In the 19th century, British economic interests were deeply intertwined with China, particularly concerning the trade of opium, silk, and tea. However, an unexpected downturn in British exports to China revealed underlying economic and political tensions that would shape international relations for years to come.
Decline in British Exports to China
After signing treaties that were supposed to boost trade, British merchants anticipated an increase in exports to China. Contrary to their expectations, the following decade saw a decline. One significant factor contributing to this decrease was the depletion of China’s silver reserves, which were extensively used to purchase opium smuggled into the country by foreign traders. As a result, China’s capacity to buy British manufactured goods diminished substantially. Silk and tea, two of China’s major export commodities, also suffered from overexploitation, further weakening the nation’s purchasing power.
Impact of Opium Trade on China’s Economy
The opium trade had a devastating impact on China’s economy and society. The addiction to opium drained the country’s wealth, as vast amounts of silver were sent abroad to pay for the drug. This illicit trade was largely facilitated by foreign powers, including the British, who found a lucrative market for the narcotic among the Chinese populace. The consequences of this trade were not limited to economic distress but also led to widespread social issues and contributed to the decline in public health.
British Capitalists’ Pressure on Government
In light of the declining exports, British capitalists urged their government to take action to remove the internal tariffs of China that were impeding their access to the vast Chinese market. They were particularly interested in eliminating these barriers so that they could penetrate deeper into China’s domestic market and maximize their profits. This pressure from capitalists sought to influence the British government’s foreign policy towards China, aiming to fully open the country to British goods and investments.
China’s Response to Foreign Encroachments
The Chinese, for their part, were increasingly discontented with the foreign encroachments on their sovereignty. The continuation of the illegal opium trade, despite its ban by the Chinese authorities, was a source of national humiliation and anger. Additionally, the exploitation of Chinese laborers, derogatorily referred to as the ‘pig trade,’ where agents would send workers abroad under often deplorable conditions, exacerbated the grievances. The presence of piracy in the South China Sea, with the involvement of the Portuguese among others, further complicated the situation and posed a threat to both local and international maritime security.
Questions for UPSC
1. How did the depletion of China’s silver reserves affect its trade relations with Britain in the 19th century?
2. In what ways did the opium trade influence the socio-economic landscape of China during this period?
3. What were the implications of British capitalists’ pressure on their government to change trade policies with China?
