Spy Wars: Red Shopkeeper

Chapter 195 Reception

Chapter 195 Reception
Upon hearing this, Tsuda Shizue suddenly looked at Gu Yansheng, frowning as she asked, "No growth at all?"

"To be precise, it has declined somewhat, not by much, but it has definitely declined."

Tsuda Shizue remained silent, staring at Gu Yansheng. After a pause, she said, "This is truly unexpected. Mr. Hasegawa highly praised your abilities. I thought Director Gu would give me a surprise, but now this surprise has turned into a shock. What explanation do you have?"

“There is an explanation.” Gu Yansheng paused for a moment. “The industries in western Shanghai mainly consist of casinos, opium dens, brothels, and some textile and transportation industries.”

In the face of the recent economic collapse in Shanghai, the consumption power of residents in western Shanghai has declined, which has affected the tax revenue of purely consumer venues such as casinos and opium dens.

The peak season for textile shipments is winter, specifically November, December, and January. Our experiment was conducted during a time that coincided with the peak season. Cotton yarn prices had already fallen from their peak and were becoming increasingly cheaper as the weather warmed up, making it difficult to sell.

Therefore, the tax revenue of these textile factories will inevitably decrease.

For other industries, tax revenue increases or decreases depending on seasonal adjustments, with little difference between the two.

Furthermore, the constant friction created by Chongqing elements in Shanghai during this period, including the burning of warehouses, contributed to a decline in overall tax revenue in western Shanghai.

"Don't these factors you mentioned exist for others?" Tsuda Shizue retorted. "If you can't solve problems when they arise, why send you to western Shanghai?"

"Mr. Tsuda, please allow me to finish," Gu Yansheng said unhurriedly. "What I just analyzed for you was the industrial structure of western Shanghai. In fact, it was a comprehensive survey I conducted during my tenure in western Shanghai. The goal is to ensure the sustained economic growth of western Shanghai, and the foundation should be these industries that I just mentioned."

After completing our preliminary investigation, Director Wang and I visited numerous merchants in the concessions and successfully persuaded several major businessmen to open factories in western Shanghai. We estimate that there will be no fewer than nine such factories.

Among them were three cotton yarn factories, two flour mills, and repair shops, etc.

As we all know, the demand for cotton yarn is actually very high, but the current wartime situation and poor circulation of goods have led to an oversupply of cotton yarn.

Once the distribution problem is solved, cotton yarn can be distributed to all Japanese-occupied territories, resulting in a significant increase in tax revenue.

With more factories in western Shanghai, the profits are better, the income of citizens increases, local consumption is stimulated, transportation, casinos, opium dens, brothels, all these consumptions are boosted, and all tax revenues improve.

Therefore, Mr. Tsuda, I do not believe I have failed. Director Wang and I both worked very hard, and although our achievements may not be immediately apparent, their legacy will endure for generations to come.

Tsuda Shizue was no longer angry after hearing the reasoning, but she frowned and asked, "According to what you said, you've brought in so many factories, so why hasn't tax revenue increased? Is it because the newly brought in factories haven't had time to start operations?"

“Not entirely.” Gu Yansheng shook his head. “The factories aren’t the main point. The key point is the conditions under which they can start operating. Whether it’s the cotton yarn that the cotton mill needs or the wheat that the flour mill needs, the new wheat that comes to market this year will have to wait until summer, and it’s only April now.”

I don’t know if Mr. Tsuda is aware that the distribution of supplies in Central China was completed last year, so these newly opened factories have no work to do.

Therefore, there would be no way to collect taxes.

Once the new goods hit the market today, these factories will see a surge in tax revenue starting in the fall, as long as they secure their share. Furthermore, due to the material control measures in Central China, they will receive enough for their entire year's inventory, ensuring stable tax revenue going forward.

Aside from seasonal products like cotton yarn, prices definitely drop in the summer, leading to a decrease in tax revenue.

The merchants did suggest to me that I ask you for some facilitation, since there are many restrictions on waterways for transportation. They asked if I could issue them some permits so that they could sell their cotton yarn to merchants in the Japanese-occupied areas when prices are high, and let them take it out to sell.

This way, they can sell more in winter at higher prices, which will increase our tax revenue. I think that makes sense.

Furthermore, we can increase cotton planting to meet the needs of the Japanese-occupied areas. If our cotton becomes cheaper, our costs will decrease. If cotton yarn from Central China can be sold to other regions, the tax revenue will be our own.

Another point is that we hope to give them a larger share of the wheat procurement and storage to ensure they can make a profit.

To be honest, doing business in Shanghai is really difficult right now. If you ask other regions, I believe they will all give the same answer: it is very difficult to recruit factories.

If we allocate more inventory to these businesses in western Shanghai, creating a positive word-of-mouth effect, then Shanghai's commerce could very well experience a major boom.

The vision is very promising and clearly stated. It is obvious at a glance that as long as Huxi follows Gu Yansheng's path, there will be a period of explosive growth in tax revenue.

Tsuda Shizue was persuaded; she no longer considered throwing a tantrum, but instead considered approving the note for Gu Yansheng.

He pondered for a moment and said, "I can provide them with the customs clearance documents for the waterways, and I can promote cotton planting, increase production areas, and sell to North China. This is a good idea."

I can meet their demands, and Mr. Gu's idea is also good; we can develop western Shanghai into an economic demonstration zone.

Gu Yansheng nodded, "Thank you, Mr. Tsuda. If that's the case, we should have a good figure for the total tax revenue by the end of this year."

"Okay, please sit down. Thank you for your hard work."

"Of course." Gu Yansheng sat down.

Wang Rusong was completely relieved. He clasped his hands in a gesture of respect to Gu Yansheng, managing to turn a stern face into a smile.

"Next, who are you?"

As Gu Yansheng spoke, people came in one after another, and Tsuda Shizue kept asking questions.

Gu Yansheng listened to the data and found it to be quite good.

It's not too strange. They tax everything you buy, and if they squeeze every last drop of oil out of you, they can always get some more. But don't expect it to last.

When it was Luo Junqiang's turn, he said that the investigation was not yet complete. "Pudong is too big, seven days is indeed not enough time. Please forgive us, Mr. Tsuda, and give us some more time so that we can complete the investigation as soon as possible."

This is a clever move to drag it out until Minister Zhou comes and makes the decision himself.

Tsuda Shizue scolded him a couple of times and that was it.

Overall, the project was completed quite well.

He put away the ledgers, stood up, and said, "It seems that everyone's abilities meet my requirements. I have high expectations for you. In three months, I hope you can improve upon the current data by two levels. I look forward to your results. Meeting adjourned."

The bureau chief who had been falsifying the data immediately changed his expression. "Mr. Tsuda, isn't 20% too much? We're already barely managing 30%."

Tsuda Shizue asked curiously, "The economy has emerged from its downward trend and is getting better and better. Isn't that only natural? Twenty percent? That's not much, is it?"

I was speechless after being confronted.

As soon as Tsuda Shizue left, someone sat down and started cursing, "Damn it, are you trying to kill us all?"

Wang Rusong was secretly pleased. Fortunately, their data was the worst, so completing it would be a piece of cake.
"Brother Gu, that was brilliant!" Wang Rusong flattered after the event. "Luckily we hid the data, otherwise, how would we survive the next few months if we submitted it?"

Gu Yansheng smiled faintly, "Tsuda can't possibly not increase their stakes. If they keep doing this, they won't survive the next three months. You can keep playing along. I won't let anything happen in western Shanghai."

A smile appeared on Wang Rusong's face. This is what they call choice being more important than effort. Back then, the worst place in western Shanghai, who would have thought that he could be living a life of revelry every night?

They continued their decadent lifestyle for another three months.

"Brother Gu, thank you very much."

"Why are you so polite?"

Two days later, Gu Yansheng received a call from Hasegawa Inokawa, asking him to go to the consulate.

Upon arrival, Hasegawa said, "The warship is almost at port, about half an hour away. Come with me to meet it. Mr. Tsuda said you did a good job in western Shanghai. During the Asia Development Institute's review of you, he was most impressed with you."

Unexpectedly, Tsuda is cold on the outside but warm on the inside, and even went out of his way to praise Hase.

Gu Yansheng smiled and said, "I'm just doing what I can. I don't really approve of what other people do."

Gu Yansheng didn't mind tattling to Hasegawa to show his closeness, saying, "Although draining the pond to catch all the fish may show results in the short term, in the long run, it will only harm Shanghai's economic recovery."

Hasegawa frowned. "They're actually going to such lengths just to make the numbers look better?"

"It's also because of the immense pressure. A 30% increase is unlikely to show results in a short period. It's the same where I am, and we need another 20% in the next three months." Gu Yansheng shook his head. "I'm afraid that if things continue like this, something else might go wrong in Shanghai."

Gu Yansheng was wholeheartedly devoted to Japan's interests, and he devoted himself to it with all his heart and soul.

Hasegawa frowned and thought for a moment. "I'll talk to Tsuda about this when I have the chance. Let's go, we can talk as we walk."

“Sigh, wait a moment.” Gu Yansheng thought of something. “Actually, we can call the people from the China Daily. Although the China Daily hasn’t opened yet, the arrival of people from Hanoi in Shanghai is a historic moment that can definitely be recorded.”

"Okay, give them a call."

"Ok."

Gu Yansheng made a phone call, asking Ma Shiqi to bring the newspaper staff over as quickly as possible.

Twenty minutes later, at Huishan Wharf in Hongkou.

Gu Yansheng saw Fu Xiao'an.

"Mayor Fu, you're here too?" Gu Yansheng greeted him.

Fu Xiao'an smiled and said, "I thought it would be Ling Xianwen who came. It seems that Director Gu has made further progress at the consulate."

"What? Trying to sow discord?" Gu Yansheng teased.

"how is this possible?"

"coming."

Japanese warships docked, and the figures of people on board were clearly visible.

Gu Yansheng and the rest of the group went to meet them.