Instead, the Sino-British trade became dominated by high-value luxury items such as tea (from China to Britain) and silver (from Britain to China), to the extent that European specie metals became widely used in China. Britain had been on the gold standard since the 18th century, so it had to purchase silver from continental Europe to supply the Chinese appetite for silver, which was a costly process at a time before demonetization of silver by Germany in the 1870s. In casting about for other possible commodities to reverse the flow of silver out of the country and into China, the British discovered opium. Opium as a medicinal ingredient was documented in texts as early as the Ming dynasty but its recreational use was limited and there were laws in place against its abuse. It was with the mass quantities introduced by the British motivated by the equalization of trade that the drug became prevalent. British importation of opium in large amounts began in 1781 and between 1821 and 1837 import increased fivefold. The drug was produced in the traditionally cotton growing regions of India (under British government monopoly (Bengal) and in the Princely states (Malwa) and was sold on the condition that it be shipped by British traders to China. The Qing government had largely ignored the problem until the drug had spread widely in Chinese society.
However, in July 1839 rioting British sailors destroyed a temple near Kowloon and murdered a man named Lin Weixi who tried to stop them. Because China did not have a jury trial system or evidentiary process (the magistrate was the prosecutor, judge, jury and would-be executioner), the British government and community in China wanted "extraterritoriality", which meant that British subjects would only be tried by British judges. When the Qing authorities demanded the men be handed over for trial, the British refused. Six sailors were tried by the British authorities in Canton (Guangzhou), but they were immediately released after they reached England. Charles Elliott's authority is in dispute; the British government later claimed that without authority from the Qing government he had no legal right to try anyone, although according to the British Act of Parliament that gave him authority over British merchants and sailors, 'he was expressly appointed to preside over ' Court of Justice with Criminal an Admiralty Jurisdiction for the trial of offenses committed by His Majesty's subjects in the said Dominions or on the high sea within a hundred miles of the coast of China'".
The Qing authorities also insisted that British merchants not be allowed to trade unless they signed a bond, under penalty of death, promising not to smuggle opium, agreeing to follow Chinese laws, and acknowledging Qing legal jurisdiction. Refusing to hand over any suspects or agree to the bonds, Charles Elliot ordered the British community to withdraw from Canton and prohibited trade with the Chinese. Some merchants who didn't deal in opium were willing to sign the bond, thereby weakening the British trading position.
Lord Palmerston, the English Prime Minister initiated the Opium War in order to obtain full compensation for the destroyed opium. China lost the war and was forced to open its five ports to foreign merchants and to permit a territorial concession of Hong Kong.
This injust war was denounced in Parliament as unjust and iniquitous by young William Ewart Gladstone, who accused lord Palmerston to protect an infamous contraband traffic. The great outrage was expressed by the public opinion and the press, in America and England, for these 19th century drug dealers, protected by the English colonial interests, and its government.
In retaliation, the British Government and British East India Company had reached a conclusion that they would attack Guangdong. The military cost would be paid by the British Government. In June 1840, an expeditionary force of 15 barracks ships, 4 steam-powered gunboats and 25 smaller boats with 4000 marines reached Guangdong from Singapore. The marines were headed by James Bremer. Bremer demanded the Qing Government compensate the British for losses suffered from interrupted trade. Following the orders of Lord Palmerston, then Foreign secretary of Britain, the British expedition blockaded the Mouth of Pearl River and moved north to take Chusan.
The next year, 1841, the British captured the Bogue forts which guarded the mouth of the Pearl River—the waterway between Hong Kong and Canton. By January 1841, British forces commanded the high ground around Canton and defeated the Chinese at Ningbo and at the military post of Chinghai.
By the middle of 1842, the British had defeated the Chinese at the mouth of their other great riverine trade route, the Yangtze, and were occupying Shanghai. The Qing government proved incapable of dealing with Western Powers on an equal basis, either politically or militarily. The war finally ended in August 1842, with the signing of China's first Unequal Treaty, the Treaty of Nanjing. Gen. Sir Anthony Blaxland Stransham led the Royal Marines during the Opium War as a young officer, and as the 'Grand Old Man of the Army', was awarded two knighthoods by Queen Victoria.
Among the most notable figures in the events leading up to military action in the Opium War was the man the Manchu Daoguang emperor assigned to suppress the opium trade; Lin Zexu, known for his superlative service under the Qing Dynasty as "Lin the Clear Sky. Although he had some initial success, with the arrest of 1,700 opium dealers and the destruction of 2.6 million pounds of opium, he was made a scapegoat for the actions leading to British retaliation, and was blamed for ultimately failing to stem the tide of opium import and use in China. Nevertheless, Lin Zexu is popularly viewed as a hero of 19th century China, and his likeness has been immortalized at various locations around the world///.