After the eventual capture of Nanking, the Japanese were ready to send their peace delegates to Beijing and talk. The Japanese had a good number of demands, but as the situation rapidly deteriorated in China for the Chinese, there was little choice in the matter to be honest. Therefore the Japanese were ready to take their profits where they could. It had been long enough, and the war had been highly successful in the vast majority of engagements. The Chinese were weak before the war, they will be crippled afterwards.
Imperial War Demands-The Japanese Annexation of Hainan
-The Japanese Annexation of Taiwan
-The Japanese Annexation of Caton
-The Chinese realising all Chinese Tributes, making them Independent.
-Cease of Interference with Japanese, and European Merchants.
-The Ceding of Hong Kong to the British.
The Japanese were not able to get the Chinese to legalize Opium, however they would be able to smuggle it into the country unopposed so it would be fine in that Regard. In any case, the war has found it's conclusion for the moment. If Japan's allies are to make any additional demands, they are free to. However it seemed for at the moment that the Japanese Empire had scoured a major victory against the oppressive Chinese.
Japanese victory was massive, celebrations were held throughout the Empire weeks on end. Meanwhile Japanese officals began the consolidation of it's power by beginning to Influnce newly independent Former Chinese Tributes, and the steady process of making them increasingly reliant on the Japanese Government. Japanese merchants now heavily ingrained due to the war in China were the first to take advantage. Opium flowed into China, which they inturn began selling goods to Europe.
Meanwhile the Japanese Navy enforce what Europeans would soon call "Pax Japanica" guarding the waterways for the merchants of Europe and Asia. Influence also heavily increast in the East Indies as the Japanese were no longer impeded by other things, and willing to take all steps necessary to put these islands under Japanese control eventually.
Meanwhile the military shrank to 1.5% of the population once more. The Japanese were now concerned with the inclusion of their new territory into the Empire, treating them fairly and calling the Qing Empire "ruled by the savages from Manchuria." Yes indeed, they also began updating their education systems and bringing Japanese business to such areas. Tea farms also arouse on these islands as well. Things were looking up for the Empire.