However, the 18th century saw the European empires gradually expand across the world, as European states developed economies built on maritime trade. The dynasty was confronted with newly developing concepts of the international system and state to state relations. European trading posts expanded into territorial control in nearby India and on the islands that are now Indonesia. The Qing response, successful for a time, was in 1756 to establish the Canton System, which restricted maritime trade to that city 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.