1928: The rise of giant merchants

These days, Song Ziwen has been accompanying Wang Zhengting and Ma Murui in the Ministry of Foreign Affairs to negotiate the issue of tariff independence, while the Japanese representatives are making their final struggle.

On July 19, 1929, the Nationalist Government notified Japan that the extension of the Sino-Japanese Treaty of Commerce and Navigation in 1896 had expired and a new treaty should be negotiated based on the principle of equality and mutuality.

Until the New Covenant is concluded, provisional measures will apply.

On August 14, the Nationalist Government once again notified the Japanese side, but the Japanese side stated that they would not accept it.

There are two reasons for this: First, Japan has special interests in trade with China. Japan's exports to China "account for more than 40% of the country's exports," which is higher than other countries, and most of the items exported to China are light industrial products for which China is most likely to significantly increase tariffs. The Tanaka cabinet at that time even directly told the Ministry of Foreign Affairs of the Jinling National Government that "Japan's special rights in China are too important to give up." Second, at this time, Japan placed its hope on coordinating with other countries to jointly resist China's actions.

In October 1929, the United States was the first to sign a new tariff treaty with China. The United Kingdom also expressed its support for China's tariff independence. France and Italy also agreed, and Japan was isolated.

Tanaka's cabinet has aroused domestic criticism because its tough measures against China have not been effective. Even the Japanese industrial and commercial classes who originally actively supported Tanaka "were affected by the stock arrangement and gradually became unable to support and complained." "Tanaka's status is in jeopardy." .

Realizing that China's tariff autonomy was inevitable, Tanaka revised his China policy and hoped to negotiate a reciprocal treaty with the Jinling National Government.

The domestic situation also forced the Jinling Nationalist Government to negotiate with Japan as soon as possible to obtain tariff autonomy.

At that time, the Yeluo people were still in the United States, and the Shanghai industrial and commercial circles headed by Yu Qiaqing were demanding tariff protection. In order to meet the demands of this group, the government also hoped that the issue of tariff independence would be resolved as soon as possible.

On December 4, 1929, Song Ziwen said in the report presented to the principal: "The Japanese side requires our country to recognize the Nishihara loan in exchange for agreeing to our country's tariff autonomy. Since Japan's attitude is this, please ask the national government to issue an explicit order to promulgate the 19th anniversary The national tax rate will be implemented every month. The Ministry of Finance shall comply with it."

On March 12, 1930, China and Japan signed a draft agreement, and it was scheduled to be officially signed on May 6.

At this time, the Japanese representatives were still fighting for the final benefits, trying to make the Jinling National Government take a few steps back so that they could get enough compensation.

Losing some money is nothing to Song Ziwen. He is not the one to provide the money anyway. He only requires that the agreement be completed as soon as possible so that he can make a huge profit from it.

Just yesterday, the two-year Sino-Japanese tariff negotiations finally ended with the proposed signing of the "China-Japan Tariff Agreement." One and a half years after other countries recognized China's tariff autonomy, Japan finally recognized this.

Although in order to facilitate this matter as soon as possible, Song Ziwen also agreed to sign a Sino-Japanese special goods tax rate agreement, which greatly benefited Japan. However, at the expense of this, the Jinling National Government obtained Japan's official recognition of tariff independence, which the Chinese people dream of and strive for. The complete restoration of decades-old tariff autonomy is indeed inspiring.

Goods in the special duty agreement also have the opportunity to regain the freedom to increase taxes. The agreement clearly states: "The special goods listed in the agreement are subject to restrictions, ranging from three years to one year. , you can be free, just like the journey, although it is a little circuitous, you will eventually reach your destination one day."

After three years, the country can freely formulate tariff policies without being affected by any agreed tax rates.

Many political commentators have expressed their opinions, saying, "From this point of view, the establishment of such a tariff agreement cannot be regarded as a major progress in diplomacy."

The answer Chen Youde got was the first step for the Jinling National Government to cooperate with tariff autonomy - the abolition of Lijin.

Lijin has become popular in the Lianghu area since the Qianlong period. It was originally used to collect military expenses. As for the proliferation of Lijin, it started from the Taiping Heavenly Kingdom and remained until the Republic of China, and the situation became more and more serious.

Previously, the warlords responsible for governing various places were not a faction. Each city had its own lijin regulations and was not under the jurisdiction of the Jinling National Government. Merchants' goods had to be transported from the south to the north. I don't know how much more lijin would be levied. There was still a long way to go before landing. A landing tax is waiting for you, and there is no profit at all.

This is also the reason why the north and the south are not connected to each other and the economic status is so different.

Ye Luo's business in Shanghai was very popular, but it was rare for the products that Ye Luo invested to become popular in the north. This was the reason.

When Ma Jue and the others wanted new underwear, they had to ask their friends in the south to bring them to them. The situation did not improve until the company invested by Ye opened its doors in the north.

But if your company from the south opens to the north, it will be very difficult, and it will inevitably be skinned and torn apart.

It was only because of the excellent relationship between Ye Luo and Zhang Hanqing that these problems were avoided and Ye's investment was able to spread smoothly across the country.

Ye's success in investing does not mean that other businessmen can. Therefore, the overall domestic economy is still in bad shape, and only the people at the top are making great profits.

Kong Xiangxi became the richest man in the Republic of China by relying on political convenience.

Jiang Keting agreed to use Japanese goods as domestic goods because he cooperated with Ye Luo and Song Ziwen to get a discount of ten cents, and took risks to make a lot of money, so he fell into Song Ziwen's trap.

Now that the Jinling National Government has officially abolished the Lijin tax and instead levied a unified commodity tax, this is good news for businessmen.

This also means that the long-awaited tariff autonomy is finally here.

From the perspective of ordinary people like Chen Youde, the Japanese would never agree to tariff independence. As long as Japanese products flooded the Republic of China, domestic products would find it difficult to make a difference.

But now, the situation seems to be different.

Combined with Ye Luo's recent actions, Chen Youde had to suspect that the second young master had already had inside information, and then he began to aggressively acquire companies related to the industry.

The businessman with a keen sense of smell also realized that something was wrong, but the company he sold was just like thrown water, and there was no way to get it back from Ye Luo's mouth.

Moreover, Ye Luo also made up for their losses with generous dividends, making it impossible for people to call him a thief.

The Lijin system was quickly abolished in the "Kuomintang-controlled areas", and many local warlords were forced to cancel the Lijin system to cater to the principal's "righteous deeds."

The war in the Central Plains is about to begin. The principal has played a very clever role. He manages the entire south and is willing to give up such huge profits. You keep saying that the principal is dictatorial and want to attack him, but you can't even do this. The people's morale and the military's morale will suddenly change. Collapse.

There are two reasons why the tax reform policy of the Jinling National Government has been so smoothly adopted:

First, foreigners actively urged. Although foreign goods only require a low commission, they are still disgusting. Foreign merchants hate this and think it is a bad habit of feudal society.

Second, domestic businessmen vigorously promote it. Whether they are big capitalists or small traders, they all hope that the government will abolish the lijin system. When these businessmen unite, even a small worm can shake a giant tree.

"A new business era is coming." Chen Youde admired the second young master's foresight. (End of chapter)