9. The Canton System and Early Global Trade (1757-1842)
The Canton System (1757-1842) was a trade policy implemented by China’s Qing dynasty to regulate foreign commerce. Under this system, all foreign trade was confined to the southern port city of Guangzhou (Canton), with foreign merchants restricted to a designated area known as the Thirteen Factories. Trade was conducted exclusively through a guild of Chinese merchants called the Cohong, who held a monopoly on foreign trade. This centralized approach allowed China to control the flow of goods and maintain economic stability. However, the system also led to tensions with Western traders, particularly over issues like the opium trade, eventually contributing to the First Opium War and the subsequent opening of additional ports for foreign trade (ebsco.com).
