In 1865 China exported over 120,000,000 pounds of tea, in 1870 nearly 170,000,000 pounds, in 1880 over 214,000,000 pounds, reaching the enormous total of 221,000,000 pounds in 1890, thus China’s export has also been increasing in a proportionate degree. But although the figures for 1870 and 1890 show that in twenty years it has nearly doubled, still it is not such a remarkable increase relatively when compared with that of India, which during the same period has increased nearly fourteen fold in quantity. In estimating the probability of a recovery in the position of China teas in the markets of the world the following considerations are of interest on the subject: First, it is well known that the heavy _Likin_ (grower’s tax) _Kutang_ (transit dues) and export duties levied on tea have contributed in a great measure to the decadence of the tea-trade in that country and to the development of that of India and Ceylon, where the article, at least, starts free and unencumbered. The Chinese laboring under this disadvantage, at the outset, have endeavored to compete with India and Ceylon by reducing the cost of production and lowering their standard of quality with a consequent deterioration in the grade of the leaf. This changed condition of the tea-trade may be attributed to these specific causes. Fifty years ago India and Ceylon produced no tea, as it was not until 1840 that the export from the former began with a small venture of 400 pounds, since that year, however, the increase has been both rapid and striking. Thus, commencing in 1840, the export has steadily increased year after year until now, when the average annual production reaches 100,000,000 pounds, of which England consumes some 97,000,000 pounds, the balance going to Australia and other of her colonies. It is contended by the Chinese themselves that if the Likin and export duties were removed entirely or the export duty alone reduced to an _ad valorem_ charge of 5 per cent. it would greatly help those engaged in the China tea-trade in their competition with the growers and shippers of India and Ceylon, others holding that a simple reduction of the duty will not permanently benefit the China tea-trade unless it enables China to lay down teas in Europe and America at a less price than can be done by either India or Ceylon.