The Era of Conflict began with the outbreak of the Crimean War in 1854. The ensuing stalemate divided Europe into two camps - the trilogy of Britain, France and Prussia on one side, with the Austrian Empire and Russia forming the other. With the Fourth American War in 1859, the British camp backed the fledgling Confederacy, prompting Russia to join forces with the Union, to its detriment - Alaska was ceded to Britain at the war's end.
The Fourth American War ended in 1864, with victory by default for the Confederacy, which managed to retain its independence, though many of the most influential slave states - Virginia and Maryland among them - remained in the Union. The Gadsden Purchase (Baja California and Sonora Territory) was split between the two nations, and the Indian Territories were granted de facto independence by the Treaty of Atlanta.
Following the end of the war, the two camps formally established defensive alliances: the Atlantic Bond, with Britain, France, Prussia and the Confederacy; and the Pact of Seattle, constituting of the United States, Russia, and Austria, with Nippon joining in 1871.
The German Unifications dominated the early 1870s, with Prussia's dominance over the North German Confederation being recognised as fact by its members, who joined in personal union with Prussia. Austria in turn annexed southern Germany, granting them suzerainty (but not sovereignty). After protests from Hungary, they were also granted this autonomous state of governance.
The most influential book of the century was published in the Netherlands in 1876, entitled Derde Weg (Third Path). The book, by Martin Van Rijn, proposed the abolition of current government, and its replacement with a company that would henceforth govern the state. Van Rijn cited the example of the East India Companies, noting that their power had grown so large over time that their states could not bear to see them become so powerful, and disestablished them. The message evidently got across to the Dutch population, who deposed then-King William III, establishing the Dutch Union, presided over by the United Netherlands Company.
Within months, more lands had fallen to this pernicious ideology, with the added twist that each race should have its own company, prompting the Dutch reconquest of Belgium in 1879. Denmark, Norway and Sweden united into the Nordic Union, governed by the Amalgamated Scandinavian Company, while Spain and Portugal became the United Iberian Company. An attempted rebellion in the Kingdom of Italy was forcefully subdued by France, with Sardinia being fully occupied by the Napoleonic government "until the end of the current emergency".
The majority of the Iberian possessions in the Caribbean voted to be annexed into the British Empire, keenly aware that without this protection they would be vulnerable to conquests by the United Iberian Company, while Prussia took on the Philippines.
The United Netherlands Company agreed to the rekindling of a Dutch Company in the East Indies, and the TIO (Trust van Indische Oceaan) quickly began to regain lands in Africa, much to the disgust of rival Britain, which declared all trade with the TIO to be illegal. This had about as much effect as you might it expect it to.
At sunrise in Beijing, on August the 8th, 1895, China was a relatively peaceful Empire. By sunset, the Unified Catai Corporation had taken the city. Within two months, the majority of Han China had been taken by the UCC, while Tibet became a British protectorate, and East Turkestan fell apart quickly.
The year is now 1901. Tension is brewing between the two Americas, while Europe is doing all it can to quash the Derdeweg nations. The question is no longer if war will occur, but when, and where...