However, during the 18th century European empires gradually expanded across the world, as European states developed economies built on maritime trade, colonial extraction, and advances in technology. The dynasty was confronted with newly developing concepts of the international system and state to state relations. European trading posts expanded into territorial control in nearby India and on the islands that are now Indonesia. The Qing response, successful for a time, was to establish the Canton System in 1756, which restricted maritime trade to that city (modern-day Guangzhou) and gave monopoly trading rights to private Chinese merchants. The British East India Company and the Dutch East India Company had long before been granted similar monopoly rights by their governments.