Major Global Trade Routes, 1400-1800

From the 15th to the 19th century a pattern of global trade flows emerged, mainly based on mercantilism. China, India and Southeast Asia have been for centuries the origin of trade flows mainly involving luxury goods (spices, silk, tea, porcelain, etc.). This involved a positive flow of capital as their trading partners did not have much to offer in exchange expect cash (silver). This pattern was strongly influenced by the fact that China and India accounted for that period for about half of the world's GDP. The colonial involvement of Western European countries, starting in the 16th century, created new trade flows as well as insuring European control on existing ones (especially the Asia trade). For instance, Spain and Portugal, the first European maritime powers, controlled much of the global flows in the 16th century through a system of colonial exploitation.

Global trade significantly changed in the 19th century when India was incorporated in the British Empire and when the Mexican War of Independence (1815) ended the Manila trade through Mexico. The Chinese trade fell in the hands of Western powers (England, France, United States) through treaty ports (e.g. Shanghai) and Southeast Asia was colonized (Dutch, English, French and Spain).