29 August 1842: The first Opium war ends

On this day in 1842, the signing of the Treaty of Nanking ended the first Opium war with China.

Today, Western governments spend billions trying to stop the illegal drugs trade. However, in the 19th century, Britain not only encouraged the flow of hard drugs but also went to war twice to prevent China's government from stopping it.

At the time, China made it almost impossible for traders to sell British and other Western goods locally. The sole exception was tea from India. But tea merchants found they could boost profits by smuggling opium with their cargo.

Due to its addictive nature (it contains morphine), demand exploded, with smuggling networks springing up around the Chinese coast. Selling opium was officially discouraged. But smugglers simply bribed local officials – many of them addicts themselves – to look the other way.

By the late 1830s, political pressure on China's Emperor was growing. Not only was there concern at the social and economic costs of the trade, but gold and silver was flowing out of China to pay for opium imports.

A direct appeal to Queen Victoria failed. So a hard-line trade commissioner, Lin Zexu, was appointed. He cracked down, confiscating British traders' opium supplies and forcing them to pledge their goods (and lives) against a return to the trade.

The British government backed the measures until it realised it would have to compensate traders. It launched a military blockade of China. Within two years China had been forced into signing the Treaty of Nanking, legalising the trade and removing restrictions on other British goods.

While Chinese historians consider this as a national humiliation, there is also agreement that it opened China up to the rest of the world.

Recommended

The best 0% balance-transfer credit cards
Credit cards

The best 0% balance-transfer credit cards

These 0% balance transfer credit cards offer some of the best deals on the market today.
26 May 2023
Where do we go from here?
Investments

Where do we go from here?

A new series of interviews from MoneyWeek
26 May 2023
Best savings accounts – May 2023
Savings

Best savings accounts – May 2023

Interest rates have been creeping up - we look at the best savings accounts on the market right now.
26 May 2023
The best one-year fixed savings accounts - May 2023
Savings

The best one-year fixed savings accounts - May 2023

You can now earn 5% on 1 year fixed savings accounts - the best rate seen in 14 years. We have all the latest rates available now.
26 May 2023

Most Popular

Nationwide to give £100 cash boost to customers
Personal finance

Nationwide to give £100 cash boost to customers

Nationwide Building Society is giving customers £100 as it reinvests profits. Dubbed the Nationwide Fairer Share scheme, we look at who is eligible.
22 May 2023
Share tips of the week – 26 May
Investments

Share tips of the week – 26 May

MoneyWeek’s comprehensive guide to the best of this week’s share tips from the rest of the UK's financial pages.
25 May 2023
The best one-year fixed savings accounts - May 2023
Savings

The best one-year fixed savings accounts - May 2023

You can now earn 5% on 1 year fixed savings accounts - the best rate seen in 14 years. We have all the latest rates available now.
26 May 2023