into territorial control in nearby India and on the islands that are now Indonesia. The Qing response, successful for a time, was to establish the Canton System in 1756, which restricted maritime trade to that city (modern-day Guangzhou) and gave monopoly trading rights to private Chinese merchants. The British East India Company and the Dutch East India Company had long before been granted similar monopoly rights by their governments. In 1793, the British East India Company, with the support of the British government, sent a diplomatic mission to China led by Lord George Macartney in order to open trade and put relations on a basis of equality. The imperial court viewed trade as of secondary interest, whereas the British saw maritime trade as the key to their economy. The Qianlong Emperor told Macartney "the kings of the myriad nations come by land and sea with all sorts of precious things", and "consequently there is nothing we lack..." Since China had little demand for European goods, Europe paid in silver for Chinese goods such as silk, tea, and ceramics, an imbalance that worried the mercantilist governments of Britain and France. The growing Chinese demand for opium provided the remedy. The British East India Company greatly expanded its production in Bengal. The Daoguang Emperor, concerned both over the outflow of silver and the damage that opium smoking was causing to his subjects, ordered Lin Zexu to end the opium trade. Lin confiscated the stocks of opium without compensation in 1839, leading Britain to send a military expedition the following year. The First Opium War revealed the outdated state of the Chinese military. The Qing navy, composed entirely of wooden sailing junks, was severely outclassed by the modern tactics and firepower of the British Royal Navy. British soldiers, using advanced muskets and artillery, easily outmaneuvered and outgunned Qing forces in ground battles. The Qing surrender in 1842 marked a decisive, humiliating blow. The Treaty of Nanjing, the first of the "unequal treaties", demanded war reparations, forced China to open up the Treaty Ports of Canton, Amoy, Fuzhou, Ningbo and Shanghai to Western trade and missionaries, and to cede Hong Kong Island to Britain. It revealed weaknesses in the Qing government and provoked rebellions against the regime. The Taiping Rebellion in the mid-19th century was the first major instance of anti-Manchu sentiment. The rebellion began under the leadership of Hong Xiuquan (1814–64), a disappointed