Canton System in the context of "Pearl River (China)"

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⭐ Core Definition: Canton System

The Canton System (1757–1842; Chinese: 一口通商; pinyin: Yīkǒu tōngshāng; Jyutping: jat1 hau2 tung1 soeng1, lit. "Single [port] trading relations") served as a means for Qing China to control trade with the West within its own country by focusing all trade on the southern port of Canton (now Guangzhou). The protectionist policy arose in 1757 as a response to a perceived political and commercial threat from abroad on the part of successive Chinese emperors.

From the late seventeenth century onwards, Chinese merchants, known as Hongs (Chinese: ; pinyin: háng), managed all trade in the port. Operating from the Thirteen Factories located on the banks of the Pearl River outside Canton, in 1760, by order of the Qing Qianlong Emperor, they became officially sanctioned as a monopoly known as the Cohong. Thereafter Chinese merchants dealing with foreign trade (Chinese: 洋行; pinyin: yángháng; Jyutping: joeng4 hong2; lit. "ocean traders", i.e. "overseas traders" or "foreign traders") acted through the Cohong under the supervision of the Guangdong Customs Supervisor (Chinese: 粵海關部監督; pinyin: Yuèhǎi guānbù jiàn dù; Jyutping: jyut6 hoi2 gwaan1 bou6 gaam1 duk1), informally known as the "Hoppo", and the Governor-general of Guangzhou and Guangxi.

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In this Dossier

Canton System in the context of First Opium War

The First Opium War (Chinese: 第一次鴉片戰爭; pinyin: Dìyīcì yāpiàn zhànzhēng), also known as the Anglo-Chinese War, was a series of military engagements fought between the British Empire and the Chinese Qing dynasty between 1839 and 1842. The immediate issue was the Chinese enforcement of their ban on the opium trade by seizing private opium stocks from mainly British merchants at Guangzhou (then named Canton) and threatening to impose the death penalty for future offenders. Despite the opium ban, the British government supported the merchants' demand for compensation for seized goods, and insisted on the principles of free trade and equal diplomatic recognition with China. Opium was Britain's single most profitable commodity trade of the 19th century. After months of tensions between the two states, the Royal Navy launched an expedition in June 1840, which ultimately defeated the Chinese using technologically superior ships and weapons by August 1842. The British then imposed the Treaty of Nanking, which forced China to increase foreign trade, give compensation, and cede Hong Kong Island to the British. Consequently, the opium trade continued in China. Twentieth-century nationalists considered 1839 the start of a century of humiliation, and many historians consider it the beginning of modern Chinese history.

In the 18th century, the European demand for Chinese luxury goods (particularly silk, porcelain, and tea) created a trade imbalance between China and Britain. European silver flowed into China through the Canton System, which confined incoming foreign trade to the southern port city of Guangzhou. To counter this imbalance, the British East India Company began to grow opium in Bengal and allowed private British merchants to sell opium to Chinese smugglers for illegal sale in China. The influx of narcotics reversed the Chinese trade surplus and increased the numbers of opium addicts inside the country, outcomes that seriously worried Chinese officials.

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Canton System in the context of Shanghai International Settlement

The Shanghai International Settlement originated from the 1863 merger of the British and American enclaves in Shanghai, in which British and American citizens would enjoy extraterritoriality and consular jurisdiction under the terms of unequal treaties agreed by both parties. These treaties were abrogated in 1943.

The British settlements were established following the victory of the British in the First Opium War (1839–1842). Under the terms of the Treaty of Nanking, the five treaty ports including Shanghai were opened to foreign merchants, overturning the monopoly then held by the southern port of Canton (Guangzhou) under the Canton System. The British also established a base on Hong Kong. American and French involvement followed closely on the heels of the British and their enclaves were established north and south, respectively, of the British area.

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Canton System in the context of Maritime fur trade

The maritime fur trade, a ship-based fur trade system, focused largely on acquiring furs of sea otters and other animals from the Indigenous peoples of the Pacific Northwest Coast and Alaska Natives. Entrepreneurs also exploited fur-bearing skins from the wider Pacific (from, for example, the Juan Fernández fur seal) and from the Southern Ocean.

The trade mostly serviced the market in Qing China, which imported furs and exported tea, silks, porcelain, and other Chinese goods, which were then sold in Europe and in the United States.

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