Foreign trade

Definition

Foreign trade refers to the exchange of goods and services between countries, which plays a critical role in shaping economic relationships and influencing domestic markets. This trade can lead to an influx of foreign goods, the establishment of new markets, and the introduction of various technologies and ideas. In the context of the Treaty of Nanjing, foreign trade became a key area of conflict and negotiation, reshaping China's economic landscape and its interactions with Western powers.

5 Must Know Facts For Your Next Test

1. The Treaty of Nanjing (1842) was signed after the First Opium War and marked the beginning of significant foreign trade imbalances between China and Western powers.
2. Under the Treaty of Nanjing, China had to cede Hong Kong to Britain and open five treaty ports for foreign trade, drastically changing its economic structure.
3. Foreign trade was heavily influenced by Western demand for Chinese goods like tea, silk, and porcelain, which shifted power dynamics in favor of Western economies.
4. The influx of foreign goods into China as a result of foreign trade led to social unrest and economic disruption, as traditional industries struggled to compete.
5. The resulting foreign trade agreements often disregarded Chinese interests, creating a legacy of resentment that contributed to nationalist movements in the late 19th century.

Review Questions

• How did the Treaty of Nanjing affect China's foreign trade policies?
  • The Treaty of Nanjing significantly altered China's foreign trade policies by forcing it to open several ports to Western powers and ceding control over Hong Kong. This not only allowed foreign merchants greater access to Chinese markets but also established a system where China was at a disadvantage in terms of negotiating favorable trade terms. As a result, the treaty set a precedent for future unequal treaties that continued to undermine China's economic autonomy.
• Evaluate the impact of foreign trade on Chinese society during the period following the Treaty of Nanjing.
  • The impact of foreign trade on Chinese society after the Treaty of Nanjing was profound, leading to both economic disruption and social upheaval. Traditional industries faced fierce competition from imported goods, which resulted in job losses and destabilized local economies. Moreover, the influx of opium through foreign trade exacerbated addiction issues and social problems, prompting widespread public discontent that ultimately contributed to larger movements against foreign intervention and imperial rule.
• Discuss how foreign trade shaped China's relationship with Western powers during the 19th century and its implications for modern China.
  • Foreign trade during the 19th century fundamentally reshaped China's relationship with Western powers, as treaties like the Treaty of Nanjing imposed conditions that favored foreign interests over Chinese sovereignty. This not only led to significant economic imbalances but also fostered resentment among Chinese citizens towards imperialist actions. The legacy of these unequal relationships continues to influence modern China's approach to international trade and diplomacy as it seeks to assert itself on the global stage while addressing historical grievances related to foreign exploitation.

Related terms

Opium Trade: The illegal trade of opium, primarily from British India to China, which led to widespread addiction and social issues in China.

Unequal Treaties: A series of treaties imposed on China by foreign powers that favored Western interests and undermined China's sovereignty.

Treaty Ports: Ports in China that were opened to foreign trade under the terms of various treaties, allowing Western powers to establish a presence in the country.