Abstract During the seventeenth century crisis, China witnessed the decline and fall of the Ming dynasty. Scholars have long discussed the role of silver in the Ming crisis, but less attention has been paid to the effects of the production and circulation of silk. This paper examines both internal and external factors that contributed to the decline of Chinese sericulture and silk production, as well as consequent damages to the economy and social relations. Converging environmental and economic factors within major silk-producing regions, as well as a number of incidents that affected the Pacific trade of silk, exacerbated the problems of the late Ming. This paper applies the Law of Supplies and Demands to analyse interconnections between China, Manila, and New Spain. An understanding of the silk industry is essential to explain significant economic connections both within Ming China and between China and the outside world during the seventeenth century.