European view, it was a complement to the Old China Trade
Old China Trade
The Old China Trade was the name given to the early commerce between the Qing Empire and the United States under the Canton System, spanning from shortly after the end of the American Revolutionary War in 1783 to the Treaty of Wanghsia in 1844...
.
History
Despite Chinese efforts to restrict EuropeEurope
Europe is, by convention, one of the world's seven continents. Comprising the westernmost peninsula of Eurasia, Europe is generally 'divided' from Asia to its east by the watershed divides of the Ural and Caucasus Mountains, the Ural River, the Caspian and Black Seas, and the waterways connecting...
an traders and citizens to Macau
Macau
Macau , also spelled Macao , is, along with Hong Kong, one of the two special administrative regions of the People's Republic of China...
, European trade spread throughout China. The Canton System limited the ports in which European traders could do business with China. It also forbade any direct trade between European merchants and Chinese civilian
Civilian
A civilian under international humanitarian law is a person who is not a member of his or her country's armed forces or other militia. Civilians are distinct from combatants. They are afforded a degree of legal protection from the effects of war and military occupation...
s. Instead, the Europeans, generally employees of major trading companies (most importantly the British East India Company
East India Company
The East India Company was an early English joint-stock company that was formed initially for pursuing trade with the East Indies, but that ended up trading mainly with the Indian subcontinent and China...
) had to trade with an association of Chinese merchants known as the Cohong
Cohong
The Cohong, often spelled as kehang or gonghang, was the Chinese import-export monopoly in Guangzhou during the Qing dynasty...
. The European (and soon the American) presence was restricted to the Thirteen Factories
Thirteen Factories
The Thirteen Factories was an area of Canton , China, where the first foreign trade was allowed in the 18th century since the hai jin ban on maritime activities...
on the harbour of Canton
Guangzhou
Guangzhou , known historically as Canton or Kwangchow, is the capital and largest city of the Guangdong province in the People's Republic of China. Located in southern China on the Pearl River, about north-northwest of Hong Kong, Guangzhou is a key national transportation hub and trading port...
(Guangzhou) during the trading season, but the foreign traders were permitted to remain on Chinese soil at Macau
Macau
Macau , also spelled Macao , is, along with Hong Kong, one of the two special administrative regions of the People's Republic of China...
in the off-season (a mitigation of earlier Chinese restrictions on trade, which had banned foreign residence in the off-season).
The first trade that existed with China was for silk
Silk
Silk is a natural protein fiber, some forms of which can be woven into textiles. The best-known type of silk is obtained from the cocoons of the larvae of the mulberry silkworm Bombyx mori reared in captivity...
s, porcelain ("fine china") and most lucratively tea
Chinese tea
The practice of drinking tea has had a long history in China, having originated there. The Chinese drink tea during many parts of the day such as during meals for good health or for simple pleasure.-History:...
. It was the incredible financial deficit caused by European demand for tea that spurred the British to begin shipping opium
Opium
Opium is the dried latex obtained from the opium poppy . Opium contains up to 12% morphine, an alkaloid, which is frequently processed chemically to produce heroin for the illegal drug trade. The latex also includes codeine and non-narcotic alkaloids such as papaverine, thebaine and noscapine...
to China from its colonies in India - the only commodity besides silver
Silver
Silver is a metallic chemical element with the chemical symbol Ag and atomic number 47. A soft, white, lustrous transition metal, it has the highest electrical conductivity of any element and the highest thermal conductivity of any metal...
bullion that Chinese merchants would accept in bulk.
Despite Britain's growing apprehension at the Canton System, revenue from opium eased British resentment, and the system remained intact until the Opium Wars
Opium Wars
The Opium Wars, also known as the Anglo-Chinese Wars, divided into the First Opium War from 1839 to 1842 and the Second Opium War from 1856 to 1860, were the climax of disputes over trade and diplomatic relations between China under the Qing Dynasty and the British Empire...
, which established "treaty ports
Treaty ports
The treaty ports was the name given to the port cities in China, Japan, and Korea that were opened to foreign trade by the Unequal Treaties.-Chinese treaty ports:...
" in accordance with the Treaty of Nanjing. Each of these ports was governed, not by Chinese laws, but rather the laws of the country controlling the port.
Legacy
By the time Hong KongHong Kong
Hong Kong is one of two Special Administrative Regions of the People's Republic of China , the other being Macau. A city-state situated on China's south coast and enclosed by the Pearl River Delta and South China Sea, it is renowned for its expansive skyline and deep natural harbour...
became a full-fledged British Colony, many of the merchants would be led by a newer generation of western hong merchants
The Hongs
The Hongs were major business houses in Canton and later Hong Kong with significant influence on patterns of consumerism, trade, manufacturing and other key areas of the economy...
. Many of these companies would become the back bone of the young Hong Kong economy
Economy of Hong Kong
As one of the world's leading international financial centres, Hong Kong has a major capitalist service economy characterised by low taxation and free trade, and the currency, Hong Kong dollar, is the ninth most traded currency in the world. Hong Kong has remained as the world's freest economy,...
.
See also
- Economy of the People's Republic of ChinaEconomy of the People's Republic of ChinaThe People's Republic of China ranks since 2010 as the world's second largest economy after the United States. It has been the world's fastest-growing major economy, with consistent growth rates of around 10% over the past 30 years. China is also the largest exporter and second largest importer of...
- Economic history of China (Pre-1911)
- Economic history of Modern ChinaEconomic history of modern ChinaThe economic history of modern China began with the fall of the Qing Dynasty in 1911. Following the Qing, China underwent a period of instability and disrupted economic activity. Under the Nanjing decade , China advanced several industries, in particular those related to the military, in an effort...
- Colonial Hong KongColonial Hong KongIn the 19th century the British, Dutch, French, Indians and Americans saw Imperial China as the world's largest untapped market. In 1840 the British Empire launched their first and one of the most aggressive expeditionary forces to claim the territory that would later be known as Hong Kong.In a few...
- English East India Company
- Danish East India CompanyDanish East India CompanyThe Danish East India Company was a Danish chartered company.-History:It was founded in 1616, following a privilege of Danish King Christian IV....
- Dutch East India CompanyDutch East India CompanyThe Dutch East India Company was a chartered company established in 1602, when the States-General of the Netherlands granted it a 21-year monopoly to carry out colonial activities in Asia...
- Maritime Fur TradeMaritime Fur TradeThe Maritime Fur Trade was a ship-based fur trade system that focused on acquiring furs of sea otters and other animals from the indigenous peoples of the Pacific Northwest Coast and natives of Alaska. The furs were mostly sold in China in exchange for tea, silks, porcelain, and other Chinese...
- Swedish East India CompanySwedish East India CompanyThe Swedish East India Company was founded in Gothenburg, Sweden, in 1731 for the purpose of conducting trade with the Far East...
- Old China TradeOld China TradeThe Old China Trade was the name given to the early commerce between the Qing Empire and the United States under the Canton System, spanning from shortly after the end of the American Revolutionary War in 1783 to the Treaty of Wanghsia in 1844...
- Hongs
- HowquaHowquaHowqua was the most important of the Hong merchants in the Thirteen Factories, head of the E-wo hong and leader of the Canton Cohong–Gong1 hong2 . He was once one of the richest men in the world.-Biography:...
- Thirteen FactoriesThirteen FactoriesThe Thirteen Factories was an area of Canton , China, where the first foreign trade was allowed in the 18th century since the hai jin ban on maritime activities...
Further reading
- Louis Dermigny, La Chine et l'Occident: le commerce à Canton au XVIIIe siècle, 1719-1833. Paris: SEVPEN, 1964.
- Liu Yong, The Dutch East India Company's Tea Trade with China, 1757-1781. Leiden and Boston: Brill, 2007. ISBN 9004155996
- Hoh-cheung Mui and H. Lorna Mui, The Management of Monopoly: A Study of the East India Company's Conduct of Its Tea Trade, 1784-1833. Vancouver: University of British Columbia Press, 1984. ISBN 0774801980
- Zhuang Guotu, Tea, Silver, Opium and War: The International Tea Trade and Western Commercial Expansion into China in 1740-1840. Xiamen: Xiamen University Press, 1993.