20 January 1841: Britain takes possession of Hong Kong

last updated 20 January 2021

20 January 1265: England’s first parliament is held at Westminster 29 August 1842: The first Opium war ends

The 1830s came as a rude shock for China. For centuries, the Chinese empire had been the preeminent power in the region, where it boasted the best bureaucracy, and the latest technology. It had got used to being revered. So when a band of uncivilised Westerners came knocking on the palace gates, the Chinese could be forgiven for thinking all was as it should be. The problem was the Chinese world view was badly out of date.

By the 19th century, China's glory days had long since passed. By contrast, Europe was revelling in the industrial revolution, and Britain was busy carving out a global empire. To do that, Britain needed China or rather, what it had to offer. True to the stereotype, the British had developed a sweet spot for tea. So much so, in fact, that tea imports accounted for 16% of customs revenue. It's been said that 83% of the Royal Navy's running costs could be met by levying taxes on tea alone. Britain felt it had to address this unequal balance of trade. So, it searched its new territories in India and came up with just the export opium.

Opium was no big deal in Britain, where it was ingested as medicine. But the Chinese took a dim view of the narcotic. In China the drug was smoked and took a devastating toll on the health of the nation. The trade also consumed valuable reserves of silver used as currency, and of which China was running short. None of this stopped British traders from unloading the drug at Canton, modern-day Guangzhou. In March 1839, the Chinese ordered the traders to surrender the cargo worth £2m, which at the last moment was guaranteed by the British government. The Chinese seized and destroyed 20,283 chests containing opium, outraging the government in London (who would have had to pick up the bill) and public opinion. Faced with a modern army and navy, China found itself outmatched in the fighting that followed. On 20 January 1841, Hong Kong island was ceded to Britain at the Chuenpi Convention along with a resumption of the opium trade.

Subscribe to MoneyWeek

Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE

Get 6 issues free

https://cdn.mos.cms.futurecdn.net/flexiimages/mw70aro6gl1676370748.jpg

Sign up to Money Morning

Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter

Chris Carter spent three glorious years reading English literature on the beautiful Welsh coast at Aberystwyth University. Graduating in 2005, he left for the University of York to specialise in Renaissance literature for his MA, before returning to his native Twickenham, in southwest London. He joined a Richmond-based recruitment company, where he worked with several clients, including the Queen’s bank, Coutts, as well as the super luxury, Dorchester-owned Coworth Park country house hotel, near Ascot in Berkshire.

Then, in 2011, Chris joined MoneyWeek. Initially working as part of the website production team, Chris soon rose to the lofty heights of wealth editor, overseeing MoneyWeek’s Spending It lifestyle section. Chris travels the globe in pursuit of his work, soaking up the local culture and sampling the very finest in cuisine, hotels and resorts for the magazine’s discerning readership. He also enjoys writing his fortnightly page on collectables, delving into the fascinating world of auctions and art, classic cars, coins, watches, wine and whisky investing.

You can follow Chris on Instagram.

20 January 1841: Britain takes possession of Hong Kong

Subscribe to MoneyWeek

Sign up to Money Morning

Useful links

Subscribe

MoneyWeek

Most Popular