The Cohong, also known as the Thirteen Factories, were a guild of Chinese merchants who operated the Canton System during the Qing dynasty. This system regulated trade between China and Western powers. Essentially, the Cohong held a monopoly on foreign trade in Guangzhou (Canton), acting as intermediaries between the Chinese government and foreign traders.
The Canton System was formally established in 1757 by the Qianlong Emperor, restricting all foreign trade to the port of Guangzhou. The Cohong merchants were officially sanctioned by the government and were responsible for managing all aspects of this trade. This included setting prices, collecting taxes, and ensuring that foreign traders adhered to Chinese laws and regulations. The system aimed to control foreign influence and maximize revenue for the Qing dynasty.
Consider the tea trade. Western merchants eager to purchase tea had to go through the Cohong. The Cohong would negotiate prices, arrange for the tea to be transported from the interior to Guangzhou, and oversee its export. Similarly, when Westerners sold goods like silver or opium (illegally), the Cohong facilitated these transactions, albeit with varying degrees of government oversight and legality.
The Canton System and the Cohong merchants had a profound impact on Sino-Western relations. While the system initially allowed China to control trade and limit foreign influence, it eventually became a source of tension. The British, in particular, resented the restrictions and sought to expand trade beyond the confines of the Canton System. This ultimately led to the Opium Wars in the mid-19th century, which resulted in the dismantling of the Canton System and the opening of more Chinese ports to foreign trade.
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