Tea Trade: A Thief’s Fortune

Demand for trade gave rise to the great geographical exploration and the first wave of globalization. However, disputes and conflicts in cross-border trade soon followed. The tea trade not only played a crucial role in many historic events, it also shaped the development of modern civilization.

Tea trade between China and Britain began in the 17th century. In fact, although the Netherlands and Indonesia remained dominant players, the British had purchased tea from Canton, today’s Guangzhou in south China’s Guangdong Province, as early as 1637. In the 18th century, direct tea trade between China and Britain developed, culminating in the monopoly on Chinese tea by the British East India Company.

Because China was more politically powerful than the European colonies in the Americas, Africa, India and other regions, coupled with the far distances, Europeans had difficulty setting up colonies there. Instead, they established trade relations with the reigning dynasty, the Qing. But as a closed agricultural empire, China did not have a high demand for Western industrial products. Europeans could only trade the gold and silver it plundered from the Americas for porcelain, silk, and tea.