Opium Wars - European Trade With Asia

European Trade With Asia

Direct maritime trade between Europe and China began with the Portuguese in the 16th century, who leased an outpost at Macau starting from 1557; other European nations soon followed. European traders, such as the Portuguese, inserted themselves into the existing Asian maritime trade network, competing with Arab, Chinese, and Japanese traders in intra-regional trade. Mercantilist governments in Europe objected to the perpetual drain of silver to pay for Asian commodities, and so European traders often sought to generate profits from intra-regional Asian trade to pay for their purchases to be sent back home.

After the Spanish acquisition of the Philippines, the exchange of goods between China and western Europe accelerated dramatically. From 1565, the annual Manila Galleon brought in enormous amounts of silver to the Asian trade network, and in particular China, from Spanish silver mines in South America. As demand increased in Europe, the profits European traders generated within the Asian trade network, that were used to purchase Asian goods, were gradually replaced by the direct export of bullion from Europe in exchange for the produce of Asia.