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Home/1. Trade Between Britain and the Qing Dynasty. Why Britain Started Pushing Opium.
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1. Trade Between Britain and the Qing Dynasty. Why Britain Started Pushing Opium.

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The Era of the Industrial Revolution. Led by the textile industry, Britain was busy building its own 'Total GOAT' system of Western (British) industrial civilization. People usually think of the Industrial Revolution as a general European event, but honestly, it just happened in Britain. Accumulating knowledge is one thing; shifting the paradigm based on that knowledge is a whole different ball game. In world history, Britain is the only country that achieved the Industrial Revolution and capitalism through its own raw strength. (This is basically why the 'Sprouts of Capitalism' theory is a total illusion.) Europe just happened to be close to Britain and was quick to ride the coattails of the 'Great British Overlords.' A classic example of Britain's sheer dominance is its relationship with France during the Napoleonic era.

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(Population of Europe in the Napoleon Era) Unlike now, France was the biggest population powerhouse in Western Europe. As the breadbasket and cultural hub of Europe, it boasted a massive population, which made it the strongest power in 18th-century Europe. Napoleon even openly bragged that he could churn out 200,000 men every year—the size of the entire British regular army at the time. Looking at the population chart above, you can see intuitively why Napoleon's France was so strong. You can also see why it was Russia, not the Austrian Empire, Spain, or Prussia, that suddenly managed to suppress Napoleon. The 18th-century land powers were basically a two-way race between France and Russia. And then, there was the 'Great British Overlord.' Ironically, when Napoleon conquered all of Europe, his 'Grande Armée' was actually wearing British-made uniforms.

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"The uniforms of the French army are made in Yorkshire, and the decorations for Marshal Soult and his corps are made in Birmingham." —British Parliament, 1812. Even while Britain and France were at war, the French soldiers were literally decked out in British gear.

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While France was making stuff like this using home-based handcrafts...

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Britain was mass-producing them in factories like this. Since the industrial gap was this insane, let's think about when Napoleon issued the so-called 'Continental Blockade' to isolate Britain from Europe.

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(Napoleon's Continental Blockade) We learn about this famous 'Continental Blockade' in school: British ships and goods are banned from Europe, and European countries are forbidden from trading with Britain!! But the thing is, the French navy got absolutely clapped by the British, so France couldn't even leave its own ports. With the British fleet controlling the seas, who was actually blockading whom? There's a satirical cartoon from that time about this blockade.

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A satire showing Britain's overflowing dinner table vs. Napoleon looking like he's about to starve to death.

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Since this wasn't an era of radar and GPS monitoring the seas, smuggling was obviously rampant. There were even blatant smuggling routes like the one shown above. To be precise, those routes were the only reason Europe survived by barely getting British goods. Napoleon's talk about suppressing Britain with pure population numbers was just hype; the industrial gap between Britain and France was already on a different level. Sure, Britain's national debt skyrocketed because of the long war with Napoleon, but France, which was in even worse shape, was literally dying. That's why as soon as the 'invincible' Napoleon lost just once to another population giant, Russia, all of Europe jumped on France like they'd been waiting for it, and Napoleon fell off hard. It wasn't just a random event; it was the moment Britain leveled up into the 'Big Sis' British Empire and became the world's undisputed top power. And the fuel for Britain's growth was none other than its Indian colony. When Britain lost America—its most important colony at the time—due to the American Revolution, it chose Asia as the replacement. Taking advantage of the chaos in a divided India, Britain used its military superiority to slowly nibble away at it. Eventually, Britain pulled off the feat of conquering all of India, which was the second wealthiest region in the world at the time. This was the start of the 'Big Sis' British Empire era.

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(India's prime years, when it was the 2nd wealthiest region after China) ------------------------------- British Right-wing Politician: "In the 19th century, our Britain, which was just a bit richer than the average European country, became the wealthiest nation in the world. What's the secret?" Answer: "That's quite a strange coincidence, considering India, the 2nd wealthiest nation in 1700, became one of the poorest by 1945. What a bizarre coincidence, right?" -------------------------------- - Twitter Humor.

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This era is called the Second British Empire. Britain used the massive nation of India as a source of raw materials and a market for its products, using that foundation to achieve the Industrial Revolution. In the case of American colonies, they were good for resources but had a low population, so they weren't great as a product market. On the other hand, India could serve as both a resource hub and an infinite market. By monopolizing India, Britain reached a level where it could run its own independent 'block economy.'

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(The traditional Indian textile industry based on cotton cultivation completely collapsed during this period, and British-made textiles came to dominate all of Asia.) If you look closely at the important inventions of the Industrial Revolution, they're all closely linked to conquering and running colonies. The steel industry's mining, coal transport, and steam locomotives came out of the process of producing weapons for colonial conquest. Industrial machines appeared to process the massive resources from colonies in the underpopulated British mainland. This is why Western industrialization and imperialist expansion happened—and had to happen—simultaneously. From an imperialist's perspective, it's a 'virtuous cycle.'

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(Economic growth and decline of the British Empire)

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(Britain teaching the 'advanced' Western civilization to Indians) Simply put, the British Empire as we know it in world history started by eating India and ended when India rang the bell on independence. As Britain pushed further east past India into Asia, they eventually reached the Far East and the Qing Dynasty of China.

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(The meeting between the Qianlong Emperor and Lord Macartney) Just like their 'precious connection' with their lovely and grateful India, Britain wanted to start things with the Qing Dynasty through 'fair trade.' In 1792, King George III sent Lord Macartney and 100 staff to Qing to show off the peak of Western scientific civilization. They brought gifts like pretty clocks, cool globes, exciting telescopes, and cute figurines—the essence of advanced civilization. But the 'ignorant and primitive' Qianlong Emperor just treated these items like interesting toys. He gave the following response: --------------------------------- ... (Omitted) I have given special orders to accept the gifts the King of England sent this time, out of consideration for the sincerity shown from such a distance. In fact, the Celestial Empire's virtue and achievements have spread so far that kings from all nations send all sorts of precious items, and we lack nothing. This is a fact the British envoy has witnessed personally. Therefore, we have never valued rare things, and furthermore, we have no need for British goods. Your King's request to station a Briton in Beijing not only goes against the system of the Celestial Empire but also provides no benefit to you. Valuing the sincerity of your long journey, I have informed you in detail, so let the mission rest comfortably before returning home. I hope the King of England realizes my will, works harder with sincerity, and remains forever humble to preserve his country and enjoy the blessings of peace. ... (Omitted) ---------------------------------- Summary: "Hey, the toys you sent were fun to play with. But about that trade thing... our Celestial Empire is so rich and well-off that we don't need your stuff. Bye-bye!" But the thing is, this wasn't just a bluff; it was actually true.

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International relations in East Asia had a completely different base compared to Europe. East Asia was a system where a single country monopolized 90% of the territory, population, resources, and economy. Other countries coexisted around this center. Because there were no natural or cultural barriers in the main continent, this phenomenon repeated periodically. This entity was called 'Tianxia' (All under Heaven) or 'Zhongguo' (The Middle Kingdom). In East Asian history, these weren't just names for a specific country, but terms for the central civilization. To the East Asian mindset of the time, this was the entire world. It was a region with the world's #1 economy and 1/3 of the global population. Therefore, state-to-state relations in East Asia couldn't be equal like in the West. Because geography made it easy to unify the Chinese mainland, a completely asymmetrical relationship formed periodically. When the central power was weak, surrounding countries would raid it; when it was strong, a 'tribute system' that respected civilization was built. This pattern repeated for 2,000 years. Tribute trade is a prime example. Trade in East Asia wasn't about seeking mutual economic profit through equal exchange. It was a tradition where the central power, having unified the mainland, would distribute goods in exchange for surrounding nations recognizing its superiority and promising not to raid. China opening 'horse markets' for northern nomads or establishing regular tribute relations are classic examples. When the Imjin War broke out, the Ming Dynasty even mistook Japan's crazy behavior as a desperate attempt to be allowed to pay tribute to Ming directly. (Ming had banned tribute from Japan because they couldn't figure out if the King was the Emperor or the Shogun.) The Qing's reaction to Britain—who came from the far West—was exactly the same. Just as they allowed horse trade for northern nomads, they allowed trade limited to the Guangzhou area in the south. To keep these 'unidentifiable barbarians' from causing trouble, the Qing allowed trade only through designated merchants called the 'Cohong.'

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(Guangzhou Port, where Cohong trade took place) This trade system between the Qing and Britain is called the 'Canton System.' It has a long history. Portugal and Spain did the same through Macau. At this time, the main Chinese goods Britain imported were tea and porcelain.

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Let's talk about tea for a second. Tea comes from the leaves of the tea tree, native to East Asia and grown in China, Korea, and Japan. The main reason for drinking this is to consume caffeine. Since ancient times, monks and scholars in East Asia drank it during meditation or study to stay sharp. Steamed and dried leaves make Green Tea. Steamed and semi-fermented leaves make Oolong Tea. Steamed and fully fermented leaves make Black Tea (the kind Putin loves). If you age and ferment it even longer, you get the funky-smelling Pu-erh tea. Fermented teas developed in the southern regions where food spoils easily. In Korea and Japan, where the water is clear, Green Tea became popular. Pu-erh tea, originally drunk by ethnic minorities in southern China, became a top-tier luxury tea when it started being presented to the Qing imperial court. In the Qing era, fermented tea became popular for its unique flavor, so the tea exported to Europe was naturally fermented. It also needed to survive long sea voyages. Westerners called it 'Black Tea' based on the color of the leaves, while we call it 'Red Tea' (Hong-cha) based on the color of the liquid. In Korea, with its good climate, we prefer fresh Green Tea. But in the hot, humid south of China, 'tea' usually means Oolong or Pu-erh, and in the West, which imported it from far away, 'tea' usually means Black Tea. In Britain, during the 17th-century Industrial Revolution, tea culture started with the royals and aristocrats. It eventually spread to the entire population, becoming an essential daily item. As work hours increased in modern Britain, a culture of consuming caffeine to stay awake and alert during the day spread. By the 19th century, 5% of an average British household's income went to buying tea, and tea tariffs made up about 17% of Britain's total national revenue.

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Of course, caffeine isn't just in tea; it's also highly concentrated in coffee. All European countries initially relied on Chinese tea. But when coffee became trendy via Turkey, it was spotlighted as a tea alternative. Over time, they started growing coffee in their colonies in America and Africa, gradually replacing Chinese tea. In Britain's case, they succeeded in growing tea trees in their own colony, India. Since they could get cheap tea from the Assam region, they stuck with tea instead of coffee. However, Indian tea has a stronger, more astringent taste than Chinese tea. To dilute this, they started adding milk, which created today's milk tea culture. Back to trade: in this process, Britain desperately needed Chinese porcelain and tea, but the Qing Dynasty—true to the Qianlong Emperor's words—really didn't need anything from Britain.

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The Qing Dynasty declared they wouldn't create more taxes, and by the Yongzheng Emperor's time, they even abolished the poll tax based on family registers. Since the government only taxed land, registering your household had nothing to do with taxes. Does this sound familiar? It's the same pattern as the collapse of the Joseon class system—when slaves and commoners were given a chance to forge noble (Yangban) registers to avoid taxes, everyone suddenly became a 'noble.' Because of this government policy, the registered population in the late Qing exploded. The population, which was 100 million, reached a staggering 400 million during the Qianlong era. Physically, a 4x birth rate increase in that short time is impossible; it's more likely that the original Chinese population and ethnic minorities, who were previously left out of censuses, finally started being counted. But the fact that the Qing had 400 million people is insane. That's more than double the population of all of Europe at the time. Basically, the Industrial Revolution is about replacing human labor with steam engines for mass production. That production efficiency gives industrial nations a competitive edge. But this basic industrial/economic concept couldn't work in China. With its overflowing cheap labor, the Qing was already 'tanking' the Industrial Revolution by mass-producing handcrafted goods. With cheap Chinese products made by grinding human labor everywhere, British textiles couldn't compete. Since Britain had nothing to sell to the Qing, they ended up buying all that Chinese tea with silver.

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At the time, silver was the standard currency in China. Through the Ming and Qing dynasties, the tax system was reformed, and the 'Single Whip Law' and the 'Silver and Land Tax' system were established. In Qing, silver was used to pay taxes, so it was a vital resource. Naturally, when trading with Britain, China demanded silver for tea. This wasn't a new thing for Britain, either. Since the Ming era, Portuguese and Spanish traders came to Macau and traded silver mined in the Americas for Chinese porcelain and tea. Since the 15th century, the final destination for the global silver trade was always China. This American-European-Chinese silver trade had a hundreds-of-years-old history. The silver that indigenous Americans died to mine ended up in Ming China, leading the Ming to collect all taxes in silver and build a silver-based economy. China was the representative 'Silver Standard' country. This is why we call financial institutions 'Eun-haeng' (Silver Banks/Bank) today. Britain was no different; 90% of British ships heading to China were loaded with silver bars (treasure ships), and they'd return filled with tea and porcelain—all through the government-designated '13 Factories' (13 Cohong).

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(Howqua/Wu Bingjian, head of the Ewo-hong, one of the 13 Factories) In the 18th century, the richest man in the world was Wu Bingjian, the leader of the Chinese Cohong. His voluntarily declared assets were 26 million silver dollars, which was about half of the Qing's total annual budget. He was even the biggest creditor of the British East India Company.

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The mentor of John Murray Forbes (the ancestor of Forbes magazine) served as Wu Bingjian's adopted son for 8 years and used the money Wu gave him to go to America and become a tycoon. This was all a result of the Cohong monopolizing trade with Britain, allowing merchants like Wu Bingjian to accumulate massive wealth. People often say the Opium War happened because of this trade imbalance—that Britain's trade deficit and the one-way drain of silver to Qing were the reasons. But that's not the whole story. It's not a direct cause-and-effect. Actually, the British government and the East India Company didn't care if silver went to Qing or not. The East India Company was still making bank by selling tea in Europe, and the British government was raking in massive tax revenue from tea tariffs. Honestly, that silver wasn't even mined in Britain; it was looted from American colonies, so why would they care if it went to Qing? To be blunt, the silver-based Cohong trade didn't really 'hurt' Britain. It was always a huge profit. The only difference was that compared to the 'extortion-level' exploitation they did in other colonies, the trade with Qing just wasn't as 'fun' or easy. However, by the 19th century, a small shift happened in Britain's trade structure. Britain had always made massive profits by growing cheap Indian cotton, making it into textiles in Britain, and selling it back. But then, ominous news came from a former colony that had gained independence: the United States was starting to grow cotton seriously.

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The American South started mass-producing cotton using African slaves, and South America joined in too. As a result, Britain, which had profited from Indian cotton, took a huge hit in international trade. Running the Indian colony suddenly wasn't as profitable. They had fought hard for India, so they needed to squeeze as much as possible out of it. They were still hungry. What else could they make in India using Indian labor that would bring in massive profits? Then, by pure 'coincidence,' they looked at the Bengal region they took from France and... oh? Instead of cotton, they could grow a high-profit crop! So, Britain replaced the less competitive cotton with a new high-profit 'cash crop' discovered in India and started mass-producing it... and that was the drug, Opium. The End. * Also posting on the Reading Material board. These are connected: 2. Britain's Opium Trade and the Qing Dynasty addicted to drugs. 3. The 1st Opium War. Discovering China was a pushover. Final. The 2nd Opium War. The virtual fall of the Qing Dynasty.

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HistoryWorld HistoryBritish EmpireOpium WarEconomics
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"The community is digging the history lesson, especially the part about France getting roasted and Britain's transition from tea lovers to drug lords."

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