Chapter 4 starts with a discussion of imperialism constructed as a fact and as theory. It highlights the major disruptions in East Asian and world history. The prevailing realist, liberal institutionalist, and constructivist theories are not scaled to explain such dramatic transformations of East Asia by Western imperialism. Rather, a historical sociological approach anchored on evolutionary theory is a better fit. Western domination based on the rise of the West in terms of economic, technological, and military power took several centuries to complete. Some East Asian empires were also expanding after 1500. A turning point was Britain’s defeat of China in the Opium War of 1839–1842. After that, East Asian nations engaged earnestly in reform. Some, like Japan, succeeded, while others, like China, failed, resulting in a great divergence among Asian countries. To some extent, much of East Asia still lives in the shadow of that imperialist past.

In the nineteenth century, European attitudes, both among intellectuals and the public, shifted toward widespread support for imperialism, but the tensions between such views and long-standing values sometimes gave this support a tortuous and melancholy character. This was the case with two eminent liberal imperialists, both famous as champions of liberty, Alexis de Tocqueville, and John Stuart Mill. Each rejected the other’s justifications for foreign expansion and described his own country’s policies in terms so negative that they might have served better to justify opposition, testifying that there was a destabilizing tension in the backing both gave to imperial expansion. One occasion on which harsh and direct criticism of empire was voiced was expressed was at the outbreak of the “Opium War” in 1839, a conflict whose complex origins belie the old myth that it was undertaken to stuff the dangerous drug down Indian throats. The chapter ends by examining reasons why this opposition was unable to hold back the imperial juggernaut and notes that a significant number of non-European anti-imperial activists found London and Paris hospitable places for their activities.

The invention of money was one of the major factor that allowed governments, corporations, and individuals to consolidate power. This chapter reviews the history of money and its various forms. The globalized economy depends on the free flow of money, and trade is an enormous source of wealth and power. Trading economies have proven to be stronger and more flexible across history, and is the source of various power centers throughout history: the Mediterranean Middle East, the European West, modern China, etc. have all been made powerful through trade, whereas isolationists have found themselves at strong disadvantages. The pursuit of trading wealth has been the source of wars and social conflicts, as well as the spread of colonialism and chattel slavery. Disparities of power and wealth due to the economic power of the global economy continue to this day. However, globalization has also created enormous benefits for many populations around the world. Worldwide, literacy has increased and longer lifespans are the result of access to modern medicines and health care.

Already during the period between the two Opium Wars, China and its vast potential market had become a key site for legal and administrative innovations by Western diplomats, missionaries, and traders. The Qing conception of guoti 國體 or “state form/stateliness,” in particular, was creatively redeployed in an effort to articulate a diplomatic compromise during key meetings at Tianjin, Shanghai, and Beijing between 1858 and 1860, when a new multilateral international law regime for China was crafted by the invading Western powers.

By the mid-eighteenth century, the Qing dynasty (1644–1911) was the dominant power within Asia. Its political system and institutions of state building were founded on structures inherited from previous Chinese dynasties as well as on the social and cultural codes of interaction among polities across Central Eurasia, East Asia, and Southeast Asia. Foreign trade between China and other countries within and outside Asia was a calculated matter of political strategy and economic gain. In the decades leading up to the First Opium War of 1839 to 1842, China’s stance with respect to the Sino-Western trade became increasingly at odds with British ambitions in Asia. The growing tensions stemmed from abiding differences in the political economy of not just two nations, but two empires. The overseas influence of the British Empire took on a forceful new impetus with the British Industrial Revolution, and, over the nineteenth century, technological improvements in transport continued to power Western expansion in global trade.