Economic downfall essay

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Economic downfall essay

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Many of these events have been internal, involving struggles within China. Others have been external, such as the Opium War.

The Opium War is more than just a war, the results and changes it made created a deep impact on China and the Western World.

China considered itself better than any other civilizations. The Chinese believed the Chinese empire was the Central Kingdom in the ideal world order.

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The Emperor of China was thought to be the elder brother of all surrounding kings and emperors. China had little contact with the West due to the fact that natural and political barriers were in the way. China lacked all appreciation for the West, and as trade with the West opened up in the early 16th century, foreigners were continually looked down upon.

As the trade between China and the West grew, the unequal trading between the two became very obvious.

Economic downfall essay

The growing demand in the West for tea, Chinese silk, medicine, and porcelain led to the booming trade in China. These goods were expensive, but the West had little to offer to China except for silver.

However, China was going through a silver and copper crisis. Silver was worth much more than copper, the exchange rate being around 1, copper cash for one ounce tael of silver. But while silver was worth more than copper, more and more copper was being produced.

This led to inflation of copper.

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Since taxes could only be paid in copper according the value of copper in silver, people were losing money. At the same time there was an annual drain of silver. This drain of silver scared people which led them to hoard and value their silver, leaving more silver out of circulation.

The East India Company, which was a British trading Company, was soon trading silver for tea as the demand for tea increased in the West. This trade led the East India Co. Trading monopolies with Chinese merchants and the unfair tariffs and taxes made the situation even more difficult.

A triangle trade was created to work off the debt, by having the cotton from India sold, and then that money was used to by tea. However, the East India Co. So finally the East India Co.

Opium was an ideal trade item. It was used as a medicine in China for thousands of years. Being an addictive drug, it became very popular in China.

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