Final answer:
The British depended on drug smuggling, specifically opium, to balance the trade deficit with China, as opium was in high demand and could be exchanged for silver to purchase Chinese tea. This resulted in the Opium Wars, which forced China to accept the opium trade from Britain.
Step-by-step explanation:
The British depended on drug smuggling to maintain profitable trade with their merchants in China in order to balance the trade deficit with China. This began when the British East India Company started the trade and smuggling of opium to China. The valuable Chinese goods, especially tea, had created a severe outflow of silver from Britain, and they needed a commodity that the Chinese would buy in large quantities. Opium, grown in India under British control, was the answer despite the fact that its recreational use was illegal in China.
Opium addiction became a serious issue in China, forcing the Chinese government to eventually take action. In response to Chinese crackdowns, the British initiated the First and Second Opium Wars, forcing China to accept opium trade among other concessions. The opium trade, therefore, was used to reverse the trade imbalance and secure continued access to the Chinese market for British goods, as previously China had a much stronger trade position with a surplus.