Chapter 220 Development of Heavy Industry

A few days later, the new Prime Minister Dinant announced the formation of a Northern Special Administrative Region in the east and north of the empire, under the pretext of experimenting with economic development and spreading throughout the country if the economic reforms were effective, with Marshal Caolan as the first governor of the region, and since Marshal Caolan had long been a puppet of the Chinese Lord, most of the officials here were made up of Chinese people of St. Martin's nationality or St. Martin's who supported the Chinese Lord.

As for the distribution of military power, the main fleet of the Saint-Martin Empire was divided into one 'Lanting'-class battleship and four 'Tongjiang'-class cruisers to form the Eastern Ocean Fleet of the Saint-Martin Empire, which was stationed in Hawar Harbor and administered by the Northern Special Administrative Region.

As a courtesy, the entire army of the St. Martin Empire was merged with the Cooperative Army and renamed the St. Martin Imperial Wehrmacht, with a strength of 1.1 million, of which 400,000 were to be transferred to Field Marshal Dinant, and the rest of the troops were to be stationed in the Northern Special Administrative Region, in the name of securing the border area near the Boston Empire in the north.

The framework has already been put in place, and organizations such as parliaments and inspectorates will be put in place. Soon the Chinese Empire and the Saint Martin Empire jointly announced their alliance, and a large number of high-quality seeds and breeding stock from the Chinese Empire began to enter the Saint Martin Empire, and the merchants of the Chinese Territory also poured here.

With Prime Minister Dinant and the Governor of Caolan in their hands, the Chung Hwa Group became the biggest winners, and they soon took control of many of the mines and lands that had previously been in the hands of the great nobles. In addition to the subordinate agricultural reclamation company, several large light industry companies began to enter the Saint-Martin Empire, and focused on investing and building factories in the Northern Special Administrative Region.

As an ally, Prime Minister Dinant also tilted his policy towards the region, not only with tax cuts, but also with a large amount of money to hire a construction team led by China to overhaul the railway lines throughout the Saint-Martin Empire and restore transportation.

The Boston Empire gradually discovered that the St. Martin's Empire had become stronger and stronger after a civil strife, and the panicked Boston Empire had no choice but to put aside its usual hostile policy towards the Western Continent and began to move closer to the Thar Empire and other Western Continent powers, in order to protect itself.

In the victory of these two wars, although the Chinese leaders did not receive much compensation, they obtained a lot of benefits. The Chung Hwa Group of Companies, which had made enough money, also provided a financial contribution of up to 3 billion Chinese yuan for the Chinese collar, bringing the financial budget of the Chinese collar in 896 to an astonishing 500 million Chinese yuan, not counting the large amount of money earned during the last food shortage.

In 895, the economy of the Chinese collar accelerated again, and the gross national product reached 30 billion Chinese yuan, although the total economic volume is so high and the market value of Chinese yuan is relatively low, only one-tenth of the Lanfang currency, but it is also very amazing, although there is still a big gap compared with many powerful countries, but it is already the development speed that has never been seen in the world.

For the gross national product of the Chinese collar, many countries do not understand, the agriculture of the Chinese collar is so developed, even if only agriculture is not only counted so little, later they learned that the method of calculating the gross national product of Fang Dao Fang is different from that of other countries, in his opinion that the output value of agriculture can not constitute a direct increase in national strength, so in the gross national product, agriculture has not been counted in the gross national product a few years ago.

If you count the nearly 200 billion yuan of agricultural output value, the Chinese Collar is already the first economic power, because even the Saar Empire, which is recognized as the first power in the world, has a GDP of only 257 billion Chinese dollars, and the Boston Empire is only 302 billion yuan.

Of course, it cannot be said that the economic scale of the Chinese collar is larger than that of these two countries, because the proportion of industrial output value of the Chinese collar is too small, and in addition to the predominance of agriculture, most of the industrial production is high-profit products, which make much more money than the other two countries, but the scale is much smaller.

In 895, the Saar Empire produced 9,810,000 tons of steel and 14,270,000 tons of pig iron, while the Boston Empire produced 11,750,000 tons of steel and 21,070,000 tons of pig iron.

The steel output of the Chinese Collar in this year was only 1.46 million tons, and the pig iron was 4.11 million tons, almost one-tenth of the Boston Empire, and Fang Xiaoyu had a very clear understanding of this. With so much money, and with all the investment in infrastructure already in place, the rest of the money is to build industry, especially heavy industry.

At present, only Zhonghua Group Company dominates the heavy industry of Zhonghua Ling, and the other companies are either light industry or pure trading companies, so Fang Xiaoyu plans to set off a trend of expanding factories in Zhonghua Ling. Beginning in February 896, the Bank of China announced low-interest loans for industrial projects to help business owners expand their industries.

Zhonghua Group also announced that it would give certain technical support to those business owners, and with money and technical support, these business owners naturally began to desperately expand their scale and build more factories.

In order to tilt them towards heavy industry, Fang Xiaoyu also formulated a five-year tax exemption policy for heavy industry, which not only made the business owners of the Chinese Collar begin to calculate the gains and losses of heavy industry and light industry, but also aroused the ideas of the major families in the Lanfang Empire.

In addition to such economic stimulus policies, Fang Xiaoyu also worked hard to expand the heavy industry system of Zhonghua Group Corporation, Xiaofeng's heavy industry equipment library for production at full speed, new steelmaking furnaces, new 10,000-ton hydraulic presses, rolling mills and other heavy machinery to supply the needs of heavy industrial companies as much as possible, although Xiaofeng's output is still too small relative to national demand, but it can manufacture high-end machinery with excellent quality, as for those low-end machinery can be produced with the territory's own heavy industry.

Fang Dingguo, who has always believed that his younger brother is right, was the first to respond, and the Fang family's industry in China has always been business-oriented. However, it is different now, after several years of development, it also has a series of light textile factories with a complete process of cotton spinning, weaving and garment, and soon became the largest giant in the cotton textile industry in China, making a lot of money for the family, and he himself has a lot of surplus funds.

When he learned of this new policy from Fang Xiaoyu, he was the first to mortgage all his properties in the Bank of China, obtained a loan of 30 million Chinese yuan, and began to build a factory with the surplus funds in his hands.

The construction of light industry is very easy, but the construction of heavy industry is very difficult, not only does it require investment, but the return of profits is also slow, but Fang Dingguo, who supported his younger brother, took out all the funds at once, established a steelmaking plant and a cement factory, and later with Fang Xiaoyu's advice and support, he put into operation a synthetic ammonia fertilizer plant.

In order to set a benchmark, Fang Xiaoyu was quite supportive of Fang's industry, and asked the machinery factory to give priority to providing equipment for the eldest brother, so that several factories he invested in were quickly established, and with the support of a large number of technicians in the technical school, these factories were established in a year.

Fang Xiaoyu let his company invest with Fang Dingguo, and with the large amount of Zhonghua Group Company, five large-scale steelmaking plants were directly established, fortunately, there was still a lot of money from the last grain sale, and the company's funds could definitely support the construction of so many steelmaking plants.

Other heavy industries, such as machine factories and chemical plants, have also expanded on a large scale. But the merchants in the territory were still relatively short-sighted, and most of them invested in light industry, and did not even have much interest in the tax exemption for heavy industry.

However, after a few years, they regretted it, the large-scale construction of the entire Chinese Territory required a large amount of steel and cement, which made the prices of steel and cement rise sharply in the entire Chinese Territory in the past few years, making the Fang family make a lot of money, and even Fang Xiaoyu's uncle Fang Weiming also boasted that Fang Dingguo had a vision of the country, knew how to invest, and he was regarded as a successor.

As for the fertilizer factory, not to mention, it is the only one that can produce fertilizer that can increase the yield of crops in large quantities except for the Zhonghua Group Company, whether it is within the Chinese territory or within the scope of the world, the demand for this kind of fast-acting fertilizer is unlimited, although Fang Dingguo has made several expansions after that, the product is still in short supply.

These synthetic ammonia have other uses in addition to the production of chemical fertilizers, because the composition of synthetic ammonia and explosives is similar, after the Chinese Territory entered a state of war, his synthetic ammonia fertilizer factory was converted to the manufacture of explosives for the military, and the Fang family's synthetic ammonia factory, together with such factories of the Zhonghua Group Company, supplied a large number of TNT explosives for the army, and this fertilizer factory eventually became a cornucopia of the Fang family's money.

The construction of the Chinese territory is prosperous, so that the rich businessmen of the Lanfang Empire are very red-eyed, many rich businessmen have inquired about the East China Tour, and some people even asked the people they knew when they were the county punctual in the East China Trip to give gifts, which made the East China Trip cry and laugh, there is Zhang Tong, the iron-faced and selfless guy sitting in the Supervision Yuan, who dares to accept bribes from the government.

There was no way to be annoyed after being annoyed, so Huadong had to come to Fang Xiaoyu. Fang Xiaoyu replied very simply, it is okay to come to Zhonghua Ling to invest and build factories, but they cannot enjoy the same preferential tax policies as Zhonghua businessmen, and the Bank of China will not give them loans, unless they move the entire family into Zhonghua Ling to settle down.

Even so, the big families in China are also flocking to it, most of these big families have more than a hundred years of wealth accumulation, money will not be less, and those loans and tax incentives will not be rare, what they value most is the good transportation conditions of the Chinese collar and the high-quality machinery supply of the Zhonghua Group Company, which is incomparable in the Lanfang Empire.