INDIAN HISTORY

Detailed explanation-1: -They would only sell their goods in exchange for silver, and as a result large amounts of silver were leaving Britain. In order to stop this, the East India Company and other British merchants began to smuggle Indian opium into China illegally, for which they demanded payment in silver.

Detailed explanation-2: -From 1500 to 1800, Bolivia and Mexico produced about 80% of the world’s silver with 30% of it eventually ending up in China. In the late 16th and early 17th century, Japan was also exporting heavily into China and the foreign trade at large. As has been demonstrated, China dominated silver imports.

Detailed explanation-3: -The government had been issuing paper money (Jiaozi ) since the 11th century, but people didn’t trust its value. Throughout their history the Chinese have a saying: “only trust silver.” That’s because the temptation was (and is) always there for the authorities to print more money (sound familiar?)

Detailed explanation-4: -Silver-based artefacts were not widely valued in China until around the Tang dynasty (618–907 ce). Silver bullion became widely used during the middle and late Ming.

Detailed explanation-5: -The West wanted the tea which China produced and believed that it had the right to trade for it. Trade was seen as the means to expand national and personal wealth, so it was assumed to be natural that every one and every country would take part in trade.