From Silver Outflows to the Opium War — National Wealth in 19th-Century China and Modern Japan
Examining Britain–Qing trade and the Opium War, this essay explores how national wealth outflows affect state survival and reflects on Japan’s position as the world’s largest net creditor and its global investment role.
In the 19th century, Britain’s assets (silver) continued to flow out to Qing China through imports of tea and porcelain.
2018-01-25
The following is a continuation of the previous chapter.
In the 19th century, Britain’s assets (silver) continued to flow out to Qing China through imports of tea and porcelain.
Qing China did not purchase British export goods such as cotton textiles.
In order to stop the outflow of silver, Britain began selling opium grown in its colony of India to Qing China.
As opium addiction rapidly spread and social order deteriorated, the Qing government seized opium from the British East India Company’s opium ships and destroyed it.
This led to the Opium War between Britain and Qing China, in which Qing suffered a crushing defeat.
After this, the long-term lease of Hong Kong began.
When a nation’s assets flow overseas, the survival of that nation is put at risk.
In the 19th century, wars were fought to prevent such outflows.
Japan, which holds the world’s largest net external assets, is the wealthiest nation in the world, possessing the capacity to channel its abundant assets into overseas investment.
With these funds, Japanese companies invest in Southeast Asia, China, India, and elsewhere, building factories, creating local employment, and undertaking real estate development, thereby contributing to economic prosperity around the world.
To be continued.
