The colonial history of China is particularly important as we consider her rise on the world stage once again. Readers of this blog may remember my brief discussion about The Silk Road early at the outset of these discussions of world history. Before the advent of national economic statistics across the world, it was impossible to measure the comparative wealth of different peoples. Yet, the evidence we do possess shows that China and India were considerably more wealthy than anywhere else in the world until Britain invaded China in the 1840s.

Colonisation in the Indian subcontinent was a different experience when compared to the invasions in the Americas or Russia. In 1600, the Indian subcontinent (that is modern-day India, Pakistan, Bangladesh and Myanmar) was an ancient civilisation of huge diversity. The whole country had a centralised government run by the Mughals, alongside some 500 distinct but powerful and equally ancient kingdoms.

Over 450 years from 1500 to 1945, the major European powers competed with one another over colonies. There were no established global rules until the 20th century. One of the purposes of the monopoly companies was to take colonies from other European powers, it is in this sense that European colonisation was a competitive process. The religious wars and conflicts between states within Europe were replicated across the globe. The Spanish and Portuguese were first off the block in the 15th century, invading and colonising the Americas.

After having outlined in the previous blog the origins of the early monopoly companies, it is now worth pausing to understand how these monopoly companies operated. Divest yourself of any conception you might possess of a trading company today. From their origins, these companies operated like ships of war. They were designed to combat all aggression from any direction: aggression from the people they might meet on landing, from other ships that might wish to steal their cargoes, and from other European monopoly companies that wished to steal their trade.

The so-called National Charter companies were innovative at the time. They were financed from private sources, allowed to arm themselves for protection, and they set out to control the trade they could muster. The East India companies avoided the Ottomans, sailed around the Cape to India, and began to set up local agreements and build forts. Each of the new European companies rapidly discovered that the Indian and Chinese governments did not want to obtain what Europe had to offer, rather they felt themselves to be self-sufficient.