Opium Wars
The Opium wars, which are also known as the Anglo-Chinese Wars were the results of trade disputes between China during the Qing Dynasty and the British Empire.
Due to restricted trade policies in China, there was only one single port open to Western merchants in Guangzhou prior to 1830. Furthermore, the only commodity that the Chinese would accept in trade is silver. China generated generally a high trade surplus. Lots of luxury goods were exported, while little was imported. Since silver was used as currency. British had to exchange large amount of silver for trading.
Perceiving this a trade imbalance and unfair, British and American merchants started exporting Opium to China. Even though the drug was prohibited except for medicinal use, British companies which were operating in Guangzhou imported cheaply produced opium under the auspices of the British East India Company. All in all, Opium was grown in India and imported to China illegally, tolerated by corrupted bureaucrats and being extremely profitable. With time, cheap opium flooded the market and the trade deficit of the British was reversed.
Due to restricted trade policies in China, there was only one single port open to Western merchants in Guangzhou prior to 1830. Furthermore, the only commodity that the Chinese would accept in trade is silver. China generated generally a high trade surplus. Lots of luxury goods were exported, while little was imported. Since silver was used as currency. British had to exchange large amount of silver for trading.
Perceiving this a trade imbalance and unfair, British and American merchants started exporting Opium to China. Even though the drug was prohibited except for medicinal use, British companies which were operating in Guangzhou imported cheaply produced opium under the auspices of the British East India Company. All in all, Opium was grown in India and imported to China illegally, tolerated by corrupted bureaucrats and being extremely profitable. With time, cheap opium flooded the market and the trade deficit of the British was reversed.