The Spice Trade Of Dutch East India Company In Southeast Asia During The 17th Century

The late 16th century, the Dutch followed the Portuguese and the British came to the Spice Islands of Southeast Asia. Early 17th century, the Dutch East India Company stood out quickly in the spice trade competition, with its powerful economic and military strength, advanced shipbuilding and marine technology, iron-fisted monopoly policy. In the Dutch East India Company's overseas empire blueprint, the first and most important goal is to monopolize the spice trade in Southeast Asia. To achieve this goal, the Dutch East India Company invested enormous financial, military, manpower to compete with other European colonists and the native rulers throughout entire 17th century. From 20s to 80s in the 17th century, the Dutch East India Company has completed basic monopoly of nutmeg, cloves and pepper in Southeast Asia. Although Spice trade in access to high profits, the Dutch East India Company also paid a painful price, to the late 17th century, because of their monopoly policy and spice itself loss of allure, the spice trade of Dutch East India Company in southeast declined.The first part of this paper discussed spice trade of Europeans in Southeast Asia before the arrival of the Dutch.Their many uses of spices and the lure of profits of spice trade, making the Europeans to launch spice trade very early. Before the discovery of new routes to east, the spices of Southeast Asia mainly transported to Venice, and then exported to entire Europe. in the 16th century, Portuguese obtained a series of stronghold in Southeast Asia with its strong military presence to the spice trade. but it also faces strong competition from the Muslim trade routes, the Portuguese had never been able to achieve the ideal of monopolizing the spice trade in southeast Asia, to the late 16th century, when Portugal had not maintain availably its position in Southeast Asia.The second part of this paper discussed the rise of the spice trade of Dutch East India Company in Southeast Asia, The late 16th century, the Dutch who sailed to the East looking for spices promoted the establishment of Dutch East India Company afterwards. Early 17th century, the Dutch East India Company to carry out the spice trade in Southeast Asia, firstly confronted the competition from Portugal and the UK. Rely on more powerful military and economic power of Dutch East India Company, the Dutch East India Company accounted for completely the upper hand in battle with Portugal and Spain in the first decade of the 17th century. In this 20s, the Dutch won finally on the contest with British, both of which lay a solid foundation for the monopoly of Dutch East India Company in the spice trade.The third part of the text discussed mainly how Dutch East India Company monopolizing the spice trade in Southeast Asia. The limited spice market of the European determined Dutch East India Company must establish the monopoly of the spice trade. the Dutch obtained nutmeg of Banda Islands exclusively by bloody massacre In 20s 17th century, the Dutch East India Company obtained monopoly on clove trade by destruction of clove and crack down on smuggling activities in 30s to 60s this century, and the Dutch gained the great majority of pepper by controlling each pepper post in Sumatra from 60s to 80s. Dutch East India Company approach to achieve the max monopoly profit by using a variety of monopoly capital methods.the first way is trying to suppress the price of spices; Secondly, the Dutch East India Company limited the destruction of spices production by destruction of trees, although got increased price of spices, but the Dutch East India Company also paid a high price; in addition, Dutch East India Company got better position by seizing Indian cotton.The fourth part, the article analyzed production, exports, prices and sales of cloves, nutmeg and pepper, revealing the Dutch East India Company monopoly policy has brought great profits spices, but also makes the people of Europe lost interest in spice finally. In order to maintain a limited supply of cloves, the Dutch East India Company introduced the policy of tree destruction, making the European sale price of clove higher, but sales had not been improved, resulting in profits of cloves reduced; compared with higher value of cloves, nutmeg sales and prices have become relatively stable, in late 17th century, when sales and prices of nutmeg were in the doldrums; pepper was bulk commodities, the Netherlands was unable to get the whole pepper as a result of pepper produce widely. From the 20's 17th century, the Dutch accounted for most of transport to Europe from southeast, especially the Dutch East India Company seized gradually pepper ports of Sumatra in the 60's.However, the Dutch East India Company supply overfull pepper, which leaded to pepper prices and demand fell sharply after 70s.In the concluding remarks, the thesis tried to analyzed reasons for the decline of spice trade of Dutch East India Company in the late 17th. Firstly, it ascribed to spice monopoly policy, which not only bring their own heavy losses, while the relatively high price of spices, making Europeans look for new alternatives; Secondly, in the late 17th century, cotton, coffee, tea and other merchandise trade had become more profitable. Finally, the depreciation of spice is also an important factor, because people no longer feel so mysterious about spice, and Europeans tastes changed and the emergence of new drugs, making the spice little attraction to them.