Sometimes, as investors and traders, it is interesting to look back on history to see how the trading relationship between the East and the West developed. Of course, the most famous trading route is the Silk Road which was opened in 130 BC, remaining in use until the 15th century and the introduction of global maritime trade. So what was the Silk Road, and why was it so influential?

 

Opening trade between the East and the West

 

The term “Silk Road" relates to expensive Chinese silk, heavily traded across the trade route. The name creates the image of one long road when this is not the case. The Silk Road was a network of roads which interconnected China with the Mediterranean and, ultimately, the West. While you will see numerous figures regarding the length of the Silk Road, it was a minimum of 4000 miles, with some experts suggesting it was nearer 6000 miles. Either way, this was a vast and highly influential trade route!

 

Goods traded along the Silk Road

 

The range of goods traded along the Silk Road was huge and included the likes of:-

 

• Fruit
• Vegetables
• Livestock
• Leather
• Tools
• Artwork
• Precious stones
• Precious metals
• Religious objects

 

However, many people fail to realise that this was also the perfect medium for exchanges in:-

 

• Language
• Culture
• Religion
• Philosophy
• Science

 

It is also important to note that items such as paper and gunpowder originated in the Far East and were imported into the West initially via the Silk Road. The influence of these two commodities alone is evident and perfectly reflects the trade in goods and culture.

 

Explorers, scholars and diplomats

 

Today we take for granted diplomatic relations between countries across the world and how they first arose. However, history shows that the Silk Road was used regularly by explorers, scholars and diplomats, leading to various discoveries and enhanced relationships. It was also central to the rise and fall of numerous empires over the centuries and linked with issues such as the spread of the Black Death.

 

The importance of the Silk Road should never be underestimated, opening trade lines and creating new business sectors in the East and the West. There are still remnants of the various tracks and roads visible today, with some areas preserved for history. While the name relates to the initial prevalent trading item, Chinese silk, this was more than a simple trade route.

 

Planting seeds for the future

 

In reality, there have been strong trade relations between the East and West for centuries. While the mass media may sometimes suggest otherwise, the Silk Road may have gone, but the trade routes are still there. As the likes of China, Hong Kong and Singapore continue to push their stock markets onto the global stage, many argue this is just the next stage of the Silk Road. Hong Kong is the central investment route for Western investors and Far East businesses looking to expand their reach and funding resources.

 

Summary

 

There is so much more to the Silk Road than the basic headline suggests; this was a ground-breaking trade route of thousands of miles. The import and export of goods often overshadowed the import and export of cultures, religions and other areas of everyday life. Those researching the history of Far East trading will find that much of this is connected to the famous trade route.

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