The origin of Canton Hong merchants

The Chinese merchants in Canton who carried out foreign trade with the British East India Company and other European merchants in the 18th century and early 19th century are referred to as Hong Merchants. When China began to open trade to foreigners by the middle of the 1680s, no single Chinese merchant clan had monopolized foreign trade in any port city. In Canton, some business firms or shops, named Ya-hang, served as brokers between inland Chinese businessmen and maritime traders. When Canton welcomed foreign trade and a maritime customs office was set up, the Chinese government ordered these Ya-hang to deal with foreign traders.[These intermediaries were named “Shih-san-hang” which means “Thirteen Hongs”, thirteen firms or thirteen factories. Generally speaking, the Hong merchants’ position in the European-Asian commercial links was that of negotiators and intermediaries. [cf]