Reborn as King of South America

Chapter 535: Far East Industrial Dilemma and Utopia
While Chen Shen, Qiu Mingzhang and others were eating and chatting in the restaurant, Zhao Deyuan, Zhao Fuqing and others also sat down in a restaurant on the other side of the Rio de Janeiro port.

"Dad, now that we have purchased the dyeing and printing equipment, where are we going to set up the factory next? Why not just build a factory locally? It will be convenient to transport, transfer and install the equipment. In addition, the local industrial infrastructure is complete, so if the machines and equipment break down, it will be easy to repair them."

"Local areas are not suitable. Local industrial base is complete and competition is fierce. There are many printing and dyeing and textile manufacturers of various types. Most of the machines and equipment used are produced locally. The performance of machines and equipment is higher than the second-hand dyeing and printing equipment we bought. If we build a factory locally, we will not be able to compete with other manufacturers."

"Then we can go back to our hometown in Jiangnan or build a factory in the Shanghai Concession. Although the equipment we purchased is not advanced in South America, if we transport it to the Far East and build a factory on the mainland, we can compete with those state-owned enterprises in the Qing court. The finished cloth we produce will have quality and cost advantages. Compared with the finished cloth produced by foreigners such as Britain, Germany, and France, because we build a factory directly in the local area, we can save transportation costs. In terms of price, it will also be cheaper than the finished cloth of foreigners."

"By returning to my hometown in Jiangnan to build a factory, the cost can be reduced to the lowest. However, Fuqing, have you ever considered a problem? Although the imperial court encourages Westernization and the construction of industries, the construction of the factory area is mainly led by the imperial court. We pull the equipment back. Even if we have connections and build a dyeing factory, and the finished cloth is successfully produced, what about the follow-up? If we sell the finished cloth directly, will it cause interference from local officials and people?
In Liangxi, two years ago, Wu Jianlin built the first local dyeing factory. The price of the finished cloth sold was only two-thirds of the traditional handmade model. The factory was opened for only two months, and the people in the surrounding areas who were engaged in hand-woven textiles and silk reeling lost their jobs and went bankrupt. The people who had no income could not make ends meet, so they gathered together and rushed into the Liangxi dyeing factory, smashing and destroying all the machines and equipment in the factory. Afterwards, the Liangxi County Magistrate was worried that the dyeing factory would have an impact on the survival of the people engaged in handicrafts under his jurisdiction and affect public security and stability, so he forced the dyeing factory to close. Most of the funds invested by Wu Jianlin were wasted, and he suffered heavy losses. "

Zhao Deyuan sighed, "Developing industries and building factories are good things for the country and the people in the long run. Unfortunately, it can't be done in the Far East."

"Dad, then why can the industrial development policy be implemented smoothly in South America without any resistance or opposition from the people?"

"South America has vast land and sparse population, but rich resources. People can live a good life by farming and raising livestock. With a good life, they can save some money every year. The harvest from the fields, the food that they can't finish eating, and the livestock can be sold overseas in exchange for silver. People's lives are affluent and they have money in their pockets. There is demand for finished cloth, soda ash, rubber shoes, matches, etc., so they are willing to spend money to buy industrial products. With the market for industrial products, related industrial enterprises will naturally develop smoothly."

"According to Dad, the reason why the Far East Continent can't develop industry is because it's too poor and has no money?"

"That's right and that's not right. The people of the Far East are poor, but the officials and gentry have a lot of money. If we take out one tenth of their money and use it to improve people's livelihood, even if it's just to ensure the minimum standard for people to survive, it will be enough to boost industrial development."

Zhao Deyuan was born into an old-fashioned merchant family. However, as he frequently traveled to overseas regions such as Southeast Asia and the mainland for business, and compared the industrial and commercial development of Songkhla, Lan Fang, the mainland of Han Dynasty and the Western powers, he gradually understood the fundamental reason why industry and commerce could not develop in the Far East.

Light industry represented by printing and dyeing, textiles, silk reeling, and flour processing, and heavy industry represented by steel, machinery, and mold processing are the core of the industrial system. In order to complete the country's industrialization, light and heavy industries must be developed simultaneously. Under the leadership of a group of Westernization ministers, the Qing court carried out a series of industrialization reforms, but the scope of the reform was limited to the official-led procurement of machinery and equipment, and the construction of processing industrial enterprises. No heavy investment was made in corresponding scientific research and development and the training of new talents. In addition, with civil servants dominating factory management and laymen leading a group of ordinary technical workers with average cultural literacy and technical level, it would be strange for industry to develop.

Secondly, the industry at the end of the 19th century could only accommodate a limited population. After more than 20 years of Westernization and industry, the total number of workers engaged in industrial enterprises was no more than tens of thousands. This was not only inferior to that of the South American Han Dynasty, but also to Japan, which was carrying out industrialization reforms at the same time.

The limited population that industrialization could accommodate, the serious imbalance in asset distribution that led to the contradiction between industrial development and traditional handicrafts, and the most fundamental aspect, the ruling class's unwillingness to share the benefits of economic and industrial development with ordinary people, and other factors led to the superficiality and stagnation of the Westernization Movement.

They lack the courage and confidence to expand outward to seize living space for their own people, and are unwilling to leave any way out for the lower-class people. They hold all power in their hands and only know how to exploit the people internally. Contradictions are accumulating more and more, and in the end, there is only one outcome: the intensification of contradictions and an explosion.

In this era, many people have seen through the superficial nature of the Westernization Movement. Businessmen like Zhao Deyuan, who have contacts with various overseas countries and a keen sense of smell, are more realistic in their predictions about the development process and outcome of the Westernization Movement.

"The Far East is not suitable, and the same is true for the concessions. The concessions are foreign territories, and the local foreigners, secret societies, gang members and other forces are mixed. Before we have established connections in advance and understand the local situation, we cannot rashly build a factory."

Zhao Deyuan explained: "Songkhla and Lanfang in the Nanyang region are different. They are controlled by the Chinese. Although they are in name only, they are actually dominated by the local South American people. Moreover, Songkhla and Lanfang are relatively close to the Far East continent. If we build factories there, the public security and business environment will be stable, and the cost of sea transportation is not high. Now, many local businessmen are also planning to build factories in the Nanyang region to expand the Far East continent market."

"Hearing what Dad said, I suddenly remembered that the Zhang, Wang, Liu and other families in the local area have all sent people to investigate the business and market environment in Nanyang. It seems that they are also preparing to build factories in Nanyang."

Zhao Fuqing nodded and continued, "Dad, if you ask me, our South American mainland is good in every aspect, except that the commercial tax is a bit high. For every commercial transaction, we have to pay 15% of the commercial tax to the imperial government. In addition, there are many restrictions on building factories in the mainland, such as guaranteeing workers' normal rest time, wages must not be lower than the minimum level set by the government, and companies that evade taxes, squeeze, corporal punishment of workers, delay workers' wages, deduct workers' wages, etc. will be punished twice as soon as they are discovered. I heard that in October last year. There were eleven companies in Songjiang Prefecture that illegally fired workers and did not give compensation. The government ruled to compensate the fired workers with twice the normal standard of compensation, and fined them 10 to 50 Han yuan. Not counting the double compensation paid to the workers, the fine alone is at least 1000 times the compensation amount. According to this punishment intensity. In a few years, I am afraid that few companies will dare to illegally fire employees and fail to give workers compensation according to the law." "Fuqing, do you think the government's punishment policy is correct?"

"From the perspective of the country's long-term development, the imperial government's punishment policy is correct. I also agree that to a certain extent, the interests of workers should be guaranteed, but the degree of punishment is a bit too much, Dad. You also know that in the Far East continent, there are refugees and beggars everywhere in the city. Recruiting workers, let alone paying wages, as long as they can fill their stomachs with three meals a day, there will be a lot of people lining up to work in the factory. Moreover, let alone in the north of the Far East continent where famine is prevalent, even in our hometown of Jiangnan, 10 taels of silver can buy a virgin girl. However, in South America, once it is discovered that a worker is illegally fired, the government will punish him with at least 50 Han yuan, which is enough to buy two or three girls."

"Fuqing, you have gone through two years of naturalization education and obtained official nationality. Let me ask you, what is the program of the founding of the Han Kingdom?"

“It is to establish a heavenly kingdom on earth that belongs to all citizens.”

"So what is heaven on earth?"

"Everyone is equal, everyone has food to eat, clothes to wear, land to farm, and everyone shares the dividends of national development."

"Yes, your Majesty's founding program clearly states that the Han Empire is the homeland and paradise of all citizens. If you only protect the interests of nobles, officials, and businessmen, and do not protect the legitimate interests of ordinary people, then what is the essential difference between the South American Han Kingdom and the Qing court?"

Zhao Deyuan sighed, "Fuqing, you must cherish your identity as a citizen of the South American Han Kingdom. This era is a cannibalistic society. Your father and I have traveled to various places in the Far East, Southeast Asia, America, and even the United States and Britain, but we have never seen a country like South America. The appearance of your majesty and the establishment of the Han Empire are incompatible with this era, as if they do not belong to this era. For ordinary people, South America and the Far East are like the difference between heaven and hell. Without the sincere ideals of your majesty and the soldiers and officials who followed your majesty, the Han Empire might not have appeared at all, and we would not have been able to enjoy the benefits brought by local development."

"My child understands."

After listening to his father's explanation, Zhao Fuqing replied seriously.

“Merchants do business thanks to the development of the empire’s economy and the strong military support behind the empire.

Compared with giving up part of the commercial interests, a stable business environment and the military support of a powerful country behind us are the greatest confidence for us businessmen.

In addition, whether in life or in business, there must be a bottom line. Workers working in factories are much more tired than working in the fields. We have opened factories and made a lot of money. According to national standards, it is reasonable to pay wages and give compensation normally. Don't miss the big things for a little profit."

After educating his son, Zhao Deyuan looked out the window at the moonlit night and said with longing: "The empire has a vast territory, a stable political situation, and developed industry and commerce. The La Plata Plain is fertile and has a mild climate. The natural environment is very similar to our hometown, which is suitable for living. When you brothers and sisters passed the naturalization test, I planned to buy more land. When you are exhausted, you can return to your hometown to live in retirement. However, due to policy restrictions, although the land in your hometown is vast, it is not available to you if you have money. Otherwise, I really want to buy more land."

"Dad, you are not young anymore. In two years, when my son and my two brothers have gained some experience, you can return to South America to settle down. At that time, we will pay more land taxes and buy a few hundred acres of land. We will build a garden in the style of our hometown in Jiangnan for you to live in when you retire."

"Forget about a few hundred acres of arable land. Let's buy another 100 acres, plan out 30 acres, build a house, create some rockeries, ponds, and gardens in the front and back yards, raise some parrots and goldfish, and I can enjoy a quiet life.

(End of this chapter)