Old China Trade

The Old China Trade refers to the early commerce between the Qing Empire and the United States under the Canton System, spanning from shortly after the end of the American Revolutionary War in 1783 to the Treaty of Wanghsia in 1844. The Old China Trade represented the beginning of relations between the United States and East Asia, including eventually U.S.–China relations. The Maritime Fur Trade was a major aspect of the Old China Trade.

Anglo-American hostilities ceased in 1783 following the Second Treaty of Paris that ended the American Revolutionary War and subsequently freed American trade from British control. At the time, increased global demand for tea was one of the primary reasons for a shortage of silver; this was the only currency that the Chinese, sole producers of the commodity at the time, would accept in payment. The East India Company (EIC), monopoly suppliers of tea to the English market, got around the problem by indirect sales of opium (grown on their plantations in India) to the Chinese, the proceeds from which they used to pay for tea.

The Americans meanwhile, also needed silver to finance their burgeoning international trade in furs, timber and other commodities. They too looked to the Chinese market as a source of hard currency based on their monopoly of the opium trade in Turkey. The man who would become America's first consul in China, Bostonian and former Continental Army officer Samuel Shaw (1754–1794) arrived in the port of Guangzhou (then romanized as "Canton") in 1784 aboard the converted privateer Empress of China. The "Chinese Queen", as the vessel was known, under the command of Captain John Green, carried a cargo of silver specie and ginseng for trade. In Guangzhou, the Americans encountered many European nations already trading under the Canton System, including the English, Dutch, French, and Danish. Shaw subsequently negotiated the sale of the Empress's cargo and earned a substantial profit. As well as symbolizing a breach of the British East India Company's tea monopoly, successful and lucrative voyage of the Empress inspired other American merchants to follow suit with the desire to enter a new market with great potential for profit.

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