1. For All the Tea in China: The English East India Company
- Author:
- Jamie Haworth and Sai Mirthipati
- Publication Date:
- 02-2023
- Content Type:
- Case Study
- Institution:
- Oxford Centre for Global History
- Abstract:
- In Chinese mythology, Shennong was a deified emperor credited with discovering, among other things, modern agriculture, the use of fire, farmers’ markets and the Chinese calendar. As the story goes, one autumn afternoon his subjects were boiling water near a Camellia tree when a gust of wind blew some leaves into the pot. Intrigued by the fragrance, Shennong took a sip. Invigorated, he named the mystical infusion “cha”, thereby adding tea to the illustrious roster of his inventions. The Chinese character for “cha” depicts a man standing between “grass” and “tree” – a fitting, almost prescient characterisation that centres the story of tea on the story of humanity. For a millennium until the 1500s, tea was a closely guarded secret held by the Chinese elite. However, within the next three centuries, this elixir of life native to China would become a common commodity widely available across the Western hemisphere. Tea’s exclusivity lessened by degrees, eventually becoming a staple in working-class communities. As more people consumed tea, it became a complex and powerful economic driver – but not all by serendipity, despite Shennong’s myth. The Western thirst for tea led to competing schools of economic thought, financial systems of capital allocation and principles of governance that still characterise the modern world. Simultaneously, however, the Western thirst for economic power led to the development of the tea industry, a commodity that elites marketed in order to support colonial interests in India and China; tea would become inseparable from colonial identity. Chinese tea forced a shift in popular academic sentiment for trade, as part of a transition from a mercantilist zero-sum game to a Ricardian world of comparative advantage. The risks inherent in the tea trade prompted the development of the legal paradigms of limited liability and joint ownership. Furthermore, government-granted monopolies to ship tea prompted the populace to question the role of competition, government intervention and the ethics of running private armies that put state armies to shame. The story of tea includes the building of empires, the fighting of wars and the collapse of state powers. At the centre of it all was the East India Company and the imperial scramble to trade all the tea in China.
- Topic:
- Agriculture, History, Capitalism, Trade, British East India Company, and Tea
- Political Geography:
- China, Asia, and England