From tea to TikTok: the middleman’s return is reshaping China trade
The old Canton system is re-emerging in a new guise as the likes of TikTok and Starbucks look to middlemen to navigate a divided global economy
Under the Canton system, overseas traders were confined to narrow “factories” outside the walled city of Canton, barred from negotiating directly with Chinese officials or markets. Instead, merchants relied on the Cohong, an officially appointed guild of 13 Hongs or merchant houses, to reach the empire’s coveted exports of tea, porcelain and silk. These intermediaries handled permits, finance and delivery.
The opium wars fundamentally transformed Sino-Western trade by opening multiple treaty ports, distributing commerce across China’s coast rather than funnelling it solely through Canton. Hong Kong emerged as a premier entrepôt alongside Shanghai’s rapid rise, creating a diversified network that eclipsed the old Canton monopoly.
Even despite this direct market access, however, some Western firms still depended on Chinese agents to bridge global commerce with local networks.