In 1832, officials from Britain’s East India Company began to explore Shanghai for the purpose of trading in tea, silk, and opium. City officials were not interested in their offers, which led to the First Opium War. The war came about because Britain needed trade items to offset the amount of tea they were importing from China (among other things). They had a valuable store of opium, which they were easily manufacturing in nearby India and funneling into China. Through the years the opium trade continued to increase, and eventually the Qing dynasty recognized the increasing negative health effects and banned it from the country.
The Brits were outraged because the Chinese government was in effect shutting them off by outlawing their primary trade item. The war ensued as a result. The treatment of the Chinese by the British government was decidedly negative, and many historians agree it laid the foundation for the suspicious and defensive way the Chinese people view westerners, even today.
The Brits defeated the Chinese forces with ease, which led to a weakening of the Qing Dynasty by clearly exposing their weaknesses.
To end the war, the Treaty of Nanjing was established, which opened five Chinese cities to more open trade, Shanghai being the most notable. The British quickly established a consulate to promote international trade, and several other countries did as well. What was once an unassuming fishing village became an international community as these countries set up autonomous concessions, which operated independent of Chinese law.
This international presence is responsible for the European feeling that exists in Shanghai today, as well as the varied architecture seen all over the city. The city’s Luwan distrist was once the French concession, and it is a beautifully preserved reminder of Shanghai’s colonial days.
After the Treaty of Nanjing, Shanghai slowly evolved into a culturally mixed community. Though a Chinese walled city still stood, many natives began to interact with the foreigners, resulting in a strong openness to western influence. By the turn of the century, thousands of Brits, Americans, French, and others were permanently living in Shanghai. The area was also experiencing a heavy influx of Chinese people from other parts of the country. The city grew in record numbers.