A Brief Analysis of the Canton Trade System

In the late 1700s, the center of Western trade activities shifted to foreign quarters at Canton, and the Canton Trade System was established. This trade system reflected the strength of the Chinese state and its business interactions with foreign countries. From the historical perspective, Canton Trade system was established due to China’s long history of trading with the outside world. Since ancient times, China had started to trade textiles, tea, and porcelain crossing the silk routes of Central Eurasia. These luxury items had a long history of popularity in Europe. And since the 16^th century, with the development of naval technologies, these trade relationships had become stronger, and the superior geographical location of Canton enabled more and more merchants from both sides to do the business. Moreover, from the political perspective, Canton Trade System was established due to the European and Asian expansion and the consolidation of their external trading networks. Under Ming and Qing dynasties, the Chinese territory expanded at an unprecedented speed. With the fast expansion, large numbers of Chinese moved into Southeast Asian countries and became the dominant commercial forces there. Also, European countries brought their silver to Asia to buy precious commodities. Coastal ports of Canton played an important role in these business interactions, which contributed to the establishment of Canton Trade System under the global expansion background. In addition, from the economic perspective, the Canton Trade System was established because both the Qing Empire and the trading companies, like the British India Company, chose Canton as the central focus of the trade. Luxury exports from Canton, like fine porcelain, furniture, lacquer, paintings, and figurines earned great popularity in Europe and these trades bore great profits. These great profits attracted more and more traders, to participate in it regardless of the corresponding risks.

Due to this long history of trade based on systems like the Canton Trade System, the luxury art objects like paintings, porcelain and tea, generated images of China as a wealthy, refined, artistic civilization in the West. This concept appealed many foreigners greatly, and China was then regarded as a major tourist destination, as well as a business field of fortune.