Cohong

Definition

Cohong refers to a system of licensed Chinese merchants in the Qing dynasty who were authorized to trade with foreign merchants in Canton (Guangzhou). This system played a crucial role in regulating foreign trade, influencing the dynamics of the global economy during the 18th and 19th centuries.

5 Must Know Facts For Your Next Test

1. The Cohong system was established in the 17th century to control foreign trade in Guangzhou, limiting interactions to a select group of merchants.
2. Under this system, foreign merchants could only trade through designated Chinese merchants, which allowed the Qing government to maintain a degree of control over economic interactions.
3. Cohong merchants were responsible for collecting tariffs and duties on goods traded with foreign powers, making them key players in the economy.
4. The decline of the Cohong system in the 19th century was linked to increasing tensions that led to the Opium Wars and subsequent treaties that favored foreign powers.
5. As foreign trade expanded and pressures mounted, the Cohong system ultimately gave way to more open trade policies, contributing to the rise of a global economy.

Review Questions

• How did the Cohong system influence foreign trade relations during the Qing dynasty?
  • The Cohong system significantly influenced foreign trade relations by establishing a regulated environment where only licensed Chinese merchants could engage with foreign traders. This limited interaction meant that all foreign goods had to go through these merchants, allowing the Qing government to maintain control over tariffs and trade practices. The system created a structured yet restrictive framework that shaped both economic activity and diplomatic relations between China and Western nations.
• Evaluate the impact of the decline of the Cohong system on China's economic interactions with Western powers.
  • The decline of the Cohong system had profound implications for China's economic interactions with Western powers. As tensions escalated, particularly leading up to the Opium Wars, the traditional trade monopoly was challenged. The eventual treaties that followed these conflicts forced China into more open trade agreements, eroding state control over commerce and allowing greater foreign influence within China's markets. This shift marked a significant transition toward a more integrated global economy, changing China's role within it.
• Synthesize how the Cohong system and its eventual decline illustrate broader changes in global economic practices in the 18th and 19th centuries.
  • The Cohong system and its decline exemplify broader changes in global economic practices by highlighting the shift from controlled, state-regulated trade systems to more liberalized markets driven by international demand. Initially designed to manage foreign relations and protect domestic interests, the Cohong's limitations were increasingly at odds with growing global commerce dynamics. As Western nations pushed for more access, resulting conflicts like the Opium Wars demonstrated how local systems could be dismantled under external pressures. This transition reflects a larger narrative of globalization where emerging market forces began to override traditional economic structures.

Related terms

Qing Dynasty:

The last imperial dynasty of China, ruling from 1644 to 1912, known for its territorial expansion and interactions with European powers.

Opium Wars:

A series of conflicts between China and Western powers, primarily Britain, in the mid-19th century that arose from disputes over trade, particularly opium.

Trade Monopoly: The exclusive control over the trade of a particular commodity or service, often established by governments or specific groups within an economy.