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The site was an active port town as early as the 9th century. It is said that at that time, more than half of the 200,000 residents of Guangzhou were Jewish, Arab, Persian, and Indian traders.<ref>Bonnie Smith et al. ''Crossroads and Cultures'', vol. B, Bedford/St. Martins, 2012. p393.</ref>
 
The site was an active port town as early as the 9th century. It is said that at that time, more than half of the 200,000 residents of Guangzhou were Jewish, Arab, Persian, and Indian traders.<ref>Bonnie Smith et al. ''Crossroads and Cultures'', vol. B, Bedford/St. Martins, 2012. p393.</ref>
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While the Portuguese were restricted to [[Macao]], the [[Dutch East India Company]] and later, from [[1699]] the British East India Company, came to trade at Canton. In the 17th century, policies and patterns of trade developed into what has come to be known as the "Canton system." The British, the Americans (from [[1784]] onward), and certain other Western powers were only permitted to trade at Canton, and not at other ports. Further, the [[Qing Dynasty|Qing Court]] placed restrictions on the types and quantities of goods to be traded, the times of year trade could take place, etc.
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While the Portuguese were restricted to [[Macao]], the [[Dutch East India Company]] and later, from [[1699]] the British East India Company, came to trade at Canton. In the 17th century, policies and patterns of trade developed into what has come to be known as the "Canton system." The British, the Americans (from [[1784]] onward), and certain other Western powers were only permitted to trade at Canton, not at other ports, and furthermore, as of a [[1759]] Imperial decree, had to do so through designated guild merchants, who could serve to help guarantee the Westerners' good behavior and regular payment of fees.<ref>Robert Tignor, [[Benjamin Elman]], et al, ''Worlds Together, Worlds Apart'', vol B, Fourth Edition, W.W. Norton & Co (2014), 504.</ref> Further, the [[Qing Dynasty|Qing Court]] placed restrictions on the types and quantities of goods to be traded, the times of year trade could take place, etc.
    
The Westerners were not permitted to enter the city of Guangzhou proper, but were given land along the river, outside the city, where they then established small settlements and factories.<ref>That is, in the pre-industrial meaning of the word "factory," referring to a base of operations for managing trade activities, headed by a factor - not a center of production, as in the industrial meaning.</ref> Foreigners were not allowed to bring their wives to the settlements at Canton, were subject to Chinese law (i.e. they did not enjoy [[extraterritoriality]]), and had to contend with powerful competing Chinese merchant guilds.
 
The Westerners were not permitted to enter the city of Guangzhou proper, but were given land along the river, outside the city, where they then established small settlements and factories.<ref>That is, in the pre-industrial meaning of the word "factory," referring to a base of operations for managing trade activities, headed by a factor - not a center of production, as in the industrial meaning.</ref> Foreigners were not allowed to bring their wives to the settlements at Canton, were subject to Chinese law (i.e. they did not enjoy [[extraterritoriality]]), and had to contend with powerful competing Chinese merchant guilds.
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