Maritime trade

The Lantern Festival in the seventh year of the Zhenguan era was livelier than in previous years. Li Zhi had specifically allocated tens of thousands of strings of cash to help the disaster victims, who were soon to depart, celebrate the holiday. The entire resettlement zone was adorned with a vibrant array of lanterns, and Li Zhi had even commissioned simple lantern riddles for the children to solve. Anyone who guessed correctly not only received a lantern but also won rewards such as candies and pastries. The atmosphere in the resettlement area was every bit as festive as that of Chang'an itself.

The disaster victims, granted a three-day holiday by Li Zhi, flocked to the streets to enjoy the spectacular lion dance performances. Li Zhi also arranged for numerous bailiffs from the Jingzhao Prefecture to patrol the streets, distributing sweets to the victims from time to time. This group of victims could truly be considered fortunate; they had not suffered from hunger, they were provided with beautiful housing, and each home was equipped with a honeycomb briquette stove. Furthermore, Li Zhi had prepared grain seeds for them, cultivated by the Ministry of Agriculture using the latest techniques, which saved them from the heavy burden of borrowing to purchase seeds.

Everything Li Zhi did filled the victims with immense gratitude. Consequently, when he appeared in the resettlement zone accompanied by a group of Jingzhao Prefecture officials, all the victims knelt on the ground, thanking him loudly. Li Zhi returned the gesture with folded hands and urged them, "Good people, please rise; this Prince does not deserve such grand formalities."

Li Zhe, watching from the side, was filled with admiration for Li Zhi. Since the founding of the Tang Dynasty, the empire had faced countless disasters, large and small, and the imperial court had accumulated a wealth of disaster relief experience. Yet, in the past, no matter where a disaster struck, the common people would either suffer heavy casualties or barely scrape by in dire poverty. Now, the Prince of Jin’s methods had not only saved their lives, ensuring everyone was well-fed and warmly clothed, but had also provided them with comfortable homes. Although the initial investment seemed massive, the resulting workshops had already recouped the costs and even funded the renovation of roads throughout Chang'an. Most importantly, the money spent by the Prince of Jin had secured such a vast industrial foundation. It was unlikely that any investment in the world could yield such bountiful returns.

Li Zhi was unaware of Li Zhe’s thoughts, as his own mind was preoccupied with other matters. Since the implementation of the Commercial Law, the business environment in the Tang Dynasty had improved significantly. However, in Li Zhi's view, this was far from enough. Although the Tang Dynasty currently traded with many nations, large-scale transactions were still conducted in the form of tribute. While called tribute, it was essentially a form of commodity exchange between the rulers of the Tang Dynasty and those of other countries. Other nations would offer precious items from their lands to Li Shimin, who would then return the favor with silk, porcelain, and tea. Private merchant caravans not only dealt in limited quantities of goods but often required years to complete a single round trip. Furthermore, because so many foreign merchants came to the Tang Dynasty, many local merchants were unwilling to risk expanding into overseas markets. This meant that while the various trading ports appeared prosperous, most of the goods traded were still those produced within the Tang Dynasty.

Li Zhi felt a change was necessary. The state should take the lead in organizing a massive maritime merchant fleet to trade with various countries. The national military could provide protection for the merchants, and the state could collect substantial tax revenue in return. This would effectively lower the price of goods, allowing more common people to afford expensive imports. Most importantly, it would foster the development of the Tang Dynasty’s shipbuilding industry and eventually cultivate a powerful navy.

At the first morning court session after the Lantern Festival, Li Zhi proposed this idea. Once presented, the court officials quickly divided into two factions. Wang Gui was the first to step forward: "Your Majesty, our dynasty’s prestige is currently at its peak, and all corners of the world come to pay homage; why should we take the initiative to cater to other nations?"

Before Li Shimin could respond, Fang Xuanling spoke up: "Attendant Wang, your words are mistaken! Since our Great Tang opens its gates to allow merchants from all over the world to come and go freely, why should we not travel to their lands ourselves?"

Hou Junji interjected, "Even if we encourage our merchants to trade across the seas, why must the soldiers of the Tang escort them along the way?"

Li Jing replied, "Our borders are surrounded by many barbarians; without a powerful military force to serve as a deterrent, how can we ensure the safety of our merchants?"

Dai Zhou, Minister of the Ministry of Revenue, asked, "Forming a fleet requires enormous expenditure; how shall this financial problem be solved?"

Li Zhi answered, "A temporary expense can be exchanged for endless wealth; there will be countless merchants willing to participate in such an investment."

Hou Junji continued, "Where will the ships and provisions for the military be sourced?"

Li Zhi explained, "The fleet will charge for its escort services; since the merchant vessels profit, they will naturally be willing to pay."

Wang Gui argued, "If trade leads to friction with other nations, would that not damage the image of our Great Tang?"

Li Zhi replied, "Our merchants traveling abroad will naturally abide by local laws and take responsibility for any violations. But if other nations bully our Great Tang without cause, we must teach them a harsh lesson."

Hou Junji countered, "In that case, might we not be making enemies everywhere?"

Li Zhi responded, "All nations call my father the 'Heavenly Qaghan'; do they not know that both the thunder and the rain are favors from the Emperor?" He then raised his head proudly and said to Hou Junji, "If other nations follow the rules, the Tang will naturally interact with them more; if they do not, we shall apply the thunder to strike fear into their hearts."

Li Zhi’s words resonated deeply with Li Shimin. His greatest pride was the title of "Heavenly Qaghan," which he had held for only two years. He had earned this title precisely because he had annihilated the Eastern Turks. Therefore, he had never feared war and even believed it was a crucial means of upholding his dignity. Otherwise, he would not have dispatched the Dragon Cavalry Army immediately after the New Year.

After hearing Li Zhi, Li Shimin did not wait for others to speak, but declared, "Though our dynasty has had contact with surrounding nations, our understanding remains limited. Now, we can use this opportunity to improve that situation." He sat upright and added, "Let us proceed according to the Prince of Jin’s proposal and discuss the specific details, in the hope of establishing our Great Tang’s maritime merchant fleet as soon as possible."

Li Shimin’s words settled the matter. The group then began discussing the particulars of maritime trade, including reclaiming maritime defense duties from local authorities to establish a state-led navy, encouraging private capital to invest in the shipbuilding industry to construct more ocean-going cargo ships, and collecting navigational charts from coastal regions and foreign merchant caravans to prepare for the formulation of trade routes. Li Zhi also suggested gathering the nation’s master shipbuilders to research the strengths and weaknesses of various countries' vessels, aiming to advance the Tang Dynasty’s shipbuilding technology. Although Li Zhi lacked professional knowledge in this field, he knew that the Tang Dynasty was not short of excellent craftsmen. As long as these individuals were brought together, they would surely spark a flame of wisdom.