Lecture on Global Trade and China's Historical Role in Silver Economy

Introduction

• The lecture explores global trade beginning from a settlement in the Andes mountains due to discovery of pure silver.
• Year: 1581, Buyer: Emperor of China.
• China's demand for silver transforms the global trade network.

Impact of Silver on China and World Trade

• Silver trade allowed Chinese emperors to become powerful.
• Craftsmen in China created exquisite silverware admired worldwide.
• Silver catalyzed wealth and urban growth in cities such as Boston, Hong Kong, Seville, and Shanghai.
• Despite wealth, it sowed seeds of future conflict and war.

The Opium Wars

• Cause: Trade imbalance due to Chinese demand for silver, leading Britain to trade opium for tea.
• China seized British opium, leading to war and loss of Hong Kong.
• The war highlighted a clash of worldviews between Chinese traditionalists and British capitalism.

The Century of Humiliation

• Post-war treaties opened more ports and legalized opium, increasing foreign control over China.
• The destruction of the Summer Palace by British troops was symbolic of Chinese subjugation.

Economic Struggles and Modernization Efforts

• China relied on silver while global powers moved to gold standard.
• Prince Gong’s self-strengthening movement aimed to modernize China with Western technology and systems.
• Key institution: Imperial Maritime Customs Service, run by British but benefiting China.
• Revenue significantly increased, aiding modernization efforts.

Internal Challenges and External Pressures

• Empress Dowager Cixi opposed reforms, favoring traditional imperial rule.
• Japan modernized and defeated China in 1895, seizing Taiwan and Korea.
• China faced increased foreign control and financial burdens from war reparations.

The Boxer Rebellion and Its Aftermath

• Anti-foreign and anti-Christian Boxer Rebellion supported by Cixi.
• Foreign powers crushed the rebellion, demanding huge indemnities.
• Robert Hart helped structure China’s debt to avoid partition.

The Transition from Silver

• China’s reliance on silver weakened its economy as global prices and demands changed.
• The Great Depression and US policies exacerbated China’s financial issues.
• China abandoned silver in 1935, marking an end to centuries-old tradition.

Cultural and Economic Legacy

• Chinese export silver became a forgotten art, later rediscovered and appreciated.
• China continues to be a major player in the global silver market, particularly for industrial uses.
• The historical significance of silver is still embedded in Chinese language and culture.

Conclusion

• Silver played a crucial role in shaping China’s historical and economic paths.
• Modern China reflects the economic power it once held, now through industrial output rather than silver.