“Who Really Fears Competition? Chinese Merchants Are Striving to Align with International Standards – What About Us?”

“If I’m not mistaken, Miss Lin, this Mr. K. Wood is your pen name, isn’t it?”

Amidst the gentle chamber music accompaniment at the reception, Hede held the latest issue of the North China Herald, deliberately adjusting his monocle as he carefully read from beginning to end. Then, facing Lin Yuchan, he posed a rather sharp soul-searching question.

Shanghai’s Guangfangyan Academy has been established for a year now, with students achieving excellent results. It was said that in the standardized examination papers sent from the capital, their scores thoroughly outperformed students from Beijing’s Tongwen Academy – mind you, Shanghai Guangfangyan Academy’s students were all from common backgrounds, while Beijing Tongwen Academy’s top pupils were all from scholarly examination backgrounds, some even holding academic degrees.

Jade must be carved to become a vessel. Even the cleverest seedlings, when encountering rigid teachers and grammatically flawed textbooks, cannot master real skills.

Shanghai won easily while lying down.

Hede was therefore greatly commended, with the court ordering him to expand the school, recruit more students, and add more subjects. Hede also honored his promise, hosting a celebration banquet for all contributors, great and small, including many Chinese instructors and their families. Lin Yuchan also received an invitation, which she gladly accepted.

Of course, she hadn’t come just to enjoy herself. However, Hede immediately approached her with the newspaper, catching Lin Yuchan completely off guard.

She smiled composedly: “You know my English writing level…”

“Hmm, indeed.” Hede glanced at the newspaper again, sharply agreeing, “It shouldn’t have improved this quickly. The newspaper staff probably wouldn’t have time to help you with grammar corrections either. This is truly strange. To think there would be foreigners interested in Chinese chamber of commerce affairs.”

Two consecutive issues of the North China Herald had published news about the Yixing Business Association, creating an astonishing amount of exposure.

What was interesting was that the first report – the one written by E.C. Bennett – was full of prejudice and hostility, entirely based on speculation, claiming this Chinese-organized chamber of commerce was suspected of monopolistic practices and criminal elements, posing a huge threat to foreigners in Shanghai, calling for everyone to be vigilant.

This report pandered to most foreigners’ prejudices and disgust toward Chinese people, so after publication, it was warmly received, with many readers writing letters agreeing.

The second report – the one Hede was holding – was signed by K. Wood and was much more objective in tone. In just a few paragraphs of text, he not only briefly introduced the Yixing Business Association’s founding purpose (helping Chinese merchants align with international standards) and operational methods (very friendly business atmosphere, peaceful gatherings like weekly afternoon tea), but also subtly suggested that some foreign merchants, unable to stand seeing Chinese people organize a chamber of commerce, tried every means to damage its reputation – a truly disgraceful act. The reporter called for an end to backstabbing behavior that only increased the workload of the police station, advocating that only fair competition between Chinese and foreign merchants could bring lasting prosperity to Shanghai.

Hede scanned these final lines again and smiled: “Now I’m certain this article wasn’t written by Miss Lin – the author should not be a businessman. Look at all these grand phrases like ‘fair competition’ and ‘common prosperity’ – merchants wouldn’t have such romantic idealism.”

Lin Yuchan was slightly indignant: “I think I’m also an idealist.”

“Idealism and romanticism aren’t the same thing, my dear lady.” Hede was too lazy to explain terminology to her, turning instead to curiosity: “So who exactly authored this report? I’m truly curious to know. Ordinary expatriates living in the settlement generally wouldn’t pay much attention to Chinese affairs… or are you saying the North China Herald is willing to slap its face for sales, throwing away all principles?”

These two consecutively published, contradictory reports quickly sparked enormous reader debate. The newspaper had already received countless emotionally charged reader letters, either supporting E.C. Bennett or voicing solidarity with K. Wood. The newspaper deliberately selected representative opinions from both sides, publishing them simultaneously in the supplement, igniting another wave of public opinion.

Recently, Shanghai had other emerging newspapers, such as the Chinese-language Shanghai News published by Jardine Matheson & Co., which was inexpensive with large, easy-to-read characters, showing signs of competing with the North China Herald.

Therefore, the North China Herald’s publication of contradictory reports, triggering reader flame wars, was undoubtedly a deliberate attempt to stir controversy.

Regardless, the two anonymous reporters, E.C. Bennett and K. Wood, with their unconventional approaches, had become thoroughly famous in English-speaking circles.

Hede naturally wouldn’t be led by the nose like ordinary readers. He immediately determined: “Undoubtedly, Miss Lin knows them. This truly is beautiful marketing.”

A waiter passed by, and Lin Yuchan took the opportunity to request a hot egg tart, blowing on it while smiling and shaking her head, indicating he had guessed wrong.

Hede was astonished, staring with his deep eyes as he scrutinized Lin Yuchan, then changed his guess.

“Miss Lin knows ‘him’ – these two anonymous reporters, could they be the same person?”

Lin Yuchan’s lips curved into a smile as she shook her head again, denying Hede’s speculation.

“You should go attend to your other guests now. I’m going to make some new friends.”

She quickly slipped away, leaving behind a bewildered Hede.

The two reporters were indeed the same person – except it was a “her.”

Miss Compton had visited the chamber of commerce as a guest and personally witnessed the farce of “foreigners instigating, middlemen agitating, and mobs blocking doors.” Her pen was itching to write something – not doing so would be unworthy of her literary sensibilities.

Of course, given her position and stance, she certainly wouldn’t lavishly praise the Yixing Business Association. At most, she could achieve neutrality, calling from an outsider’s perspective for everyone to compete fairly without dirty tricks.

Of course, she couldn’t use E.C. Bennett’s pen name to slap herself in the face. After weighing her options, Miss Compton decided to create a new alias to make up for her past mistakes.

After all, those great literary figures in history also had numerous pen names – it was normal practice.

This report was also quickly published. Although K. Wood was a newcomer, his detailed and specific descriptions of the Chinese chamber of commerce seemed as if he had been invited to visit – something ordinary foreigners absolutely wouldn’t have the opportunity to do. The newspaper naturally treasured this as a find, choosing to overlook K. Wood’s slightly pro-Chinese stance.

As expected, the two reports caused a bloody storm, with the North China Herald’s annual subscription rate soaring by ten percent.

Although the “Yixing Business Association’s” image in foreigners’ eyes still couldn’t be called positive, Lin Yuchan reflected that after being publicly reported, foreign merchants should no longer attempt to attack it using underhanded methods.

Fair competition it is, then. Who’s afraid of whom?

Lin Yuchan returned to the ladies’ seating area. Waiters had already brought steaming hot Chinese dishes.

The ladies were mostly family members of Guangfangyan Academy instructors, both Chinese and foreign. The Chinese instructors Hede had invited mostly had Hong Kong, Macao, or overseas backgrounds, so their wives and daughters were also quite modern and open-minded, chatting and laughing with the Western ladies at the same table.

Only a few wives of degree holders and tribute students sent by the Qing government to serve as instructors sat awkwardly in one corner, at a loss.

Thinking of Gao Dewen, who had been left among the foreigners, Lin Yuchan felt sympathy for these traditionally-minded ladies and quietly greeted them, engaging in some casual conversation.

Suddenly, the tinkling of glass rang out. The drinking crowd quieted down.

The academy supervisor stroked his beard and said with a smile: “Well then, now Lord Hede will say a few words.”

Although Shanghai’s Guangfangyan Academy was nominally run by Chinese people, everyone knew the operating funds came from customs revenue. Therefore, in this small banquet hall, it was Hede whose words carried the most weight.

Hede cleared his throat and spoke a few words in fluent Chinese.

Nothing more than thanking everyone for their hard work over the past year, which had successfully brought Shanghai’s Guangfangyan Academy to the court’s attention. In the future, this school would surely become more prosperous, and everyone’s contributions to the Great Qing would eventually reach the emperor’s ears. Where there was effort, there would be reward. I, Lubin, am honored to work alongside all of you, and so forth.

All conventional phrases, but carefully crafted ones that were comforting to hear.

Finally, he wished the emperor and empress dowager good health and the Great Qing prosperity.

Everyone present – whether supervisors, administrators, small instructors, or invited foreign merchant guests – showed expressions of heartfelt conviction, smiling and nodding.

“However,” Hede’s tone shifted as he smiled, “this year’s school expansion and new course additions will strain our budget considerably. I won’t hide it from you all – the customs office is, after all, a Great Qing government office, and customs silver must prioritize transmission to the court for national affairs and indemnity payments. The Zongli Yamen has already expressed opinions to this official that such minor matters as education cannot use too much customs capital. Although I argued our case strongly, I must admit that in this loyal and professional government office, the Great Qing court is the priority client…”

Lin Yuchan was surprised, her eyes widening slightly.

What did Hede mean – was he fundraising for the school?

The customs silver wasn’t enough?

Then she understood. Needless to say, as Hede had managed the customs so well, the Qing government increasingly treated him as a money tree. They had probably designated uses for every bit of customs silver.

Military supplies, river works, indemnities, salaries, garden construction…

Not much money was left for such minor matters as “education.”

The logic of Hede’s speech seemed somewhat forced. Those unaware might think it was because he was a foreigner with limited Chinese language skills, unable to produce more elegant phrases. But Lin Yuchan knew Hede’s character well, and mentally translating his tone into English, she immediately heard the sarcasm hidden in his words – implicit complaints about the Qing government demanding too much money.

Although most people hadn’t caught this and were still applauding and praising Lord Hede’s loyalty.

But Hede had no choice. Even Li Hongzhang and Zeng Guofan, highly valued provincial governors, dared not openly challenge those Manchu high officials. How could he, a naturally mistrusted “outsider,” dare to criticize the court too aggressively?

So today’s reception had another purpose: fundraising.

No wonder he had invited so many foreign merchants.

Hede briefly repeated the fundraising purpose in English, then had the band resume playing, returning to his seat to slowly sip red wine and occasionally greet familiar friends.

Suddenly, he smiled, his gaze passing over several foreign merchants who had come to flatter him, and called out: “Miss Lin! Are you also planning to donate? This truly makes this official look at you with new respect.”

Lin Yuchan graciously toasted Hede, then, under the complex and varied gazes of nearby Chinese people, smiled and shook her head.

“Others are donating one thousand or five hundred taels. If I only contribute eighty or a hundred, how shabby would that be?”

Hede: “I suppose you’re not here to ask me to dance either.”

“I haven’t practiced for two years. I’m afraid I’d end up with a charge of attempting to harm a superior officer.”

Hede laughed again: “Then are you planning to tell me who E.C. Bennett is?”

Having spent so long in Chinese officialdom, those Confucian old masters were mind-numbing. He increasingly missed this girl’s sharp frankness. Trading barbs was quite stress-relieving.

Lin Yuchan said seriously, “Since Guangfangyan Academy’s budget is tight, may I boldly ask what specific areas are lacking?”

Hede was taken aback: “What do you mean?”

“I think student dormitory space is adequate, and Chinese instructor salaries should also be quite cheap. What’s making you feel short of money is probably teaching equipment, isn’t it?”

Lin Yuchan calmly pulled out the latest Guangfangyan Academy course schedule from her handbag.

“Mechanics, chemistry, engineering, astronomy… exploration, manufacturing, metallurgy, naval affairs… These are the courses you plan to newly establish.”

Hede frowned slightly. Where had she gotten this kind of internal document?

He’d have to warn all customs staff later. Former employees like her shouldn’t be casually allowed in, and certainly shouldn’t be permitted to browse and take things randomly.

However, since she had already obtained the course schedule this time, Hede didn’t pursue it, answering quite officially: “All courses are useful to the court. What about it?”

“Teaching these courses requires various Western educational tools – scales, weights, prisms, microscopes, gears, measuring cups, alcohol lamps, globes, samples of various common chemical elements… These expensive instruments and tools have exacerbated Guangfangyan Academy’s budget shortage… I’m guessing.”

She spoke confidently for a long passage, only modestly adding “I’m guessing” at the end. Hede couldn’t help but smile and nod.

“I didn’t expect Miss Lin’s business ventures to cover such a wide range, even knowing the prices of scientific instruments so clearly – what, do you have a way to find me cheaper ones?”

This was just polite conversation. Hede, as an Englishman and an official with many capable subordinates, couldn’t get better prices from English trading houses. What connections could a small Chinese girl have, aside from being clever?

Hede was already prepared that if customs silver wasn’t sufficient, he’d rather pay out of his pocket than let China’s first modern school be shortchanged in its curriculum.

Hede pointed to a chair beside him. Lin Yuchan glanced at the faces of nearby Chinese officials and tactfully remained standing.

Today she had taken time to attend the customs reception and drink wine not to provide entertainment for these old masters, nor simply to chat and reminisce with Hede.

Otherwise, wouldn’t lying at home be more pleasant?

She carefully chose her words: “As I understand it, these instruments are expensive because they cannot be manufactured in China and must all be imported from the West, with shipping costs accounting for a large portion. If buying only one or two of each item individually, the unit price is indeed jaw-dropping.”

Hede smiled: “I don’t need to buy wholesale quantities. The Great Qing doesn’t have a second Guangfangyan Academy.”

“If you’re willing to entrust the instrument procurement task to Boya Company, I can try to get you wholesale prices.”

Hede leaned forward immediately. Someone wanted to approach him for small talk, but he pretended not to see them.

“How would you do that?”

Lin Yuchan smiled without speaking.

She had a letter from Anqing tucked in her sleeve. Xu Jianyin, the young assistant at Anqing’s Inner Arsenal, couldn’t forget this peculiar young lady who had repaired steam engines and given him a globe. He had long since sent a letter, carried by the steamship Luna to Shanghai, then delivered to her by Su Minguan.

“Miss Lin,” Lin Yuchan had read the classical Chinese in the letter while her mind automatically translated it into Xu Jianyin’s adorable Wuxi dialect, “Thank you for your globe – it’s been so useful! I have one matter: didn’t you say that if we needed any experimental equipment, we could ask you to purchase it in Shanghai? So I’m boldly asking, how much would these instruments cost at Shanghai trading houses? I don’t have much silver, but our Arsenal assistants need these things… This is quite presumptuous – if it’s too troublesome, forget it… Budget attached at letter’s end…”

At the end of the letter was a list of common physics and chemistry experimental instruments – microscopes, barometers, air pumps, quadrants, various beakers and flasks, chemical element samples… Many things Xu Jianyin had only read about in Western learning texts, knowing their functions but never having seen them himself, unable to accurately describe their characteristics. He could only draw simple diagrams based on his imagination, asking Lin Yuchan to help make inquiries.

Lin Yuchan was naturally very familiar with these instruments. She couldn’t say she knew them like the back of her hand, but she had at least seen most in textbooks and museums.

After receiving the letter, she immediately visited several relevant trading houses to inquire and compare. The answer was always that these items needed to be purchased from different Western European manufacturers, with unit prices plus shipping costs being extremely expensive. Even removing commissions, they far exceeded Xu Jianyin’s budget.

Lin Yuchan felt too embarrassed to write back saying she couldn’t manage it. So she temporarily kept the letter.

Until she received Hede’s invitation and discovered that Guangfangyan Academy was also establishing physics and chemistry courses…

Could things too expensive to buy individually be group-purchased for a discount?

With this idea, her eyes full of confidence, she nodded firmly to Hede:

“I can try. I can’t guarantee how much cheaper it will be. If unsuccessful, you can still have people buy at original prices – it won’t be too late.”

For Hede, this was a zero-risk proposition.

Hede knew this girl was being secretive and that she definitely wouldn’t explain, so he didn’t ask further.

“Miss Lin,” he lightly tapped his wine glass and smiled, “I suspect you didn’t come today to provide free assistance in my time of need – let me make it clear beforehand, don’t think about overturning the tea procurement decision. We follow proper procedures…”

“What a small matter!” Lin Yuchan replied with a cheerful smile, “You don’t need to be so polite!”

Hede beckoned his secretary over.

“Reserve time for Miss Lin tomorrow morning from ten to ten-fifteen.”

Several days later, in the main hall of the Yixing Business Association headquarters, tea server Liu Wu held a thick paper in a wooden frame, looking at the ornate English script upside down, laughing: “Mrs. Su, is this English? I don’t recognize a single letter.”

“Official Procurement Partner of the Imperial Chinese Maritime Customs.” Lin Yuchan smiled in response, pointing to the center of the wall, “Right there.”

Liu Wu climbed the ladder and, with several clanging sounds, nailed the large frame in the most prominent position.

Several fellow merchants in the hall gathered around, looking up and examining it carefully, clicking their tongues in admiration.

Lin Yuchan, holding orders from both Hede and Xu Jianyin, went to relevant trading houses to negotiate group purchases, finally securing an eighty percent wholesale price with shipping costs correspondingly halved. The latest precision scientific instruments manufactured in Western Europe should now be loaded on ships leaving port, floating on the Pacific Ocean.

Hede had to concede defeat, immediately dropping the several trading houses that had originally quoted prices and having the customs sign a supply contract with Boya Company.

Although Guangfangyan Academy’s educational funding still needed continued fundraising, it at least lightened his burden considerably.

Lin Yuchan’s commission was also very reasonable – five percent, enough to cover her legwork time and effort.

However, she asked Hede for something extra – the qualification certificate now hanging in the association’s main hall.

This was something she had wheedled and cajoled for – the customs originally had no such regulations, and when she supplied tea last year, no one had issued her such a “cooperation certificate.” But circumstances were different now. The Yixing Business Association’s foundation was unstable, urgently needing endorsement from the powerful to establish a firm foothold among foreign merchants and Chinese neighbors.

Hede knew he owed her a favor, and a signed certificate wasn’t anything against regulations, so he readily agreed.

This customs-stamped, Hede-signed certificate was equivalent to a protective talisman, making any future troublemakers – whether Chinese or foreign – with ill intentions toward the association think twice before acting.

Since those few ringleaders who had caused trouble under the pretense of “moral corruption” were fined and sentenced to hard labor by the police station, nearby neighbors dared not act rashly, gradually accepting the reality of having a “hen crowing at dawn” business association in their midst.

Sometimes, seeing Lin Yuchan coming and going, they would even nod to her and step aside to make way.

Adding Lin Yuchan’s acquisition of a customs certificate to ward off evil spirits and putting a foreign hat on the association, no one dared say anything more.

Additionally, Lin Yuchan asked member merchants in the association to use their connections – if they could obtain inscribed plaques from county magistrates or circuit intendants, they should quickly hang them in the association for protection, improving their safety rating.

Unfortunately, Chinese relationship networks were intricate and complex, and “face” was rather mystical – not something you could obtain just by asking. Even if someone had close relationships with government offices, they had to first protect themselves before having energy to look after the association.

So plaques and such were temporarily unavailable. Lin Yuchan figured that if the association’s accounts showed surplus in the future, donating money during disaster relief or road construction would surely bring government recognition.

Another identical customs certificate was framed and hung in the Boya small Western-style building.

Previously, Rong Hong’s Yale diploma had hung there, with its ornate Latin script creating an impressive presence that made every foreigner who entered, especially Americans, respectfully awed.

Later, when that wall became empty, Lin Yuchan always felt something was missing. Now using the customs certificate as a substitute indicated she had connections above.

Barely adequate.

Then Lin Yuchan copied the shipping bill from the Western European instrument manufacturing company and wrote a reply to Xu Jianyin, having Luna carry it to Anqing.

She told Xu Jianyin that these instruments were shipped directly from Western Europe, and she had no conditions to personally inspect the goods. But the trading houses she had commissioned were all reputable, large companies. If he found goods that didn’t match specifications or were shoddily made, Young Master Xu could contact her directly for free exchange or return.

At the letter’s end, Lin Yuchan directly stated that this was mutual assistance between friends, and the commission need not be discussed. If he had large orders in the future, they could discuss it then.

However, considering that both father and son Xu Jianyin were excessively polite people who wouldn’t take advantage of others for free, Lin Yuchan could almost imagine that after Xu Jianyin received the letter, he would be lectured by his father Xu Shou in various ways: “Outrageous! Go pay that young lady back immediately!”

Lin Yuchan pulled out another sheet of fresh letter paper and straightforwardly asked the academic genius for a favor.