University of Illinois: Early Trade With China: Trading Strategies [Pdf]

Americans wanted to buy tea, silk, nankeen (a strong, coarse cloth used to make workclothes), and chinaware from China. To pay for these goods, it was necessary to find products that the Chinese would take in trade. Initially, Americans thought that ginseng, a rootprized by the Chinese as an herbal medicine, would become the major product shipped to China. The market for ginseng, however, turned out to be quite volatile-one never knew if the price would be high or low. The Americans had to develop a trading strategy whichhad a greater chance of making a consistent profit.