A long time ago, people in China would make special things that were really good or unique - like tea, silk, and porcelain (special bowls and cups). Other people who lived really far away, like in Europe, thought these things were really cool and wanted them.
So, they would trade things they had for the things from China. For example, they might trade gold or silver, or maybe spices they grew like cinnamon or pepper.
The people who wanted the stuff from China couldn't just hop on a plane and buy it from a store. It was too far away and there were no planes back then! So, they had to send ships across the big oceans to get to China. This journey could take months and was very dangerous because the ships could get lost or attacked by pirates.
Eventually, some of the people from Europe set up special companies that would trade with China. These companies were called "East India Companies." They were like big groups of people working together to buy and sell things with China.
Over time, more and more people started trading with China and it became a very important part of the world's economy. Even today, we still trade with China for many things!