China’s Dominance in Trade

COLONIZATION AND ECONOMIC EXPANSION HIST 1301 | History China’s Dominance in Trade China was already a significant global force, but once the Qing (1644–1912), the final imperial dynasty, rose to power, it became even more so. The Qing emperors focused on reconstructing the Chinese economy after overthrowing their Ming forebears and establishing their dominance. A secure frontier allowed them to cut taxes and military spending, freeing up funds for individuals to invest in companies and for the affluent to buy pleasures. Rich families that backed their political opponents lost their land, which the Qing took and gave to other families who started small farms. The proprietors of these new farms received draft animals, equipment, and seeds from the government as assistance. The arrival of potatoes from the Americas allowed farmers to raise food on mountainous territory that had never before been widely farmed, but they still concentrated on cultivating rice in the river valleys. Some started cultivating tobacco, which originated in the Americas and is now a major source of income for Chinese farmers. The Qing era improved China's infrastructure, especially the Grand Canal and road reconstruction, to support economic growth. This river, which runs 1,100 miles from Beijing in the north to Hangzhou in the south, was started in the fifth century BCE and is still in use today. The Huang (Yellow), Huai, and Yangtze Rivers are just a few of the significant rivers it links. It is the longest canal in the world. During the Qing dynasty, the Grand Canal not only carried luxury goods but also food from the fertile southern river basins to the big northern Chinese towns like Beijing, which developed into vital hubs for trade and industry at this time. The authorities of the Qing dynasty also prioritised expanding China's commerce with other countries. They negotiated new agreements with other countries, such as the Treaty of Kyakhta (1727) with Russia, which gave China access to new markets in Europe. Additionally, they strengthened trade ties with the Philippines, Southeast Asian countries, and Japan. Most restrictions on commerce with western countries were removed by the Qing administration. Western Europeans could trade with China under the Canton system, which was in effect from 1759 to 1842, if they consented to go via Chinese guilds that had exclusive rights to the tea and silk markets. In an effort to reduce interaction with Europeans and outside influence on China, this system restricted all trade to the port of Canton (Guangzhou), in southern China. Contact with Europeans was restricted to merchant guild members who were authorised to do business with Westerners. All Europeans dealing in China were subject to Chinese law, and they were compelled to dwell and do business in a limited area outside the city walls. A permanent European population was not allowed to establish itself in Canton because European women were not permitted to settle there and weapons or warships were not permitted to be brought into the harbour. China's economy flourished and commerce with Europe surged because to the Canton system. By 1833, Chinese tea exports had increased to twenty-eight times, while foreign ship arrivals had increased to thirteen times. Although tea was China's most significant export, the country also exported significant amounts of silk and porcelain. It demanded payment in silver for its exports and refused the majority of European trade items. Europeans, desperate for Chinese products, gave in, and silver worth several million dollars was sent to China annually. China thus benefited from a highly positive trade balance with Europe. This prompted countries in Europe to figure out how to reduce China's trade advantages.