The third step in the separation of military and government was to divide the industrial system under the jurisdiction of the government and change the nature of large and small enterprises established since the founding of the country to state-owned enterprises.

State-owned enterprises are operated by the government and the people, with the state accounting for more than 50 percent of the shares of the enterprises, and the remaining shares being distributed by the royal family, the employees of the enterprises, and the meritorious soldiers according to the size of their contributions.

China's more than 2,000-year-old monarchy system has made the people develop the habitual understanding that the monarch is the state, and Li Mingyuan has made many contributions since he led the Chinese workers' uprising, so in the distribution of corporate shares, government officials and senior military officers have agreed that Li Mingyuan has a large number of shares.

Li Mingyuan is the monarch of a country, and all major national affairs are under his control, and how many shares he occupies in state-owned enterprises is not his key concern, however, as the supreme head of Rio Gran do Sul, Li Mingyuan needs to set an example for his officials and soldiers, if he himself is unwilling to own the shares of the enterprise, the officials, officers, and soldiers below are even more embarrassed to reach out and hate the shares when their merits are much lower than Li Mingyuan.

In the end, after discussions and consultations between all parties, according to the unified standard, the state will fight for 55 percent of the shares in each factory, Li Mingyuan will hold 10 percent of the shares on behalf of the royal family, 20 percent of the shares will be held by meritorious generals of the army and members of the National Defense Forces, 5 percent will be held by government officials, and the last 10 percent will be given to the employees of enterprises.

The control of state-owned enterprises is in the hands of the government, and the shares held by the military and officials are exercised by Li Mingyuan on his behalf, so although the shareholding structure of enterprises has changed, the control of large and small domestic enterprises is still firmly in the hands of Li Mingyuan.

The basic policy formulated by Li Mingyuan was formulated by Li Mingyuan for the lack of domestic population resources and the concentration of limited forces to develop industry and the national economy; after sorting out the three major aspects of separating the military from the government, Li Mingyuan took advantage of the time spent a few days before his departure to return to his busy work.

The separation of the functions of military generals and government officials and the establishment of new schools were entrusted to Liu Pu and Zhao Yan, while the industrial side was personally handled by Li Mingyuan.

After three days of hard work, Li Mingyuan finally gained a new understanding of the industrial development of Rio Gran do Sul.

The textile industry is one of the industries most closely related to national life, and it is also one of the most advantageous industries in the Chinese society for thousands of years. Before the Industrial Revolution, the textile industry mainly relied on manual operations, and the production efficiency was low, resulting in the high price of some delicate silk products, and with the end of the first industrial revolution, the great powers led by Britain used new production technology to greatly improve the production efficiency and production scale, in London, factories were full of textiles, and then loaded and transported by steam freighters to the Far East thousands of miles away, and sold to the Central Plains, the birthplace of silk.

Crowded out by the cheap textile products of the British, the traditional handmade textile workshops in Suzhou, Song, and Chang on the mainland went bankrupt one after another, and many female textile workers were reduced to the point of selling themselves on the streets, while the British Empire, which harvested the vast commodity market, became stronger and stronger on the road of development.

The textile industry is a low-tech industry, and it is also an important industry related to national life and national stability.

At the time when Britain opened the mainland market and sold textiles in an all-round way, on the other side of the sea, which was not far away, Japan began to implement the reform movement, and the state issued reform decrees from top to bottom to support the development of the local textile industry by formulating policies that were beneficial to the domestic textile industry.

In the early days of the Restoration, Japan mainly relied on raw materials and agricultural products such as food and tea to obtain foreign trade profits.

From 1866 to 1868, food and raw materials accounted for 56% and textiles accounted for 25%, and by 1868, food and raw materials accounted for 50% and textiles accounted for 35%.

In the early difficult stages of the Restoration, Japan used the profits from the export of textiles to accumulate the first funds for industrialization, laying the foundation for the future rise of the Japanese economy.

It is undeniable that Japan's reform has a progressive side, which has enabled Japan to get rid of its backward agricultural country and develop a small country into a large East Asian country alongside the Western powers.

The situation in the early days of Rio Grande do Sul was more sinister than that of Japan, therefore, in terms of industrial development, Li Mingyuan took more radical measures than Japan, Japan in the early days of the Restoration, the textile industry mainly relied on the government to formulate support policies, and the production side relied on cheap labor for manual production, until more than ten years after the Restoration, around 1880 began to introduce textile machinery for industrial production, and in Rio Grande do Sul, because Li Mingyuan had more knowledge of later generations, The textile industry has followed the path of industrialization from the very beginning.

The textile industry from raw materials to finished products including raw cotton, spinning, weaving, dyeing four links, in addition to the collection of raw materials need manual operation, spinning, weaving, dyeing three main links are completed by machines.

In Hetao County (Pelotas), the agricultural base of Rio Grande do Sul, the purchased raw materials such as cotton, flax, wool, and alpaca wool are transported to textile factories near the sea, and then the raw materials are processed into new fabrics by a series of textile machinery such as looms, looms, printing machines, and dyeing machines.

Li Mingyuan spent more than 100 tons of gold on the purchase of industrial equipment, including textile machinery, but the gold spent was not in vain, only the textile industry, several textile factories containing a complete set of textile machinery after trial production, quickly turned into a busy formal production state, orders from the army up to 100,000 pieces of military uniforms made the textile factory usher in the first peak period of production, and after industrial production, product prices were greatly reduced, the textile industrial base in Hetao County not only harvested large-scale orders from ordinary Chinese, Even the Paraguayans, who were allies, began to buy cloth from textile mills.

The Hetao textile factory is the hottest industry in Rio Gran do Sul, the orders of the army, the domestic Chinese and the Paraguayan make the textile factory in a state of short supply as soon as it starts, and as the most important link in the business transaction, a large number of cloth shops and garment stores came into being, and some retired or disabled veterans received support from the government to purchase fabrics from the textile mills by delaying payment of bills, and then sold them to ordinary Chinese through the storefront, and in addition to the cloth shops opened by those retired Chinese soldiers, The county town was more populated by newly immigrant Chinese businessmen who immigrated to Rio Gran do Sul with their keen sense of smell and daring adventure, and then invested their wealth in the hottest textile industry.

Although the government did not give preferential treatment to those who opened cloth shops as it did for retired soldiers, the government also made many tax reductions and exemptions to reduce the cost of running a business store.

The prosperity of the textile industry not only brought manageable benefits to the new Chinese businessmen, but also had a great impact on animal husbandry and economic planting, which were closely related to the textile industry.

As we all know, the raw materials of the textile industry are kudzu, hemp, cotton, animal fur, silk, etc., in the Central Plains, hemp is the most important raw material for ordinary people's clothing, and South America because of the influence of geographical location, the main textile raw materials are cotton and animal fur.

After the arrival of European colonists in the Americas, they brought flax and other plants, which changed the local economic plant species, but did not change the status of cotton as the main raw material of the textile industry. Like the rest of South America, Rio Grande do Sul also uses cotton as the main raw material for textiles, and in the southern plains near Uruguay, cotton is grown in large quantities, and the textile raw materials for the Hetao mills are obtained from nearby farmland.

The quality of the cloth produced from cotton is higher than that of flax, so Li Mingyuan did not change the economic and agricultural structure of Rio Grande do Sul, but only sent people to import some other types of economic plants from the mainland and Europe, so as to make the domestic economic and agricultural structure more comprehensive.

Mulberry sericulture is a world-famous advantageous agriculture in China, and the climate and environment of Rio Gran do Sul are the same as those in the south of the Yangtze River, which is very suitable as a base for the development of sericulture.

The development of economic agriculture has increased the economic income of Chinese farmers, and some retired soldiers who originally did not grow cash crops or only planted a small part of cash crops have also begun to grow cotton and other cash crops in their own fields.

The retired Chinese soldiers and the Chinese laborers who were allocated land all owned a large area of land, especially the Chinese soldiers who retired after the expedition, after being allocated several hundred acres of land, most of the land had to be vacant because of the lack of manpower, and the dozens of acres of cultivated land were also very laborious to harvest because of the excessive amount of rice and soybeans planted. Therefore, after comparing the benefits of planting cash crops, more and more retired soldiers choose to free up some of their energy to grow cash crops, while crops such as millet are planted according to the per capita cultivated area advocated by the government.

Because of the influence of the textile industry, domestic agriculture developed in the direction of combining economic agriculture and traditional agriculture, while animal husbandry, which provided animal fur, developed in the other direction.

Due to the economic blockade of Brazil, Argentina and other countries, the number of horses, cattle and sheep and other livestock in Rio Grande do Sul was not high at first, and later, after the government reached an agreement with the Americans on the introduction of Chinese laborers, an agreement was soon reached on the introduction of livestock.

The deal, the largest livestock introduction deal ever made in Rio Gran do Sul, saw Rio Gran do Sul buy 20,000 stallions, 40,000 mares, 10,000 bulls, 45,000 cows, 70,000 sheep, and 100,000 wild buffalo handled at a low price from the United States at a price of 10% below the market price.

Wild buffalo is difficult to tame, and the Rio Gran do Sul side originally had no idea of buying bison, but after hearing the price offered by the Americans, Wang Youtian, the person in charge of the Rio Gran do Sul side, was tempted: the price of a bison is only one-tenth of the price of a buffalo.

The price offered by the Americans was very low, and when Wang Youtian heard about it, he quickly reported it to Li Mingyuan, and after obtaining the agreement, he added an agreement to buy 100,000 bison.

Li Mingyuan didn't understand why the Americans would dispose of these wild buffaloes at a low price, but only after carefully asking Wang Youtian did he figure out that when the Americans were building the Pacific Railroad, the railway company organized its members to capture millions of bison, of which in addition to being eaten as food by workers and dying of disease, there were still more than 100,000 bison that had not been disposed of until the construction of the railroad was completed, so he thought of selling them to Rio Gran do Sul at a low price.

Although bison cannot be used to plow the fields, they are slaughtered as beef cattle, and the income is more than the price of buying from the Americans, and the bison can not only be eaten, but also used to breed with buffalo to give birth to the next generation of domesticated buffalo.

By October 1869, all the purchased livestock had reached Rio Gran do Sul, and some of the livestock injured during transportation had also been effectively used, and Li Mingyuan instructed the food processing factory to make canned food for the troops.

The food processing industry, which developed on the basis of livestock farming, is different from economic agriculture, in which the meat of the livestock itself can be canned and preserved, in addition to the fur used as a raw material for the textile mills.

After the development of food preservation technology, food preservation is no longer a restriction that restricts people's consumption, and the use of iron cans to preserve perishable meat products has reduced the price of meat, so that ordinary people can also buy meat.

Rio Gran do Sul is located on the Pampas Plain, where the abundant agricultural resources provide ample space for the development of the food processing industry, and for canned food, under the guidance of Li Mingyuan, the processing plant not only produces all kinds of canned meat, but also develops many new products in fruits, edible sauces, vegetables, etc.

Cattle, sheep and other livestock purchased from the United States were mainly used for agricultural development, and there was not much meat that could be supplied to ordinary people, and canned meat was mainly for the troops in the initial stage, so the products initially produced by food processing plants were mainly canned vegetables and fruits.

It's a shame that you can't eat meat regularly, but it's also good to buy a canned vegetable or fruit that doesn't cost much and get your first taste of a specially processed canned food.

Not as hot as the textile industry, as a new thing of canned food at the beginning of the spread in a small area, and later after eating the taste of canned food, more Chinese choose to buy the second time, as more and more people come into contact with canned food, the original fresh food has become a daily essential food for ordinary people, and the food processing industry is also inadvertently integrated into the ordinary Chinese.