This paper examines China's tea trade with Western Europe during the eighteenth and nineteenth centuries. It begins by surveying China's major tea-producing regions — Jiangnan, Jiangbei, the Southwest, and Lingnan — and the varieties each produced. The paper then traces the evolution of tea as an export commodity, from its cautious introduction to European markets to the dominant role of the English East India Company. It analyzes the structural trade imbalance that arose because China had little interest in European goods, the consequent introduction of opium as a trade offset, and the Opium War that forced China to open its ports. Finally, the paper considers how Britain's subsequent ability to cultivate tea domestically ultimately undermined China's position as the world's dominant tea supplier.
Chinese tea is probably the most well-known export product of China. The country's tradition in producing and serving tea is a fascinating subject for many consumers worldwide. The development of China's tea export to Western Europe is an equally interesting subject that merits careful study.
Tea is produced on a large scale in China, across more than 20 provinces. China is widely considered to be the place where tea culture was first discovered in ancient times and continuously developed. The most important tea-producing areas include the Jiangnan area, the Jiangbei area, the Southwest area, and the Lingnan area.
The Jiangnan area is situated south of the Changjiang River and is the most important tea-producing region in China. Production here is dominated by green varieties, with some black teas as well. The area has a warm, wet climate ideal for agriculture, which was one of the main occupations of Chinese people from ancient times to the present. Given this favorable climate, people in Jiangnan were able to successfully cultivate both tea and rice for local consumption and for trade. Another advantage of the region is its proximity to the Changjiang River, which provided easy transportation and encouraged commercial activity.
The Jiangbei area is situated north of the Changjiang River. Its lower temperatures allow green tea to be successfully produced there. In addition, some provinces in this region produced compressed tea intended to supply minority populations in the northwest.
The Southwest area is well-known for its production of black, green, and compressed teas. Some of these varieties were successfully commercialized both within China and in Western Europe. The tea cultivated in this region — now often referred to as ancient tea — was mainly consumed locally. Producers were not necessarily motivated by trade, but engaged in it in response to growing interest from European traders.
The Lingnan area is well-known for producing Wulong (Oolong) tea, a highly appreciated variety. The area's hot and humid climate encouraged frequent tea drinking among the local population. The Wulong tea of this region is particularly prized for its milk-like flavor.
The history of tea in China spans several millennia. In its earliest uses, tea was consumed as a medicine believed to counteract the effects of certain diseases, as a symbol of noble social status, and simply for its flavor by ordinary people.
Tea was a wild plant when it was first discovered, reportedly by a Chinese emperor. Because it was initially regarded as a medicinal herb and thought to be an antidote to poison, it was cultivated in small plantations across several regions of China. The varied climate conditions across these regions allowed for diverse types of tea to develop. Chinese cultivators were not content with simple cultivation; they also experimented by introducing diverse flavors into certain varieties.
Tea was thus first grown on small family plantations. As its use spread, production had to expand accordingly, and large-scale commercial plantations emerged to meet national demand. The process of brewing tea also grew more sophisticated. Drinking tea evolved into an art form observed across most Asian countries, and especially in China. The art of serving and drinking tea has since become the subject of numerous studies, documentaries, and books, and is regarded with fascination by Western audiences.
Tea production was managed and organized exclusively by the Chinese. The Chinese government kept the country largely isolated and permitted only limited interaction between European traders and Chinese producers. China's considerable technological advancement during this period led its government to assert the country's superiority and to resist meaningful economic relationships with European nations. As a result, European traders had very little influence over tea production and limited power to negotiate prices, since China held the dominant position in the relationship.
The workers employed on tea plantations were primarily local residents living near the growing areas. They did not receive significant wages; in exchange for their labor they sometimes received food or other goods needed to satisfy basic needs. Cultivating tea required particular skills, though since tea was also grown for household use, workers were often already familiar with those practices. Managing large plantation surfaces and high volumes of production pushed workers to develop methods for improving their efficiency.
Tea was not easily introduced into Europe. During the seventeenth century, European traders doing business with Chinese partners observed that tea — consumed extensively across China — might also appeal to European consumers. They began importing the product in small quantities to test the market.
Developing a reliable trade relationship with China proved difficult, however. China's rulers believed their country to be superior to all others and saw little need for economic ties with foreign nations. They effectively isolated China from the rest of the world (China Knowledge, 2000). The Chinese government permitted trade only in the region of Canton, and even there only a small number of European traders were allowed to participate.
Despite tea's high price — which initially restricted it to the wealthy — Europeans took to drinking tea enthusiastically, and demand rose rapidly. The principal tea trader in the eighteenth and nineteenth centuries was the English East India Company, which used its influence and commercial networks to increase the quantities of tea brought to Europe.
European traders nonetheless faced serious difficulties in sustaining their economic relationships with China. The central problem was that China had no interest in the goods European traders had to offer. As a result, the traders accumulated large trade deficits (Tea Merchant, 2003).
To reduce these deficits, European traders began introducing opium into the Chinese market. Chinese traders showed considerable interest in opium, and demand grew dramatically. The consequences differed sharply for each side: British traders reduced their deficits and began turning a profit, while China faced a rapidly growing population of opium addicts.
"War forces China to open ports to European trade"
"Spice routes, clippers, and Britain's rise as tea producer"
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