African Entrepreneurship Record

Chapter 351: Chapter 30 Huaihai Economic Zone

It is said that the economic zone planned by the Heixinggen conglomerate in the Far East, encompassing Lunan, Northern Su, Yudong, and Northern Anhui, is an economic depression, which is actually a result of the combination of natural and man-made disasters over the years.

Man-made disasters certainly play a major role. After all, since the Yellow River changed its course in the Song Dynasty, its estuary has always been in Northern Su, and the flood impact has persisted. However, relying on the Grand Canal, this area has always been one of the most economically prosperous regions from the Ming to the Qing Dynasty.

In the early Qing Dynasty, like all unified dynasties, it had the ability to manage the Yellow River. Now, choosing to let it deteriorate, combined with the rise of maritime transport, led to inevitable decline.

However, by the time the Heixinggen conglomerate landed here, the Yellow River had changed its course for twenty years, and the floods had subsided. The Taiping Heavenly Kingdom Movement and the Nian Army had been pacified, presenting a good window for development, which the Heixinggen conglomerate took advantage of.

If it weren’t for the successive natural and man-made disasters, it would have been really difficult for the Heixinggen conglomerate to enter this place. The floods and military disasters caused tremendous damage to the area, while also destroying the local feudal economic system.

For example, Huai’an Prefecture, which was originally Huishi’s important territory second only to Yangzhou during the Ming and Qing periods, was taken over by the Heixinggen conglomerate. In fact, it wasn’t really taken; Huishi is currently shifting its focus to Songjiang Prefecture. With the Yellow River changing its course, the Grand Canal being abandoned, Huai’an lost its function as a north-south transport hub. Additionally, with the rise of maritime transport, and foreign cheap goods entering from the sea, it is inevitable that Huishi would abandon this place. The Heixinggen conglomerate merely delivered the final blow, prompting Huishi to completely give up the area. The same fate befell Hai Prefecture, Xuzhou Prefecture, Jining Prefecture, Yan Province, Sizhou Prefecture, Fengyang Prefecture...

Essentially overlapping with the Nian Army’s activity area, in 1855, when the Yellow River burst its banks (east of Kaifeng), a large number of refugees from Lunan, Northern Anhui, and Northern Su were displaced, joining the Nian Army, reaching a peak. Both north and south of the Huai River were filled with the Nian Army, which was active due to the local economy being destroyed and the people losing their economic sources.

Ernst, who was previously keen on the East African immigration industry, had not noticed that the region covered by the Heixinggen conglomerate was what internet users in the previous life imagined as the ”Huaihai Province.” It was only when the Heixinggen conglomerate planned to invest heavily in the Far East to cope with the economic crisis that he realized.

When Ernst invests in a region, he likes to plan the area, with typical examples being the Northern Industrial Belt of East Africa and the Malawi Lake Industrial Zone. Atypical cases include investment areas centered around the three cities of Berlin, Vienna, and Trieste. As for the United States, it was entirely for profit, with funds flowing wherever profits were high. The investment in the Far East naturally could not be solely for economic interests. Mixed with Ernst’s personal emotions, as long as it didn’t contradict his interests, he could lend a hand, since it’s all about win-win cooperation, neither side losing out.

...

Yan Province, Zaozhuang.

At this time, Zaozhuang belonged to a village under the jurisdiction of Yi County in Yan Province. Yi County has a long history. While Yi County may be somewhat unfamiliar, the name Lanling is much more famous.

Although in the past Zaozhuang City, Yi County, and Lanling could not be equated locally, the general location is this area.

”Mr. Chen, regarding my bank’s investment here in the future, I hope your government will provide more convenience,” said Mark, the branch manager of Heixinggen Bank in Yan Province.

”Hehe, rest assured that our bank has traveled thousands of miles to invest in the Far East. As the saying goes, a guest should be treated with hospitality. Our Celestial Empire certainly has such magnanimity, and we will not let any petty individuals delay your bank’s affairs!” replied Chen Shijie, the Inspector General representing the Qing Government, with a smile.

However, in his heart, he thought differently. If it weren’t for the Heixinggen conglomerate’s deception, who would come here to deal with this group of Westerners?

The Heixinggen conglomerate investing in the Far East naturally couldn’t bypass the local government, and the Qing Government’s nature is to be tough rather than soft. Therefore, only after the East Africa government acted, gaining the ”Imperial Sword” in the Capital, did large-scale development in the Far East begin.

The East African government naturally didn’t have such prestige. It was actually a joint request from the communities of German and Austria-Hungarian merchants, in the name of three countries—East Africa, Germany, and Austria-Hungary—to the Qing Government to lift restrictions.

Germany and Austria-Hungary were representatives. The matter was mainly led by the East African government. Germany was quite busy at the moment, with no time to concern itself with overseas issues, as it was focusing on ensuring France would never rise again. The Austria-Hungarian envoy was working in Japan, not often residing in the Far East.

The Heixinggen conglomerate is a German conglomerate. Together with other German merchants trading in the Far East, it naturally represented German interests. Therefore, the Prussian envoy was brought in by the Heixinggen conglomerate.

An East African ambassador, a German envoy, plus the German merchant group, represented the overall interests of German merchants in the Far East (including Austria-Hungary), pressuring the Qing Government. This matter was then naturally resolved. With two among the world’s powers involved, the Qing Government dared not slack off. The psychological shadow from the previous actions of Britain and France was still in mind. Not to mention Britain and France, just the northern Russia, another power, that single power made it difficult for the Qing Government to cope with.

Moreover, this East Africa-led economic cooperation, although with an element of coercion, gave the Qing Government plenty of face, allowing it to hold a fifty percent share and receive taxes. Although lacking management rights, the profit and taxes were definitely theirs to have.

As for how much the court was willing to invest, it entirely depended on its financial capability. In the end, the stingy Qing Court did not invest, instead allowing the semi-official Huishi to hold a thirty percent share, with the remaining twenty percent funded by the Jin Merchants, jointly developing the ”Huaihai Economic Zone.”

The Huaihai Economic Zone spans the territory of four provinces, with abundant coal resources in the area, especially in Southwest Shandong and Northern Anhui, where large coal mines exist. The entire world is currently in the steam age, and the Far East market is enormous, so developing coal mines is a surefire, profitable venture.

And Zaozhuang is the first location that Heixinggen plans to invest in. The textile industry, which is the easiest industry to start with, has already been decided for Jiaozhou, while the Huaihai area is rich in coal resources. The Heixinggen conglomerate plans to develop its coal resources in Zaozhuang first.

This place is not far from Weishan Lake, making transportation relatively convenient. The remaining startup funds will be provided by the Heixinggen Bank, but the construction will be undertaken by an Austrian coal mining company while introducing equipment from Germany, taking care of interests from East Africa, Germany, and Austria.

However, the name Zaozhuang seems a bit modest. At present, Zaozhuang is just a small town about the size of a village (affected by local population loss due to East African migration). Simply adopting the ancient name Lanling as the new city name is straightforward. As for the existing Lanling Town, it will have to give way.

The planned Lanling City will replace the original Zaozhuang Town, becoming a newly emerging industrial city centered around the coal mining industry.

The importance of the coal industry for industrialization in this era speaks for itself. After the development of Lanling City’s coal mines, relying on Weishan Lake and using river transport, it can reach over the entire Huaihai Economic Zone.

Lanling City is only the starting point. Subsequently, coal mines in Jining, Linyi, Huaibei, Zibo, Heze... even as far as the Huainan region of Anhui may be developed.

At the same time, the Qing Government organized manpower to sort out and dredge roads and canals within the Huaihai Economic Zone. The food needed for these projects was provided by East Africa at cost, and the two sides shared the future returns.

The tax system within the Huaihai Economic Zone was also required by East Africa to be unified, emulating the German Customs Union, eliminating some miscellaneous taxes and fees, reducing local protectionism, and ensuring the free flow of people and goods throughout the Huaihai Economic Zone.

This point pleased the Central Qing Government. The local tax system had already become corrupt, but as the ruler, one should not rashly make large changes. Letting the East African Kingdom play the villain was also acceptable.

Of course, the Qing Government also had to be wary of East Africa. This is why Shandong Inspector General Chen Shijie personally stepped in. He was originally a counselor to Zeng Guofan and participated in the suppression of the Taiping Heavenly Kingdom Movement and the Nian Army uprising. Thus, under the Central Government’s request, he was responsible for monitoring the East African Kingdom. Both sides were collaborating in an atmosphere of mutual distrust.