Shen Qingxi didn't tell the truth.
The conflict between the Four Seas Commerce Guild and the locals is a multi-layered struggle from top to bottom.
From the highest level, the return of the Four Seas Commerce Guild is an inevitable trend. The country needs overseas resources, and the Guild needs a foothold domestically.
The cake on the table is only so big; adding one more person to share it means everyone won't get enough, leading to complaints, which was anticipated.
If you don't keep them under your watch and let them go to the south, the issue will be more than just sharing a cake.
Of course, the locals would be unhappy. They used to hobnob with the President and live well, and now with the Four Seas Commerce Guild, they're left with meager rations. No one can tolerate that.
On the side of the Four Seas Commerce Guild, many saw the President's compromising attitude and felt emboldened, becoming noticeably greedy.