Section 555 Greater China's Economic Circle

The crown prince has been in charge for just a month, just like all the countries that maintain high tariffs on China, sending a diplomatic note asking them to reduce the tax rate on Chinese goods to the same level as China, otherwise they will take targeted measures.

The first to bear the brunt are European countries, but there is no contradiction with Britain.

Because the UK has long started free trade, the average tariff rate is around 12, which is enough to maintain the administrative costs of the customs department. Britain's world-leading industrial technology is enough to ensure that their exports are greater than their imports, and there is no need for tariff barriers to protect their own industries.

China's tariff rate is not high, averaging around 15, slightly higher than that of the United Kingdom, which can also be called free trade.

However, the tariff rates of European countries are quite high, and the average tariff rate of the North German Customs Union is relatively low in Europe, reaching 25, France more than 30, Russia is as high as 38, and Austria is 40.

Outside of Europe, the United States also has high tariffs. In the early days of the United States, tariffs were low, but during the Anglo-American War of 1812, tariffs began to increase significantly. Under the pretext of financing the war and retaliating against Britain, the industrial conglomerates pushed Congress to pass a new tariff bill, which reached about 25 during the war, more than double the pre-war rate.

After the end of the war, the high tax rate was not only not reduced, but gradually increased. By 1820, the average tariff rate on manufactured goods in the United States reached 40. In 1828, Congress passed a new tariff law that raised the average tariff rate to 45. In 18301832 years, the import duty rate on cotton textiles has even increased to 71.

The high tariffs have repeatedly met with strong opposition from Southern interest groups and some big capitalists in the North, who call the new tariff rate an abomination. However, the influence of the North Industries Group gradually surpassed that of the slave-owning class in the South, so the United States always maintained high tariffs.

Now these countries are threatened by China to either lose the market for their own goods in China, or open their markets to Chinese goods.

For many countries, this is tantamount to a crisis.

The Russian tsarina felt like Tarzan was overwhelmed.

"How did your father do it, does he want to bankrupt Russia?"

"How do I know, I'm not going to fight anyway!"

Zhou Chun, the king of the Urals, said very innocently.

Russia defeated Austria-Hungary, and the prestige of the female tsar increased. The Urals also gained new territories, and construction began on the India-Russia railway.

In recent years, Russia's industry has grown well, and in light industry, it has squeezed out the invasion of British and Chinese textiles, but it has been able to export Russian pig iron to China and Britain, and the trade situation has greatly improved. The development of Russian industry ushered in a high dynasty. Russia has established its own cotton and linen textile industry, and the wool textile industry is also quite large, and it has become self-sufficient, albeit at a high price, but has solved the problem of employment. The textile sector in St. Petersburg, Moscow and elsewhere has attracted millions of workers. Combined, the population of other industries has exceeded 3 million.

However, the industrial level of Russia is still very rough, and the Russians, who are already rough in character, also think of crude benzene in industry, their textiles are not fine enough, their machinery and equipment are very rough, and most of the main industrial products are primary products. Manufactured goods, except to meet domestic demand, are rarely exported.

In this case, lowering tariffs to the level of China is tantamount to an act of industrial suicide.

"The Urals don't have tariffs in the first place, but Russian tariffs are important fiscal revenues, and if they are lowered, it may affect the payment of interest on bonds owed to Chinese investors!"

The Tsaress explained.

Zhou Chun waved his hand: "You can't tell me, if you want to talk to me, your father-in-law will go." ”

The female tsar suddenly lost her confidence: "I'm just talking, you give me an idea, how to negotiate with them." We can't rush to lower tariffs, you know that right? ”

Zhou Chun sighed: "I suggest you visit China to help solve these problems." ”

The Tsaress, too, felt that the time was right, that her position was already secure, and that opposition to her was at a low ebb. She may have left the country to engage in diplomatic activities, and although it is rare for the Tsar to go abroad, this is more of a sign of Russia's sincerity, isn't it?

Even more difficult than the female tsar was Bismarck.

Bismarck has straightened out the German Confederation, after excluding Austria, Bismarck has successfully subjugated most of the countries in the German Confederation, compared with the past, Saxony and other central German states began to depend on Prussia, only Bavaria, Baden and Württemberg and other South German states are still relying on the support of France to resist reunification, but Bismarck is making the German states appear anti-French sentiment by stirring up German national sentiment, as long as this sentiment erupts, Bismarck is ready to further provoke France at any time, Provoke wars.

At this time, the Chinese tariff note was sent, which was a huge crisis for the German Confederation.

Prussia's economic power quickly split into two parts, and the heavy industry group led by Krupp lobbied Bismarck to accept China's demands, and tariff reciprocity was a reasonable demand. But the Juncker landlords and textile conglomerates wanted to maintain high tariffs.

Juncker feared an influx of Chinese agricultural products into Prussia, which had been exporting more and more Chinese agricultural products to Europe in recent years. With the connectivity of railways, it is nothing new for pigs to be transported directly from China to Europe. China's grain, the wine made from it, is also exported to Europe, and these industries are controlled by the Junkers. Although the total amount is not large, the Junkers who run these industries have a lot of political energy.

Prussia's light industry has not been good, the cotton textile industry can not withstand the impact of British commodities at hand, the silk weaving industry is far from the opponent of French silk fabrics, the only industries that can be handled, only coal, steel and mechanical products, of which mechanical products have been able to compete with British products, a large number of exports to China, so Krupp, a giant in the machinery industry, is inclined to accept China's conditions, because Krupp provides millions of pounds of railway products to China every year.

Bismarck knew that once the tariffs were lowered, heavy industry would not be affected, and Krupp's products were enough to block the products of any country, but light industry would probably suffer a catastrophe. The textile industry, which does not produce cotton and relies on imported cotton to develop, has no ability to compete with similar Chinese commodities at all. Although China also imports a large amount of cotton, the cost of their imports is lower than that of Prussia, and their factory scale is larger than that of Prussia, so they have a great advantage in production costs.

After the tariff is reduced, the cotton textile industry is estimated to be finished, and then the leather industry, the ceramic industry, is estimated to be on the verge of bankruptcy.

But if you don't, heavy industry will suffer a major setback. If these industries were hit, it would undoubtedly greatly reduce Prussia's war potential and return Prussia to the era of dependence on British arms, which Bismarck could not accept.

The crown prince's policy is very firmly promoted.

Especially in Asian countries, there is no resistance. Because North Korea, Vietnam, and Myanmar have always been China's customs unions, they have always not imposed tariffs on Chinese goods. Tariffs in India and Siam are extremely low. After the Crown Prince's note, India, a territory controlled by African companies, quickly exempted Chinese goods from tariffs, and Siam was pressured to make the decision to waive tariffs.

The Japanese shogunate was very conflicted at this time, tariffs were their only means of controlling the impact of Chinese goods, and when Zhou Lang was in power himself, the shogunate corresponded with Zhou Lang on a regular basis and established close high-level contacts. Despite the growing power of the local community, the shogunate relied on the support of China, and the shogunate had a firm grip on Japanese politics. Now the crown prince of China is demanding that Japan reduce tariffs and open up further, leaving the shogunate feeling a crisis out of control.

Japan's political form has formed a three-legged situation.

The southwest is a strong domain, and through sea trade, its strength is getting stronger and stronger. The shipping companies they have established have already overwhelmed Chinese shipping companies in Sino-Japanese trade, and their fleets are getting bigger and bigger thanks to Japan's low wage levels.

The Tohoku powerhouses, led by Michinoku and Dewa provinces, and Matsuda Hokkaido, which has recently grown rapidly, have developed local industries, whether they are agriculture, forestry, or mining, and have grown rapidly by introducing Chinese technology. Attracted a large number of poor people in the state.

The two powerful feudal clans in the southwest and northeast have become invincible, and although they have not openly rebelled against the shogunate, they have begun to dig up local minerals privately. Seeing this, the lords of the state also did not feel at ease and began to develop secretly. Chikuzen Province became a powerful country by developing Japan's largest coal mine. Iyo Province secretly mined Besko Copper Mountain, and although they were repeatedly seized by the mines sent by the shogunate, they only handed over some merchants and completely absolved the daimyo of responsibility.

The only thing the shogunate could control the communication between the Fan Valve and the outside world was the Customs, and if the tariff was abandoned, it would lose the last resort to control the Fan Valve. However, the Chinese crown prince has a tough attitude, and the reduction of tariffs can be negotiated, but open trade is necessary, and Japan must allow Chinese commercial companies to enter and leave any of them freely.

The note from the Chinese Imperial Court was supported by the Southwest Domain, the Northeast Domain, and the Honshu Powerful Domain, who lobbied the Shogunate to accept the request, and the Southwest Powerful Domain directly stated that if the Shogunate refused they would trade with other countries on their own and would not pay taxes to the Shogunate.

Under these circumstances, the shogunate first agreed with China, which continued to support the shogunate's administration of Japan, and their customs continued to control the import and export of the various countries, but greatly reduced tariffs, while allowing all coastal countries to trade with the outside world. The shogunate then dispatched official customs officials to these countries to manage the customs of each country.

At the same time, the crown prince did what neither his predecessor nor the West could do, opening the door to the Manchu Empire, using not only economic threats but also political and diplomatic deterrence, forcing Xianfeng, who had succeeded Daoguang, to open all Manchu customs. Especially along the Persian Gulf coast, Chinese merchants can come and go freely.

The crown prince easily established a tariff-free or low-tariff economic circle centered on China, including China-controlled areas such as Japan, Korea, Vietnam, Siam, and corporate India, as well as non-directly controlled areas such as the western part of the Americas, the Kingdom of South Africa, and the Manchu Empire, with a total population of up to one billion people.

At this time, the total population of the world, less than 1.5 billion, two-thirds of the population, entered the Chinese economic circle, at least economically, Chinese hegemony began to take shape.

It was only then that European countries began to take sides.

The Russian Tsar visited China and began the first negotiations with China on economic issues.