The borrowing between Britain and France was carried out in secret, not even from Russia, which was a practice of the East China political axe in order to accommodate the feelings of the Germans.

At this time, there were a large number of German workers and engineers in China, and the East China Political Axe was destined not to declare war on Germany, because the East China Political Axe needed to take into account the feelings of these Germans.

Therefore, the East China political axe will not explicitly support the Entente, but in fact, the attitude of the East China political axe has changed, after all, Xia Jun cannot be tied to the same chariot as the Germans, which will prematurely conflict with the Yankees, which is not conducive to China's development.

At this time, if Xia Jun supports Germany, and the United States will inevitably enter the war, it will not be enough to win the war with Germany's follow-up forces.

After the defeat of Germany, it was time for the Entente to settle accounts after the autumn, and although China was no longer afraid of any aggression at this time, its navy was still a sore face.

The outbreak of full-scale conflict with Western countries means that China will enter a relatively closed development environment, and trade will be seriously affected, which is extremely detrimental to the country's development.

However, Germany's business was still doing the same, and after signing a loan with the Entente, Xia Jun again sent 30 cargo to the Entente to transport submarines.

After the loan agreement was signed, this was already an act of acquiescence to the Entente, because now they have no way to take the East China Political Axe, they are a neutral country, just doing business, and the East China Political Axe can give the Entente a loan, which has proved the choice that the East China Political Axe will eventually make.

I think that in the past, East China had to borrow money everywhere, but now it is said that it can borrow money from the Entente countries, and this has to be said to be a major progress in the development of industry, commerce, and agriculture, but a great success in foreign export trade.

At this time, the wealth of Europe was flowing out to the United States and China, which was another transfer of China's wealth to Europe after the Opium War and the invasion of China by the Eight-Nation Alliance.

The loan could not be implemented immediately, and it would not take effect until the Entente had the Dominions adjust their policies.

There is no problem with the British colonies, Malaysia, Burma, India, and South Africa, but Australia, New Zealand, and Canada need to communicate, and although these Dominions have some autonomy, it is only a matter of time before a compromise is reached.

Xia Junlian asked the Bureau of Statistics to submit various mineral data and study the microeconomic problems again.

"Statistically, our overseas iron ore production capacity has increased to 18 million tons, manganese ore production capacity to 8 million tons, coal mining capacity to 30 million tons, and annual oil production to 20 million tons. Nickel production increased to two million tonnes and chrome ore production to three million tonnes. Copper ore capacity reached 10 million tons, silver ore capacity reached 8 million tons......"

Ma Liangsheng, director of the Bureau of Statistics, reported to Xia Jun that although the production capacity of precious metals such as copper and silver ore is very high, this is an ore, and there are very few extractions.

"In the case of iron ore, we currently have a capacity of nearly 10 million tonnes in-house, but only half of it is being mined, and we only produce five million tonnes per year. And our steel production capacity has broken through the 10 million tons mark, and the internal demand is extremely strong, with the current output, if our production capacity does not continue to grow, it will only take about a quarter, our steel will be tight, which needs to be imported, and lead to steel prices. In terms of iron ore supply, growth is also needed to meet the need to increase steel production capacity, and our reserve capacity of 5 million tons is estimated to only cover one quarter, and after a quarter we must use reserve ore. ”

"Hmm!" Xia Jun nodded, steel can not be tight, there must be some surplus in the internal supply, so as to keep the price of steel at a low level, so as to provide a good price advantage for industrial development, and for steelmaking, because of the use of advanced steel smelting technology, so even if the price is low, there are still profits.

Ma Liangsheng continued: "There is also a need to expand the production of nickel ore and chrome ore, the current stainless steel production is rising, and the ore mined overseas is no longer enough to supply, and domestic production capacity will be used next month." ”

Stainless steel is the current unique technology in China, other countries have not mastered it for the time being, but this is not too complicated things, it is estimated that they are about to master, but China's production technology has been improved to a very advanced level by Xia Jun, so it is obviously unrealistic for other countries to compete with China in stainless steel first.

Stainless steel can be used in all kinds of industrial products, and the application range is very large, from daily necessities to munitions, production tools, etc., which has created huge profits for East China Group.

Although the industry at this time developed rapidly, it was a small amount compared to the 21st century, such as iron ore production capacity, which later formed a production capacity of 200 million tons in China, and it also had to rely heavily on imports.

Xia Jun's goal is to import 80% of iron ore and other resources, and produce 20% of its own, and at the same time continue to build mines in China, but these mines will be used as reserve capacity after construction, and will not be mined.

Of course, it is good to import all resources, and you can dig up the resources of other countries first, but if the transportation is blocked, then there will be problems with the supply of raw materials.

Therefore, the East China political axe needs to engage in industrial raw material reserves, and on the basis of the reserves of industrial raw materials, it is also necessary to form its own reserve production capacity, so that the industry will not be affected by the war.

This time, Britain and France opened up the commerce of colonies and dominions, and reduced tariffs, so that Xia Jun could dig overseas unimpeded.

Although this loan is a loan of 3 billion yuan, the maximum amount to be paid is only 1 billion yuan, and it can provide 2 billion yuan of profits for enterprises and political axes. The profits generated in other areas are even more impressive, especially in resource extraction.

Since the Ministry of Civil Affairs set a relief fund of 1 billion yuan a year ago, the people of all provinces felt the care of the political axe during the Chinese New Year, and the people's hearts could not help but skyrocket.

For the Chinese people at this time, as long as the political axe does not donate heavy taxes, it can make people grateful to Dade, not to mention that there is relief issued, what a benevolence!

At the beginning of March, Xia Jun got 1.5 billion points, which can be described as a bumper harvest.

In this case, Xia Jun increased investment in the microeconomy, first of all, the mineral mining equipment required by the East China Mining Company, Xia Jun exchanged 500 million points of equipment in one go, which can double the current production capacity.

Secondly, Xia Jun once again invested his points in the shipbuilding industry, because a large number of iron ore, coal, oil and other resources were mined overseas, so many ships were needed to transport them.

Coal carriers and oil tankers are relatively low-tech vessels, so the East China Shipbuilding Company has been able to build nearly 60,000 tons of coal carriers and oil tankers.

With this cover, Xia Jun directly exchanged coal carriers and oil tankers, and the most important thing for overseas mining of these resources is that they can be transported back, so the demand for coal carriers and oil tankers is very large.

At the same time, the Navy also sent destroyers to protect the route from pirate attacks.

In terms of freighters, Xia Jun bought another 200,000 tons, and at this time, the tonnage of China's large freighters has grown to the extent of five million tons, which is not a small freighter, and there are many small freighters, because they are small, so it is not easy to attract attention, Xia Jun has exchanged a large number of small freighters before.

At this time, the tonnage of China's cargo ships has surpassed that of the United States by nearly 600,000 tons, which is the result of Xia Jun's cheating.

At present, the profits of the East China Ocean Shipping Company are as high as 800 million yuan a year, which is all due to the current increase in transportation prices.

The number and tonnage of British merchant ships sunk by German submarines continued to rise, and the speed of manufacture was far less than the rate of sinking, which led to the continuous increase in transportation prices.

800 million yuan is also the result of the East China Ocean Shipping Company to undertake the domestic waybill, for those domestic national factory goods, the freight is preferential.

At present, China exports a lot of goods, and most of the merchant ships of the British go to the United States to transport goods, so China's goods naturally need to be transported by themselves.

If you can't transport it, you can't sell it for money, and you have to take the initiative in transportation, so you naturally have to be self-reliant.

Therefore, it is necessary to further invest in the shipbuilding industry and directly exchange merchant ships, coal carriers, and oil tankers, otherwise the speed of economic development cannot be guaranteed.

Xia Jun also spent 500 million yuan in this regard, buying some new technologies for the shipbuilding industry, and at the same time increasing the dock and the tonnage of ships.

The remaining 500 million yuan, Xia Jun is naturally invested in business.

Under the condition of ensuring the speed of economic development, Xia Jun also needs to ensure the jobs of workers and solve the employment problem of the people, especially in the current situation of a large number of agricultural population moving to the cities.

There is no need for Xia Jun to do the project, this is the business of the Ministry of Construction, and so much of the Ministry of Construction's funds this year are used to build infrastructure that cannot be profitable.

And those infrastructure that can be profitable are left to private capital.

What Xia Jun wants to do is to create a new economic pillar to create more jobs, and if you want to do the industry that needs to be expanded, it is undoubtedly the manufacture of vehicles.

Cars, motorcycles, and bicycles are all things that are in high demand, especially cars and bicycles, the former can be used for transportation to generate profits, so it can be purchased through loans, plus the huge demand for transportation, the demand for cars has naturally gone up. Bicycles are currently a popular means of personal transportation, and for those who have stable jobs, they are not particularly expensive, and they can buy one after saving a few months, so the demand is also extremely high.

At present, cars are still a luxury for Chinese, not a necessity of life, but the future prospects are very impressive.

Especially the U.S. market, as well as the growth of the domestic market.

If the economy continues to develop like this, the demand for cars will begin to rise in a few years, and then gradually become a necessity of life.

The remaining 500 million points, Xia Jun smashed into the manufacture of trucks and cars, and purchased three large truck production lines and two car production lines from the exchange platform.

The number of cars manufactured could grow from an estimated two million to three million in a year, and some of them could be exported while creating more jobs.

There is no need to worry too much about the technicians, because at this time a relatively complete technician training system has been formed in East China.

As long as you are willing to study hard, you can even turn an illiterate person into a senior technician.

At present, there are constantly workers entering the city, and these workers have formed a mode of promotion, that is, the workers who have just entered the city have no skills, so they mostly do some hard work, and then through the study of night school, Chengren school, and training in technical schools, they are promoted to become technicians, and then continue to climb up to become senior technicians.

For the current situation that the Chinese people generally have no culture, it is unlikely that these illiterate groups want to have greater achievements, but it is not excluded that some people who have great achievements through hard study, but this is not a common phenomenon, and it is relatively easy to be promoted to a technician, and it is not too difficult to become a senior technician, as long as the accumulated training skills are achievable. But the next generation will be counting on the next generation for greater achievements.

Although there is no too high achievement, but the son is not too bitter, even if he is a coolie, the three mountains of housing, medical care, and education do not need to be carried by them, and they will live well if they are willing to work, which is much better than the original planting of the land.

The fate of the next generation will be different, because they will be able to get a good education, and they will have that kind of foundation that soars to the sky.

In addition to Xia Jun's cheating capacity expansion, China's machinery manufacturing capacity has been upgraded to a large scale at this time, especially after a large number of German technicians came to China.

Machine tools and machinery manufacturing have made tremendous development, and the production capacity has been greatly improved, so in addition to Xia Jun's cheating capacity expansion, enterprises can also expand production capacity through normal channels.

After more than seven years of hard work, China's industry can only be said to have just embarked on the normal track and has a preliminarily perfect system.

But in terms of talent, it is relatively scarce.

After seven years of education, the people who have been trained have been divided up completely, especially teachers, doctors, technicians, lawyers, accountants, and other professions that require high education.

Seven years ago, the scale of education was not large, and only 100,000 college students have graduated this year, but this is also a huge victory! In a few more years, there will be more college students graduating.

In addition to college students, there are also many middle school students who directly participate in the workforce after graduating from secondary school, and the number of middle school students graduating this year has reached more than 1.3 million, at least half of whom are directly engaged in the workforce.

The first few classes of students were not too many, and at the back were thousands of students, and at this time the East China political axe had begun to take over the education of the whole of China, and the number of students in school would increase to more than 45 million within two years.

At the same time, the cost of medical care will be larger and larger, and there is no need to worry about housing, and the political axe will not make money or subsidize the money, but there is also a pension that will also be issued by the political axe, not to mention the issuance of agricultural subsidies.

In such a situation, Xia Jun can only be said to be under a lot of pressure, and in such a situation, all Xia Jun can do is to keep cheating and making money.

In terms of increasing taxes, Xia Jun is more cautious, under such a welfare system, high taxes are inevitable, so at present, in addition to the tax-free low-income class, Xia Jun intends to continue to increase personal income tax.

Just like the United States, their pension system in later generations is not arranged by political axes, and personal income tax also accounts for 40% of people's income.

At present, the contradiction between the political axe and the landlord is no longer the main contradiction, the landlord class currently has some land in exchange for shares in the agricultural reclamation company, and some are not suitable for machine farming to develop their own cash crops, although there are taxes, but they will not always lose money, and when the market is bad, they also provide them with subsidies, and the prestige of the East China political axe is getting higher and higher, and the people have a full understanding of the East China political axe, and the contradiction between the political axe and the landlord has been eliminated.

After the increase in personal income tax, the contradiction that may be promoted will be the contradiction between the political axe and the high-income group, in short, the contradiction with the capitalists.

Higher personal income tax on high-income groups, which will not affect the development of industry, just like an enterprise, if he puts his profits into development, then naturally does not need to be taxed, if it is a dividend, then collect a part of the dividends, if it is to sell stocks, that is, to collect the money from the sale of stocks.

And the development of the enterprise will not be affected.

Many Chinese businessmen have a bad habit of buying luxury houses, luxury cars, and luxury goods when they make money, and squandering all the money instead of running a business.

A higher personal income tax can curb this phenomenon and make the distribution of social wealth more reasonable.

Xia Jun called Zhu Chengjia, Minister of Taxation, to discuss with him the issue of increasing personal income tax.

Zhu Chengjia is in charge of taxation, and his views on this aspect are very important, Zhu Chengjia listened to Xia Jun's intentions and said to Xia Jun: "Principal, the focus of increasing personal income tax for high-income groups is communication. We are not corrupt from top to bottom of the political axe in East China, and the money collected is used where it should be used, as long as it is a national capitalist with no problem with morality, he will not oppose it. And now none of the big capitalists dare to oppose it, mainly those small capitalists. ”

Zhu Chengjia's point of view is indeed to the point, those major big capitalists have large donations every year, and it is indeed no problem to collect a little more tax, and the vast majority of these big capitalists support it.

"Then you go and put together a charter." Xia Jun told Zhu Chengjia that it is inevitable to increase the personal income tax of high-income groups this year.

In particular, the current situation that Xia Jun has chosen to cultivate several large enterprises to compete with each other in a certain industry will make a very huge profit for the capitalists.

In the case of East China Group, the current annual profit is billions, and it is really China's largest giant. However, East China Group is not involved in many industries, and the following two giants are Zhongsheng and Huasheng two major groups.

Fortunately, these three groups are okay, Huadong Group is Xia Jun's own, and the money is used for development. Liu Jinshan's Huasheng Group's self-discipline surname is better, and Xia Jun doesn't need to worry about this. Zhongsheng Group was opened by his father-in-law Li Shilin, which is considered a family, and it is naturally a unified policy.

Zhongsheng and Huasheng Group are called the left and right protectors of the East China Group by the current Chinese people, these three groups occupy 80% of the total manufacturing economy, and occupy about 45% of the overall economy, which is actually a kind of monopoly.

However, this is not a policy monopoly, but a technological monopoly, and at the same time, there is competition between the three companies in some areas, that is, monopoly and competition.

In this model, the excessive concentration of wealth is a problem, so Xia Jun supports trustworthy enterprises.

Trust is not enough, taxes are needed to make the distribution of wealth more reasonable.

Moreover, it is impossible for the enterprises supported by Xia Jun to monopolize the entire country's economy, which requires more taxation to deal with this problem.

After the war, there was an unprecedented national unity in China, and it was time to raise taxes.

The next day, Xia Jun raised the issue of raising personal income tax and levying inheritance tax at a meeting of the industrialists' club, and no one in the audience objected.

These businessmen who can enter the industrialists' club are first of all supported by Xia Jun with technical support, and they are all good businessmen in terms of morality, which is why they have been supported by Xia Jun.

They took a very light view of Xia Jun's question of increasing personal income tax and inheritance tax, after all, now their money is enough and comfortable to live, and no matter how much money they have, it is just a bunch of numbers.

Since joining the Industrialists Club, they have been following Xia Jun more in the market, and at the same time, the club itself is full of various ideas of serving the country, and they have been assimilated under the influence of their ears and eyes.

In the eyes of these big businessmen, it doesn't matter how much money they leave to their children and grandchildren, after all, now the political axe is engaged in social welfare, and if you don't leave a penny to your future generations, you can let future generations live well.

Moreover, Xia Jun is still talking about feudal superstition, and preaching to these businessmen that people have an afterlife, so these businessmen are very concerned about building society.

If you want to live well in the next life, it is natural to actively help the political axe to improve the social system, so that every Chinese citizen can enjoy good benefits after birth, as well as equal educational opportunities and so on.

Westerners believe in Christianity and believe that people are reincarnated, which is why many businessmen in the West pay so much attention to charity.

At this time, China had just come out of feudal society, and it was also convinced of reincarnation.

Westerners have come up with science, but they don't abandon these religions, and the Chinese actually believe in religion, worship any gods and Buddhas, but don't believe in anything.

The reason why Chinese are like this is because Chinese have seen a lot, and the religion of Westerners is completely deceitful, while Chinese religion is not completely deceptive, and China's religion is mostly extended from the classics of "Huang", "Lao", "Zhuang", and "Zhou Yi", and many have some practical surnames, not for the purpose of fooling and controlling thoughts.

So in China, it is completely impossible to create a religion that people believe without logic, and the Chinese are not so easy to fool.

There are advantages and disadvantages to this, the advantage is that you will not be fooled, and the disadvantage is that you are too unprincipled a lot of the time.

Xia Jun is trying to create a principle that is acceptable to everyone in society at this time, that is-reincarnation!

What is the Lord and the sky, it is too illusory and ethereal, and it is not lethal to the people. That can only be used to make the Chinese people adhere to one principle together, that is, this theory of reincarnation.

Let all the people believe that there is reincarnation, so that they can understand what the value of life in the world is, and the value is to build a better society, so that they can enjoy a good growth and living environment in the next life.

This universal value is not illusory, reincarnation itself exists, and the theory that man evolved from a gorilla is very ridiculous in itself, and the brain of a gorilla and a human is so similar that it is impossible to see that they can produce such a high level of intelligence as a human.

(To be continued)