History of Trading: Early American/China Trade I
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Posted On: 03/01/2019 8:47:20 PM
History of Trading:
Early American/China Trade
Importance of Foreign Trade after the Revolution
The world that the former British colonies entered as the newly independent United States was one in which countries closely controlled their domestic and international economies. European countries had been practicing mercantilism from the 16th century on as each of them worked to become more powerful than its neighbors and competitors. Wealth in the coffers of the government was the source of power, and to insure capturing as much wealth as possible, the nation/kingdom became the center of a fairly closed trading network which included colonies that provided raw materials.
The economy of the American British colonies at the time of the revolution was extractive. Natural materials such as lumber, fish, rum were harvested and traded within the British empire. Manufacturing and other kinds of trade were prohibited by the Navigation Act of 1651 and subsequent legislation. North American British colonials were thus required to purchase Asian goods through England rather than engaging in an independent Asian trade. One of the contributing causes of colonial unrest was the exclusion of Americans from what was seen in the colonies as a very lucrative China trade.
The demand for Chinese products—tea, porcelain, silk, and nankeen (a coarse, strong cotton cloth)—continued after the Revolution. Having seen the British make great profits from the trade when the colonies were prevented from direct trade with China, Americans were eager to secure these profits for themselves. The need to provide employment for people who had depended on the sea for their livelihood, the need to continue importing manufactured goods as yet unavailable from American sources, and the need to generate capital for development stimulated the development of a new kind of foreign trade. Direct trade with China was part of this trade. With the volume of foreign trade relatively small during the early years of the Republic, trade with China played a significant role.
Early American/China Trade
Importance of Foreign Trade after the Revolution
The world that the former British colonies entered as the newly independent United States was one in which countries closely controlled their domestic and international economies. European countries had been practicing mercantilism from the 16th century on as each of them worked to become more powerful than its neighbors and competitors. Wealth in the coffers of the government was the source of power, and to insure capturing as much wealth as possible, the nation/kingdom became the center of a fairly closed trading network which included colonies that provided raw materials.
The economy of the American British colonies at the time of the revolution was extractive. Natural materials such as lumber, fish, rum were harvested and traded within the British empire. Manufacturing and other kinds of trade were prohibited by the Navigation Act of 1651 and subsequent legislation. North American British colonials were thus required to purchase Asian goods through England rather than engaging in an independent Asian trade. One of the contributing causes of colonial unrest was the exclusion of Americans from what was seen in the colonies as a very lucrative China trade.
The demand for Chinese products—tea, porcelain, silk, and nankeen (a coarse, strong cotton cloth)—continued after the Revolution. Having seen the British make great profits from the trade when the colonies were prevented from direct trade with China, Americans were eager to secure these profits for themselves. The need to provide employment for people who had depended on the sea for their livelihood, the need to continue importing manufactured goods as yet unavailable from American sources, and the need to generate capital for development stimulated the development of a new kind of foreign trade. Direct trade with China was part of this trade. With the volume of foreign trade relatively small during the early years of the Republic, trade with China played a significant role.
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