Abstract: This article reexamines foreign trade in Guangzhou. The Chinese government’s object was to protect the security of its borders and the timely and complete collection of customs revenue. Chinese Cohong Merchants protected their commercial interests and worked hard to avoid the dangers of bankruptcy. Under this system of trade foreign merchants profited greatly, especially British traders who did everything possible to reduce the regulations and institutions that reduced their profits. This is what the author refers to as the Hong System. This article also points out the benefits and harm arising from the Cohong credit system. The harm came from the local and even central government involvement. The control of ports was increasingly strict but the benefits took the form of a development of a common Chinese-foreign financial behavior in the Canton trade．