Ch. 1503Tycoons
After state-run armories wasted money and private factories failed under extortion and corruption, Lu Zhi realized the Great Cheng Dynasty could not industrialize without deeper changes. She accepted Tuantuan's proposal to create politically empowered Tycoons and left the reforms ready to begin.
- Lu Zhi converted state-run armories into private enterprises and ordered the Ministry of War to procure supplies through competitive bidding, while placing Black Robe Guards in the factories.
- Minister of Revenue Huang Xiong VI reported that local officials were driving private factories out of business, so Lu Zhi exempted armories from arbitrary levies and threatened extortionists with execution.
- Factory owners colluded with procurement officers, and a poorly built warship cracked apart during its launch, drowning more than thirty naval men as Wenren Sheng watched.
- Lu Zhi admitted to Tuantuan that she could not transform the Great Cheng Dynasty alone, and Tuantuan explained that industrial growth required Tycoons to gain political rights and security for their wealth.
- Tuantuan proposed breaking up the factory system, cultivating Tycoons, reforming the Imperial Examination system to select Affairs Officers, and establishing local councils; Lu Zhi agreed to try it.