Question

Why did European merchants generally trade gold and silver for chinese goods in among China, rather than trade manufactured good of their own

Answer 1

European manufactured goods were generally of lower quality than the Chinese goods.

During the Ming Dynasty there was a thriving trade with both Europe and Japan. The Ming dynasty managed to create high quality manufactured products, so the other merchants exchanged gold and silver. With the obtained income they obtained the construction of channels, highways and bridges on the part of the Ming Government.