The disruption in China's economy in the early 1890s, caused by conflicts and tensions with the British and other foreign powers, particularly during the Opium Wars in the 19th century, had significant consequences. These wars were driven by a variety of factors, including trade imbalances, the opium trade, and territorial disputes.
Before these conflicts, China had maintained a favorable balance of trade with foreign nations, exporting more than it imported. However, the opium trade, which the British had heavily engaged in, exacerbated this trade imbalance. The British traded opium for Chinese goods, leading to a massive outflow of silver and creating a trade deficit for China. This trade dynamic severely impacted China's economy and societal well-being.
As a result of these tensions and conflicts, including the Opium Wars, China was forced to sign a series of unequal treaties with foreign powers, which had detrimental economic and territorial consequences for China. These treaties often involved the cession of territory, extraterritorial rights for foreign nationals, and indemnities paid to foreign powers. These impositions significantly disrupted China's economy and sovereignty.