greed opium war trade deficit bankrupt silver

The European traders had a couple of problems, however. China limited them to the commercial port of Canton, did not allow them to learn Chinese, and also threatened harsh penalties for any European who tried to leave the port city and enter China proper.

Worst of all, European consumers were crazy for Chinese silks, porcelain, and tea, but China wanted nothing to do with any European manufactured goods. The Qing required payment in cold, hard cash - in this case, silver.

Britain soon faced a serious trade deficit with China, as it had no domestic silver supply and had to buy all of its silver from Mexico or from European powers with colonial silver mines. The growing British thirst for tea, in particular, made the trade imbalance increasingly desperate. By the end of the 18th century, the UK imported more than 6 tons of Chinese tea annually. In half a century, Britain managed to sell just £9m worth of British goods to the Chinese, in exchange for £27m in Chinese imports. The difference was paid for in silver.