Controlled Borders: The Canton Trade System
In 1757, the Qing Dynasty established the Canton trade system for trade with the West. In addition, it was used to restrict foreign influence in other parts of China and to concentrate all Western trade in Guangzhou (Canton).
The Hong merchants monopolized and served as middlemen through the Cohong guild. They regulated Western traders’ goods and their interactions with Chinese officials and the economy. An important figure among the Hong merchants was Wu Bingjian (伍秉鉴), better known as Houqua. He was a part of the Thirteen Factories (十三行), an area of land along the Pearl River, and head of Ewo Hong (怡和行), one of the most successful trading warehouses in Canton. Simultaneously, he was also the leader of the Cohong System. During that period, he was renowned as the “richest man in the world.”
Anonymous Chinese artist, “The Thirteen Factories at Canton,” c. 1805. Courtesy of Wikimedia Commons.
Trade was seasonal in Canton. During the off-season, foreigners were required to reside in Macau, a territory administered by the Portuguese. When trade season came, they could move into Canton, but were restricted to the Thirteen Factories. Foreign women were not allowed to stay with their husbands in Canton even during trade season. All year round, they were requested to stay in Macau. Additionally, the Qing government forbade foreigners from learning Chinese or traveling deeper into China. Thus, many Westerners held curious sentiments towards the broader picture of Chinese culture. When in Canton, the foreigners were subject to the Qing Dynasty’s legal jurisdiction. These measures were all meant to limit and diminish foreigners’ desires to settle permanently in Canton. Following this, the Qing government hoped to minimize foreign influence while still maintaining trade and minimal interaction with the outside world.
Banister Family Collection, “Praia Grande (南灣), Macau,” c. 1920–1929. Image courtesy of Historical Photographs of China, University of Bristol (www.hpcbristol.net).