Hong Kong (1800s–1930s) was a period largely dominated by the British Empire. After invading the territory in 19th century during the Opium War, the British gained land in a series of unequal treaties. Early social and economic problems existed in the colony, as there were drastic differences between Eastern and Western philosophy and culture. Nonetheless, Hong Kong seized the opportunity to become one of the first parts of East Asia to undergo industrialization.
China was the main supplier of its native tea to the British, whose annual domestic consumption reached 30,046,935 pounds (13,629,060 kg) in 1830, an average of 1.036 pounds (0.470 kg) per head of population. From the British economic standpoint, Chinese tea was a crucial item since it provided massive wealth for the taipans—foreign (especially British) businessmen in China—while the duty on tea accounted for 10% of the government's income.
Since the ill-fated Macartney Mission of 1793, British diplomats resented performing kowtow as a form of obsequience to the Emperor of China. Many considered it a religious rite and although they insisted on being treated as equals, the British and other foreign nationals were seen by the Qing Emperor and court officials as uncivilised foreigners only there to acquire tea, silk and other Chinese goods. At the time, China's social structure, as dictated by Confucian tradition, looked down on merchants, ranking them below farmers and above slaves, since they were considered citizens who only enriched themselves.
Some of the earliest items sold to China in exchange for tea were British clocks, watches and musical boxes known as "sing-songs". These were not enough to compensate for the trade imbalance caused by the massive quantities of tea exported and the insistence by the Chinese that it be paid for in silver. After the 1757 territorial conquest of Bengal in India, the British had access to opium, which when mixed with water was used in western society as an analgesic tincture. The Chinese, on the other hand, smoked opium in an addictive narcotic manner. Since a large fiscal deficit existed in Bengal, opium exports became a British government means to raise tax, even though it meant an increase in the number of Chinese people addicted to the drug. Lin Zexu, a special Chinese commissioner appointed by the Qing Daoguang Emperor, wrote a letter to Queen Victoria in 1839 taking a stance against the acceptance of opium in trade. He confiscated more than 20,000 chests of opium already in Hong Kong and supervised their destruction.