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Opium War Flow Chart
Transcript of Opium War Flow Chart
Balance of Trade Shifts
The market for Opium was so demanding, that eventually the balance of trade was reversed.
Large amounts of silver were quickly being exported from China in order to pay for the highly demanded opium.
Abolition of the East India Company's Monopoly
The British Government ended the Indian's monopoly over Chinese trade, which opened trade to other countries around the world. This in turn caused an increasing amount of Opium coming into the country, and more and more silver was being exported.
The Chinese government decided to begin suppressing Opium. The government began cracking down on dealers and addicts, throwing people into prison or worse- sentenced to an execution. This caused the price of Opium to drop drastically.
Cotton was one of the most important imports traded from India to China, under the control of the British.
After 1823, the demand of cotton quickly declined and opium became increasingly popular.
Cotton Mill in 1823
To bring goods (or services) into a country from abroad.
The British specifically wanted tea from China, and leading up to 1823 they traded with cotton. Cotton simply did not reach the volume needed to balance the trade- but unfortunately opium did, at first.
The action of sending goods (or services) to another country.
China used their silver to try and pay the British for the opium imports, which in turn caused a decline in exchange rate between copper and silver. But this negatively "upset the basis of the Chinese monetary system."
The British sent Lord Napier to China in hopes to being the new trade relationship by coming in contact with the Qing ruler. Napier immediately made it clear that he demanded direct and open communication with the Qing ruler.
Lord Napier violated Chinese regulations and caused major tension. The Chinese nor Lord Napier were willing to back down, and so all Chinese employees were removed from British community, food sources were cut, and trade was stopped.
Lin Zexu arrived in Canton in March of 1839. He is known for finally ridding China of opium forever.
Lin Zexu not only severely punished the corrupt government who allowed the trade in the first place, but also ran a very successful campaign against dealers and their addicts.
Finally Riding China of Opium
Lin demanded that any and all foreigners gives up all their opium and requires them to sign a pledge as to promise not to import the drug ever again.
Lin Zexu uses the same weapons he used to isolate the foreign traders against Napier.
Elliot, the British Superintendent of Trade, required that all British merchants give all of their opium to him so he could deliver the opium to chinese authorities.
Elliot relieved all of the merchants of the duty of trying to sell opium to customers who would be punished if they purchased it. Elliot then required that the British compensate the merchants.
The merchants dumped 21,306 chests of opium to Elliot. It took the Chinese 23 days to destroy it all.
Lin vs. Elliot
Lin wanted Elliot to sign a bond or a pledge. Elliot refused after claiming it was against British law to force merchants to sign the bonds. Suggesting the death penalty as a consequence of not signing was also against British law.
Anglo- Chinese Tension
This isn't the first time the "issue of British jurisdiction over British subjects" has caused tension. This has gone on since 1784 when the British refused to submit to Chinese justice.
First Clash of War
The Chinese attempted to protect one of the two ships (that had agreed to the bond who were now willing to trade) from British attack.
British Ships Stood No Chance
The 21 Chinese junks dominated the British. The following month trade with the British stopped, and in January 1840, war was finally declared.
The Opium War
In June of 1840 British forces arrived in China. The British were fired upon while trying to deliver a letter from the Prime Minister. The Chinese did not understand the meaning of the "White Flag of Truth."
The British seized Chusan Island and Dinghai. The letter that was originally fired upon was eventually delivered in Beihe.
Prince Quishan was able to get the British to return to Canton for negotiations in September 1840.
The emperor dissmissed Lin and exiled him to Ili. Lin was replaced by Prince Qishan.
The British felt like the compromise was not equal for them and they went back to war. The conclusion of this was that Qishan was required to sign the Convention of Chuanbi.
Convention of Chanbi
1) Cession of Hong Kong
2) Indemnity payable to Britain
3) Equality of diplomatic relations
4) Reopening of Canton
The Chinese and British governments did not approve of the agreements they had reached. Qishan was punished - his property was taken away and was exiled to Amur. The British punished Elliot as well- he was demoted to a consul-general in Texas.
Returning to War
Canton was besieged in February 1841. The siege was removed when the ransom of 6 million Spanish silver dollars.
Before the British left Canton, the locals were very hostile towards the foreigners. There were multiple attacks on the British by Chinese troops. Even though the attacks were ineffective, it still showed their hostile feelings towards the war.
A Chinese Junk
Last Phase of War
Elliot was preceded by Pottinger, and war was finally coming to an end when the British occupied Xiamen and Dinghai. Pottinger continued to fight and threaten Nanjing. Qishan began to understand the "impreial displeasure, when Lin didn't. This caused a difference between the men in policies toward opium trade.
August 29, 1842
The Treaty of Nanjing was signed. This meant peace from the Western victor on the exhausted Chinese.
Item in high demand that benefits the society.
Opium may be in high demand, but it was most certainly not beneficial to the society. As a matter of fact, Opium had such a severe effect that addicts were completely useless to society. Because of the high number of addicts, the society was severely impacted because many people could not perform their necessary day to day responsibilities.
Balance of Trade
The difference in value between a countries imports and exports.
The amount where the cost of imports is more expensive the cost of exports.
British Trade Deficit
The British came across a problem because China only accepted silver as a payment for tea. This lead to a trade deficit that severely hurt Britain.
The amount where the cost of exports is greater than the cost of imports.
The Chinese ran into a small issue after the Indian Monopoly was removed. Because trade was open to the world, Opium was now flooding into the country; which also meant more silver flowing out. This caused trade surplus for China.
Exclusive control of trade.
No limits on who you can trade with.
The Treaty of Nanjing
The question of the ownership of Hong Kong was settled with this treaty. In 1984, the ownership of Hong Kong was transferred from joint ownership to now being completely owned by the People's Repulic of China.
Shortly after the Opium war, the Chinese entered a time in their history known as the " era of unequal treaties." British having free trade, fixed export tariffs for the Chinese, free residing for British subjects if they are carrying "Mercantile pursuits" are multiple examples of China simply being cut short.