Historical Overview Two other factors affecting trade contributed to the way that commerce developed. The first of these was that China operated trade as a monopoly through the Co-Hong whereas the British, mainly as a consequence of the Industrial Revolution, favoured a free trade system known as laissez faire, literally meaning hands off. The second and probably more significant factor was cultural. The Chinese considered themselves “Middle Kingdom” and thought that other cultures and nationalities were inferior Barbarians.  China considered itself to be the centre of the world.  The British however. thought themselves superior to the Chinese Inevitably these differences eventually led to conflict.  The resultant Opium Wars were sparked when the Chinese government had 20,000 chests of Opium, being traded by the British East India Company, burnt.  As this affected the important tea trade, the British government became involved, mainly because an import duty of 100% was levied on tea. Canton , showing the European factories circa 1830 PREVIOUS