China currently has the second largest millionaire population living on its territory, with more than 6.2 million millionaires. Cities such as Beijing, Shanghai and Shenzhen, home to businessmen such as Zhang Yiming, Jack Ma and Li Ka-shing, have nearly as many millionaires among their residents as New York or London.

But the wealth acquired by Wu Bingjian, known as Howqua in the West, dwarfs them all. This 19th century merchant just He was the richest man in Chinabut at a time when their fortunes were comparable to today’s great tycoons, the thriving Vanderbilt surpassed Rockefeller, Morgan and Ford, and even Queen Victoria.

A visionary in the Qing dynasty

Born in China’s Funjian province in 1769, Wu Bingjian came from a merchant family in Canton. His father, Wu Guorong, nicknamed Howqua, founded the Yihehang (Garden House) company in the 1780s.

It was a business that supposedly benefited from the commercial monopoly of the region. Yīkou tongshāng or Cantonal System. Under this program, foreigners could trade with only one of China’s 13 official trade institutions. cohongIt controlled the entry and exit of products such as tea, cotton and silk.

After the death of his elder brother Wu Bingjian Inherited the nickname Howqua He took over the management of the company in 1801 from his father, for whom foreigners knew him. Under his command the company grew into an emporium, which by 1834 had already accumulated the equivalent of $26 million. today it will reach several billion dollars.

This wealth led historian Alain Le Pichon to consider Howqua “the Bill Gates of his time.”Howqua and Howquas: How the Chinese Monopoly Saved American Free Traders from Financial Ruin.‘. His ability to negotiate with the British in the British East India Company and with emerging American traders was key to his success.

Strategies that make a difference

At the beginning of the 19th century, Canton’s port was a hive of commercial opportunities. By 1830 Howqua was supplying the British East India Company with approximately 51,000 boxes of tea per year. 18% of total company acquisitions.

This tea was then served in the most exclusive salons in London, Amsterdam or the USA under the Wu Jia Yihe brand.

As they point out South China Morning PostUnlike other citizens, Howqua had no problem negotiating with any stranger who provided him with some sort of benefit. One of these foreigners was John Murray Forbes, chairman of the North American company Perkins & Co, which initially traded in Chinese tea but later made a fortune in opium.

One of the advantages Howqua found in negotiating with American merchants was that they used “the boldest business practices of the time,” according to historian Alain Le Pichon. Using credit for purchasesThis increased Howqua’s profits.

Contact with John Murray Forbes gave him access to investments in the United States; it was a strategy that positioned it as a pioneer in financial globalization and China’s first record investment in the United States.

His good relationship with John Murray Forbes was strengthened when he offered to invest in the development of the Michigan Central Railroad line and the Berlintown and Missouri River Railroad. These investments will be made through a company called Qichang Foreign Company, which is owned by Howqua. Chinese millionaire doubled his wealth.

By 1834 Howqua was considered the richest man in the world, with his capital estimated at approximately twenty-six million silver dollars, or “eight reales”; A currency known as the Spanish dollar, which was in force until the mid-19th century. Use was rejected.

War undermined his empire

Although there is evidence of his great wealth, records do not mention how this businessman spent his fortune. The only thing that stood out was a huge mansion in Canton with a large ancestral hall and surrounded by beautiful gardens.

The First Opium War (between 1839 and 1842) marked a turning point in its economy, following the significant financial expenses it had to incur to comply with the compensation agreed in the Treaty of Nanjing. Howqua contributed one million silver dollars of the six million dollars committed to the deal.

Howqua died in 1843 and His wealth wouldn’t last for a long time. Conflicts such as the Taiping Rebellion and the Second Opium War devastated the region and depleted the finances of merchant families. Howqua’s descendants were forced to sell their overseas property to meet their debts in China.

In 1891, the transfer of Russell & Company, responsible for managing these investments in the United States, to Howqua’s heirs marked the final culmination of this Chinese “Jeff Bezos” economic legacy in the 19th century.

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