Luso-Chinese agreement (1554)
Encyclopedia
The Luso-Chinese agreement of 1554 was a trade
agreement
between the Portuguese
headed by Leonel de Sousa, and the authorities of Guangzhou
headed by Haitao Wang Po, which allowed for the legalization of Portuguese trade in China
by paying taxes. It opened a new era in Sino-Portuguese relations, as Portuguese were then officially barred from trading in the region. In 1517 an embassy led by Fernão Pires de Andrade
to the Ming court
failed and, after conflicts in 1521
and 1522
, trade was conducted as smuggling
and was fought by the authorities, who considered Portuguese to be "Folanji" (European) pirates.
Leonel de Sousa, chief-captain of the voyage to Japan, had reached the coast of Guangdong
in 1552, where he learned that all foreigners could trade through the payment of taxes to the Chinese, except the "Folanji" including Portuguese, then considered as pirates. He then asked that they comply with the assumptions of peace and payment of taxes, pledging to change this "name".
In 1554 Leonel de Sousa made an agreement with Guangzhou's officials to legalize the Portuguese trade, on condition of paying certain customs
duties. The single surviving written evidence of this agreement is a letter from Leonel de Sousa to Infante Louis, king John III
's brother, dated 1556, which states that the Portuguese undertook to pay the fees and were not to erect fortifications. The letter, one of the most important documents in the history of Sino-Portuguese relations, describes the protracted negotiations with the Guangdong
Navy's superintendent, Haitao Wang Po, identified in Chinese sources as having accepted a bribe from the Portuguese to dry their cargo and pay taxes in Guangzhou. Both sides were available to find a solution, as the port of Canton was also facing a depletion since it was closed to foreign trade. Leonel de Sousa tried to negotiate only 10% of fees, to what Wan Po countered the mandatory 20%, but focusing only on half the cargoes, to which Leonel de Sousa agreed. This treaty would be followed by the recognition of Macau
as an official Portuguese warehouse in 1557. Leonel de Sousa became the second Captain-General of Macao in 1558 (the equivalent of the later governor of Macau
).
Trade
Trade is the transfer of ownership of goods and services from one person or entity to another. Trade is sometimes loosely called commerce or financial transaction or barter. A network that allows trade is called a market. The original form of trade was barter, the direct exchange of goods and...
agreement
Agreement
Agreement may refer to:* Agreement or concord, cross-reference between parts of a phrase* Gentlemen's agreement, not enforceable by law* Contract, enforceable in a court of law...
between the Portuguese
Portugal
Portugal , officially the Portuguese Republic is a country situated in southwestern Europe on the Iberian Peninsula. Portugal is the westernmost country of Europe, and is bordered by the Atlantic Ocean to the West and South and by Spain to the North and East. The Atlantic archipelagos of the...
headed by Leonel de Sousa, and the authorities of Guangzhou
Guangzhou
Guangzhou , known historically as Canton or Kwangchow, is the capital and largest city of the Guangdong province in the People's Republic of China. Located in southern China on the Pearl River, about north-northwest of Hong Kong, Guangzhou is a key national transportation hub and trading port...
headed by Haitao Wang Po, which allowed for the legalization of Portuguese trade in China
China
Chinese civilization may refer to:* China for more general discussion of the country.* Chinese culture* Greater China, the transnational community of ethnic Chinese.* History of China* Sinosphere, the area historically affected by Chinese culture...
by paying taxes. It opened a new era in Sino-Portuguese relations, as Portuguese were then officially barred from trading in the region. In 1517 an embassy led by Fernão Pires de Andrade
Fernão Pires de Andrade
Captain Fernão Pires de Andrade was a Portuguese merchant, pharmacist, and official diplomat under the explorer and Malacca governor Afonso de Albuquerque...
to the Ming court
Ming Dynasty
The Ming Dynasty, also Empire of the Great Ming, was the ruling dynasty of China from 1368 to 1644, following the collapse of the Mongol-led Yuan Dynasty. The Ming, "one of the greatest eras of orderly government and social stability in human history", was the last dynasty in China ruled by ethnic...
failed and, after conflicts in 1521
First Battle of Tamao (1521)
The Battle of Tãmão was a naval battle when the Ming Dynasty Imperial Navy defeated a Portuguese navy led by Simão de Andrade in 1521.-Causes:...
and 1522
Second Battle of Tamao (1522)
The Battle of Tamao was a naval battle when the Ming Dynasty Imperial Navy defeated a Portuguese navy led by Martim Afonso in 1522.Tamao was the Portuguese name for Tunmen, also known as Tou-men.-Causes:...
, trade was conducted as smuggling
Smuggling
Smuggling is the clandestine transportation of goods or persons, such as out of a building, into a prison, or across an international border, in violation of applicable laws or other regulations.There are various motivations to smuggle...
and was fought by the authorities, who considered Portuguese to be "Folanji" (European) pirates.
Leonel de Sousa, chief-captain of the voyage to Japan, had reached the coast of Guangdong
Guangdong
Guangdong is a province on the South China Sea coast of the People's Republic of China. The province was previously often written with the alternative English name Kwangtung Province...
in 1552, where he learned that all foreigners could trade through the payment of taxes to the Chinese, except the "Folanji" including Portuguese, then considered as pirates. He then asked that they comply with the assumptions of peace and payment of taxes, pledging to change this "name".
In 1554 Leonel de Sousa made an agreement with Guangzhou's officials to legalize the Portuguese trade, on condition of paying certain customs
Customs
Customs is an authority or agency in a country responsible for collecting and safeguarding customs duties and for controlling the flow of goods including animals, transports, personal effects and hazardous items in and out of a country...
duties. The single surviving written evidence of this agreement is a letter from Leonel de Sousa to Infante Louis, king John III
John III of Portugal
John III , nicknamed o Piedoso , was the fifteenth King of Portugal and the Algarves. He was the son of King Manuel I and Maria of Aragon, the third daughter of King Ferdinand II of Aragon and Queen Isabella I of Castile...
's brother, dated 1556, which states that the Portuguese undertook to pay the fees and were not to erect fortifications. The letter, one of the most important documents in the history of Sino-Portuguese relations, describes the protracted negotiations with the Guangdong
Guangdong
Guangdong is a province on the South China Sea coast of the People's Republic of China. The province was previously often written with the alternative English name Kwangtung Province...
Navy's superintendent, Haitao Wang Po, identified in Chinese sources as having accepted a bribe from the Portuguese to dry their cargo and pay taxes in Guangzhou. Both sides were available to find a solution, as the port of Canton was also facing a depletion since it was closed to foreign trade. Leonel de Sousa tried to negotiate only 10% of fees, to what Wan Po countered the mandatory 20%, but focusing only on half the cargoes, to which Leonel de Sousa agreed. This treaty would be followed by the recognition of Macau
Macau
Macau , also spelled Macao , is, along with Hong Kong, one of the two special administrative regions of the People's Republic of China...
as an official Portuguese warehouse in 1557. Leonel de Sousa became the second Captain-General of Macao in 1558 (the equivalent of the later governor of Macau
Governor of Macau
The Governor of Macau was a Portuguese colonial official who headed the colony of Macau, before 1623 called Captain-major . The post was replaced on December 20, 1999 upon the transfer of administration to the People's Republic of China by the office of the Chief Executive of the Macau Special...
).