Chapter 696: Barriers

Dahan's vigorous economic development today is inseparable from the strong encouragement and support of industry and commerce.

Under this kind of policy promoted by Liu Jun, good results have indeed been achieved in just a few years. The total amount of commodities continues to increase, and the materials are becoming more and more abundant. The number of commodities and transactions increased, the circulation of money also increased greatly, and the taxes obtained by the imperial court in this commodity trading link also increased.

Different from the national policy of emphasizing agriculture and suppressing commerce since the Chinese dynasties, the national policy of the Sacred Han is more similar to the mercantilism of Europe today. Mercantilism is now prevalent in Europe, and the core idea is that a country's national power is based on the wealth that can be obtained through a trade surplus, i.e., the median value of exports is greater than the amount of imports.

European mercantilism believed that the more gold and silver accumulated, the richer and stronger it became. In the beginning, they thought they should buy less, but now they think they should sell more, in short, they have to accumulate as much gold and silver as possible, and they think that gold and silver are wealth.

He advocated state intervention in economic life, banned the export of gold and silver, and increased the import of gold and silver. These mercantilists believed that the best way to obtain this wealth was to have the government regulate agriculture, commerce, and manufacturing, to develop foreign trade monopolies, to protect the domestic market through high tariff rates and other trade trades, and to use the colonies to provide raw materials and markets for the manufacturing industries of the mother country.

This is not only a trade protection policy, but also a planned economy.

Liu Jun does not admit that he is practicing mercantilism, and although his policy is to emphasize the development of industry and commerce, it does not mean that he shares the concept of mercantilism in Europe today.

In Liu Jun's view, Europe's mercantilism, whether it is buying less or selling more, or trade protection policies, is actually a bit of a detour.

At its core, Liu Jun does not believe that gold and silver are the wealth of the country.

Gold and silver though important. But not absolutely, for the country, gold and silver are not real wealth, what is the wealth of the country? Land, population, food production, industry and commerce, these are the wealth of the country. Instead of a pile of gold and silver that you can't eat when you're hungry and can't warm it when you're cold.

Spain's domination of the world's oceans was indeed the result of mercantilism. But it was precisely the Achilles' heel of this heavy capitalism that made Spain's world hegemony short-lived.

Now the Dutch, who are now rising strongly, and have the potential to replace Spain, the new maritime overlords, who are also mercantilist believers, have vigorously developed foreign trade monopolies, but the Dutch, who have made countless gold and silver through monopoly entrepot trade, put the money they earn into the banks, and the banking industry takes the money and lends it to the European countries to earn interest, and they give up the technical upgrading of domestic industry to expand reproduction. Prefer to lend money to Europeans for interest.

On the surface, the interest on lending is higher than the profit of investing in domestic industrial and commercial manufacturing, but in reality it is equivalent to the hard-earned money of the Dutch being put into the basket of European countries. The Netherlands became a creditor to Europeans, and the Chinese understood a truth, many times, it was the grandson who borrowed money, and it was the uncle who owed money. You have lent all your money to the countries of Europe. So do you still dare to enter into a conflict or even a war with Europe?

If you go to war with the Europeans, will the Europeans pay their debts? And once the fight starts. That means that the Europeans will use the money you Dutch lend them money to buy ordnance and pay them to go to war with you. Whether they win or lose, it is actually the Dutch who lose.

All Chinese dynasties have emphasized self-sufficiency.

Liu Jun does not approve of this closed economic strategy, but from the perspective of national strategic security, there are some things that cannot be abandoned.

For example, food self-sufficiency, such as the production of weapons. You have to take it all into your own hands.

However, proper trade protection is also beneficial, as it is a strategy to suppress opponents and protect themselves.

"Domestic trade is booming these days, but we also have to see some dangers underneath the surface of this prosperity. For example. There are some things that cannot be exported, such as food, such as the latest muskets and artillery. In this regard, the imperial court had to make a set of laws that were clearly stipulated. ”

Prime Minister's Yamen.

Liu Jun said to the prime ministers attending the meeting and the governors and governors attending the meeting.

Dahan now has a population of 300 million, and the pressure on food is not small. In particular, now that all localities are vigorously developing the economy, many cultivated fields have instead grown tobacco, sugarcane, cotton, mulberry, hemp, and other cash crops. For a super empire with a population of 300 million, grain reserves and supply are the top priority, and food supply must be guaranteed at all times, and once the food supply cannot be guaranteed, it will inevitably seriously affect economic development and even cause turmoil.

The Susong area, the traditional main grain producing area, has long been unable to be self-sufficient, and has to import a large amount of foreign goods every year. Liangguang, Yunnan and Guizhou are also only self-sufficient, and it is also difficult for the northwest region to supply externally.

At present, the main grain producing areas of the imperial court are concentrated in Henan and Shandong in the Central Plains, Hubei and Hunan in the two lakes, Jiangxi and Jiangbei in the three rivers, and Hebei in Zhili, and the grain output in Sichuan is also good. Now the imperial court has developed Taiwan, Northeast China and other places, and several major plains in Northeast China have also become important grain producing areas.

But in general, grain is not cost-effective for export, firstly, the freight is too high, and secondly, the price is not high. Therefore, Liu Jun resolutely believes that grain exports should be completely banned.

"The export of grain is prohibited, but the export of flour, pastries, vermicelli, starch, wine, vinegar, sauce, etc., which can be exported in limited quantities, should be subject to an additional export tax, and I believe that an export tax of 100 percent should be levied on the export of these foods."

One hundred percent, that's a pretty staggering tax. The British now imported a large amount of tea from China, and the government imposed a tariff on 126 percent of its own price. Now Liu Jun imposes an export tariff on 100 percent of the price of the processed food itself on these exported processed foods, which is actually a state regulation strategy, through prices, so that the quantity of food exports is reduced.

As for the importance of food, the prime ministers and local governors present here all understand it. Now the emperor directly proposed that in order to better free up more forces in various localities to develop the economy, the price protection of grain should be implemented, the enthusiasm of grain farmers should be encouraged to plant, and the supply of grain should be guaranteed, and this prohibition of grain exports and the imposition of 100% tariffs on exported processed food should be introduced. They all expressed their support.

"This is true not only for food, but also for raw materials and other processed goods, and there must be a comprehensive tariff regulation. From next year, the empire will increase the export tariff by 20 percent on all raw material exports, and for the import of raw materials. Tariffs will be lowered and levied at a minimum tariff of 5 percent to encourage the import of raw materials, and a duty-free policy will be implemented for grain imports. ”

"Only two percent tariffs are levied on the import of saltpeter, sulfur, gold, silver, iron, coal and other materials."

"For processed goods, such as cotton cloth, tariffs will be raised, and for luxury imports, tariffs will be increased by 12 percent."

"For the export of processed goods and luxury goods. Implement the export tax rebate policy. ”

The series of new tariff policies proposed by Liu Jun is actually full of trade barriers and tariff protection. Through this adjustment of tariffs, the export of raw materials is reduced, the import of raw materials is increased, and the import of processed goods is reduced, as well as the export of processed goods.

In the final analysis, it is actually to give domestic merchants a trade advantage. Erect barriers for foreign businessmen.

The purpose is to buy less and sell more with mercantilism. The idea of increasing the foreign trade surplus is the same. The purpose of reducing the import of processed goods and luxury goods, reducing the export of raw materials, and increasing the export of processed goods and luxury goods is to earn a surplus and earn more gold and silver.

At the same time, it is also to protect the domestic industrial and commercial manufacturing industry and stabilize jobs.

For the raw materials needed by the imperial court. Implement tax reduction or even tax exemption strategies, such as sulfur, sand and gravel, cotton, coal, iron ore, etc.

Although it is said that China's foreign trade has always maintained a surplus, Liu Jun does not mind being more ruthless. Europeans are not the only ones who trade protectionist, importing all kinds of raw materials and then exporting all kinds of processed goods. Clocks, glass, cane sugar, porcelain, tea, silk fabrics, cotton, soap, perfume, wine.

This approach can also greatly increase the added value of the product, which is a way to maximize the profit of the product.

"In the future, raw silk will also be used as a raw material, and direct export will be prohibited. In the future, Yiren can only order processed silk fabrics in our country, and can no longer directly buy raw silk. ”

Raw silk has always been the favorite Chinese import commodity in European countries, in the past, China's raw silk demand in Japan was the first, a pound of raw silk can be worth four pieces of silver, with extremely high profits. Even the Spaniards, the Dutch, and the British rushed to buy raw silk from China and resell it to Japan for huge profits. Shipped to Europe, you can also get several times the benefits.

Although the profits of raw silk are amazing, Liu Jun believes that selling raw silk is more profitable. Directly prohibiting the production of raw silk and changing to export processed silk fabrics will inevitably increase a lot of added value and earn more profits, and at the same time, it will also allow Dahan's silk weaving factories to get more opportunities and increase more silk weaving workers.

From exporting raw silk as a raw material to exporting finished silk fabrics, it not only increased employment opportunities and increased product profits, but also allowed the imperial court to get more tariffs and even taxes from the workshops.

Silk, like porcelain and tea, was produced outside of China, but its output and quality were completely incomparable to China's, and as long as the imperial court made such a decree, foreign merchants could only abide by it in the end.

This situation will definitely cause foreign dissatisfaction, because this is a zero-sum game, since the Han no longer exports raw silk only silk finished products, then the Han increased taxes, increased jobs, and increased the profits of merchants, which will inevitably reduce the jobs of foreign silk weavers, reduce the profits of merchants, and reduce foreign taxes.

This year, the imperial court exported about 80,000 quintals of raw silk throughout the country, of which about 70,000 quintals of commercial silk, one hundred catties, worth 28 million silver dollars, and about 60,000 quintals of silk fabrics, worth more than 42 million yuan, totaling more than 70 million silver dollars.

If the new export policy of the imperial court is implemented, then next year's 70,000 quintals of raw silk will no longer be exported, but will be changed to the export of silk fabrics, and the 70,000 quintals of raw silk will be worth nearly 50 million silver dollars, which is more than 22 million yuan higher than the export of raw silk.

Of the more than 22 million silver dollars, weavers, silk factory owners, silk sellers, and the imperial court were able to get a large share of the silver. Even those who grow mulberry and silkworm and sell cocoons and reeling silk can share some dividends from it.

The ministers present, along with the emperor's description, all saw the wonderful prospects under this trade protection system, and couldn't help but think about it. (To be continued.) )