Why did the Europeans have to use silver for trading with China?

During the period of European trade with China, particularly during the 16th to 19th centuries, silver became the preferred currency for trade. There are several reasons behind this:

1. Demand for Chinese Goods: China had a vast and advanced economy with goods highly sought after by Europeans, such as silk, porcelain, tea and various luxury items. European traders needed a valuable commodity that could be used to obtain these goods.
2. Chinese Monetary System: The Chinese economy was based on a silver standard. The use of silver as currency was deeply ingrained in their monetary system and silver was the preferred medium of exchange for conducting trade within China.
3. Trade Imbalance: Initially, European traders had limited goods that were desirable to the Chinese. This created a trade imbalance, where Europeans needed to pay for Chinese goods with a valuable commodity that the Chinese would accept, and silver became that commodity.
4. Silver's Value and Universality: Silver had inherent value and was widely accepted as a precious metal across various cultures and regions. Its durability, divisibility and uniformity made it a practical medium of exchange for international trade.
5. Access to Silver Mines: The discovery of vast silver mines in Spanish America, particularly in present-day Mexico and Peru, provided Europeans with a steady supply of silver that could be used for trade with China.
6. Government Policies: European governments, such as Spain, encouraged the flow of silver to Asia to acquire Chinese goods. The Spanish traded their American silver directly or indirectly through trade routes, such as the Manila Galleon trade between the Philippines and Mexico, which eventually found its way to China.

Overall, the demand for Chinese goods, the silver-based monetary system in China, the trade imbalance, the value and universality of silver and access to silver mines in the Americas collectively contributed to the use of silver as the primary means for Europeans to trade with China.