Chapter 340

Chapter 340: Huaihai Economic Zone

The economic zone planned by the four Hechingen Consortiums in the Far East, which includes Southern Shandong, Northern Jiangsu, Eastern Henan, and Northern Anhui, was considered an economic depression due to a combination of natural and man-made disasters over the years. While natural factors like the shifting of the Yellow River played a role, it was mainly man-made disasters and the disruption of the local feudal economic system that led to this situation.

Historically, this region, including Huai'an Mansion, had been prosperous due to its location along the Beijing-Hangzhou Grand Canal. However, with the diversion of the Yellow River, the decline of water transportation, and the rise of shipping, this area's economic vitality gradually diminished.

When the Hechingen Consortium arrived in this region, they took advantage of the situation created by successive natural and man-made disasters. The disruption caused by floods and conflicts had weakened the local economy, and people had lost their sources of income.

Ernst, who had previously focused on East African immigration, now turned his attention to this region, realizing its potential. He was known for planning investments in areas where the Hechingen Consortium became involved. However, the economic depression in the Far East was something Ernst hadn't noticed until now.

To address this, Ernst mobilized the Hechingen Consortium to invest heavily in the Far East to combat the economic crisis. It was a mix of economic interests and Ernst's personal emotions, as long as it didn't harm the interests of the consortium. Cooperation was a win-win, and both parties would benefit.

Yanzhou Prefecture, specifically Zaozhuang, was one of the first places the Hechingen Consortium intended to invest in. They planned to develop the coal mining industry in Zaozhuang due to the region's rich coal resources. This move aimed to take advantage of the steam-powered era's need for coal and the huge market in the Far East.

The Qing government, represented by Chen Shijie, was cooperating with the Hechingen Consortium in this venture. Although the Qing government had no intention of investing capital directly, it allowed Huizhou merchants, Shanxi merchants, and the consortium to invest in the region and jointly develop what would become known as the "Huaihai Economic Zone."

This economic zone spanned four provinces and was strategically located to harness the region's coal resources. Lanling City, planned to be developed in the Zaozhuang area, would serve as an industrial hub driven by the coal mining industry. It was expected to play a pivotal role in industrialization and would rely on water transportation via Weishan Lake and rivers to serve the entire Huaihai Economic Zone.

Lanling City was just the starting point. The Hechingen Consortium planned to develop coal mines in various regions across the Huaihai Economic Zone, such as Jining, Linyi, Huaibei, Zibo, Heze, and even as far as Huainan, Anhui.

The Qing government also took steps to improve road infrastructure and canal systems in the region, with East Africa providing grain needed for these projects at cost price. The Huaihai Economic Zone was designed to have a unified taxation system, inspired by the German Customs Union, aimed at reducing taxes, eliminating local protectionism, and ensuring the free flow of goods and people throughout the zone.

While the central Qing government benefited from these developments, it also maintained a cautious approach towards East Africa, recognizing the need to guard against potential risks. Thus, officials like Chen Shijie were appointed to oversee East Africa's activities in the region, fostering cooperation while monitoring the kingdom's actions.

(end of this chapter)