The Treaty of Nanking was a pivotal agreement signed in the aftermath of the First Opium War, which erupted in 1839 due to disputes over the opium trade. The Qing Dynasty in China had been struggling with the social and economic impacts of opium addiction, which led them to ban the trade and destroy opium stocks in Canton. In retaliation, British forces launched military campaigns that ultimately subdued Chinese resistance to foreign trade demands. Amidst the conflict, the request for diplomatic recognition by Western powers grew stronger, leading to intensified negotiations. The opium war highlighted the clashing interests of Western imperialism with Chinese sovereignty, pressing forces that would shape future interactions between China and the West.

When the Treaty was signed on August 29, 1842, it formalized several inequities imposed on China. The treaty required China to pay a large indemnity to Britain, cede the territory of Hong Kong, and open five ports to British trade, thus stripping several traditional protections from Chinese markets. Additionally, it established extraterritoriality for British subjects in China, allowing them to live under British laws rather than Chinese laws in these treaty ports. This marked a significant shift toward foreign influence in Chinese affairs, contributing to a series of unequal treaties that would follow.

The Treaty of Nanking not only signified the end of military hostilities but also initiated a new era of foreign exploitation and intervention in China. It laid the groundwork for future conflicts, such as the Second Opium War, and displayed the shift in power dynamics between China and Western nations. The resulting economic and social disruptions spurred internal discontent and were precursors to movements aiming for reform and resistance against foreign domination.