The acquisition of Hong Kong, 1842

Issues

• British merchants confined to small area of Canton unable to travel up Yangzte
• Piracy occured in Singapore and Canton- attacked European sailing ships and ships from EIC were less armed and inadequete, concerning for EIC who relied on China for operations and profit.
• Negative balance of trade- used silver bullion to purchase goods

How were these issues resolved?

OPIUM

• Grown cheaply
• Addictive properties made it illegal in China
• Chinese coastal merchants smuggled opium to supply its users
• Trade accelerated- 357 tons by 1822
• EIC monoploy expired in 1833 leading to expansion in opium trade from…