The next morning, Chen Zhiwen and others went to the Great Hall of the People and were received by several senior leaders.
However, in this kind of place, it is naturally impossible to talk about some details, especially in front of the camera. Even large-scale commercial cooperation is negotiated in advance and then announced to the media.
We had lunch in the Great Hall at noon, and the layout of the venue was very reasonable. Hong Kong businessmen did not sit together, but were separated by many mainland officials. These officials also had special identities. For example, next to Pao Yugang The person next to Chen Zhiwen is the director in charge of shipbuilding in the Machinery Department, and the person next to Chen Zhiwen is Director Lin in charge of electronic products.
"Mr. Chen, this is the very famous Wuliangye liquor in our country. It tastes great and will not be intoxicating if you drink it properly." Director Lin raised his glass and said with a smile.
"Then I have to try it." Chen Zhiwen responded in the same way. Although he doesn't drink much, it is still necessary in some occasions. Moreover, Chen Zhiwen has also done tests. Although he doesn't like drinking, he still has a good capacity for drinking.
After three drinks, Director Lin said: "Sheng Chen, I have been to your Midea company's factory in Shenzhen Shekou Industrial Park. The situation there is completely different from that of domestic factories. The benefits are very good. I see there are people there every day." A large number of containers leave the factory and are sent to Hong Kong. I don’t know, Midea doesn’t need it, so it comes to Yanjing City to invest?”
"To invest in Yanjing City, do you still need a joint venture?" Chen Zhiwen asked.
"Yes, this is a domestic legal requirement, but we will also provide enough land, workers and some construction facilities, which can also reduce your investment cost. The choice of the joint venture partner is also yours to decide. We at Yanjing There are many large-scale electronics companies here that can enter into joint ventures with you." Director Lin said.
"If we have a domestic joint venture, can my products freely enter the domestic market?" Chen Zhiwen asked again.
"I heard President Liang say that Midea's factories in Hong Kong always have insufficient production capacity and cannot keep up with overseas demand. Shouldn't we meet overseas requirements first?" Director Lin did not answer directly, but asked instead.
As one of the persons in charge of the General Administration of Foreign Trade and Economics, he still knows a little about the situation overseas, especially Hong Kong, which is relatively close. He has been to Hong Kong many times, and he has also come into contact with some Midea electrical appliances, not to mention expensive. The ex-factory prices of refrigerators and air conditioners, including the most common fans, in Hong Kong are actually lower than those of their domestic counterparts, and they are much lighter, quieter, and more comfortable. Once this kind of fan enters the domestic market, won’t all other brands have to finish it?
More than a year ago, he bought a batch of fans in Hong Kong and sent them to some colleagues in China, but they couldn't be made at all, and even the leaves were different. In China, iron is mainly used, while fans in Hong Kong are made of plastic. Yes, the things that are simulated are not as good as others in many aspects. The most important thing is that the motor is quite different. It cannot be as high-speed and quiet as the Midea fan.
Chen Zhiwen shook his head and said: "Since it is a joint venture, I can let the joint venture factory get a large number of overseas orders, but the domestic side must also provide a certain market, right? Otherwise, I might as well produce in Shekou, right? And I promise, How about I let this factory maintain a foreign exchange balance and not affect the domestic foreign exchange reserves?"
In the 1980s, the country hoped that overseas companies would invest in China. In addition to hoping that foreign capital would bring technology and a large number of jobs, the most important thing was that it hoped that foreign capital would produce domestically and then export the products overseas. In this way, the country would earn a lot of foreign exchange in vain. .
But the idea is wonderful, but those foreign investors will not do this. They just want to make domestic money, and after making RMB, they want to exchange it for US dollars and leave.
The mainland government will naturally not agree with the general enterprise, but there are some goods that are needed domestically, which can still be discussed. After all, such goods themselves need to be purchased directly with foreign exchange. If they are produced domestically, they can reduce a lot of foreign exchange consumption. , so the joint venture policy was introduced, but this cooperation has a prerequisite, which is foreign exchange balance.
The so-called foreign exchange balance means that if a foreign-funded company or joint venture sells one dollar of goods domestically, it also needs to export one dollar of goods abroad, or more, with no upper limit. In this way, even if the company earns If the domestic RMB is converted into U.S. dollars, it will not consume more of the country's already scarce foreign exchange reserves.
This is a matter of principle, and no one or any company can make exceptions. For example, the most important company in history, SAIC Volkswagen, was renamed a few years later. It was also troubled by this issue for a long time, and the negotiations dragged on for a long time. Finally, the German side agreed Build an engine factory in Shanghai with an annual output of 100,000 units for export, so as to ensure foreign exchange balance.
Another company, Yanjing Jeep, which was established earlier than SAIC-Volkswagen, is one of the AMC brands that Chen Zhiwen is currently planning to acquire in the United States. Its original domestic development trend is no less than that of Volkswagen, and SUVs are still in demand by the military. products, and the domestic roads at the time were not good, an SUV might be more suitable. However, the United States’ vision was too narrow. It only wanted to earn foreign exchange from the country and go to the United States, delaying the localization process of the parts and components signed in its contract, and therefore It made international news, but was gradually coldly treated domestically, completely missing out on the largest auto market in the future.
"If the issue of foreign exchange balance can be solved, then everything can be discussed." Director Lin thought for a moment and agreed. As long as there is no loss in foreign exchange, there will be no big problem for the country, even if Chen Zhiwen's products dominate the domestic market. The more we sell domestically, the more we need to export. Generally speaking, even if we cannot earn foreign exchange, we can still create a large number of jobs. After all, it is difficult to get export orders for domestic fans at present. Besides, as long as the factory is built, Yes, even if you are shameless, you still have to ask the other party to give you more overseas orders.
Of course, for the country, it is better to focus on exports as much as possible. However, many large-scale cooperations with Western countries throughout 1979 were in trouble because of this clause. Now, the domestic side has begun to relax. We don’t expect foreign capital to just come here to invest and then use it for export. After all, foreign capital doesn’t come here to do charity. If they can’t make money here, who would want to come here? But even so, it is still difficult to reach an agreement that satisfies both parties. Chen Zhiwen is Chinese, and many things are easily negotiable. It is already rare to be willing to maintain a foreign exchange balance.
"In addition to fans, can other products be produced domestically?" Chen Zhiwen asked again.
"What else does Mr. Chen want to invest in?" Director Lin asked.
"Refrigerators and washing machines are both big items in the home appliance industry," Chen Zhiwen said.
Needless to say, refrigerators have been produced in Hong Kong. However, in the field of refrigerators, Midea does not have any special advantages. Relying on strong overseas channels, it can only say that it is doing well. But if it wants to really develop and grow, then Must move to the country.
Compared with fans, large items such as refrigerators have higher labor cost requirements. In China, labor costs can be reduced on a large scale, thus forming a strong competitive advantage. Anyway, in recent years, foreign home appliance giants have only been thinking about making products Sell it domestically instead of investing in building a factory.
As for washing machines, Midea does not produce them in Hong Kong, but only develops them in the laboratory, because the technology content of this thing is lower, and the market in Europe and the United States is not big, because many European and American apartments have shared washing machines, and the market potential is much smaller. .
But on the contrary, there is indeed a big market in China. Among home appliances, the cost of a washing machine is only higher than that of a fan, but it is very useful. Especially in cities, most people are very busy and have no place to wash clothes. Many families are not very poor. But it’s not as luxurious as hiring someone to do the laundry. These are the huge customer markets.
"There should be no problem with these two. As long as Mr. Chen is willing to put this factory in Yanjing City, then I will be responsible for these procedures. How about it?" Director Lin nodded and said again.
Domestic investment is one thing, but where to invest is another matter. For enterprises that can earn foreign exchange, especially such large-scale enterprises, once the news spreads, it is estimated that people from all over the country will have to send people to surround the foreign businessmen. Yanjing City needs to strike first to gain strength.
"I can't guarantee this. You have to look at the conditions of the joint venture partners, the scale of investment and the location of investment." Chen Zhiwen said with a smile.
If it is general foreign investment, it will definitely depend on the conditions in each place, but for Chen Zhiwen, it is basically either Yanjing or Shanghai. Not only will these two places become first-tier big cities in the future, land prices will be higher, but more importantly Yes, there are a large number of high-quality talents here, especially in the fields of machinery and electronics. The country's core talents can be found here. In the future, not only will production be convenient, but even some simple research and development can be taken care of.
Although the Shekou Industrial Zone can be a sole proprietorship, it is far behind in terms of talent. Even in the deep sea, with a large number of college students sent by the central government, it will still take several years to form technical strength, especially in the area of factory support. If you want to catch up with Yanjing and It will take a long time to get to Shanghai.
Of course, when the time comes in the future, Midea will naturally invest in Shenzhen on a large scale to further promote the development of Shenzhen's related industrial chains.
Regarding Midea's domestic layout, the current plan is to divide it into two companies, one focusing on exports and located near Shekou and Shenhai City, and the other focusing on the domestic market while ensuring foreign exchange balance.
One in the south and one in the north. In the future, when the scale becomes larger, you can also consider investing in the Yangtze River Delta. After all, for Midea in the future, home appliances may only be a small number, while various electronic consumer products in the new era are endless.
"Of course. How about I sort out the relevant information in the afternoon and visit Mr. Chen tomorrow morning?" Director Lin said.
"Okay." Chen Zhiwen nodded and said. He would only decide whether to invest in this kind of investment, but the follow-up still requires various business negotiations, especially in the country where there are many restrictions on foreign investment, imperfect laws and regulations, and recruitment of personnel. Questions and more.
We could only talk a little during the banquet. After a while, more dishes were served. Chen Zhiwen tasted a few bites and felt that the taste was very unusual. After asking Director Lin, he found out that these were relatively rare. It is during this period that wild animals will be used as food. How many years later, one bite will probably last several years.
(End of chapter)
