The novel begins following the British victory of the first Opium War and the seizure of Hong Kong. Although the island is largely uninhabited and the terrain unfriendly, it has a large natural harbour that both the British government and various trading companies believe will be useful for the import of merchandise to be traded on mainland China, a highly lucrative market.
Although the novel features many characters, it is Dirk Struan and Tyler Brock, former shipmates and the owners of two massive (fictional) trading companies who are the main focal points of the story. Their rocky and often abusive relationship as seamen initiated an intense amount of competitive tension. Throughout the novel, both men seek to destroy each other in matters of business and personal affairs. Struan is referred to throughout the novel as Tai-Pan, indicating his position as head of the largest of all the trading companies in Asia. Clavell translates Tai-Pan as "Supreme Leader," although as described in the Tai-Pan entry, "Big Shot" might be more accurate. Brock, owner of the second largest of the trading companies, constantly vies to destroy Struan's company and reputation in an attempt both to exact revenge on Struan and to become the new "Tai-Pan" of Chinese trade.