How did china respond to industrialization following the opium wars?

In the 17th and 18th centuries, the demand for Chinese goods (particularly silk, porcelain, and tea) in the European market created a trade imbalance because the market for Western goods in China was virtually non-existent, as China was largely self-sufficient and Europeans were not allowed access to China's interior. European silver flowed into China when the Canton System, instituted in the mid-18th century, confined the sea trade to Canton and to the Chinese merchants of the Thirteen Factories. The British East India Company had a matching monopoly of British trade. The British East India Company began to auction opium grown on its plantations in India to independent foreign traders in exchange for silver. The opium was then transported to the Chinese coast and sold to local middlemen who retailed the drug inside China. This reverse flow of silver and the increasing numbers of opium addicts alarmed Chinese officials.