Foreign Trade in the Ming Dynasty: A Loss-Making Transaction
Do you know? The Ming Dynasty was a clumsy dynasty that inherited the foreign trade system of the Song and Yuan Dynasties, but did not inherit the trade spirit of the Song and Yuan Dynasties. It turned what could have been a profitable trade into a loss-making transaction, not only causing heavy losses for itself, but also causing countless troubles.
What are the characteristics of foreign trade in the Ming Dynasty? What's wrong with it? How does it cause these problems? Today, we will unravel this historical mystery and see the truth of foreign trade in the Ming Dynasty.
The system and loopholes of foreign trade in the Ming Dynasty
The peculiarity of foreign trade in the Ming Dynasty was that it treated all overseas trade groups as diplomatic missions rather than trading merchants. It believes that the only reason foreigners come to China is to admire Chinese culture, so they come to pay tribute. It does not tax overseas vessels and does not allow overseas vessels to trade freely. It only allowed foreigners to offer goods to the emperor and then receive money that the emperor gave them several times the value of the goods.
This may seem noble, but it is actually stupid. Because in this way, the more you buy and sell, the more the central government loses money. Moreover, there are many loopholes in this system, allowing foreigners to exploit loopholes for profit.
First, the system does not take into account the market value of commodities and the relationship between supply and demand. It simply rewards foreigners at prices set by the government, regardless of whether the goods they bring are scarce or useful. For example, the Ming Dynasty welcomed luxury goods brought by Southeast Asia, such as tortoiseshell, ivory, rhino horn, frankincense and other items. These items are hard to come by in China, so the price is high. However, it is common in Southeast Asia, so the price is low. If it trades according to the laws of the market, China should trade more money or more goods for these luxury goods. But under the Ming tributary system, China traded less money or fewer goods for these luxuries. This is equivalent to giving Southeast Asians a huge profit for nothing.
Secondly, this system does not limit the number of tributary countries and tributes. As long as one country is willing to pay tribute to China, it can receive the emperor's reward. And the more tributes, the better. This has led some countries to constantly send tributary missions in order to obtain more rewards, and even impersonate other countries. The Japanese, for example, are good at taking advantage of this. They paid tribute not only in their own name, but also in the name of countries such as Ryukyu, Korea, Annam, etc. They even carried a large amount of smuggled goods, and in addition to one tribute, ten times as many smuggled goods would be hidden in the ship. The price of the tribute was also inflated, and they hoped to receive a high reward.
Third, this system does not protect the interests of domestic businessmen. It not only prohibits domestic merchants from engaging in free trade with foreign merchants, but also prohibits domestic merchants from traveling overseas. This deprives the country's businessmen of development opportunities and weakens the country's economic strength. Moreover, the system has created a shortage of domestic goods, leading to rising prices and inflation. For example, the most lacking thing in the Ming Dynasty was silver. Due to the implementation of the paper money system in the Ming Dynasty, but the issuance of paper money was not effectively controlled, the paper money was seriously devalued. Silver, on the other hand, is a stable currency and a medium of exchange for many commodities. So silver was very in high demand in the Ming Dynasty, and the price was also very high. However, under the tribute system of the Ming Dynasty, China rewarded foreigners with a large amount of silver, which was equivalent to giving foreigners a huge fortune for nothing.
The losses and troubles brought to China by foreign trade in the Ming Dynasty
The system and loopholes of foreign trade in the Ming Dynasty not only caused China to lose a lot of money and goods, but also brought countless troubles and crises to China.
First, foreign trade in the Ming Dynasty triggered aggression and piracy by the Japanese and the Walla. As normal trade was interrupted by the brutal regulations of the central government, the Japanese immediately launched a trade and piracy offensive along the coast of China, and China entered a period of frequent wakou. Not only did they plunder the property and population of the coastal areas, but they also threatened the ruling authority of the central government. To the northwest, the Vara people. As the Vara used the tributary system to obtain more rewards, it gradually developed into a form similar to extortion. When the Ming government wanted to reduce the reward, the Vara people went to war to threaten the Ming government. The most serious one was the Tumu Fort, where the Ming Ying clan failed to conquer the Vara people and were captured, and the 200,000 Ming troops were annihilated.
Second, foreign trade during the Ming Dynasty led to China's isolation and backwardness from the overseas world. Because foreign trade brought too much trouble and loss to China, the Ming government took a more extreme measure: closing off the country. It forbade people to trade at sea and cut off all forms of trade other than tribute. In this way, China has been cut off from the overseas world and has lost many development opportunities and cultural exchanges. When Europe entered the Age of Discovery, trading and exploring on a global scale, China lost touch with the world. China's science and technology, culture, ideology, and system have all stagnated or even regressed. When Europeans came to China's door with artillery and navigational skills, Chinese could only resist with bows and arrows and wooden boats. This is the sadness that foreign trade brought to China in the Ming Dynasty.
Causes and consequences of foreign trade in the Ming Dynasty
Why did foreign trade become like this in the Ming Dynasty? And what consequences does it have for China?
The reason for foreign trade in the Ming Dynasty was mainly the ideology and system of Emperor Zhu Yuanzhang of the Ming Dynasty. Zhu Yuanzhang was born as a peasant and knew nothing about economics, finance, and commerce. The system he established permeated the blood of the entire dynasty, forming many ironic phenomena.
Zhu Yuanzhang emphasized agriculture and despised commerce. He believes that agriculture is the foundation of the country, and commerce is the parasite of the country. He believed that businessmen were a group of greedy, treacherous, shameless people who only exploited the peasants and the country, but did not contribute to it. He believed that business was an evil activity that disrupted the morality and order of society, causing price fluctuations and inflation. He believed that commerce was a dangerous activity that exposed the country to the risk of aggression and civil strife from external enemies.
Zhu Yuanzhang was arrogant, ignorant, narrow-minded, conservative, closed-minded, and backward. He believes that China is the number one country in the world, and other countries are barbarian countries. He believes that China's culture is the first culture in the world, and other countries are barbaric places. He believes that China does not need to learn anything from other countries, and other countries should learn from and emulate China. He believes that China does not need any exchanges and cooperation with other countries, and other countries should submit and pay tribute to China.
Zhu Yuanzhang established a closed, rigid, autocratic, and corrupt political system. He established a strict hierarchy and household registration system that restricted the movement and freedom of the people. He set up a vast network of bureaucracies and spies to control what people say, do, and think. He instituted brutal penal codes and laws to punish the people for resistance and dissent. He set up extravagant courts and ceremonies, enjoying the blood, sweat and wealth of the people.
These ideas and institutions influenced the attitudes and policies of all emperors and officials in the Ming Dynasty towards foreign trade. Instead of encouraging trade, they restrict it. Not only do they not profit from trade, they lose money from it. Instead of protecting their own businessmen, they oppress them. Not only do they not communicate with the overseas world, but they are isolated from the overseas world.
What consequences did foreign trade bring to China during the Ming Dynasty? The first is the decline of the economy. Due to the decline in foreign trade, China has lost many markets and resources, resulting in domestic production and consumption being affected. Due to the loss of foreign trade, China lost a lot of wealth and goods, resulting in problems with the country's finances and prices. Due to the ban on foreign trade, China lost a lot of opportunities and innovations, causing the country's economy and technology to stagnate.
The second is cultural isolation. Due to the isolation of foreign trade, China has lost a lot of information and knowledge, resulting in restrictions on domestic thinking and education. Due to the hostility of foreign trade, China has lost a lot of friendship and cooperation, resulting in ethnic and religious conflicts at home. Due to the complacency of foreign trade, China has lost a lot of progress and reforms, resulting in its domestic culture and system lagging behind the times.
Finally, there is political turmoil. Due to the troubles of foreign trade, China has suffered a lot of aggression and wars, resulting in threats to the country's security and territory. Due to the loss of foreign trade, China has caused a lot of discontent and revolt, which has led to challenges to the country's rule and stability. Due to the failure of foreign trade, China has exposed many weaknesses and crises, resulting in the country's credibility and status being questioned.
Summary and enlightenment
Foreign trade in the Ming Dynasty was a loss-making transaction, which allowed us to see the image of an arrogant, ignorant, narrow-minded, conservative, closed-minded, backward dynasty. It also serves as a wake-up call: in today's era of globalization, we cannot repeat the mistakes of the Ming Dynasty, and we must be open, inclusive, cooperative and innovative in order to keep pace with the world.
We must realize that foreign trade is not a gift or blackmail, but a mutual benefit or competition. We need to trade according to the laws of the market, not according to government regulations. We want to protect the interests of our businessmen, not oppress them. We need to communicate with the overseas world, not isolate ourselves from the overseas world.
We need to learn from the strengths and experiences of other countries, not arrogant or self-denial. We need to respect the cultures and institutions of other countries, not despise them or impose our own will. We want friendship and cooperation with other countries, not hostility and conflict with other countries.
We should develop our own science and technology, culture, ideology and system, instead of stagnating or backward. We need to innovate our products, services, models, and ideas, rather than imitating others or sticking to conventions. We are responsible for our own economy, society, environment, and future, not for others or the past.
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