VII. The Yuanfeng Law of Maritime Trade in Guangzhou

After the collapse of the Northern Song dynasty, Zhao Gou, Emperor Gaozong of the Song established the Southern Song dynasty and settled the capital in Lin'an (now Hangzhou); the new kingdom lay in a corner of Jiangnan (south of the middle and lower reaches of the Yangtze River). Fierce attacks from the armies of Jin and high military expenses, together with a sharp decrease in fiscal revenue due to the small size of the country was taking toll on the reign of Emperor Gaozong, who was anxiously seeking extra income and therefore focused his attention on maritime trade. In 1137, the 7th year of Shaoxing, he told his officials, "the profit of maritime trade is the largest, and if proper steps are taken, it can gain more, which is much better than taxing people. If I put more weight on maritime trade, then the burden on my people will become lighter."However, the intention of Emperor Gaozong was actually not to ease the difficulty that his people went through, but to increase the revenue of the country and to stabilize his dynasty; every emperor attached considerable importance to the profits of maritime trade. Laws and regulations aiming to raise the profit of maritime trade were enacted time and again.The Yuanfeng Law of Maritime Trade in Guangzhou was imposed in the middle of the Northern Song dynasty's reign and most prominently reflected the intention of the government.

It was the first relatively complete law on foreign trade. Its main contents included:

i. Only Guangzhou, Mingzhou and Hangzhou are allowed to let foreign ships pass. Places other than these that admit ships will be regarded as offenders of the imperial order and will be punished.

ii. All the ships that sail to Southeast Asia and further west must be released by Guangzhou Maritime Trade Supervisorate. Ships leaving for Japan and Korea can only be released by Mingzhou Maritime Trade Supervisorate. Ships that violated the two regulations above will be regarded as offending the imperial order and will be punished accordingly. Despite amnesty or official departure, extenuation is not allowed.

iii. Foreign trade ships must pay tax to the original release city when they return.

iv.Each Maritime Trade Supervisorate is responsible for tributary ships, envoys and their activities in each trade area. Tributary ships and envoys should land and depart at the place where the Maritime Trade Supervisorate is set up.

Based on the regulations above, the administration of trade was divided into different Maritime Trade Supervisorates in several coastal cities. Those in Hangzhou and Mingzhou were in charge of the maritime trade with countries of Northeast Asia, while Guangzhou Maritime Trade Supervisorate managed all those of the scores of countries and states in Southeast Asia, covering the most countries and being the most powerful.