Iron Dynasty Chapter 1075

“Apart from the Imperial Central Bank, we have also established the Construction Bank, the Industrial and Commercial Bank, and the Agricultural Bank. Each of these specialized banks has its distinct functions and is tasked with extending loans to various sectors. Concurrently, the Imperial Stock Exchange is nearing completion and is slated to officially commence issuing government bonds and a range of other stocks to the public by next April.”

Yang Chengye turned a page in the report, proceeding, “Regarding industry, under my purview, industrial construction is progressing at full speed across all major provinces. Currently, all upper prefectures have set up their own substantial industrial zones, with factories also being erected in the middle and lower prefectures. The total number of factories nationwide has seen a doubling, a truly encouraging expansion. The precise factory count is excessively extensive, so I have included it in an appendix for your review.”

Xiao Ming was perusing Yang Chengye’s report. Upon reaching the concluding pages, he discovered that the thirty-plus sheets of paper indeed detailed the name, category, and scale of every factory within the Empire.

After a cursory examination, a smile graced Xiao Ming's features. Unbeknownst to him, the Empire's industrial might had experienced a significant surge.

Within the Qingzhou region alone, numerous specialized machinery factories have been inaugurated during this period. Examples include facilities dedicated to the production of steam locomotives, bearing factories churning out bearings, bicycle factories manufacturing bicycles and tricycles, and motor factories assembling electric motors. It could be said that with each piece of machinery thoroughly understood by Lin Wentao’s research department, a corresponding factory was promptly established.

Following their appearance in Qingzhou, these factories quickly proliferated to other prosperous prefectures and counties.

Having addressed factory construction, Yang Chengye also delivered a comprehensive report on commercial development, which spanned a total of thirty minutes.

Once Yang Chengye concluded his presentation, Xiao Ming directed Song Changping, Chen Qi, Lin Wentao, Lu Tong, and He Dong to report on matters within their respective domains.

The contributions of He Dong and Lin Wentao required little elaboration; the internal combustion engine, automobiles, telephones, and telegraphs were testaments to their ingenuity. While Lu Tong maintained a low profile this year, his accomplishments were considerable. He made substantial advancements in petroleum refining, oxygen and nitrogen purification, and the synthesis of various essential chemical agents.

As for the two ordnance experts, Song Changping and Chen Qi, they were engaged in the enhancement and modification of the Han-style rifle and the current Imperial Guard artillery. Specific prototypes were scheduled for presentation the following day.

After inquiring about technological developments, Xiao Ming finally turned his attention to Pang Yukun, requesting a broad overview of the Empire's overall situation. This concluded the annual court assembly.

“Your Majesty, according to our figures, the Empire's industrial and commercial tax revenue for this year amounts to sixty million gold dragons, with agricultural tax contributing forty million gold dragons. In terms of fiscal intake, commercial taxes have now surpassed agricultural taxes, establishing themselves as the primary source of the Empire’s revenue. Within industrial and commercial taxes, state-operated factories and the Chamber of Commerce contribute sixty percent, forming the principal base of commercial tax revenue.”

Pang Yukun added with evident pride, “In addition to tax contributions, the profits remitted by state-owned factories this year were also notably substantial, reaching one hundred and twenty million gold dragons. The Qingzhou Chamber of Commerce submitted profits totaling two hundred and eighty million. Furthermore, war gains for the year provided the Empire with ninety million gold dragons, primarily derived from reparations from occupied territories and captured spoils.”

Among all the year-end assessments, Xiao Ming derived the greatest satisfaction from Pang Yukun’s report, as it provided a clear and concise understanding of the Empire’s financial standing for the year.

Continuing his fiscal summary, Pang Yukun stated, “As of this moment, the total face value of gold dragons issued by the Imperial Central Bank has reached ninety billion, encompassing both currency notes and minted coins.”

A look of contentment spread across Xiao Ming’s face upon hearing this figure, which indicated to him that the Empire's tax revenue was in a healthy state.

“Does this imply that the Empire’s gross domestic product has seen an increase of approximately three billion gold dragons this year?” Xiao Ming inquired.

Pang Yukun appeared taken aback. “How did Your Majesty ascertain that?”

A light chuckle escaped Xiao Ming's lips as he stated, "The formulation of the Empire's tax system originates from me. The total tax revenue will fundamentally account for one-tenth of the annual gross domestic product. I am quite aware of this fact."

Pang Yukun was struck with awe. While he already held Xiao Ming in high regard, he now realized that the more he interacted with the Emperor, the more apparent it became that he could never surpass him. "Your Majesty is indeed wise," Pang Yukun proclaimed.

He continued, "Compared to the previous year, the widespread adoption of electricity has significantly boosted the production capacity of our factories, which is also a primary reason for this year's substantial tax revenue. Furthermore, under Your Majesty's astute governance, the people of the Empire are experiencing increasing prosperity. Although the Empire has successfully opened numerous overseas markets, the majority of goods produced domestically are still consumed within our own borders."

"The Empire's market is undeniably the largest prize. However, at the current growth trajectory of the Empire's industry, the domestic market will reach saturation in less than three years. By that time, overseas markets will assume paramount importance," Xiao Ming observed.

No sooner had he finished speaking than Li Kaiyuan stepped forward. He declared, "Your Majesty, based on my recent experiences in overseas business, the markets of the rest of the world, when combined, likely only equate to the Empire's own market in scale. Their purchasing power is exceedingly weak, and they are simply incapable of affording the Empire's goods. If this situation persists, the Empire's industry will inevitably confront a significant bottleneck."

"Your assessment is remarkably accurate," Xiao Ming stated calmly. In this particular era, the global population was finite.

Moreover, a substantial portion of this population existed in a state of self-sufficiency, possessing no genuine demand for many industrial products. For instance, the inhabitants of Japan, the Philippines, India, Indonesia, and various parts of Africa would not be purchasing the Empire's bicycles. Even within Europe, not every individual could afford such items.

For people in these regions to purchase bicycles, the establishment of a prosperous class within those societies would be essential, coupled with a concurrent demand from this class for bicycles.

To achieve this objective, it would be necessary to permeate their cultures and allow the trends of the Chinese Empire to become their own fashion. In simpler terms, this entailed establishing the Empire's cultural influence.

"To escape this confinement, our reliance must be solely on the Empire itself. If other nations lack demand, we shall cultivate it. If they cannot afford our goods, we shall empower them to do so. Henceforth, the Empire's colonial strategy must be executed with greater finesse."

"Finesse." The ministers echoed, looking towards Xiao Ming.

Rising from his dragon throne, he proclaimed, "Colonization transcends mere military might. Cultural and economic colonization are equally valid forms. The Empire is now fully capable of transferring polluting industries overseas while simultaneously establishing its sphere of influence through the exportation of our culture."

As he spoke, his gaze fell upon the overcast sky of Qingzhou. The industrial demands of the steam engine era necessitated extensive coal consumption, a practice that had relegated Qingzhou's picturesque green mountains and clear waters to the past.

However, there was little that could be done about it, as this was the unavoidable cost of industrialization. But now that the colonies in Southeast Asia were under his command, he could completely relocate certain heavily polluting industries to those territories.