The Role of Silver in Shaping Global Trade and China's History

Introduction

• Silver from the Andes became a global commodity in the 16th century.
• In 1581, the Emperor of China decided taxes must be paid in silver.
• This decision increased the global demand for silver, making it more valuable than gold.
• Spain's silver fueled global trade, linking the world into one network.
• Silver allowed China's Emperors to become powerful and enriched businessmen.

China's Dominance in Trade

• China was a dominant economic and cultural empire in the 18th century.
• China's luxury goods like porcelain and silk were traded for silver.
• Tea became a major export commodity.
• The British East India Company had significant control over the tea trade.

British Trade Relations with China

• In 1792, Britain launched a trade mission led by Lord George McCartney to improve trade terms.
• The mission aimed to get China to buy British goods instead of demanding silver.
• McCartney's mission failed as China saw itself as superior.

Canton as a Trade Hub

• Canton was the heart of trade, where foreign merchants could trade with China.
• The Kohan merchants were the only ones allowed to trade with foreigners.
• Hawkwa, a Chinese merchant, became extremely wealthy through trade with the British.

The Opium Trade

• Western merchants struggled to find goods to trade with China, eventually turning to opium.
• The British East India Company capitalized on opium export to China, impacting silver reserves.
• The opium trade led to societal issues and a drain on China's economy.

The Opium Wars

• In 1839, Commissioner Lin Zexu was appointed to crack down on opium trade.
• The trade led to the First Opium War with Britain, resulting in the Treaty of Nanking in 1842.
• China had to cede Hong Kong to Britain and open more ports for trade.

Impact on China's Sovereignty

• The Treaty of Nanking marked the beginning of the "Century of Humiliation" for China.
• China's inability to control its foreign affairs contributed to its decline.

Conclusion

• China's dependency on silver and the opium trade led to significant geopolitical shifts.
• These events led to China's loss of status as a leading world power.
• The historical impact of these trade dynamics continues to influence Chinese policy and global trade.