View source for Canton System

{{Short description|Chinese policy in which all foreign trade was restricted to Canton/Guangzhou (1757-1842)}}
{{For|the system of military recruitment|Canton System (Prussia)}}
{{Chinese
|c=一口通商
|p=Yīkǒu tōngshāng
|w=I1-k'ou3 T'ung1-shang1
|j=jat1 hau2 tung1 soeng1
}}
[[File:Canton c1850.jpg|thumb|right|250px|Canton factories c. 1850]]
[[File:Scene in China (1852, p.Vignette, IX) - Copy.jpg|thumb|250px|Scene in China (1852, p. Vignette)<ref name="Juvenile1852">{{cite journal|title=Scene in China |journal=The Wesleyan Juvenile Offering: A Miscellany of Missionary Information for Young Persons|date=1852|volume=IX|page=Vignette|url=https://archive.org/download/wesleyanjuvenil08socigoog/wesleyanjuvenil08socigoog.pdf|access-date=24 February 2016|publisher=Wesleyan Missionary Society}}</ref>]]

The '''Canton System''' (1757–1842; {{lang-zh|t=一口通商|p=Yīkǒu tōngshāng|j=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 [[Hong (business)|Hongs]] ({{Lang-zh|t=行|p=háng|links=no}}), managed all trade in the port. Operating from the [[Thirteen Factories]] located on the banks of the [[Pearl River (China)|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 ({{lang-zh|t=洋行|p=yángháng|links=no|j=joeng4 hong2}}; {{lit}} "ocean traders", i.e. "overseas traders" or "foreign traders") acted through the ''Cohong'' under the supervision of the Guangdong Customs Supervisor ({{Lang-zh|t=粵海關部監督|p=Yuèhǎi guānbù jiàn dù|j=jyut6 hoi2 gwaan1 bou6 gaam1 duk1|links=no}}), informally known as the "[[Hoppo]]", and the [[Viceroy of Liangguang|Governor-general of Guangzhou and Guangxi]].

==History==
===Origins===

At the start of his reign, the [[Kangxi Emperor]] (r.{{nbsp}}1661{{ndash}}1722) faced a number of challenges, not the least of which was to integrate his relatively new dynasty with the Chinese [[Han Chinese|Han majority]].<ref>{{cite book | title = China at War: An Encyclopedia
| last1 = Li, X.
| isbn = 978-1-59884-415-3
|url=https://books.google.com/books?id=jhPyvsdymU8C&pg=PA201
| page = 201
| year = 2012
| publisher = ABC-CLIO}}</ref> 
The [[Manchu people|Manchu]]-led Qing dynasty had only come to power in 1644, replacing the [[Ming dynasty]]. Support for the previous rulers remained strong, particularly in the south of the country.<ref>{{cite book 
| title = Imperial China 900-1800
| last1 = Mote
| first1 = F.W.
| url = https://books.google.com/books?id=SQWW7QgUH4gC&pg=PA850
| isbn = 978-0-674-01212-7
| year = 2003
| publisher = Harvard University Press
| page = 850}}</ref> 
Kangxi twice banned all maritime trade for strategic reasons, to prevent any possible waterborne coup attempt.{{sfn|Schottenhammer|2007|p=31}} Several rebellions took place, including one led by Ming loyalist [[Koxinga]] and separately the [[Rebellion of the Three Feudatories]],{{sfn|Li|1977|p=363}} which led to the capture of [[Taiwan]] in 1683. Once the rebellions had been quelled, in 1684 Kangxi issued an edict:{{blockquote|Now the whole country is unified, everywhere there is peace and quiet, Manchu-Han relations are fully integrated so I command you to go abroad and trade to show the populous and affluent nature of our rule. By imperial decree I open the seas to trade.<ref>今海内一统，寰宇宁谧，满汉人民相同一体，令出洋贸易，以彰富庶之治，得旨开海贸易 from {{cite book | title = Research study on Hangzhou Trade in the Late Qing and Republican Eras (晚清民国杭商研究)
| last1 = 周膺
| last2 = 吴晶
| isbn= 978-7-80758-499-5
| year = 2011
| language = zh
| publisher = Hangzhou Publishing House (杭州出版社) }}</ref>}}
''Hǎiguān'' (海關), Hoi Gwaan, or customs stations, were subsequently opened at [[Guangzhou|Canton]], [[Macau]], and [[Xiangshan County, Guangdong|Xiangshan County]] in Guangdong; [[Fuzhou]], [[Nantai Island|Nantai]], and [[Xiamen|Amoy]] in [[Fujian]]; [[Ningbo]] and [[Dinghai District|Dinghai County]] in [[Zhejiang Province]]; and [[Huating Town, Shanghai|Huating County]], Chongque, and [[Shanghai]] in [[Jiangsu Province]].{{sfn|Schottenhammer|2010|p=126}} One year later in 1685, foreign traders received permission to enter Chinese ports.<ref>{{cite web
| author = Taipei Research Institute (台北研究院) 
| year = 1987 
| title = Fifth compilation of Ming/Qing historical material (明清史料戊编) 
| publisher = Taipei: Zhonghua Publishing Bureau (台北: 中华书局).
| volume = 1
| page = 102}}</ref>

{| border="1" class="wikitable collapsible" style="text-align:center; margin: 1em auto 1em auto;"
|+ International cargoes arriving in Canton in 1741
|-
!  !! Great Britain !! !! France !! Holland !! Sweden !! Denmark
|-
|  || East India<br />Company|| Itinerant<br />traders || || || ||
|-
| Number of Ships|| 4|| 1||2||2||4||1
|-
| Tonnage|| 2,250|| 350||1,450||1,450||2,600||850
|-
| Cannon || 112 || 12 || 60 || 64 || 120 || 36
|-
| Crew || 400 || 100 || 300 || 220 || 510 || 150
|-
| Black Tea ([[picul]]s) || 7,194 || || 8,000 |||| 8,000 || 5,000
|-
| Green Tea (piculs) || 6,151 |||| 1,450 |||| 550 || 1,400
|-
| Raw Silk (piculs) || 28 |||| 250 ||||||
|-
| Woven Silk (bales) || 11,074 |||| 6,000 |||| 7,000 || 7,500
|-
| [[Nankeen]]s || 15,699 ||||||||||
|-
| [[Chinese ceramics|Chinaware]] (chests) || 844 |||| 600 |||| 800 || 400
|-
| Tutenag<sup>1</sup> (piculs)|||||||||| 1,800 ||
|-
| <sup>1</sup>An alloy of copper, nickel and zinc ||||||||||||'''''source: Gao (2003)'''''
|}

The Qing Court under Kangxi set up a trading company in Canton in 1686 to deal with Western trade known as the ''Yánghuò Háng'' (洋貨行, literally "Ocean Trading House"). This dealt with both imports and exports with sub-offices responsible for taxes and import/export declarations respectively. When a ship arrived or departed, the Chinese merchant involved would visit the Ocean Trading House to pay any taxes due. This set up became the basis for the later [[Thirteen Factories]] through which all foreign trade would be conducted.<ref name="一纸诉状">{{cite web|title=A Complaint about the Single Port Trading Policy (一纸诉状与一口通商)|url=http://www.ccdy.cn/bolan/baike/201109/t20110927_137849.htm|publisher=[[Ministry of Culture of the People's Republic of China|Chinese Culture MediaCentre]] (中国文化传媒网)|language=zh|last1=吴伯娅|date=January 1, 2010|access-date=January 27, 2014|url-status=dead|archive-url=https://web.archive.org/web/20140202111802/http://www.ccdy.cn/bolan/baike/201109/t20110927_137849.htm|archive-date=February 2, 2014}}</ref>

Although many ports on the coasts of China were open, most Westerners chose to trade at Canton as it is closer to Southeast Asia and it was not profitable to go further north.<ref>{{cite thesis |last=Po  |first=Chung-yam |date=28 June 2013 |publisher=Ruprecht-Karls-Universität Heidelberg |title=Conceptualizing the Blue Frontier: The Great Qing and the Maritime World in the Long Eighteenth Century |page=186 |url=http://archiv.ub.uni-heidelberg.de/volltextserver/18877/1/PhD_Dissertation_CyPO.pdf }}</ref>

In 1704, the ''Baoshang'' system was established. This system licensed trade with Western merchants: licences were granted to a number of Chinese merchants as long as they helped to collect duties from the Westerners, successfully aligning trading interests with the government's revenue collection. This was the predecessor for the later Cohong system.<ref>{{cite book |last1=Ronald C. Po |title=The Blue Frontier: Maritime Vision and Power in the Qing Empire |date=2018 |publisher=Cambridge University Press |isbn=978-1108424615 |page=152}}</ref>

Although he now had the foreign trade situation under control, Kangxi's liberal attitude towards religion led to a clash between Chinese and Christian spiritual authority. After [[Pope Clement XI]] issued his 1715 [[papal bull]] ''Ex illa die'', which officially condemned Chinese religious practices,{{sfn|Mantienne|1999|p=178}} Kangxi expelled all missionaries from China except those employed in a technical or scientific advisory capacity by the Qing Court.{{sfn|Dun|1969|p=22}}

===Implementation of the ''Cohong''===

{{main article|Cohong}}

In 1745, Kangxi's grandson the [[Qianlong Emperor]] ordered his court to implement changes to the Ocean Trading House system. Thereafter a local Chinese merchant stood as guarantor for every foreign trading vessel entering Canton Harbour and took full responsibility for the ship and its crew along with the captain and [[supercargo]]. Any tax payments due from a foreign trader were also to be guaranteed by the local merchant. With permission from the authorities, in 1760 Hong merchant Pan Zhencheng (潘振成) and nine others ''hong'' specializing in the western trade joined together to become the intermediary between the Qing government and the foreign traders. The role of the new body would be to purchase goods on behalf of the foreigners and deduct any taxes and duties payable for imports and exports; at the same time, according to Guangdong customs records (粵海關志, ''jyut6 hoi2 gwaan1 zi3'', ''Yuèhǎi guān zhì''), they established a new harbour authority to deal with tribute from [[Thailand]] and handle pay for the troops involved in trade as well as manage domestic maritime trade in the [[South China Sea]].{{sfn|Gao|Feng|2003|p=109}} Henceforth, the ''Cohong'' possessed imperial authority to levy taxes on the foreign merchants as they saw fit.

===Flint Affair===
{{see also|James Flint (merchant)}}

In 1757 the Qianlong Emperor banned all non-Russian ships from the ports of northern China.{{sfn|Schottenhammer|2007|p=33}} Russians were however not allowed to use Canton. All customs offices other than the one at Canton were closed. The emperor did this after receiving a petition regarding the presence of armed Western merchant ships all along the coast. The Western merchant ships were protected from pirates, and guarded against, by the Guangdong Navy, which was subsequently increased in strength.<ref>{{cite thesis |last=Po  |first=Chung-yam |date=28 June 2013 |publisher=Ruprecht-Karls-Universität Heidelberg |title=Conceptualizing the Blue Frontier: The Great Qing and the Maritime World in the Long Eighteenth Century |pages=147–149|url=http://archiv.ub.uni-heidelberg.de/volltextserver/18877/1/PhD_Dissertation_CyPO.pdf }}</ref>

Thereafter all such commerce was to be conducted via a single port under what became known as the '''Canton System''' (Chinese: 一口通商; [[Cantonese]]: ''jat1 hau2 tung1 soeng1''; [[Standard Mandarin|Mandarin]]: ''Yī kǒu tōngshāng;'' literally, "Single-port commerce system"). During Qianlong's reign Qing foreign trade policies had a political aspect largely based on real or imagined threats from abroad; historian Angela Schottenhammer suggests that although the single port trading policy arose in part from lobbying by officials and Chinese merchants, it was more likely triggered by the activities of Flint in what became known as The Flint Affair (''Hóng Rènhuī Shìjiàn'', 洪任輝事件).{{sfn| Schottenhammer|2007|p=33}} Although the foreign merchants knew of the ''Cohong'' restriction, they had to balance a breach of etiquette against the risks of seeing their substantial investments in China destroyed by bribery and corruption. Englishman [[James Flint (merchant)|James Flint]], a long-term East India Company supercargo and a fluent speaker of Chinese,{{sfn|Stifler|1938}} became the focus of the impetus for change. Flint had been repeatedly warned to remain in Canton during the trading season and not to venture north in search of commercial opportunities. Despite this, back in 1755 Flint, together with Company director Samuel Harrison, sailed north to explore possibilities for trade in Zhejiang. In 1759, he again journeyed north to file a complaint in Ningbo over corruption amongst the officials in Canton. He had hoped that his criticisms of the current system would usher in a new era of free trade but instead, not only did his plan to open up the ports of Zhejiang fail, the Qing authorities reacted by imposing further restrictions on foreign trade.<ref name="一纸诉状" /> Worse still, Flint found himself deported to [[Macau]] where he was imprisoned between December 1759 and November 1762.{{sfn|Shurtleff|Aoyagi|2012|p=1711}}

The emperor and his officials became alarmed at this breach of normal protocol and realized that something had to be done to control the  situation.{{sfn|Li|1977|p=363}} The Qing court's previous laxity had effectively allowed a coterie of Chinese merchants and local officials to take over foreign commerce in the southern port according to their own best financial interests.<ref>{{Citation|last=Farmer|first=Edward L.|title=James Flint Versus the Canton Interest (1755–1760)|journal=Papers on China|number=17|pages=38–66|publisher=East Asian Research Center, [[Harvard University]]|year=1963}}</ref> One of the fundamental tenets of traditional Chinese diplomacy prohibited contact with Beijing except in the case of tributary envoys from other states.{{sfn|Fairbank|Têng|1941}}

The new rules, known as the ''Vigilance Towards Foreign Barbarian Regulations'' ({{lang-zh|t=|p=Fángfàn wàiyí guītiáo|links=no|j=fong4 faan6 ngoi6 ji4 kwai1 tiu4|c=防範外夷規條}} ) or ''Five Counter-Measures Against the Barbarians'' ({{lang-zh|t=|p=Fáng yí wǔ shì|links=no|j=fong4 ji4 ng5 si6|c=防夷五事}}) contained the following provisions:

:1) Trade by foreign barbarians in Canton is prohibited during the winter.
:2) Foreign barbarians coming to the city must reside in the [[Thirteen Factories|foreign factories]] under the supervision and control of the [[Cohong]].
:3) Chinese citizens are barred from borrowing capital from foreign barbarians and from employment by them.
:4) Chinese citizens must not attempt to gain information on the current market situation from foreign barbarians
:5) Inbound foreign barbarian vessels must anchor in the [[Whampoa anchorage|Whampoa Roads]] and await inspection by the authorities.<ref>{{Cite web|title=Western Cultural Policies during the Qianlong and Jiaqing Eras (乾嘉时期清廷的西方文化政策)|language=zh|url=http://www.qinghistory.cn/qsyj/ztyj/sxwh/2005-11-28/24898.shtml|publisher=Historychina.net (中華歷史网)|access-date=January 30, 2014}}</ref>

These rules did not apply to all Western merchants alike. Russians had nominally had an open trade route into northern China since the signing of the [[Treaty of Nerchinsk]] in 1689, although rather than send merchant vessels, in practice they limited their activity to [[Siberian Route|caravan trade]] sent through Siberia and [[Kyakhta]], on the land border with [[Outer Mongolia]].<ref>Mark Mancall (1971). ''Russia and China: their diplomatic relations to 1728, (Volume 61 of Harvard East Asian series, Center for East Asian Studies, Harvard University)''. Harvard University Press. p. 263. {{ISBN|978-0-674-78115-3}}</ref> The Portuguese and Spanish were still allowed to trade both in Canton and in [[Xiamen]], although they rarely exercised the privilege of trading directly in Xiamen.<ref name=":3">{{cite book|author=Manuel Ollé|title=Islas de plata, imperios de seda: Juncos y galeones en los Mares del Sur|year=2022|publisher=Acantilado|isbn=978-84-19036-13-1}}</ref> The Portuguese preferred to trade through Chinese intermediaries from Canton via their possessions in [[Macao]] and, in fact, they did not maintain a factory in Canton.<ref>Gary João de Pina-Cabral (2002). ''Between China and Europe: person, culture and emotion in Macao''. Berg Publishers. p. 114. {{ISBN|0-8264-5749-5}}</ref> The Spanish traded chiefly through intermediaries belonging to the vast Chinese colony of [[Manila]], which had extensive trading networks in Canton, in Fujian and in northern China, or through factories in Canton, where they had a presence since 1788.<ref name=":3" /> Qianlong's single port restrictions mainly affected British traders, and those of nationalities not protected by other treaties, namely Dutch, French, American, German and Nordic traders.<ref>Yong Liu, (2007), The Dutch East India Company's tea trade with China, 1757–1781, Volume 6 of TANAP monographs on the history of the Asian-European interaction, BRILL, {{ISBN|978-90-04-15599-2}}, 277 pages, 17–89, 91–117</ref>

===Evaluation===

The discovery of underground missionary activity in the late 1750s may have contributed to the Emperor's decision to concentrate foreigners in a single port. In his edict to establish the restriction, the Emperor specifically mentioned concerns about the strategic value of the interior regions to foreigners: Chinese government consultants were aware of Western military technological superiority and Westerners' record of having "set out to conquer every land they visited". The [[Kangxi Emperor]], considering the Westerners to be highly successful, intrepid, clever, and profitable, already had concerns early on about the serious omnidirectional Western threat to China, if China ever became weakened.<ref>{{cite thesis |last=Po  |first=Chung-yam |date=28 June 2013 |publisher=Ruprecht-Karls-Universität Heidelberg |title=Conceptualizing the Blue Frontier: The Great Qing and the Maritime World in the Long Eighteenth Century |pages=174, 183, 200-201 |url=http://archiv.ub.uni-heidelberg.de/volltextserver/18877/1/PhD_Dissertation_CyPO.pdf }}</ref>

The Canton system did not completely affect Chinese trade with the rest of the world as Chinese merchants, with their  large three-masted ocean junks, were heavily involved in global trade. By sailing to and from [[Siam]], [[Indonesia]] and [[Philippines]], they were major facilitators of the global trading system; the era was even described by Carl Trocki as a "Chinese century" of global commerce.<ref>{{cite thesis |last=Po  |first=Chung-yam |date=28 June 2013 |publisher=Ruprecht-Karls-Universität Heidelberg |title=Conceptualizing the Blue Frontier: The Great Qing and the Maritime World in the Long Eighteenth Century |pages=149–150 |url=http://archiv.ub.uni-heidelberg.de/volltextserver/18877/1/PhD_Dissertation_CyPO.pdf }}</ref>

Under the system, the Qianlong Emperor restricted trade with foreigners on Chinese soil only for licensed Chinese merchants (Cohongs), while the British government on their part issued a monopoly charter for trade only to the [[British East India Company]]. This arrangement was not challenged until the 19th century when the idea of [[free trade]] was popularised in the West.<ref>{{cite book |last1=Conrad Schirokauer |last2=Miranda Brown |title=A Brief History of Chinese Civilization |date=2012 |publisher=Cengage Learning |isbn=978-0495913238 |page=221 |edition=4, illustrated}}</ref> The concept of restricting trade to a single port was also used in Western countries such as [[Spain]] and [[Portugal]]. Chinese merchants could also trade freely and legally with Westerners (Spanish and Portuguese) in [[Xiamen]] and Macao, or with any country when trade was conducted through ports outside China such as Manila and Batavia.<ref>{{cite book |last1=Peer Vries |title=State, Economy and the Great Divergence: Great Britain and China, 1680s-1850s |date=2015 |publisher=Bloomsbury Publishing |isbn=978-1472526403 |pages=353–354}}</ref> 
Although shipping was regulated, the Qianlong emperor's administration was diligent in accommodating the requisites of Western merchants. They hired a growing body of Western assistants for the Customs Office to help manage their fellow countrymen. The order to stay in Macao during the winter was lifted, tax was exempted on food, drink and basic supplies for Western merchants, and protections were granted to Westerners and their property.<ref>{{cite thesis |last=Po  |first=Chung-yam |date=28 June 2013 |publisher=Ruprecht-Karls-Universität Heidelberg |title=Conceptualizing the Blue Frontier: The Great Qing and the Maritime World in the Long Eighteenth Century |pages=203–204|url=http://archiv.ub.uni-heidelberg.de/volltextserver/18877/1/PhD_Dissertation_CyPO.pdf }}</ref> Chinese merchants were actually banned by Qing law from suing foreigners in Chinese courts, as the Qianlong Emperor believed that good treatment of foreigners was essential for the government. In 1806, Chinese officials compromised with the British on the murder of a Chinese man by British seamen, as Westerners refused to be punished under Chinese law, even though local citizens vigorously protested what they considered a miscarriage of justice. In 1816, the [[Jiaqing Emperor]] dismissed a British embassy for their refusal to kowtow, but he sent them an apologetic letter with gifts (the British simply discarded them in a storeroom without reading).<ref>{{cite book |last1=Waley-Cohen |first1=Joanna |title=The Sextants of Beijing: Global Currents in Chinese History |date=2000 |publisher=W. W. Norton and Company |location=New York, London |isbn=039324251X |pages=136–137}}</ref>  The Qianlong Emperor granted [[George Macartney, 1st Earl Macartney|Lord Macartney]] a golden scepter, an important symbol of peace and wealth, but this was dismissed by the British as worthless.<ref>{{cite book |last1=Waley-Cohen |first1=Joanna |title=The Sextants of Beijing: Global Currents in Chinese History |date=2000 |publisher=W. W. Norton and Company |location=New York, London |isbn=039324251X |pages=104}}</ref> The British, on the other hand, ignored Chinese laws and warnings not to deploy military forces in Chinese waters. The British landed troops in Macao despite a Chinese and Portuguese agreement to bar foreign forces from Macao, and then in the [[War of 1812]] attacked American ships deep in the inner harbour of Canton (the Americans had previously robbed British ships in Chinese waters as well). These, in combination with the British support to Nepal during [[Sino-Nepalese War|their invasion of Tibet]] and later the [[Anglo-Nepalese War|British invasion of Nepal]] after it became a Chinese tributary state, led the Chinese authorities to become highly suspicious of British intentions.<ref>{{cite book |last1=Waley-Cohen |first1=Joanna |title=The Sextants of Beijing: Global Currents in Chinese History |date=2000 |publisher=W. W. Norton and Company |location=New York, London |isbn=039324251X |pages=126, 129–131}}</ref>

===The First Opium War===
{{main article|First Opium War}}
[[File:The Port of Canton.jpg|thumb|right|250px|Canton circa 1830 painted by [[Sunqua]]. The French, American, British, and Dutch flags can be seen flying.]]
A seemingly insatiable western demand for [[Chinese tea|tea]] from China towards the end of the 18th century caused a significant deficit in the British [[balance of trade]]. The Chinese had little interest in Western goods and would only accept [[silver standard|silver]] in payment. This spurred the [[East India Company]] to sell [[opium]] grown on its plantations in India to independent traders, who shipped it on to China to sell in exchange for silver, despite the fact that opium was already illegal in China.<ref>Fay, Peter Ward, ''The Opium War, 1840–1842: Barbarians in the Celestial Empire in the early part of the nineteenth century and the way by which they forced the gates ajar'' (Chapel Hill, North Carolina: [[University of North Carolina Press]], 2000) pp.73-4</ref>  China tried to stop the importation of this opium, but the traders persisted.  Chinese attempts to regain control led to the [[First Opium War]], when British [[gunboat diplomacy]] quickly forced China to sign the treaty of Nanjing that gave Hong Kong to the British along with allowing free trade to British merchants in China. Additionally China was forced to pay reparations for the destroyed opium.<ref>[[Julia Lovell]], ''The Opium War: Drug, Dreams and the Making of China'' (2011)</ref><ref>Peter Ward Fay, ''Opium War, 1840-1842: Barbarians in the Celestial Empire in the Early Part of the Nineteenth Century and the War by Which They Forced Her Gates'' (1998)</ref>

==Abolition==
Following the signature of the 1842 [[Treaty of Nanking]], British subjects are "allowed to reside, for the purpose of carrying on their mercantile pursuits, without molestation or restraint" at Canton, [[Shanghai]], [[Xiamen|Amoy]] (Xiamen), [[Ningbo]] and [[Fuzhou]]. In addition, Article V of the Treaty specifically abolishes the Canton system, allowing British merchants, and eventually all foreign merchants, to deal with whomever they please in the newly opened ports.<ref>"The Government of China having compelled the British Merchants trading at Canton to deal exclusively with  certain Chinese Merchants called Hong Merchants (or Cohong) who had been licensed by the Chinese Government  for that purpose, the Emperor of China agrees to abolish that practice in future at all Ports where British Merchants  may reside, and to permit them to carry on their mercantile transactions with whatever persons they please".</ref>

In 1859 Canton's trade moved to a new site on the reclaimed sandbank of [[Shamian Island|Shameen Island]], a short distance west of the former factories. By then much of the foreign trade with China had shifted to the by then British colony of [[Hong Kong]] (acquired under the Treaty of Nanking), and to the northern ports, with their advantage of proximity to [[Beijing]] as well as the [[Grand Canal (China)|Grand Canal]] and the [[Yellow River]], both vital arteries in the internal trade of Qing China. By 1866, only 18 foreign firms still had offices in Canton, while there were only 60 foreign residents, excluding British Indians and [[tidewaiter]]s (who boarded boats as part of custom's inspections) employed by [[Sir Robert Hart, 1st Baronet|Sir Robert Hart's]] [[Chinese Maritime Customs Service|Imperial Maritime Customs Service]].{{sfn|Dennys|1867|p=[https://books.google.com/books?id=-9QMAAAAIAAJ&q=nine+British+firms 138]}}

==Legacy==
The Massachusetts General Hospital, McLean Hospital, the Boston Athenæum, the Bunker Hill Monuments, public libraries, and an orphanage were built with the proceeds of opium smuggling.<ref>{{cite news |last1=Martha Bebinger |title=How Profits From Opium Shaped 19th-Century Boston |url=http://www.wbur.org/commonhealth/2017/07/31/opium-boston-history |agency=WBUR |date=July 31, 2017 |archive-url=https://web.archive.org/web/20170731143729if_/http://www.wbur.org/commonhealth/2017/07/31/opium-boston-history |archive-date=31 July 2017 |url-status=dead}}</ref>

By the time [[Hong Kong]] became a full-fledged [[British Colony|British colony]], many of the merchants would be led by a newer generation of western [[The Hongs|hong merchants]]. Many of these companies would become the backbone of the young [[Economy of Hong Kong|Hong Kong economy]].

==See also==
* [[Century of humiliation]]
* [[Economic history of China before 1912]]
* [[Old China Trade]]
* [[Hongs]]
* [[Howqua]]
* [[Thirteen Factories]]
* [[Wu Tingju]]

==Notes and references==
'''Notes'''
{{reflist|30em}}

'''Bibliography'''

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| year = 1999 
| title = [[Pierre Pigneau de Behaine|Monseigneur Pigneau de Béhaine]] 
| publisher = Paris: Editions Eglises d'Asie 
| language = fr
| isbn = 978-2-914402-20-0
}}

*{{cite book
| title = The East Asian Maritime World 1400–1800: Its Fabrics of Power and Dynamics of Exchanges
| last1 = Schottenhammer
| first1 = Angela
| isbn = 978-3-447-05474-4
| series = East Asian economic and socio-cultural studies
| url = https://books.google.com/books?id=Ga-5mPOr2-wC&pg=PA1
| year = 2007
| publisher = Harrassowitz
}}

*{{cite book
| last1 = Schottenhammer 
| first1 = Angela
| year =2010
| title = Trading networks in early modern East Asia
| publisher = Wiesbaden: Harrassowitz Verlag
| isbn = 978-3-447-06227-5
}}

*{{Cite journal
| last = Stifler
| first = S.R. 
| year = 1938 
| title = The language of students of the East India Company's Canton factory
| journal = Journal of the North China Branch of the Royal Asiatic Society
| volume =  69
}}

* {{Cite book
| title = Comparative Outline of Chinese and Japanese Foreign Policy: Central Trade Policy in the Final Years of the Imperial Era (中日对外经济政策比较史纲: 以封建末期贸易政策为中心)
| last1 = Gao 
| first1= Shujuan(高淑娟)
| last2 = Feng 
| first2= Bin (冯斌)
| language = zh
| isbn = 978-7-302-07517-2
| series = Qinghua University Chinese Economic Historiography Series (清华大学中国经济史学丛书)
| url = https://books.google.com/books?id=FR367iWJdb8C
| year = 2003
| publisher = [[Qinghua University]] Publishing (清华大学出版社) 
}}

*{{Cite book
| title = History of Soy Sauce (160 CE To 2012)
| last1 = Shurtleff
| first1 = W.
| last2 = Aoyagi
| first2 = A.
| isbn = 9781928914440
| url = https://archive.org/details/bub_gb_-M5t2nXIXi4C
| year = 2012
| publisher = Soyinfo Center
}}

==Further reading==
* Louis Dermigny, ''La Chine et l'Occident: le commerce à Canton au XVIIIe siècle, 1719–1833''. Paris: SEVPEN, 1964.
* {{cite book |last = Downs |first =  Jacques M.  |year = 1997 |title = The Golden Ghetto: The American Commercial Community at Canton and the Shaping of American China Policy, 1784-1844 | url = https://books.google.com/books?id=Tw4wBQAAQBAJ | publisher = Lehigh University Press; reprinted, Hong Kong University Press, 2014| location = Bethlehem, PA  |isbn = 0934223351|ref = none}}
* Liu Yong, ''The Dutch East India Company's Tea Trade with China, 1757–1781''. Leiden and Boston: Brill, 2007. {{ISBN|90-04-15599-6}}
* Hoh-Cheung Mui and H. Lorna Mui, ''The Management of Monopoly: A Study of the East India Company's Conduct of Its Tea Trade, 1784–1833''. Vancouver: University of British Columbia Press, 1984. {{ISBN|0-7748-0198-0}}
*{{cite book| last = Johnson| first= Kendall A.| title= The New Middle Kingdom: China and the Early American Romance of Free Trade| publisher = Johns Hopkins University Press| year = 2017| isbn = 9781421422510| url = https://books.google.com/books?id=QWFgDgAAQBAJ}}
* Paul Arthur Van Dyke. ''The Canton Trade: Life and Enterprise on the China Coast, 1700–1845''. Hong Kong University Press,  2005.   {{ISBN|962-209-749-9}}.
* Paul Arthur Van Dyke. ''Merchants of Canton and Macao: Politics and Strategies in Eighteenth-Century Chinese Trade''. Hong Kong University Press.2011.    {{ISBN|978-988-8028-91-7}}
* Zhuang Guotu, ''Tea, Silver, Opium, and War: The International Tea Trade and Western Commercial Expansion into China in 1740–1840''. Xiamen: Xiamen University Press, 1993.

{{Foreign trade in Imperial China |state=collapsed}}
{{Economic history of China}}
{{Qing dynasty topics}}

[[Category:Economy of the Qing dynasty]]
[[Category:History of Guangzhou]]
[[Category:History of foreign trade in China]]