A Pawn's Passage

Qi Xuansu did not quite grasp Chen Shuwen’s train of thought, so he said, “Please enlighten me, Old Master Chen.”

Chen Shuwen explained, “When I say that the Nanyang United Trading Company is like a kingdom, I do not mean a traditional Central Plains dynasty. First of all, traditional Central Plains dynasties were essentially closed systems. They could only economize but could not generate new sources of wealth. As a result, no dynasty could last 300 years.

“But if you look at the Great Xuan Dynasty today, which has been founded for more than 200 years, there isn’t even a hint of chaotic decline. On the contrary, it is still in an upward phase. This is because the Great Xuan Dynasty is not a closed system and is able to open up new sources of wealth.

“Take Nanyang as an example. In order to exercise real control over the region, large numbers of Central Plains people come to the Nanyang every year. The Great Xuan Court and the Daoist Order still consider this insufficient, so they encourage migration and even send people who have lost their land to Nanyang. With this, the powerful elites are no longer obsessed with annexing land. Instead, they sell off their land and head overseas in great numbers to establish their fortunes abroad. Under such circumstances, how could the Central Plains possibly face a conflict of too many people and too little land? Put plainly, a closed environment also restricts the powerful, forcing them to focus their efforts solely on land.

“Secondly, technological stagnation in the past Central Plains dynasties meant that the pie could not be made bigger, and thus, there was a limit to how many people could eat it. It was only after the Daoist Order replaced the Confucian School that development began to accelerate, truly enlarging the pie and making it possible to support the majority of the population.

“Rather than saying the Nanyang United Trading Company resembles an ancient dynasty under Confucian governance, it would be more accurate to say that it resembles the Great Xuan Dynasty under Daoist governance.

“There is the same underlying trajectory here: technological development, venturing overseas to seek cheap resources, and then expanding. However, during the expansion process, technological advantages begin to erode, leading to a gradual loss of cheap resources, rising costs, and the difficulty of moving from extravagance to frugality. In the end, the entire system begins to collapse.

“The Great Xuan Court is still in its expansionary phase. Compared to surrounding regions, it continues to enjoy unmatched technological advantages. The people of the Great Xuan Dynasty can build ironclad ships, firearms, artillery, glass, and steel, while the people in Nanyang lack such techniques. So, Nanyang can only supply raw materials such as ore, timber, and rubber, things that require no advanced technology and cannot fetch high prices. They also need the Central Plain’s high-end products, so they can only exchange vast quantities of cheap raw materials in exchange for Great Xuan goods. These are the Great Xuan Dynasty’s cheap resources.

“However, in this process, the Nanyang people also gradually began to learn the Great Xuan’s advanced technologies. One day, they will catch up to the Great Xuan Dynasty. At that point, for various reasons, such as proximity to raw material sources and cheaper labor, the Great Xuan Dynasty will relocate manufacturing industries from the Central Plains to Nanyang, indirectly accelerating Nanyang’s technological progress. This is how technological advantages begin to erode.

“On the surface, the Great Xuan Dynasty appears to have escaped the 300-year cycle of rise and decline. But in reality, such cycles must still exist. They simply no longer resemble those of the old Confucian dynasties, unless Great Xuan technology can continue to advance indefinitely and maintain its advantage forever. But we all know this is impossible. A person’s cultivation will reach a limit, and when that happens, they must ascend and leave this mortal realm. But can the Great Xuan Dynasty leave this world?

“One day, there will no longer be any difference between the Central Plains and Nanyang. The Nanyang people will directly manufacture the things they want, instead of exchanging cheap raw materials for Great Xuan’s products. At that point, Great Xuan will lose its source of cheap resources.

“The Nanyang United Trading Company appears to be a Nanyang company, but in reality, it is a company rooted in the Great Xuan Dynasty. The underlying logic is the same. The Nanyang United Trading Company is not merely engaged in transit trade. It relies on technological advantages and a vast supply of cheap resources to achieve rapid growth.

“The Primordial Daoist Ancestor once said that rise and decline are unavoidable. During times of prosperity, one must know restraint. Only then can it endure the times. This has nothing to do with morality. If a hegemon always relies on sheer power to oppress others, it may seem triumphant for a time, but in reality, it’s depleting its own national strength, credibility, and prestige, shortening the duration of its dominance.

“People are always shortsighted. Even knowing that short-term gains will harm the long-term future, they still cannot resist pursuing immediate benefits. Powerful families annexing land do this. Manufacturing plant owners who relocate their workshops overseas do the same. They will leave tomorrow’s worries to future generations.

“It’s like a person who abuses their body in youth. While young and strong, nothing seems amiss, but when age advances and strength declines, the consequences gradually surface. The Nanyang United Trading Company is the same. At the height of its prosperity, it knew no restraint and acted recklessly, damaging its foundations and planting countless hidden dangers. During prosperity, these problems are invisible, but once decline sets in, those hidden dangers surface, becoming major issues that are difficult to resolve.”

Qi Xuansu listened very carefully and finally understood what this elder was saying.

He had to admit that Chen Shuwen truly had real substance and was indeed worth a personal visit. Chen Shuwen was using the Nanyang United Trading Company as a lens to speak about the broader currents of the world, not vague or ethereal notions of fate or fortune, but an unveiling of the essence behind many matters.

This also strengthened one of Qi Xuansu’s convictions. The Confucian School was right—human nature was the root of most problems. Whether it was technological progress or the continual refinement of institutions, as long as humans were involved, flaws could not be eliminated. Unfortunately, although the Confucians identified the core of the problem and proposed that changing human nature could establish a peaceful world, they still failed to find a way to actually resolve the problem of human nature.

Qi Xuansu asked, “Old Master Chen, did you leave the Nanyang United Trading Company because of this?”

Chen Shuwen did not deny it. “Although you have purged the upper management of the Nanyang United Trading Company, this is like changing emperors at the end of a dynasty. It doesn’t mean much. The roots are rotten, so it must be torn down and rebuilt from the ground up.”

Having said this, Chen Shuwen fixed his gaze intently on Qi Xuansu.

“So, you wish to reform it?” Qi Xuansu asked again.

Chen Shuwen no longer concealed his intent. “That depends on whether you are willing to relinquish power, Sage Qi.”

Qi Xuansu said, “Is this your condition, Old Master Chen?”

Chen Shuwen said nothing, acquiescing to it.

Speaking of reform, Qi Xuansu could not help but think of Zhang Yuelu. She was also a reformist. She wanted to change the Daoist Order, but she had never spoken of creating an entirely new one.

Qi Xuansu did not agree right away. Instead, he asked, “What do you intend to do, then?”

Chen Shuwen said, “Reform cannot be driven by political maneuvering alone. It requires pressing internal and external pressures with a clear and well-defined plan as guidance. A group of stakeholders willing to strive for betterment will become the foundation, and massive interests are to be redistributed once it succeeds. A resolute leader with a core power base is also needed. None of these can be missing. Political tactics merely serve to reduce resistance.

“Without internal and external pressure, there will be no incentive for reform. If everyone has their share of the pie and harmony prevails, why would anyone risk changing the existing order?”

Qi Xuansu asked, “Where does this external force come from?”

Chen Shuwen pointed at Qi Xuansu. “You, Sage Qi.”

“Me?” Qi Xuansu was taken aback.

Chen Shuwen explained, “You have eliminated the upper management of the Nanyang United Trading Company with thunderous force. If we view the company as a kingdom, this is equivalent to the capital being breached and the royal family annihilated. That’s what it means to be the external pressure.”

Qi Xuansu asked again, “What about the internal pressure?”

Chen Shuwen replied, “If we view the company as a kingdom, internal pressure often comes from dissatisfaction at the grassroots. Every large-scale uprising forces the upper ranks to make changes. Over the years, the Wang and Sun families’ arbitrary taking and grabbing have left the company’s lower ranks deeply resentful, only daring to be angry but not to speak out. Now is the perfect opportunity to turn this discontented base into a stakeholder group for reform. Without a group whose interests are tied to reform, all reforms are useless, ultimately degenerating into a farce where a group of people merely act alongside one individual.”

Qi Xuansu understood. “Improve the welfare and benefits of the lower-level employees so that they support reform. But where does the money come from?”

Chen Shuwen said, “Once the upper echelon is dealt with and the lower ranks are taken care of, what remains is the vast middle layer. In a dynasty, these would be the numerous bureaucrats, noble families, elites, and royal clans. They are both the bulk of the interests to be redistributed and the source of many hidden dangers.

“Over the years, the Wang and Sun families practiced nepotism, planting large numbers of cronies throughout the company. We must cut into them to eliminate the hidden dangers at the root. Now that both the Wang and Sun families have been completely purged, their former tight-knit web of interests has collapsed, and the company is in turmoil. These people are frightened, disorganized, and weak, so this is the best moment to act. If we miss it and they regain stability, it will be difficult to move against them again.

“Finally, there must be a sufficiently resolute leader. If orders change from morning to evening and one is constantly led by short-term interests, the end result will be nothing more than jogging on the same spot.”

After listening to all this, Qi Xuansu fell silent.

There was no doubt this would be a major undertaking, but if done well, the benefits would be self-evident.

After a long while, Qi Xuansu said, “I can support you, and I can also delegate authority to you. But you must give me a clear timeframe.”

Chen Shuwen held up three fingers. “Three years. Give me three years, and I will return to you a completely new Nanyang United Trading Company.”

Qi Xuansu extended his hand and said, “Very well. Let us set a three-year pact.”

Chen Shuwen and Qi Xuansu sealed the agreement with a clap of their palms.

After this in-depth discussion, Qi Xuansu, in the name of the Poluo Daoist Mansion, conferred Chen Shuwen with the status of a fourth-rank Jijiu Daoist and appointed him as the representative of the Poluo Daoist Mansion to serve as the Chairman of the Nanyang United Trading Company’s Board of Directors.