Chapter 333 Triangular Alliance
In addition to considering the difference in temperature from the coastal plains of East Africa, planting japonica rice in the Great Lakes region is also to enhance competitiveness in the international market.
Like the Far East, Japan, North Korea and parts of Southeast Asia, the requirements for rice in these grain markets are very different from those in the Middle East and India.
The current situation of the international grain market is that it is becoming more and more volume, with the addition of East African grain production, coupled with the expansion of production in grain production areas such as the United States, Australia, Canada and Tsarist Russia.
It is now certain that the world's food production capacity is overcapacity, even earlier than this period in previous lives. What maintains the overcapacity of food production is the rapid development of industrialization in various countries. Now the entire world is in extreme prosperity before the economic crisis. During this period, everyone is blindly investing in production and making money no matter what they do. Once the economic bubble is burst, an economic crisis will inevitably break out within one or two years.
In order to avoid risks, Ernst's next goal is to optimize East Africa's industries, open up East Africa's internal market, dispose of Europe's non-performing assets, and further strengthen East Africa's economic barriers to separate it from the world market.
In fact, East Africa has always been economically disconnected from the world market. As a country owned by a consortium, all foreign trade in East Africa must pass through the "connector" of the Hechingen Consortium, so East Africa's foreign trade Trade is not in line with the world market.
So the impact of the world economic crisis on purely agricultural countries like East Africa is very limited, and may even have beneficial effects. This can be seen in the Far East. During the world economic crisis, it became the hottest time for industrial investment.
Although it is beneficial to East Africa, the economic crisis will affect the Hechingen Consortium's ability to earn more and less. After all, most of the Hechingen Consortium's assets are in Germany and the Austro-Hungarian Empire.
Because of the disruption in East Africa, Ernst is not sure when this time and space economic crisis will suddenly break out.
Historically, it was the beginning of 1873, but there were signs at the end of 1872, mainly that the American railway production could not be rolled out, but the first place where the crisis broke out was the Austro-Hungarian Empire, and the center of the crisis was in the United States.
……
July 1871.
Due to the construction of Nairobi in East Africa, some industrial workers were diverted from the Far East. In addition, due to the decrease in orders caused by the end of the two wars in Europe, some machines in Jiaozhou's textile industry came to a standstill. It is imperative to reduce the production capacity of Jiaozhou's textile industry. .
This production capacity reduction is aimed at the textile industry invested by the Hechingen Consortium in the Far East. In fact, the production capacity of Jiaozhou's cotton textile industry has been reduced due to worker immigration. The Hechingen Consortium is mainly reducing production capacity this time. Finally, the surplus machines were disposed of.
Jiaozhou Textile Factory.
Levins, sales representative of Jiaozhou Textile Factory: "Mr. Qiao! Look at these machines. They have been running for less than two years. They can be used as new equipment even in the next ten years. Eliminated from the market, there have been purchase intentions from Japanese companies before you, but we still decided to keep most of these machines in the Far East.”
It is impossible to sell these machines to Japan. It was the most advanced in the world when I ordered it, and it is still the first echelon now.
Due to reforms, Japan's textile industry has achieved tremendous development. Ernst does not want to help Japan improve its mechanization level. The best choice for Japan is to continue to be a sweatshop.
At present, there is a technological blockade between the West and the East, mainly the blockade of advanced machinery. Even if the machinery is exported, it is also exporting some technologically backward machinery that is about to be eliminated. The machines of the Jiaozhou Textile Factory are from Hechinggen. The consortium imported them from the UK in the name of Germany (Prussia), so there was no obstacle at the time. The British manufacturers did not expect that the Hechingen consortium would assemble and build a factory in the Far East.
Qiao Zhiyong: "Mr. Levins! Although the machinery in your factory does look new, these machines are second-hand after all, and the price is too high!"
Levins shook his head and said: "Mr. Qiao , I want to popularize some concepts for you. These machines are top-notch even in Europe, and the production efficiency is very high. If you have the ability to go to the UK for inspection, you will find that many textile companies in the UK do not even use it. We are still using more backward machines, so the machines we plan to sell are completely priceless in the Far East. If you miss this opportunity, it will be a loss for you and even your country.”
Qiao Zhiyong. : "Well, having said that, I am running a small business and have no experience in this area, so I have to bear huge risks!" Xinyou is a ghost!
Jiaozhou Textile Factory has its own considerations when looking for a new home. Businessmen with poor financial strength are simply not qualified to come here to see the goods.
There are a group of business giants in the south who are capable of taking over, but they are closely related to British capital. The Hechingen Consortium will not even give them a chance to enter. To put it mildly, they are called capitalist enemies.
As a large consortium representing German capital, Hechingen is one of the competitors of British capital in the international market, especially after the reunification of Germany.
Qiao Zhiyong, as a commercial giant in the northern region, represents the most powerful Shanxi merchants in the north.
The representative business of Shanxi merchants is banknotes. In the West, this is a bank. It is half the same as Hechingen Bank, so its strength is naturally very strong.
The most important thing is that there is no influence from other foreign countries behind it. It is a business group born and raised in the Far East, and it is a partner that Hechingen Bank can cooperate with.
Moreover, Shanxi merchants are headquartered in the northwest region of Shanxi and Shaanxi and Inner and Outer Mongolia. The business scope does not overlap with the Heixinggen Consortium. The business scope currently developed by the Heixinggen Consortium is mainly concentrated in North China, and the furthest reaches northern Anhui and Henan. In the east and south of Zhili, this is already the limit. After all, the north does not have as dense a water network as the south, and there is competition between Britain and France in Yantai next door.
If the Hechingen Consortium and Shanxi merchants establish a cooperative relationship, the Hechingen consortium and East Africa can cover their business to the hinterland of the Far East, West, and Northeast through the business channels of Shanxi merchants.
Levins: "Mr. Qiao, you are a visionary person. Don't care about such a small profit. Just imagine, if you get these machines, you can take advantage of the population market in the hinterland of your Far Northeast. and resources to build a cotton textile enterprise comparable to that in the south. According to our understanding, the north and northwest of your country are both suitable for cotton cultivation.”
While the two were discussing, the workshop next door. Jiaozhou Textile Factory is also negotiating with Hu Xueyan, a representative of Huizhou merchants.
Yes, this time the Hechingen Consortium is taking advantage of both sides, because the Jiaozhou Textile Factory wants to reduce its production capacity by half, and as the largest textile factory in the Far East, half of its production capacity is not a small number.
And East Africa is not a powerful country. It has considerable influence in the Far East by pulling on Germany's skin. It would be good to occupy a place in the north.
If you want to further develop in the Far East, you must have agents and partners. Shanxi merchants and Hui merchants, as the two major business gangs in the Far East, are capable of cooperating with East Africa in terms of economic strength.
Although the two major business gangs look prosperous now, in fact they are both in a very dangerous situation. As two representatives of Far East commerce, they also face competition from foreign capital.
Whether it is a good idea to demarcate their respective spheres of influence with Hechingen, an outsider, this time, reducing internal friction among the three can prevent capital from other countries from taking advantage of the situation.
We are all competitors of capital from Britain, France, the United States and other countries, so it is necessary to stay together. If the three parties combine, they can stabilize the independence of the regional economy within their respective business scopes. Of course, if the competitors pass The means of war to open a breakthrough are another matter.
For example, Huizhou merchants have a very dangerous geographical location. British capital already has a bridgehead in the Yangtze-Huaihe River basin, and the entire Yangtze River coast is not safe.
That is to say, Huizhou merchants are still somewhat resistant, such as Hu Xueyan, who historically fought against foreign capital and was ultimately destroyed by the joint suppression of the country's bureaucracy and foreign forces.
(End of this chapter)