The Industrial Giant Reborn - Chapter 617
c609 New opportunities in the Mainland
Some things, although very important, will not be so urgent. Mainland investment can last for decades. A few months will not have much impact. On the contrary, if the Mainland announces on the first day that foreign capital can be wholly owned Chen Zhiwen rushed over to the news of the investment a few days later, which made him appear to be too proactive.
A big boss in later generations once said that cooperation between businessmen and the government is like falling in love, and in love, the best model is for both parties to be equal and have the most basic balance, rather than licking each other. Generally speaking, a dog-licker in love will eventually lose his house.
Time flies, and it’s June again. Two months have passed since the mainland announced the foreign investment bill. Many small foreign capitals have begun to enter the mainland.
After about the same time, Chen Zhiwen took several of his sub-group leaders to Yanjing City. Of course, it was also by chance, because the Arowana edible oil factory invested in Yanjing City officially opened. .
Although the average economy in the mainland is very average, there are also many people with high spending power. For example, in 1985, the number of people who bought cars nationwide was 56,000. This number does not include government procurement and is purely a function of government purchases. These may include some factories, but most of them belong to individuals, especially in big cities such as Yanjing, Shanghai, and Guangdong. Other sub-level products, such as air conditioners, are also installed by hundreds of thousands of people. The average cost of one unit is basically around 5,000 yuan. The quantity of cheaper refrigerators and TVs is measured in millions. In big cities, refrigerators and color TVs Washing machines have even become a three-piece wedding set, about ten years earlier than the national average.
Oil is a must for every family. Even in ancient times, firewood, rice, oil, and salt were one of the four most basic items. Before, it was basically a folk way of oiling. Everyone was used to it and didn’t think there was anything wrong with it. , but when Arowana launched cooking oil in small plastic bottles, it immediately made everyone’s eyes brighter. It was so convenient, and from a sensory perspective, it was also more hygienic, cleaner, and more advanced.
Therefore, when Arowana began to be introduced to major cities in the mainland in 1984, sales immediately soared. The factories in Hong Kong and Shenhai City were in short supply. The management of Arowana Company did not expect that the demand was only in some areas of the mainland. It can exceed the total global demand through galactic trade. The amount of oil used in Chinese food is far beyond that of Europe and the United States.
For this reason, Red Bull Group agreed to Arowana’s application, and by the end of 1984, it was preparing to build a very large-scale oil refining base in China to meet domestic demand. At the same time, by reducing costs, it could also be exported to the European and American markets.
In this era, the mainland is still a grain exporter, and the three northeastern provinces are still super granaries. This black land, one of the only three in the world, produces an astonishing amount of soybeans every year, which is convenient for Arowana to purchase raw materials for oil refining. At the same time, it is all recycled internally. It can also avoid the consumption of a large amount of foreign exchange. After all, the main sales target of the Arowana factory is domestic. Even if it were not because this was a project invested by Chen Zhiwen, before 1985, if you wanted to make domestic money in this way, it was basically Unlikely.
However, the location of Arowana is not in the Northeast, but in Yanjing. The main reason is to consider transportation issues. Yanjing City has the Beijing-Tianjin-Tangzhou Expressway and the Tanggu Port not far away. Whether it is purchasing raw materials or shipping, it is very convenient. Transportation to the central and western parts of the mainland is not a hassle. More importantly, this is the imperial capital. Building factories here will drive a large number of jobs and the local economy. Any problems encountered in sales in other places will be easier to solve.
It took a year and a half for the Yanjing Arowana Factory to open after completion. Chen Zhiwen and others were invited to visit the entire factory. It covers an area of 675 acres and has an annual oil production of more than 250,000 tons. It directly drove The number of jobs is as high as 8,000. Such a factory is considered very large even in Yanjing.
Chen Zhiwen is also very happy to be able to obtain part of the domestic edible oil market in the future. Overall, this market is not inferior to Coke. One company is enough to create a giant close to the world’s top 500. When the scale becomes large in the future, plus the domestic market, then I may have a certain say in the field of global soybean and corn procurement. Although the total output value of agriculture is far less than that of industry, it is the foundation of any country. With such rights, I can even control some A small agricultural country may exert great influence on a medium-sized country like Argentina.
Of course, it is still far from the level of the four major grain merchants. This is also the direction that I need to pursue in the future.
After seeing the Arowana edible oil factory, Chen Zhiwen went to several KFC stores in Yanjing City. Such pure stores can be opened very quickly as long as they are willing to invest money. They can be decorated and started in two or three months. , the only problem is whether the government agrees. Today, there are 16 KFC stores in Yanjing City, and it has become one of the favorite restaurants of many people in Yanjing City. Similarly, in big cities such as Shenhai, Guangdong, Jinling, and Shanghai, there are also a large number of KFCs opened, and the total number is almost over 100.
This is the additional benefit that Chen Zhiwen brought to the massive domestic investment in the early days. KFC can now easily do these applications that others would not be able to approve, but in the original history, this progress was too slow. Of course, this is also related to Chen Zhiwen’s promise not to transfer into foreign exchange and leave within ten years. With Chen Zhiwen’s face and the fact that he will not lose foreign exchange, the central and local governments will naturally give him face.
The rapid development of KFC is actually faster than Chen Zhiwen imagined. In addition, people in this era have lighter tastes, even rich people, because a good food business environment also depends on the entire economy and society. In poor places, Even if you have money, you can’t eat anything good. This is the case in many places in China. Although the taste of KFC is still a bit not suitable for China, it is also produced in a highly competitive market like the United States. Even the United States has Bian has reached the level of the first few, and it naturally beats many delicacies in the country.
Domestic high-end food may be better, but the price is not affordable for ordinary people. Therefore, KFC is positioned in the middle, providing the middle class with a large number of high-calorie, high-taste food, as well as better seasonings. , during this time, a lot of families came to KFC to hold weddings, and the guests also felt that it was more honorable. Hello, me, everyone, we are all together.
A few days later, Chen Zhiwen met Director Lin from the Commerce Department. This person was in charge of the domestic terminal retail industry. The meeting place was a building in the first phase of the Yanjing International Trade Center Building that had just been completed. meeting room.
After three years, the Yanjing International Trade Center has finally been completed. It is a combination of hotels, commerce, conference venues, and entertainment facilities. It can be said to be the most entertainment and leisure place for overseas people in Yanjing City. Therefore, in Before completion, every location for rent has been rented out. In the entire International Trade Center, except for the hotel, which is managed by the Mandarin Oriental team, other businesses have been contracted out. This is the main purpose. Naturally, certain legitimate interests are given to some people in Yanjing. Anyway, I have already eaten a lot, so I also need to give some broth to the locals appropriately, so as to achieve long-term development. After all, the large amount of management experience in Yanjing Land It may not work in Beijing. Even if we continue to expand in this field in the future, we still need to learn step by step.
“Director Lin, please take a seat.” Chen Zhiwen said with a smile, while an assistant served tea.
“Mr. Chen, long time no see.” Director Lin also said with a smile. Chen Zhiwen had a lot of investments in Yanjing and naturally had many contacts with officials from the central business department, so the two knew each other. Furthermore, even if it is in Shanghai, Shenzhen or other places, small investments are negotiated locally, while large investments still have to be negotiated with the central government. As for the person in front of me, all matters that can allow him to personally come forward are large investments.
“More than two months ago, China introduced new regulations that allow foreign capital to be independent. As a Hong Kong Chinese, I am very happy that this day has appeared. This means that a large amount of Hong Kong capital and overseas Chinese capital can enter the country for investment. Millions of jobs can help tens of millions of people get out of poverty,” Chen Zhiwen added.
This is definitely not a lie. Although the capital in Hong Kong is not for charity, and investment in the mainland must be because the labor here is cheaper, there are also many people who really want to get their hometowns or the Chinese community out of trouble. Many Hong Kong capitalists do not want to invest in Eastern Guangdong Province, which is close to Hong Kong, but insist on returning to their hometown. They would rather pay more for long-term shipping costs. This is the purpose.
However, the restrictions on various joint ventures still make many people feel hesitant. It is true that they want to help people in their hometowns or mainland Chinese, but it does not mean that they can lose their own careers. This kind of thing must be done after both ways. It’s more perfect.
Now that you can invest alone, you will have fewer worries and it will be much easier to operate capital. In the original history, it was this mainland policy that accelerated the migration of a large number of Hong Kong factories to the mainland, thus indirectly accelerating the migration of Hong Kong factories to the mainland. The decline of Hong Kong industry.
Of course, this is not the main reason. The main reason is housing prices. If housing prices in Hong Kong continue to rise, and there are no high-quality potential industrial bases like the mainland next door, then Hong Kong’s industries will be transferred to other places in Asia, or if they cannot be found, they may close down. After all, when it comes to industry, how can real estate be able to do so? When it comes to making money, if Chen Zhiwen were reborn this year, he would still be a ghost industrialist and turn around to finance or real estate. Everyone likes to make quick money, and even a developed country will experience deindustrialization and financial hollowing out.
“Haha, our central government is naturally very happy to be able to attract more Hong Kong investment.” Director Lin smiled and said: “Chen Sheng has also made a lot of investments in China over the years, but I can see that the previous joint venture policy has had a negative impact on You seem to be troubled, but now that this rule is gone, I think many of our cities welcome Mr. Chen to invest.”
“We are naturally very interested in investment in the Mainland. The Mainland currently has a large number of intellectuals and a large young labor force, which is very suitable for my factories. I also intend to transfer the production capacity of many industries in Hong Kong to the Mainland. This can be said to be A win-win situation for all parties, but in addition to factories, we are also very interested in the mainland market.” Chen Zhiwen paused and said.
Regardless of the current low level of education per capita in the Mainland, even with a population of 1 billion, there will still be a large number of potential high-quality workers. As long as the wages paid are higher than the average, it means there is an endless supply of high-quality labor. Just like the factory in Shenhai City, if you pay a little more salary, you can find a large number of junior high school students to work as workers. Such educational levels are no less than ordinary workers in Hong Kong.
Nowadays, the real estate market in Hong Kong is getting hotter and the trend of real estate speculation has begun. Every time a real estate project is launched, there will be a large number of scalpers, and even gangs are involved, because the income from selling F may not be as good as real estate speculation.
In this environment, the huge upstream and downstream industrial chain involving tens of thousands of people employed under the company must be transferred, and it cannot wait until the end, otherwise the instantaneous impact will seriously affect the Hong Kong market, and even the quality of the company’s products will be affected. Therefore, even if the industry in Hong Kong is still on the rise, especially the high profits of the electronics industry, which can easily bear the current wages of Hong Kong people, we still need to prepare in advance when thinking about the future.
In order to be a sole proprietor of some previous projects, Chen Zhiwen spent a lot of effort. After all, except for Shenhai City, other places are not allowed by law. If you want to obtain permission, you need to negotiate with the central government, which severely limits Midea’s Investment, after all, even if Chen Zhiwen had face, he wouldn’t be able to come forward for many small and medium-sized projects, right? Those who can invest are all large-scale projects. But now from a legal perspective, this requirement is gone. Then Chen Zhiwen only needs to directly authorize it without any intervention. The people below will naturally choose the right place according to market demand. invest.
However, as a fair transaction, if your large investment can continue to bring a large amount of foreign exchange to the country and solve the country’s lack of foreign exchange problem, then you will naturally have to gain something. The mainland market is so big, and it will be cheaper for so many countries in the future. For foreign investment, it is better to take advantage of yourself. After all, you can now bring a lot of real benefits to the mainland. On the other hand, other foreign brands may be purely here to make money.
“Sheng Chen, your company’s electronic products should have obtained relevant licenses long ago, right?” Director Lin asked puzzledly. In the past few years, the core of Chen Zhiwen’s various transactions with the mainland was that his products could be sold in It was sold domestically, and because it brought in a large amount of foreign exchange, the country’s top officials agreed.
“Although it can be sold domestically, there are not many that can be sold, and even many sales are not under our control. How much it can sell does not entirely depend on the market.” Chen Zhiwen said that although the license is available, it can be sold if it wants to That’s another story.
“So what Chen Sheng means is that he wants the national market to purchase more of your company’s products? This shouldn’t be a big problem.” Director Lin thought for a moment and said, “I can ask the relevant departments to make arrangements.”
“Director Lin, you misunderstood me.” Chen Zhiwen shook his head and said: “Even if you agreed today and the relevant departments also agreed, such a matter involves too many people and too many interest disputes. I want to expand a terminal Branding is difficult, and even if it is successful now, if it doesn’t work again next year, I can’t come back to you, right?”
“So what does Chen Sheng mean?” Director Lin also thinks it makes sense. It is true that orders can be issued from above, but there is too much room for maneuver in such a matter, and it involves cities across the country. Although the central government cannot control it, it still cannot. It’s impossible to hold everyone accountable for such a trivial matter.
“I want to invest in department stores or supermarkets in China and control the channels myself,” Chen Zhiwen said. (End of chapter)