Chapter 445: Asking for Strategy (Part 2)



Fu Xiaoguan spoke at great length, leaving the three of them stunned.

In fact, Fu Xiaoguan only mentioned some superficial disadvantages. He did not talk about the more serious or profound ones, and they would not understand even if he did, such as the possible economic crisis, currency depreciation, stagflation, inflation or deflation, etc.

He could foresee that this nationwide reform initiative would inevitably lead to large-scale labor transfer. He hoped that this transfer would be benign and that economic towns would develop locally - villagers would not need to migrate, and market towns would naturally form urbanization. Villagers would be able to earn money in workshops in their own towns without losing their crops.

The countryside is getting better and better, not because of economic development, but more and more rural areas are disappearing.

Capital pursues profit, and if it is not regulated, the consequences will be unimaginable.

The three people including Emperor Xuan of Yan, Prime Minister Dong and Shangshu are even more unimaginable.

Emperor Xuan came over and sat in front of the tea table. He said to Eunuch Jia, who was standing in the corner with his head bowed, "Go and bring me my box of good tea..."

Eunuch Jia bowed and left the imperial study. Emperor Xuan looked at Fu Xiaoguan and asked again, "According to what you said, isn't this business move extremely risky?"

"I believe that everything has its pros and cons. Well-regulated commerce can enhance the competitiveness of goods, which in turn can improve the machinery used to manufacture them. Merchants can earn money, while ordinary people can also earn money through their labor. The state can increase tax revenue during the production and distribution of goods.

These are the good things, but the bad thing is that commercial competition is brutal. In the process of competition, some businesses will inevitably fail and go bankrupt, and backward industries will inevitably be eliminated by more advanced industries.

This is with respect to the domestic market, but I think we should look further, when we focus on the global market... Your Majesty, Yan Zai Dong, your father-in-law, please think about it.

If one day, the products produced in our country are placed on the global market, how can we make a profit or survive in competition with other countries?

That's a more brutal market environment, which requires our Yu Dynasty products to be leading and technologically advanced. That's the real battlefield, without swords, but everywhere is full of swords and sabers, and if you're not careful, you'll die.

But it is also a brilliant stage. If we can win, we can earn a lot of money in other countries, dominate the prices of goods, and even... through commercial means, we can control other countries..."

The three of them stared at Fu Xiaoguan in amazement. When Jia Gonggong stepped into the threshold of the imperial study, he happened to see this scene and was so surprised that he almost dropped his jaw.

What surprising move has this kid Fu Xiaoguan made again?

When Eunuch Jia handed the tea can to Emperor Xuan, he actually did not take it, as if he did not notice that Eunuch Jia was standing next to him.

He was imagining the scene that Fu Xiaoguan had described in his mind - with the world as the stage, what would Yu Chao look like standing on that stage?

Will it be crushed by the products of other countries, or will it be able to conquer the market and seize the stage?

Now that international trade is not open, goods from all countries are not directly exposed to each other, but goods smuggled from other countries have begun to affect the lives of a small number of people.

For example, the jadeware of Fan State, the woodenware of Yi State, the ironware of Wu Dynasty, and of course the silk of Yu Dynasty are also said to be best-sellers in these countries.

But this is only a very small part of the thousands of products, but it can also illustrate some truths.

If the jade wares of the Fan State entered the Yu Dynasty in large numbers, the jade wares of the Yu Dynasty would have no choice but to retreat. If the jade craftsmanship of the Yu Dynasty could not be improved in the subsequent process, it would eventually go bankrupt and disappear.

So this is why no country dares to truly open up international trade.

Emperor Xuan calmed himself down, took a deep breath, and then took the tea leaves and said, "The move by Guomao... is inappropriate!"

Fu Xiaoguan replied: "Your Majesty, you are wrong!"

Emperor Xuan's hand holding the tea can trembled. Although I am your father-in-law, my first identity is the emperor!

Fu Xiaoguan didn't notice his angry look, but said seriously: "The market is about supply and demand. Closing the country to the outside world is a temporary measure... I know you want to say that it was like this a thousand years ago, but a thousand years is nothing compared to the tens of thousands of years in the future of human society.

History always moves forward. Just because we don't have to face it now doesn't mean your descendants won't have to face it in the future. Your Majesty is a responsible person. Why leave this matter to your descendants?

I believe that if Your Majesty can take the initiative now, you will be able to gain a ten-step advantage after the opening of the International Trade Center in the future!"

Emperor Xuan was silent for a long time. He made some tea and then slowly said, "Today we are discussing the policy of promoting the development of both commerce and agriculture. We will not discuss the issue of international trade for now."

Fu Xiaoguan grinned, "Your Majesty is absolutely right!"

"Tell me how to avoid these risks."

Yan Beixi and Dong Kangping both looked at Fu Xiaoguan. The most important step in promoting business has now been taken. Once the arrow is shot, there is no turning back. This road must be continued, but how to go on... now falls on the shoulders of this kid. Let's see how he responds.

Fu Xiaoguan pondered for a moment and said, "Competition in business is inevitable. This is the law of the market. What we need to do is to make this competition orderly. The first step is to legislate for business!"

legislation?

The country does not have many laws and regulations regarding merchants, and most of them fall on the control of national strategic materials. For example, operating salt requires a salt permit from the government, merchants are not allowed to sell firearms, and merchants need official documents to engage in mining, etc.

But the legislation that Fu Xiaoguan is talking about at this moment is obviously not these. What kind of commercial legislation does he have in mind?

As the three people looked on expectantly, Fu Xiaoguan spoke again:

"This is not a code, but a series of laws. One of them is the Code of Business Conduct Law, which sets out the rules for all business conduct, including what is permitted and what is not, and the penalties for violations."

"What about the second one?" Dong Kangping asked.

"The second is the Anti-Unfair Competition Law. Unfair competition refers to businesses using unfair means in their commercial activities to harm the legitimate interests of other businesses and disrupt the national economic order..."

Official Fu spoke eloquently, but the three of them were visibly confused. He thought for a moment, then spread his hands. "It seems the establishment and implementation of this law is a long and arduous task, but we have no choice but to take this step... I believe we should first establish a dedicated regulatory department, called the Ministry of Commerce, responsible for legislation, interpretation, and oversight of all commercial activities in the country. Do you agree?"

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