African Entrepreneurship Records

  Chapter 333 Triangular Alliance

  Growing japonica rice in the Great Lakes region not only considers the difference in temperature from the coastal plains of East Africa, but also aims to enhance competitiveness in the international market.

  Like the Far East, Japan, North Korea and parts of Southeast Asia, the requirements for rice in these grain markets are quite different from those in the Middle East and India.

  The current status of the international grain market is getting more and more complicated, with the addition of East African grain production, plus the expansion of production in the United States, Australia, Canada, and Tsarist Russia.

Now it can be confirmed that the world's food production capacity is overcapacity, even earlier than the time period of the previous life, and it is the rapid development of industrialization in various countries that maintains the overcapacity of food production capacity. Now the whole world is in the extreme prosperity before the economic crisis. Everyone is If you blindly invest in production, you can make money anyway. Once the economic bubble is burst, an economic crisis will inevitably erupt within a year or two.

  In order to avoid risks, Ernst's next goal is to optimize the East African industry, develop the internal market of East Africa, dispose of non-performing assets in Europe, and further strengthen the economic barriers in East Africa to separate it from the world market.

In fact, East Africa has always been out of touch with the world market economically. As a country owned by a consortium, all foreign trade in East Africa must pass through the "connector" of the Hexingen Consortium, so East Africa's foreign trade is not in harmony with it. world market integration.

  So the impact of the world economic crisis on purely agricultural countries like East Africa is very limited, and may even have a beneficial impact. For this point, we can refer to the Far East. During the world economic crisis, it became the hottest period for industrial investment.

  Although it is beneficial to East Africa, the economic crisis will affect the Hechingen Consortium's income. After all, most of the Hechingen Consortium's assets are in Germany and the Austro-Hungarian Empire.

  Because of the disruption in East Africa, Ernst is not sure when this space-time economic crisis will suddenly erupt.

  In history, it was the beginning of 1873, but there were signs at the end of 1872. The main reason was that the production of American railways had stopped. However, the first place where the crisis broke out was the Austro-Hungarian Empire, and the crisis center was in the United States.

  …

   July 1871.

  Because of the construction of Nairobi in East Africa, some industrial workers were diverted from the Far East, coupled with the reduction in orders caused by the end of the two wars in Europe, some machines in Jiaozhou’s textile industry have come to a standstill, and it is imperative to reduce the production capacity of Jiaozhou’s textile industry.

This capacity reduction is aimed at the textile industry invested by the Heixingen Consortium in the Far East. In fact, due to the immigration of workers, the production capacity of Jiaozhou’s cotton textile industry has been reduced. This time, the Heixingen Consortium mainly sold the excess machines after the production reduction .

  Jiaozhou Textile Factory.

Levins, Sales Representative of Jiaozhou Textile Factory: "Mr. Qiao! Look at these machines. They have been in operation for less than two years, and they can be used as new equipment. They will not be eliminated by the market even in the next ten years. You have already had purchase intentions from Japanese companies, but we still decided to keep most of these machines in the Far East.”

  It is impossible to sell the machines to Japan. When these machines were ordered, they were at the most advanced level in the world, and they are still in the first echelon.

   Japan’s textile industry has achieved tremendous development due to reforms. Ernst does not want to help Japan improve its mechanization level. Japan’s best choice is to continue to be a sweatshop.

At present, the west has a technological blockade against the east, mainly the blockade of advanced machinery. Even if it exports machinery, it is also exporting some technologically backward machinery that will be eliminated soon. The machines of the Jiaozhou textile factory were purchased by the Hexingen consortium from Germany (Prussia). It was imported from the UK in name, so there was no obstacle at that time, and the British manufacturer did not expect that the Hexingen consortium would assemble and build a factory in the Far East.

  Qiao Zhiyong: "Mr. Levins! Although the machinery in your factory looks very new, these machines are second-hand after all, and the price is too high!"

Levins shook his head and said: "Mr. Joe, I want to popularize some concepts for you. These machines are top-notch even in Europe, and the production efficiency is very high. If you have the ability to visit the UK, you will find that the British mainland Many textile companies in China have not even applied it, and are still using more backward machines, so the machines we plan to sell are completely priceless in the Far East. If you miss this opportunity, this is your or even your country’s loss."

  Qiao Zhiyong: "Well, even though that's the case, I'm running a small business and I don't have any experience in this area, so I have to take huge risks!"

   There will be ghosts in the letter!

  Jiaozhou Textile Factory has its own considerations when it comes to finding a new home. Businessmen with poor economic strength are simply not qualified to come here to see the goods.

  There are a group of commercial giants in the south who are capable of taking over, but they have a close relationship with British capital. The Hexingen consortium doesn't even give them a chance to enter the door. To put it bluntly, it is called an enemy.

  As a large consortium represented by German capital, Hexingen is one of the competitors of British capital in the international market, especially after the reunification of Germany.

   Qiao Zhiyong, as a commercial giant in the northern region, represents the most powerful Shanxi merchants in the north.

  The representative business of Shanxi merchants is the bank, which is opened in the West. It is half of the same industry as Hexingen Bank, and its strength is naturally very strong.

  The most important thing is that there is no influence from other foreign countries behind it. It is a business group born and bred in the Far East, and it is a partner that Hechingen Bank can cooperate with.

Moreover, the base camp of Shanxi merchants is in the northwest region where Shanxi and Shaanxi are the main areas, as well as Inner and Inner Mongolia, and the business scope does not overlap with that of the Heixingen Consortium. East and south of Zhili, this is already the limit. After all, the north does not have the dense water network as the south, and there is still competition between Britain and France in Yantai next door.

  If the Heixingen Consortium and the Shanxi Merchants establish a cooperative relationship, the Heixingen Consortium and East Africa can use the business channels of the Shanxi Merchants to cover their business in the far east, west and north hinterlands.

Levins: "Mr. Joe, you are a discerning person, don't care about such petty profits, just imagine, if you get these machines, you can use the population market and resources in the hinterland of the Far Northeast to build a Compared with cotton textile enterprises, as far as we know, the north and northwest of your country are suitable for cotton planting."

   While the two were discussing, the workshop next door. Jiaozhou Textile Factory is also negotiating with Hu Xueyan, a representative of Huizhou merchants.

  That’s right, this time the Heixingen Consortium is taking both ends, because the Jiaozhou Textile Factory has to cut its production capacity in half, and as the largest textile factory in the Far East, half of its production capacity is not a small number.

  East Africa is not a powerful country, it has a lot of influence in the Far East thanks to the tiger skin of Germany, and it would be good to occupy a place in the north.

  If you want to further develop in the Far East, you must have agents and partners. As the two major business groups in the Far East, Shanxi merchants and Huizhou merchants are economically capable of cooperating with East Africa.

  Although the two major business gangs look good now, they are actually in a very dangerous situation. As the second representative of Far East business, they also face competition from foreign capital.

  This time, it is better to delineate their respective spheres of influence with Heixingen, an outsider, and reduce the internal friction among the three to prevent capital from other countries from taking advantage of it.

Everyone is a competitor of the capital of Britain, France, the United States and other countries, so it is necessary to keep warm in groups. If the three parties combine, they can stabilize the independence of the regional economy within their respective commercial scopes. Of course, if the competitors open a breakthrough through war, it will be another said.

   For example, Huizhou merchants have a very dangerous geographical location. In the Jianghuai River Basin, British capital already has a bridgehead, and the entire Yangtze River is not very safe.

  That is to say, Huizhou merchants are still somewhat resistant, such as Hu Xueyan, who historically fought against foreign capital, and was finally destroyed by the joint suppression of the country's bureaucratic group and foreign forces.

  (end of this chapter)