How did the British balance their trade with China
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Britain and other European countries undertook the opium trade because of their chronic trade imbalance with China. ... The country traders sold the opium to smugglers along the Chinese coast. The gold and silver the traders received from those sales were then turned over to the East India Company.
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The balance of payments for the first time began to run against China and in favour of Britain. ... In the second Opium War (1856–60)—fought between a British-French alliance and China—the Chinese government was forced to legalize the trade, though it did levy a small import tax on opium.
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