First Opium War
The First Opium War (Chinese: 第一次鴉片戰爭; pinyin: Dìyīcì yāpiàn zhànzhēng), also known as the Anglo-Chinese War, was a series of military engagements fought between the British Empire and the Chinese Qing dynasty between 1839 and 1842. The immediate issue was the Chinese enforcement of their ban on the opium trade by seizing private opium stocks from mainly British merchants at Guangzhou (then named Canton) and threatening to impose the death penalty for future offenders. Despite the opium ban, the British government supported the merchants' demand for compensation for seized goods, and insisted on the principles of free trade and equal diplomatic recognition with China. Opium was Britain's single most profitable commodity trade of the 19th century. After months of tensions between the two states, the Royal Navy launched an expedition in June 1840, which ultimately defeated the Chinese using technologically superior ships and weapons by August 1842. The British then imposed the Treaty of Nanking, which forced China to increase foreign trade, give compensation, and cede Hong Kong Island to the British. Consequently, the opium trade continued in China. Twentieth-century nationalists considered 1839 the start of a century of humiliation, and many historians consider it the beginning of modern Chinese history. In the 18th century, the European demand for Chinese luxury goods (particularly silk, porcelain, and tea) created a trade imbalance between China and Britain. European silver flowed into China through the Canton System, which confined incoming foreign trade to the southern port city of Guangzhou. To counter this imbalance, the British East India Company began to grow opium in Bengal and allowed private British merchants to sell opium to Chinese smugglers for illegal sale in China. The influx of narcotics reversed the Chinese trade surplus and increased the numbers of opium addicts inside the country, outcomes that seriously worried Chinese officials. Senior government officials within the country had been shown to be colluding against the imperial ban due to stocks of opium in European warehouses in clear view being ignored. In 1839, the Daoguang Emperor, rejecting proposals to legalise and tax opium, appointed Viceroy of Huguang Lin Zexu to go to Guangzhou to halt the opium trade completely.[7] Lin wrote an open letter to Queen Victoria appealing to her moral responsibility to stop the opium trade, although she never received it.[8][9][10] Lin then resorted to using force in the western merchants' enclave. He arrived in Guangzhou at the end of January 1839 and organized a coastal defence. In March 1839, British opium dealers were forced to hand over 1,420 tonnes (3.1 million lb) of opium. On 3 June 1839, Lin ordered the opium to be destroyed in public on Humen Beach to show the Government's determination to ban smoking.[11] All other supplies were confiscated and a blockade of foreign ships on the Pearl River was ordered.[12][page needed] Tensions escalated in July 1839 after drunk British sailors killed a Chinese villager named Lin Weixi; the British official in charge, Admiral Charles Elliot, refused to hand over those accused to Chinese authorities in an attempt to avoid their being killed on the spot, as had happened with British citizens in the Lady Hughes Affair of 1784. Later, fighting broke out, with the British navy destroying the Chinese naval blockade, and launching an offensive.[11] In the ensuing conflict, the Royal Navy used its superior naval and gunnery power to inflict a series of decisive defeats on the Chinese Empire.[13] In 1842, the Qing dynasty was forced to sign the Treaty of Nanking—the first of what the Chinese later called the unequal treaties—which granted an indemnity and extraterritoriality to British subjects in China, opened five treaty ports to British merchants, and ceded Hong Kong Island to the British Empire. The failure of the treaty to satisfy British goals of improved trade and diplomatic relations led to the Second Opium War (1856–1860). The resulting social unrest was the background for the Taiping Rebellion, which further weakened the Qing regime.[14][full citation needed][15] BackgroundEstablishment of trade relations Direct maritime trade between Europe and China began in 1557 when the Portuguese Empire leased an outpost from the Ming dynasty in Macau. Other European nations soon followed the Portuguese lead, inserting themselves into the existing Asian maritime trade network to compete with Arab, Chinese, Indian, and Japanese merchants in intraregional commerce.[16] After the Spanish conquest of the Philippines, the exchange of goods between China and Europe accelerated dramatically. From 1565, the Manila Galleons brought silver into the Asian trade network from mines in South America.[17][page range too broad] China was a primary destination for the precious metal, as the imperial government mandated that Chinese goods could only be exported in exchange for silver bullion.[18][page needed][19][page range too broad] British ships began to appear sporadically around the coasts of China from 1635 on.[20] Without establishing formal relations through the Chinese tributary system, by which most Asian nations were able to negotiate with China, British merchants were only allowed to trade at the ports of Zhoushan, Xiamen (or Amoy), and Guangzhou.[21] Official British trade was conducted through the auspices of the British East India Company, which held a royal charter for trade with the Far East. The East India Company gradually came to dominate Sino-European trade from its position in India and due to the strength of the Royal Navy.[22]  Trade benefited after the newly risen Qing dynasty relaxed maritime trade restrictions in the 1680s. Formosa (Taiwan) came under Qing control in 1683 and rhetoric regarding the tributary status of Europeans was muted.[21] Guangzhou became the port of preference for incoming foreign trade. Ships did try to call at other ports, but these locations could not match the benefits of Guangzhou's geographic position at the mouth of the Pearl River, nor did they have the city's long experience in balancing the demands of Beijing with those of Chinese and foreign merchants.[23] From 1700 onward Guangzhou was the centre of maritime trade with China, and this market process was gradually formulated by Qing authorities into the "Canton System".[23] From the system's inception in 1757, trading in China was extremely lucrative for European and Chinese merchants alike as goods such as tea, porcelain, and silk were valued highly enough in Europe to justify the expenses of travelling to Asia. The system was highly regulated by the Qing government. Foreign traders were only permitted to do business through a body of Chinese merchants known as the Cohong and were forbidden to learn Chinese. Foreigners could only live in one of the Thirteen Factories and were not allowed to enter or trade in any other part of China. Only low-level government officials could be dealt with, and the imperial court could not be lobbied for any reason excepting official diplomatic missions.[24] The Imperial laws that upheld the system were collectively known as the Prevention Barbarian Ordinances (防範外夷規條).[25][page range too broad] The Cohong were particularly powerful in the Old China Trade, as they were tasked with appraising the value of foreign products, purchasing or rebuffing said imports and charged with selling Chinese exports at an appropriate price.[26][page range too broad] The Cohong was made up of between (depending on the politics of Guangzhou) 6 to 20 merchant families. Most of the merchant houses these families ruled had been established by low-ranking mandarins, but several were Cantonese or Han in origin.[27] Another key function of the Cohong was the traditional bond signed between a Cohong member and a foreign merchant. This bond stated that the receiving Cohong member was responsible for the foreign merchant's behavior and cargo while in China.[28] In addition to dealing with the Cohong, European merchants were required to pay customs fees, measurement duties, provide gifts, and hire navigators.[28] Despite restrictions, silk and porcelain continued to drive trade through their popularity in Europe, and an insatiable demand for Chinese tea existed in Britain. From the mid-17th century onward around 28 million kilograms/61.6 million pounds of silver were received by China, principally from European powers, in exchange for Chinese products.[29] European trade deficitsA brisk trade between China and European powers continued for over a century. While this trading heavily favoured the Chinese and resulted in European nations sustaining large trade deficits, the demand for Chinese goods continued to drive commerce. In addition, the colonisation and conquest of the Americas resulted in European nations (namely Spain, Great Britain, and France) gaining access to a cheap supply of silver, resulting in European economies remaining relatively stable despite the trade deficit with China. This silver was also shipped across the Pacific Ocean to China directly, notably through the Spanish-controlled Philippines. In stark contrast to the European situation, Qing China sustained a trade surplus. Foreign silver flooded into China in exchange for Chinese goods, expanding the Chinese economy but also causing inflation and forming a Chinese reliance on European silver.[30][28] The continued economic expansion of European economies in 17th and 18th centuries gradually increased the European demand for precious metals, which were used to mint new coins; this increasing need for hard currency to remain in circulation in Europe reduced the supply of bullion available for trade in China, driving up costs and leading to competition between merchants in Europe and European merchants who traded with the Chinese.[30] This market force resulted in a chronic trade deficit for European governments, who were forced to risk silver shortages in their domestic economies to supply the needs of their merchants in Asia (who as private enterprises still turned a profit by selling valuable Chinese goods to consumers in Europe).[25][page range too broad][31][page range too broad] This gradual effect was greatly exacerbated by a series of large-scale colonial wars between Great Britain and Spain in the mid 18th century; these conflicts disrupted the international silver market and eventually resulted in the independence of powerful new nations, namely the United States and Mexico.[32][26][page range too broad] Without cheap silver from the colonies to sustain their trade, European merchants who traded with China began to take silver directly out of circulation in the already-weakened economies of Europe to pay for goods in China.[30] This angered governments, who saw their economies shrink as a result, and fostered a great deal of animosity towards the Chinese for their restriction of European trade.[31][page range too broad][33] The Chinese economy was unaffected by fluctuations in silver prices, as China was able to import Japanese silver to stabilise its money supply.[18][page needed] European goods remained in low demand in China, ensuring the longstanding trade surplus with the European nations continued.[32] Despite these tensions, trade between China and Europe grew by an estimated 4% annually in the years leading up to the start of the opium trade.[30][34][failed verification]  Opium tradeOpium as a medicinal ingredient was documented in Chinese texts as early as the Tang dynasty (617–907), but recreational usage of the drug was limited. As with India, opium (then limited by distance to a dried powder, often drunk with tea or water) was introduced to China and Southeast Asia by Arab merchants.[35] The Ming dynasty banned tobacco as a decadent good in 1640, and opium was seen as a similarly minor issue. The first restrictions on opium were issued by the Qing in 1729 when madak (a substance made from powdered opium blended with tobacco) was banned.[7] At the time, madak production used up most of the opium being imported into China, as pure opium was difficult to preserve. Consumption of Javanese opium rose in the 18th century, and after the Napoleonic Wars resulted in the British occupying Java from 1811 to 1816, British merchants became the primary traders in opium.[36] The British realised they could reduce their trade deficit with Chinese manufactories by counter-trading in narcotic opium, and therefore efforts were made to produce more opium in Company-controlled India. Limited British sales of Indian opium began in 1781, with exports to China increasing as the East India Company solidified its control over India.[19][page range too broad][33] The British opium was produced in Bengal and in the Ganges river plain, where the British inherited an existing opium-industry from the declining Mughal Empire and identified the product as a potentially valuable export.[37] The East India Company commissioned and managed hundreds of thousands of poppy plantations. It took care of the painstaking lancing of individual pods to obtain the raw gum, drying and forming it into cakes, before coating and packaging them for auction in Calcutta (present-day Kolkata).[38] The Company tightly controlled the opium industry, and all opium was considered Company property until it was sold.[30] From Calcutta, the Company's Board of Customs, Salt, and Opium concerned itself with quality control by managing the way opium was packaged and shipped. No poppies could be cultivated without the Company's permission, and the Company banned private businesses from refining opium. All opium in India was sold to the Company at a fixed rate, and the company hosted a series of public opium-auctions every year. The difference between the Company-set price of raw opium and the sale price of refined opium at auction (minus expenses) was profit made by the East India Company.[37][26][page range too broad] In addition to securing poppies cultivated on lands under its direct control, the Company's board issued licences to the independent princely states of Malwa, where significant quantities of poppies were grown.[37][30]  By the late 18th century, Company and Malwan farmlands (which were traditionally dependent on cotton-growing) had been hard hit by the introduction of factory-produced cotton cloth, which used cotton grown in Egypt or in the American South. Opium was considered a lucrative replacement, and was soon being auctioned in ever larger amounts in Calcutta.[26] Private merchants who possessed a Company charter (to comply with the British royal charter for Asiatic trade) bid on and acquired goods at the Calcutta auction before sailing to Southern China. British ships brought their cargoes to islands off the coast, especially Lintin Island, where Chinese traders with fast and well-armed small boats took the goods inland for distribution, paying for the opium with silver.[26] The Qing administration initially tolerated opium importation because it created an indirect tax on Chinese subjects, as increasing the silver supply available to foreign merchants through the sale of opium encouraged Europeans to spend more money on Chinese goods. This policy provided the funds which British merchants needed to then greatly increase tea exports from China to England, delivering further profits to the Qing monopoly on tea exports held by China's imperial treasury and its agents in Guangzhou.[39][30]  However, opium usage continued to grow in China, adversely affecting social stability. From Guangzhou, the habit spread outwards to the North and West, affecting members from every class of Chinese society.[40] By the early 19th century, more and more Chinese were smoking British opium as a recreational drug. For many, what started as recreation soon became a punishing addiction: many people who stopped ingesting opium suffered chills, nausea, and cramps, and sometimes died from withdrawal. Once addicted, people would often do almost anything to continue to get access to the drug.[41] These serious social issues eventually led to the Qing government issuing an edict against the drug in 1780, followed by an outright ban in 1796, and an order from the governor of Guangzhou to stop the trade in 1799.[40] To circumvent the increasingly stringent regulations in Guangzhou, foreign merchants bought older ships and converted them into floating warehouses. These ships were anchored off of the Chinese coast at the mouth of the Pearl River in case the Chinese authorities moved against the opium trade, as the ships of the Chinese navy had difficulty operating in open water.[42][page range too broad] Inbound opium ships would unload a portion of their cargo onto these floating warehouses, where the narcotic was eventually purchased by Chinese opium dealers. By implementing this system of smuggling, foreign merchants could avoid inspection by Chinese officials and prevent retaliation against the trade in legal goods, in which many smugglers also participated.[40][30][page range too broad] In the early 19th century, American merchants joined the trade and began to introduce opium from Turkey into the Chinese market—this supply was of lesser quality but cheaper, and the resulting competition among British and American merchants drove down the price of opium, leading to an increase in the availability of the drug for Chinese consumers.[32] The demand for opium rose rapidly and was so profitable in China that Chinese opium dealers (who, unlike European merchants, could legally travel to and sell goods in the Chinese interior) began to seek out more suppliers of the drug. The resulting shortage in supply drew more European merchants into the increasingly lucrative opium trade to meet the Chinese demand. In the words of one trading house agent, "[Opium] it is like gold. I can sell it anytime."[43] From 1804 to 1820, a period when the Qing treasury needed to finance the suppression of the White Lotus Rebellion and other conflicts, the flow of money gradually reversed, and Chinese merchants were soon exporting silver to pay for opium rather than Europeans paying for Chinese goods with the precious metal.[44] European and American ships were able to arrive in Guangzhou with their holds filled with opium, sell their cargo, use the proceeds to buy Chinese goods, and turn a profit in the form of silver bullion.[18][page needed] This silver would then be used to acquire more Chinese goods.[25][page range too broad] While opium remained the most profitable good to trade with China, foreign merchants began to export other cargoes, such as machine-spun cotton cloth, rattan, ginseng, fur, clocks, and steel tools. However, these goods never reached the same level of importance as narcotics, nor were they as lucrative.[45][46]  The Qing imperial court debated whether or how to end the opium trade, but their efforts to curtail opium abuse were complicated by local officials and the Cohong, who profited greatly from the bribes and taxes involved in the narcotics trade.[42][page range too broad] Efforts by Qing officials to curb opium imports through regulations on consumption resulted in an increase in drug smuggling by European and Chinese traders, and corruption was rampant.[47][48] In 1810, the Daoguang Emperor issued an edict concerning the opium crisis, declaring,
Nonetheless, by 1831, the annual opium traffic neared 20,000 chests, each with a net weight of around 140 pounds, compared with just about 4,000 chests per year between 1800 and 1818. After the East India Company's monopoly on tea ended in 1833 and private merchants began to join in, this quantity would go on to double before the close of the decade.[50] Bengal and India, under the British Raj, experienced mixed effects from the Britain-China opium trade. On one hand, millions died in Bengal during the famine of 1770 after agricultural land was forcibly converted to poppy cultivation. Small farmers in India's Bihar Province were compelled to grow poppies without profit. On the other hand, opium became the main driver of capital accumulation for merchants and bankers in western India.[51] The Indian government's revenue from opium trade rose from less than five percent of its total in the early 1800s to nearly 17 percent in 1890.[52] The income helped British rule and the East India Company expand further in the region.[53] The opium profits of the Royal Dutch Trading Company in the Dutch East Indies financed several enterprises, such as Royal Dutch Shell. A few American merchants also made a fortune from the opium trade and invested their proceeds in railroads, hotel chains, and manufacturing in the United States.[51] Changing trade policyIn addition to the start of the opium trade, economic and social innovations led to a change in the parameters of the wider Sino-European trade.[54] The formulation of classical economics by Adam Smith and other economic theorists caused academic belief in mercantilism to decline in Britain.[55] Under the prior system, the Qianlong Emperor restricted trade with foreigners on Chinese soil only for licensed Chinese merchants, while the British government on their part issued a monopoly charter for trade only to the British East India Company. This arrangement was not challenged until the 19th century when the idea of free trade was popularised in the West.[56] Fueled by the Industrial Revolution, Britain began to use its growing naval power to spread a broadly liberal economic model, encompassing open markets and relatively barrier free international trade, a policy in line with the credo of Smithian economics.[55] This stance on trade was intended to open foreign markets to the resources of Britain's colonies, as well as provide the British public with greater access to consumer goods such as tea.[55] In Great Britain, the adoption of the gold standard in 1821 resulted in the empire minting standardised silver shillings, further reducing the availability of silver for trade in Asia and spurring the British government to press for more trading rights in China.[57][page needed][54] In contrast to this new economic model, the Qing dynasty continued to employ a Confucian-Modernist, highly organised economic philosophy that called for strict government intervention in industry for the sake of preserving societal stability.[26] While the Qing government was not explicitly anti-trade, a lack of need for imports and increasingly heavy taxes on luxury goods limited pressure on the government to open further ports to international trade.[58] China's rigid merchant hierarchy also blocked efforts to open ports to foreign ships and businesses.[59] Chinese merchants | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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