Chapter 53: Wuhan Steelworks

  A steam cargo ship was heading west along the Yangtze River, with its loud engine and thick black smoke creating a strong contrast. On the bow of the ship stood Shen Huaixuan and Deng Zixuan, dressed in official attire, standing side by side. Deng Zixuan's beard was dense, his face no longer showing any signs of youth or inexperience, but instead looked mature and capable, especially with his piercing eyes. "Brother Zixuan, I have something to tell you, Zuo Zongtang has led his troops into the border region, and A Gu Bo has rebelled."

  Deng Zixuan knew the answer and asked, "Isn't it true that there's no Ning Ri? The western region is poor and mountainous, with vast territories, making it difficult to quell the rebellion!"

  "Yes! Lord Zu's journey will be arduous, and quelling the rebellion won't be a one-day task."

  "Damn it, A Gu Bo dares to rebel despite being so weak, truly underestimating his own strength. I believe Lord Zu will definitely return triumphantly."

  "Lord Zu's return is not a big problem, but it requires time. Now, our Qing dynasty's hidden danger lies not on land but at sea. Remember how foreigners invaded from the sea in those years, the memory still lingers."

  "I know that's Lord Li's heartache!" "Lord Li is worried day and night about the coastal defense. Last year, a small riot broke out in Taiwan, and our warships were mobilized to quell it, which was a shame for our dynasty. Lord Li has decided to establish the Beiyang Fleet, and next, our machinery factory will produce warships, ironclad warships!" "What great news! I understand now that this time we're going to Wuhan to set up a steel mill is to produce steel for the ironclad ships!"

  "Brother Zixuan said it's not bad, Mr. Li and Mr. Zhang are discussing to build a steel factory in Wuhan using the Daye Iron Mine. Mr. Zhang has already hired foreign technicians, and the site for the steel factory has been selected. Now our machinery factory and textile mill are making good profits, so we need to provide silver to build the steel factory, this time it's all up to you, brother. The foreigners' blueprints can't be understood by anyone, so I need you to take care of it." "Brother Sheng, don't worry! I'll definitely do a great job!"

  "I heard that Hu Xueyan is building a steel factory in Dongguan, Guangdong!"

  "This thing I know! It's a small-scale steel factory!"

  "Hu Xueyan has great vision and has beaten us to it, I'm burning with anxiety!"

  "Sheng brother! I've always been puzzled, why are you always fixated on Hu Xueyan? Don't you know that internal strife will lead to self-inflicted wounds?"

  "Hu Xueyan is a man of Zuo Zongtang, you must be aware of the conflict between Governor Li and Zuo Zongtang."

  Deng Zixuan smiled and said, "Brother Sheng, first of all, you are a businessman, whether you are an official or a commoner! The goal of doing business is to seek the highest profit. If we engage in internal strife and both sides suffer losses, it may allow the hidden fisherman to reap the benefits! This is the most foolish thing." "Who do you mean by 'fisherman'?" "Foreigners!" "Foreigners?" "Yes, foreigners! Brother Sheng, foreigners are always eyeing the fat meat of the Qing Empire with ill intentions, they will not truly wish us well. The current situation in Vietnam where France is stirring up trouble is clear evidence!"

  "I know the minds of foreigners, but we are now using them for our own purposes, so we cannot afford to antagonize them."

  "I don't mean to oppose foreigners, but we must be constantly on guard. The British, French, Germans, Americans and Dutch all have their own hidden agendas, and if they were to form a united front it would be extremely formidable. If we ourselves become weakened by internal strife, the foreigners will take advantage of our weakness. My point is that while we can compete with each other, we must not fight to the death; mutual benefit is the safest approach."

  "Win-win?" Sheng Huai Xuan seemed to be thinking. Deng Zi Xuan continued, "Brother Sheng! Your main business is manufacturing, and Hu Xueyan's main business is banking. You two don't conflict with each other, but if you complement each other, you'll produce the greatest profit. The rapid development of manufacturing will promote the prosperity of banking, and conversely, a strong banking industry will strongly support the development of manufacturing. This is called win-win. In fact, you have an interdependent relationship, especially since you're doing shareholding enterprises, which can't be separated from banking. Doing business is for making money, this doesn't affect each of you having your own goals." "Younger brother Zi Xuan, your analysis is spot on! Your meaning is to present a united front externally, and when it comes to important matters, let me consider it carefully!"

  Deng Zixuan gazed at Sheng Huai Xuan's contemplative face, knowing that his words had moved Sheng. In fact, as long as Sheng didn't stir up trouble and focused on other things, Deng's goal would be achieved. When the day of rebellion arrived, all problems would be resolved effortlessly. According to historical records, Zhang Zhidong, one of the four great ministers of the late Qing dynasty, should have been serving as the governor of Sichuan at this time; why was he now serving as the governor of Hubei?

  What Deng Zixuan did not know was that history had changed at this moment. With Deng Zixuan's ghostly push, Shanghai City as a new type of industrial city began to show its huge profits. Especially the commercial tax revenue increased by 30 times, which does not include the profits of machine factories and other enterprises operated by Sheng Huai Xuan. Thus, Li Hongzhang became even more determined that the Westernization Movement was the only way for China to become strong.

  The effects of the Westernization Movement greatly increased Li Hongzhang's value. Especially with the good development of the machinery factory, Li Hongzhang wanted to get rid of his dependence on foreigners. That is, he built ironclad warships and strived to produce steel himself, so he lobbied the imperial court to support Zhang Zhidong's appointment as Governor of Hubei to manage the Daye Steel Factory. Due to Cixi's young age and unstable position, Emperor Tongzhi passed away and Guangxu succeeded him. Guangxu was too young, leading to the unprecedented phenomenon in Qing history of a woman holding power from behind the curtain. Therefore, at this stage, Cixi especially trusted Li Hongzhang and other Han officials.

  This is the year 1876, Guangxu 2nd year. In other words, Zhang Zhidong started operating the Daye Steel Plant 13 years ahead of schedule, and the Qing Dynasty's heavy industry was also advanced by more than a decade. The mystery behind this is self-evident, and all of this is the result of Deng Zixuan's butterfly effect. Deng Zixuan knew clearly in his heart that historically, Zhang Zhidong's operation of the Daye Iron Plant was extremely difficult due to his unclear understanding of modern industry, and he had once made a heartbreaking joke.

  Zhang Zhidong telegraphed the British ambassador to purchase a steel smelting furnace. At that time, the British factory owner who sold the furnace told him: "Before building a steel plant, you must first conduct chemical tests on iron ore, stones, coal and coke to understand the characteristics of coal and iron, and then determine what type of steel is suitable for production, and only then choose the right furnace. Otherwise, even if there is only a slight difference, it will lead to great mistakes, and it's not worth taking risks." The British factory owner's rigorous scientific attitude was considered pedantic and ridiculous.

  Zhang Zhidong said with a straight face, "With China's vastness, what doesn't it have? Is there any reason to know about coal and iron before buying machines and furnaces? Just buy the machines and furnaces used by Britain, no need to make a fuss." The British factory owner had no choice but to comply. As a result, the furnaces were set up in Hanyang, with iron ore from Daye and coal from Ma'anshan. However, the coal from Ma'anshan was too dense and couldn't be used for smelting. They had no choice but to buy several thousand tons of coke from Germany. Unfortunately, over 22 years, they spent 5.6 million taels of silver, yet still failed to produce steel.

  Later, the coal was changed to Jiangxi Pingxiang's coal, and the steel material was finally trained, but the steel material made was too brittle and prone to cracking. Zhang Zhidong only knew that the boiler he purchased used an acid xìng device, which could not remove phosphorus, and the steel material contained a lot of phosphorus, making it easy to crack. So Zhang Zhidong borrowed 30 million yuan from Japan to replace the boiler with an alkaline xìng boiler, which finally smelted out high-quality Martin steel. Zhang Zhidong's self-blame does not represent his foolishness, but rather the decline of this dynasty; if it were someone else, there would probably be more ridicule.

  "Zi Xuan, little brother, what's on your mind that you're so engrossed?" Sheng Hua Xuan asked, seeing him frowning. "Big Brother Sheng! Building a large steel factory is not an easy task, and if we're not careful, all our previous efforts will be in vain. I'm worried that my weight isn't enough to persuade Zhang Da Ren." "Zi Xuan, little brother, you don't have to worry about this. This time, building the steel factory in Wuhan is being supervised by Li Da Ren, and besides, Zhang Da Ren needs me to provide silver, so he will adopt my suggestions."

  "Alright, brother Sheng! I'll do my best." "That's the spirit! Bring out your specialty and make sure Lord Zhang is well-versed in steel production. That way, our trip will have been a success." The cargo ship docked smoothly at Wuchang Wharf, and as they looked around, it was clear that Wuchang Wharf was bustling with activity, with the ripple effect of Shanghai's prosperity already taking hold here.

  Two men boarded the dock, and a subordinate sent by Zhang Zhidong came to greet them. They arrived smoothly at the governor's mansion, where Zhang Zhidong personally stood outside the door to welcome them. Zhang Zhidong was several years older than Sheng Huaxuan, in his prime of life, and it was the heyday of his career. Deng Zixuan observed that Zhang Zhidong had a medium build, neither too fat nor too thin. His dense beard, slightly sunken cheeks, and large eyes that were somewhat deep-set revealed that he was a bright, capable, and wise man.

  "Haha! Brother Huaixuan, you've finally arrived. If you hadn't come, I would have gone to Shanghai to visit you!" It was clear that Zhang Zhidong was a man in urgent need. "Brother Zhang, I've long admired you, how dare I let you condescend? Now that you have a heavy responsibility on your shoulders, how can I possibly slack off?" "Is the Grand Minister doing well?" "The Grand Minister is doing very well, and has repeatedly instructed me to fully support you. From now on, our ironclad warships will all depend on you!" "I'm ashamed! Right now, I'm completely in the dark and can't even begin to understand what's going on." Zhang Zhidong spoke the truth.

  "Brother Zhang, I know you're in a difficult situation, and it just so happens that I've brought someone who can help!" "This is my younger cousin Deng Zixuan. Don't let his youth fool you - he's a rare talent." "Greetings, sir! Please accept this humble commoner's bow!" Deng Zixuan knelt on one knee in respect. "Your younger cousin has an impressive demeanor. Rise, please!" Zhang Zhidong seemed somewhat aloof. "Brother Zhang, my younger cousin is well-versed in foreign languages and is extremely knowledgeable about the British Empire. He made significant contributions when we were setting up the Shanghai Machinery Factory!" "You understand foreign languages?" "This humble commoner is not talented, but I do understand foreign languages!" Deng Zixuan nodded his head.

  "Great, I'm just short of an interpreter!" "Brother Zhang, my younger brother didn't come to be your interpreter, but to participate in the planning of the iron factory. My younger brother is familiar with the steel production of the British Empire and has come to participate in the planning of the iron factory!" Sheng Huai Xuan laughed. Zhang Zhidong was puzzled: "Did your younger brother go to the British Empire?" "Sir, I haven't been to the British Empire, but when Hu Xueyan planned the Dongguan Iron Factory, I witnessed it?" Deng Zixuan had to lie. "Yes! My younger brother just returned from Guangzhou a while ago!"

  Zhang Zhidong heard and said with emotion: "Let's go! Let's enter the living room and have a detailed chat!"