Chapter 339: Increasing Investment
In the North American branch of Hechingen Bank, Jonathan received an important letter from the headquarters. He was somewhat surprised and even found it unbelievable. The decision made by the headquarters seemed to involve significant financial risk. Despite any concerns, Jonathan understood his role, so he decided to move forward with the plan.
Jonathan held a meeting with his subordinates, announcing that they would relax restrictions and invest more significantly in the United States. Their goal was to contribute to the prosperity of American society. The North American branch had a focus on the technology sector, especially the power industry, but now they were expanding their investments across various industries.
The Hechingen Consortium's decision to increase investments in the United States, even with higher associated risks, reflected their belief in the country's economic potential. They were willing to take on more significant challenges as long as there were opportunities for profit.
However, Jonathan kept a particular aspect of their plan a secret from his subordinates. The investments made in the coming months were intended to be temporary, with the ultimate goal of selling these projects at a high price. When the timing was right, they would divest themselves of these assets, potentially reaping substantial profits.
Meanwhile, in the Far East, the Hechingen Consortium was also increasing its investments, primarily targeting the domestic market. The cooperation between the Hechingen Consortium and Anhui merchants aimed to tap into the vast potential of the Far North market.
This strategy would lead to significant changes in the traditional handicraft industries, and leaders like Qiao Zhiyong from the Shanxi merchant group recognized the urgency of adapting to new international trends. Learning from Western banking models became a priority, as they understood the importance of expanding their international perspective.
Historically, Shanxi merchants had failed to adapt to changing international environments, leading to their decline. Now, with the emergence of strong competitors like Hechingen Bank, the Shanxi merchant group was at risk of losing its foothold in the northern market.
The Qing government's efforts to protect its own market had also proven ineffective against Western powers. The Hechingen Consortium, with the backing of powerful nations, was rapidly expanding its influence in the northern regions of China.
One factor contributing to this expansion was the geographical constraints of northern Jiangsu, an area that had historically suffered from flooding and economic challenges. Even in the modern era, this region remained economically underdeveloped, with only a few significant ports like Lianyungang. The city with the strongest economy within the Hechingen Consortium's sphere of influence was Kaifeng, but the region east of Kaifeng towards the coast faced natural and man-made disasters, hindering its development.
In summary, the Hechingen Consortium's decision to increase investments in the United States and the Far East reflected their willingness to take calculated risks for the sake of potential profits. Their strategies aimed to capitalize on economic opportunities in these regions, even if it meant temporarily diversifying their investments and divesting when the timing was right.
(end of this chapter)