In this original study of the Portuguese Empire in the East, the Estado da India, George Souza looks in detail at the activities of Macao. His aim is to enquire into the nature of Portuguese society in China and the South China Sea and explain why the political and economic activities of the Portuguese crown did not inhibit the growth of local entrepreneurial trade. He also examines the nature of Portuguese maritime trade in Asia and analyses the focal role of Macao as an adjunct to the Canton market. The operations of Portuguese private merchants, the so-called 'country traders', are described and tellingly assessed in the wider context of the economic development of China and Southeast Asia in the seventeenth and eighteenth centuries.