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Qing dynasty

During the Qing dynasty, Shanghai became one of the most important seaports in the Yangtze Delta region as a result of two important central government policy changes: in 1684, the Kangxi Emperor reversed the Ming dynasty prohibition on oceangoing vessels—a ban that had been in force since 1525; and in 1732, the Qianlong Emperor moved the customs office for Jiangsu province (江 海 关; see Customs House, Shanghai) from the prefectural capital of Songjiang to Shanghai, and gave Shanghai exclusive control over customs collections for Jiangsu's foreign trade. As a result of these two critical decisions, Shanghai became the major trade port for all of the lower Yangtze region by 1735, despite still being at the lowest administrative level in the political hierarchy.

In the 19th century, international attention to Shanghai grew due to European recognition of its economic and trade potential at the Yangtze. During the First Opium War (1839–1842), British forces occupied the city. The war ended in 1842 with the Treaty of Nanking, which opened Shanghai as one of the five treaty ports for international trade. The Treaty of the Bogue, the Treaty of Wanghia, and the Treaty of Whampoa (signed in 1843, 1844, and 1844, respectively) forced Chinese concession to European and American desires for visitation and trade on Chinese soil. Britain, France, and the United States all established a presence outside the walled city of Shanghai, which remained under the direct administration of the Chinese.

The Chinese-held Old City of Shanghai fell to rebels from the Small Swords Society in 1853, but control of the city was regained by the Qing government in February 1855. In 1854, the Shanghai Municipal Council was created to manage the foreign settlements. Between 1860 and 1862, the Taiping rebels twice attacked Shanghai and destroyed the city's eastern and southern suburbs, but failed to take the city. In 1863, the British settlement to the south of Suzhou Creek (northern Huangpu District) and the American settlement to the north (southern Hongkou District) joined in order to form the Shanghai International Settlement. The French opted out of the Shanghai Municipal Council and maintained its own concession to the south and southwest.

The First Sino-Japanese War concluded with the 1895 Treaty of Shimonoseki, which elevated Japan to become another foreign power in Shanghai. Japan built the first factories in Shanghai, which was soon copied by other foreign powers. All this international activity gave Shanghai the nickname "the Great Athens of China."