Opium Wars 1839 ～ 1842; 1856 ~ 1860

鸦片战争【 Yāpiàn Zhànzhēng 】

The First Sino-British Opium War

1839-1842 A Three-way trade:

China, India (source of opium) and Britain

The Second Sino-British Opium War

“the Anglo-French expedition to China”

1856-1860 “To mend treaties”

for more gains

Balance of Trade

Positive for China as it sold its tea, silk, ceramics, etc.;

Negative later as a result of the war

Negative for British at first

The Balance of Trade

Chinese tea has become a daily necessity in British life;

Tea imports reached 15 million pounds in 1785 and doubled in the decade preceding the first Opium War

The British government collected 10% tax and duty on Chinese tea.

The British function as middleman to resell tea at a different price;

1820 to 1830 Large quantities of

silver seemed to have left China to pay for opium imports;

The Balance of Trade

贸易顺差【 màoyìshùnchā 】 trade surplus.

顺差【 shùnchā 】 favourable balance; surplus.

贸易逆差【 màoyìnìchā 】 adverse balance of trade; trade deficit.

逆差【 nìchā 】 <trade> adverse balance of trade; trade deficit.

Monopoly

The Cohong, often spelled as kehang or gonghang, was the Chinese import-export monopoly in Guangzhou (also called Canton) during the Qing dynasty (1644–1911).

East Indian Company (John Company, headquarter in London)

1600--Royal charter/ Letters patent Robert Clive, first British

Governor of Bengal Feature of (British)

colonization: wedge/foothold/ interested in resources, Straw to get your milkshake

—remote control “There Will Be Blood”

Monopoly in Trade

The East India Company until 1834 when the British parliament abolished its monopoly;

Used to be connected by a trade-and-payment Triangle among India, China and Britain;

Cohong The cohong was a Guild

of merchants that was authorized by the Chinese Central Government to handle trade, particularly rights to trade tea and silk, with the West. They were the only group at the time to authorize this, making them the main controllers of all foreign trade in the nation.

British Expansion

Combination of an expanding industrial economy, in need of raw materials and markets for its goods

Coupled with the assertive free-trade ideology

Created the conditions for the emergence of Western imperialism, led by the British in the 19th century

The Wealth of NationsAdam Smith, 1776

Smith argues that governments should refrain from intervention in the economy as much as possible and allow markets to function freely

“Invisible hand”

In economics, the invisible hand, also known as invisible hand of the market, is the term economists use to describe the self-regulating nature of the marketplace.

When pursuing wealth, an individual

can create jobs for others

It is true Jobs are created

for thousands of people;

How about distribution of wealth?

Compare salary/wage discrepancies between an employee and the owner of the business

Marxist Theory

Capitalism is effective in accumulating wealth;

The secret of capitalism lies in pocketing surplus value 剩余价值

This is not entirely accurate;

Reinvestment Expansion When to stop? When an owner goes

bankrupt, it is quite different from an employee…

Economic liberalism

Economic liberalism is an economic philosophy that supports and promotes laissez-faire economics. Proponents of economic liberalism believe political freedom and social freedom are inseparable with economic freedom, and use philosophical arguments promoting liberty to justify economic liberalism and the free market. It opposes government intervention in the free market, and supporting the maximum of free trade and competition

If an action of pursuing something were Unleashed

Under the pretext of free trade, British invaded China

When Nurhaci seeking justice, spurred by his “seven grievances,” how many grievances did the Manchus do to Chinese?

Likewise…

Confucius’ Teachings

Inward, self examination three times a day to become a gentleman

“Do not do unto others what you would not have them do unto you.” (East Asia 33)

Make a list of what you don’t like to be done to you from others

Free Traders or Drug Dealers?

Justification from the British Parliament: to protect personal property; to promote free trade

Adam Smith The Wealth of

Nation (1776)

Not a drug dealer? British superiority

Zhuangzi’s Parable

A merchant in the Song State went to Yue state to sell his hats; To set off the beauty of those hats, one needs abundant hair as background;

Yue people, tattooed and hairless on their heads, had no need for hats

A blind spot in his market research or narcissism?

When could economic liberalism be justified?

Sell anything that makes money?

To drug a nation by opium?

Irony of outsourcing

Merit of outsourcing

Consequences of outsourcing

Down payment 30%

Return on capital (ROC) 资金回笼

account receivable

Quality control

Kowtow or not to Kowtow?Cultural Misunderstanding

East Asia 325-326 Lord Macartney saluting the Qianlong Emperor,

1793. Arrogance on both sides 1792/1816, British visitors cold shouldered Qianlong said we don’t need anything from

you…

To Kowtow or Not to Kowtow?http://v.youku.com/v_playlist/f376461

o1p14.html

See an episode in a TV series entitled

Chancellor Hunchback Liu, 1994

Kneeling down three times

Kowtow 9 times

Lord Macartney was confident that the Chinese would perceive that superiority which Englishmen, wherever they go, cannot conceal…

Role play: kowtow or a regal bow?

unwilling to function within the parameters of Qing "Guest" ritual

Lord George Macartney(14 May 1737 – 31 May 1806)

He is often remembered for his observation following Britain's success in the Seven Years War and subsequent territorial expansion at the Treaty of Paris that Britain now controlled "a vast Empire, on which the sun never sets".

The Macartney Embassy

The Macartney Embassy, also called the Macartney Mission, was a British embassy to China in 1793. The Mission ran from 1792–94 . It is named for the first envoy of Great Britain to China, George Macartney, who led the endeavour. The goal of the embassy was to convince Emperor Qianlong of China to ease restrictions on trade between Great Britain and China by allowing Great Britain to have a permanent embassy in Beijing, possession of "a small unfortified island near Chusan (now Zhoushan) for the residence of British traders, storage of goods, and outfitting of ships", and reduced tariffs on traders in Guangzhou.

Not interested in territory, but in trade and a foothold and resources in China.

Qianlong1711—1799

In 1793, the Macartney mission arrived in Beijing under the pretext of congratulating on Qianlong’s 83rd birthday;

Qianlong responded the the English monarch by praising his “respectful spirit of submission”;

Labeled British side as paying “tribute”

“We possess all things…”

The Burning of Opium (East Asia 378-382)

Lin Zexu (1785 –1850) In Tao Te Ching, Laozi

states that “Governing a large state is like boiling a small fish.” Laozi, Tao Te Ching. Trans. by D. C. Lau. (1963; rpt. Hong Kong: The Chinese University Press, 2001), 87. http://nothingistic.org/library/laotzu/ (60)

Other Alternativesinstead of Escalating the Tension?

In Tao Te Ching, Laozi states that “Governing a large state is like boiling a small fish.” Laozi, Tao Te Ching. Trans. by D. C. Lau. (1963; rpt. Hong Kong: The Chinese University Press, 2001), 87. http://nothingistic.org/library/laotzu/ (60)

Over-reaction or under-reaction?

Alternatives for Lin Zexu?

Instead of burning opium by the Chinese side, turn it over to British?

Double-edged sword: diplomacy and military supremacy

Qing’s bannermen are no match/no strong navy

The art of management: Management needs to be done at the source, not at the end result;

20/80 rule, importance of leadership training;

Too bad there was no MBA program at the time

The British parliament debate

Free trade or drug dealing?A drug cartel, an international

syndicate, combine, or trust formed especially to regulate prices and output in some field of business.

Henry John Temple, 3rd Viscount Palmerston

instrumental at the Opium Wars

He is best remembered for his direction of British foreign policy through a period when the United Kingdom was at the height of its power, serving terms as both Foreign Secretary and Prime Minister. Some of his aggressive actions, now sometimes termed liberal interventionist, were greatly controversial at the time, and remain so today.

Benjamin Disraeli vs. Lord Palmerston

self-defense for his foreign policies

I hold that the real policy of England... is to be the champion of justice and right, pursuing that course with moderation and prudence, not becoming the Quixote of the world, but giving the weight of her moral sanction and support wherever she thinks that justice is, and whenever she thinks that wrong has been done. --Palmerston

China under attackThe First Battle of Chuenpee[2] was fought between British and Chinese ships at the entrance of the Bocca Tigris, China, on 3

November 1839

The picture shows The Nemesis destroying Chinese war junks during the Second Battle of Chuenpee穿鼻 , 7 January 1841

Charles Eliotfirst British administrator of Hong Kong

Elliot wrote to Foreign Secretary Lord Palmerston in 1839 that he regarded the opium trade as a "disgrace and sin ... I have steadily discountenanced it by all the lawful means in my power, and at the total sacrifice of my private comfort in the society in which I have lived for some years past."

Different perspectives

China side: Burning opium is

justifiable as it has ruined Chinese labor market and economy;

Millions of Chinese became additive;

Opium became a recreational drug (378)

British side: Violation of

personal property

Addictive to Opium

Opium has long been used for medicinal purposes

Smoking or inhaling fumes started in the 17th century;

The drug was habit forming; Withdrawal was excruciatingly painful; Human resources were ruined in

China; silver dollars flow back to British;

Unequal Treaties

In 1842, the Daoguang 道光 Emperor entrusted Qiying 耆英 to conclude a peace treaty with Britain following the First Opium War, and he was chiefly responsible for negotiating and signing the Treaty of Nanking with the British on 29 August 1842. It set the pattern for later treaties known as the "Unequal Treaties" in China.

Treaty of Nanjing(Aug. 29, 1842) Nanjing

treaty that ended the first Opium War, the first of the unequal treaties between China and foreign imperialist powers. China paid the British an indemnity, ceded the territory of Hong Kong, and agreed to establish a “fair and reasonable” tariff. British merchants, who had previously been allowed to trade only at Guangzhou (Canton), were now permitted to trade at five “treaty ports” and with whomever they pleased (see Canton system).

Signing of the Treaty of NankingAugust 29, 1842 ,

Temple of Jinghai, 静海寺Sir Henry Pottinger vs. Qiying

The main content ofthe Nanjing Treaty

Cession of Hong Kong Open four port cities: (Guangzhou),

Fuzhou, Xiamen, Ningpo, Shanghai; Indemnity: The total sum of 21 million

ounces of silver to be paid in installments over three years and the Qing government would be charged an annual interest rate of 5 percent for the money that was not paid in a timely manner (Article VII).

Reparations imposed on China since 1942 (East Asia 388)

in the name of justiceTraders or Invaders?

1. the making of amends for wrong or injury done: reparation for an injustice.

2. Usually, reparations. compensation in money, material, labor, etc., payable by a defeated country to another country or to an individual for loss suffered during or as a result of war.

3. restoration to good condition.

Consequences of the First Opium War

1. Reduced China to a semi-feudal/semi-colonial country;

China’s territorial integrity was breached; 2. Lost Hong Kong to British; 3. Established the Principle of Extraterritoriality; 4. rid of monopoly of Cohang, a guild in Canton,

authorized by the Qing Government 5. The Treaty of Nanjing set the pattern for

other unequal treaties;

International Extradition引渡【 yǐndù 】 extradite.

Extradition is the official process whereby one nation or state surrenders a suspected or convicted criminal. Between nation states, extradition is regulated by treaties.

Which country has the right to execute a “guest” criminal?

Consequences

Hong Kong was surrendered to the British, giving the British a base for further military, political and economical penetrations of China. The surrender of Hong Kong breached China's territorial integrity.

The Treaty stated that all custom duties must be negotiated with other countries. It therefore took away China's control of its own customs. Furthermore, the import duties were lowered from 65% to 5%, this effectively shattered China's home industries.

Open-mindedness &Stability/Prosperity

Tang Dynasty 618–907 Has established a

China-led cultural circle in Asia

Chinese political system and cultural practices influenced Japan, Korea, etc.

Qing Dynasty 1644–1911 Adopted a close-

door policy, living in isolation

Where Is the Center of the Universe?

Underlying the tension between China and the West was the incompatibility of the Chinese and Western views of themselves and the world;

Greek: Delphi refers to the point where the heaven and earth meet;

Far East: From the Western point of view, China is not the center of the world;

The Central Kingdom: Chinese view of themselves

Archaeological Site of Delphi

Sitting Posturein Ancient China

Sitting on one’s heels;

To show more respect, lift up the upper part of the body in pure kneeling position—”long kneeling”;

The Second Opium War1856 to 1860

British side: To maintain the “most

favored nation” status in foreign trade

Burdened with India, Trade, not territory,

was its aim? It demanded a base in

China: Hong Kong; Under the pretext of

mending the Treaty of Wangxia, 1844

The Arrow Incident On October 8, 1856

Qing officials boarded the Arrow, a Chinese-owned ship that had been registered in Hong Kong and was suspected of piracy and smuggling. Twelve Chinese crew members were arrested on suspicion of piracy by the Chinese authorities.

French Involvement

The French Empire, the United States, and the Russian Empire received requests from Britain to form an alliance.

France joined the British action against China, prompted by the execution of a French missionary, Father August Chapdelaine ("Father Chapdelaine Incident"), by Chinese local authorities in Guangxi province.