The corruption seen throughout the 18th century and into the 19th century made some people very rich but threatened effective government. In particular, there was a perceived political and commercial threat from abroad on the part of successive Chinese emperors. One consequence was the introduction of a protectionist policy called the Canton System. The system, operating between 1757 and 1842, served as a means for Qing China to control trade with the West within its own country by focusing all trade on the southern port of Canton (now Guangzhou).

By the late 18th century, British traders felt confined by the Canton System and, in an attempt to gain greater trade rights, they lobbied for an embassy to go before the emperor and request changes to the current arrangements. The need for an embassy was partly due to the growing trade imbalance between China and Great Britain, driven largely by the British demand for tea, as well as other Chinese products like porcelain and silk. The East India Company (EIC), whose trade monopoly in the East encompassed the tea trade, was obliged by the Qing government to pay for Chinese tea with silver. To address the trade deficit, EIC acquired a monopoly on opium production in India from the British government. However, as it had been illegal to sell the drug in China since 1800, so consignments were sent to Calcutta for auction whereafter private traders smuggled the opium to the southern ports of mainland China.

In 1787, Prime Minister William Pitt the Younger and EIC official Henry Dundas dispatched Colonel Charles Cathcart to serve as Britain's first ambassador to China. Cathcart became ill during the voyage, however, and died just before his ship, HMS Vestal, reached China. After the failure of the Cathcart Embassy, Macartney proposed that another attempt be made under his friend Sir George Staunton. Dundas, who had become Home Secretary, suggested in 1791 that Macartney himself take up the mission instead. Macartney accepted on the condition that he would be made an earl, and given the authority to choose his companions. Thus, the Macartney Embassy emerged.

Internal discontent during this period was most noticeable in the impoverished provinces of Hubei, Shaanxi, and Sichuan which saw the protracted White Lotus Rebellion.