Chapter 334

Chapter 334: Triangular Alliance (Continued)

The formation of the triangular business alliance proposed by the Heixingen Consortium had its complexities. Shanxi merchants and Huizhou merchants may not have been entirely willing to cooperate, especially the former. Hexingen Bank primarily conducted business in North China, which wasn't its strong suit, and it lacked the influence of local powerhouses like Zhuhai merchants, scholars, farmers, and Shanxi merchants. While they might still have some influence in Shanxi, it wouldn't be easy to extend it to North China.

For Shanxi merchants, cooperation with the Heixingen Consortium offered potential benefits. Qiao Zhiyong was cautious but suggested delineating clear boundaries for their respective regions and ensuring that no one crossed those boundaries.

Anthony, the General Manager of the Far East at Hechingen Bank, agreed to the idea of setting boundaries and also proposed that, after delineating their regions, the three parties should prioritize purchasing goods from allies. This would include food, industrial products, and more, giving each other priority in trade. They could even establish unified standards and an agency for quality supervision.

Qiao Zhiyong and Hu Xueyan agreed to the proposal after some discussion. They also needed to decide on a location for the main hall of their cooperation, with options being Jiaozhou, Xuzhou, and Kaifeng. Kaifeng was ultimately chosen for its proximity to the three families.

However, issues regarding the demarcation of territories arose. Shanxi merchants were concerned that the Heixingen Consortium's rapid expansion in the Far East would impede their business interests, especially in areas like the Yangtze River Basin.

Anthony assured them that Heixingen Bank had been operating within their current regions with official permissions from the local authorities. He emphasized that people chose high-quality and cost-effective products, and that had driven their expansion. He also mentioned that their biggest rival was likely the British, not local merchants, and that Heixingen Bank had no intention of competing with the British in the Yangtze River Basin.

Hu Xueyan questioned whether Heixingen Bank belonged to Prussia, the Austro-Hungarian Empire, or the Kingdom of East Africa, as few people knew about the latter. Anthony clarified that Heixingen Bank was a German national enterprise, representing the entire German nation rather than specific countries.

Qiao Zhiyong expressed curiosity about Heixingen Bank and whether someone could visit their company in Europe to learn more about their operating model. Anthony suggested that Qiao Zhiyong visit the Netherlands, a place with a strong business atmosphere and a pure focus on the financial industry.

Hu Xueyan also expressed interest in sending representatives to Europe to study. Anthony agreed, saying that they could choose to learn from Western banks but emphasized that Heixingen Bank would only offer suggestions, and the final choice was theirs.

The alliance aimed to modernize their approaches and keep pace with global developments. Learning from Western banking practices would not only benefit their businesses but also prepare them to navigate the changing landscape of international capital. This cooperation marked a step toward self-reliance and resilience in the face of potential external threats.

(End of this chapter)