How Did The Silver Trade Affect China

Michael Memis Period: 3 In the period from 1450-1750 C.E., there were many places around the world being significantly impacted by the silver trade. The silver trade led to a change in China’s global trade patterns from 1450-1750 C.E. Although China was drastically changed economically there were also several continuities during this time period. In 1450-1550 C.E. the silver trade hadn’t started yet, but there were several events that contributed to the start of the silver trade. “By 1368, the Ming Dynasty booted out the last of the Mongol rulers in China and restored power over the empire to the native

“Zheng He, a Chinese navigator, led fleets throughout Southeast Asia and the Indian Ocean, all the way to East Africa, a century before the Europeans did the same...But instead, within a few decades the Chinese abruptly stopped their naval voyages. Increasingly, Chinese society turned inward.” Although China traded with other countries, they were very careful so they wouldn’t be taken over by people from another country like the Mongols were. “By the 16th century, the Ming Dynasty was already in its decline, just as the Europeans were beginning to sail towards China. Pirates increasingly raided port cities, and the Portuguese set up shop in Morocco. Still, the Chinese were able to keep the Europeans at a safe distance.” There were major silver discoveries in Mexico and Peru, both ruled by Spain

the silver trade happened and had a huge impact on China. First, the conversion from paper-money to silver as China’s monetary unit had a big impact on them. China had a paper-money system but over-issue of it led to the money being worth virtually nothing. Gold was too expensive and copper was a possibility but the coins couldn’t be assayed for purity and there were coins of varying weight and metallic content in circulation which made setting a price difficult. In the 1570s the single-whip tax system was implemented in China. “This stated that all myriad existing national levies were consolidated into a single tax and that all tax payments were to be made in the form of silver.” China’s tributary system converted to silver and due to the fact that China had one-fourth of the world’s population, the “silverization” of China affected the world. The founding of Manila was an important factor for the silver trade. Manila is in the Philippines. It linked substantial, direct, and continuous trade between America and Asia for the first time in history. It was found and claimed by Spain in 1571. Silver would come from Spanish silver mines to Manila and then traded to China. Spain and Japan accounted for most of the silver traded to China. Spain also conquered Potosí, in modern day Bolivia, which “may have produced 60% of all the silver mined in the world in the second half of the sixteenth century.” Finally, “conversely and ironically, the silver