Chapter 708: Strategic Deterrence Backup

According to common sense, it is not appropriate for Hu Jiefang to appear here. Pen @ fun @ pavilion wWw. biqUgE怂 ļ½‰ļ½Žļ½†ļ½

Grumman's acquisition of McDonnell Douglas is a relatively significant event in the field of American aviation, whether it is Congress, the Pentagon, the First Class, Boeing, Northrop, and all the forces of the First Vote have their own small calculations.

There are those who support Grumman's merger with McDonnell Douglas, and naturally there are those who oppose it. Boeing has coveted McDonnell Donnell Dalwellall for a long time, and in the 80s, Boeing had actually expressed its willingness to merge with McDonnell Dalwellall several times. As long as McDonnell Douglas can be annexed, Boeing will undoubtedly become the aviation hegemon, and the interests in this can be seen how complex.

And the Pentagon and Congress will not like this merger too much, but the attitude of the Navy is more ambiguous. The combined Grumman McDonnell Douglas will have a complete monopoly on the supply of carrier-based aircraft for the Navy, the Pentagon may be concerned about the decline in competitiveness, and Congress will consider the price problem caused by the monopoly.

But the U.S. Navy has some illusions. The Air Force has an ATF program, but there is no NATF program for the foreseeable future, and the mood of the first class can be imagined to be injured. If a huge trust emerges from the Navy's carrier-based aircraft supplier, will it be able to support the Navy in carrying out the NATF program?

Of course, people don't know that they are about to usher in the end of the bird's bow.

As for Northrop ......

Well, their planned annexation of Grumman is completely hopeless.

With the little blue pill backing up, Grumman doesn't swallow Northrop in turn is very face-saving. If Hu Wenhai hadn't intervened in this, maybe there would be no Grumman Grumman in the future, but there would be a Grumman Grumman company.

However, in the direction of opposing Grumman's acquisition of McDonnell Donnell Douglas, Northrop and Boeing are also on the same path.

When so many forces were eyeing each other, Hu Jiefang's appearance at the negotiation venue between the two sides was obviously to create a topic for people out of thin air.

But it is precisely because of this that his appearance is even more shocking for McDonnell Douglas. Grumman had clearly made up his mind to take the plunge in order to buy McDonnell Douglas. Even the cards of China's covert interference are on the table, and if it doesn't work, imagine what it means for Grumman.

The hat of the fornication TG is buttoned to its head, and do you still want the order from the Pentagon?

Of course, if successful, Grumman, who annexed McDonnell Douglas, would be unstoppable. No more planes on aircraft carriers?

McDonnell Douglas realized almost instantly that Grumman was serious, and so were the Chinese.

Now there is no need to doubt the sincerity of Grumman and the Chinese, there is only one thing that needs to be determined.

What does McDonnell Douglas get if he sells himself?

"$5 billion?" Douglas looked solemn, this figure decided the fate of McDonnell Douglas in the future, and he couldn't help but be careless.

"I want to know, is the $5 billion funded by the Chinese government, or is ST making the decision? I certainly know that ST has a lot of influence in China. But...... As far as I know, China's aviation industry is a state-run enterprise that is regulated by China's civil aviation authorities. And the private sector has not yet been allowed to engage in air transport business, right?"

McDonnell Douglas has long coveted China's official purchases and has been dealing with China's civil aviation for years. McDonnell Douglas 82 entered China in the mid-80s, and by the 90s there were more than 50 aircraft in China. More than 30 of them were assembled and produced from above.

With such a partnership as a foundation, McDonnell Douglas certainly knows very well how to worship the temple gate if he wants to win the government procurement.

Although ST Group has a general influence in China, it is a private company. The Civil Aviation Administration of China (CAAC) and the Chinese official procurement team are responsible for the procurement of the aircraft.

Although Hu Jiefang was one of the members of the negotiating team, the entire negotiating group was too big. With more than 500 people, covering all walks of life and a team of experts and front-line management and technical personnel, what is the use of one person?

Of course, if Hu Wenhai appeared here. With a sneeze, McDonnell Douglas had to kneel down and sing conquest on the spot. However, now that the US Secret Service is in charge of Mr. Hu's security, do you think he dares to come over?

Oh, no. If the Secret Service is in charge of security, it's even more dangerous.

As for his father.

Isn't this still in the stage of improving the record?

Hu Jiefang was not surprised by Douglas's questioning, and nodded gently. This is the reason why he does not hesitate to come forward in person, and some words must be said by him in person to be convincing enough. What's more, it is necessary to consider that Mr. Hu will not be able to run around the world in the future, so he naturally has the need to brush people's heads.

Even if it is a strategic nuclear submarine, shouldn't there be a backup? When one is squatting at home, the other has to go to sea to maintain deterrence.

Hu Jiefang's appropriate brushing of the head is conducive to maintaining China's strategic deterrence capability when President Hu is unable to go abroad......

Although China has stated that it will not use Hu Wenhai first. But I didn't say that you can't use Hu Jiefang!

"ST is a privately owned company and is not qualified to operate the aviation industry at the moment, Mr Douglas is right. ā€

Hu Jiefang is not a "roe deer" who has never seen the world when he first came to the United States, but now he is fighting against the world's top 500 large enterprises, and he seems to be free and easy, without showing any timidity.

"However, ST Group itself is the majority shareholder of China Xinli Airlines, and in this way, we have realized the operation of private companies in the field of civil aviation. In fact, ST Group's layout in China's aviation industry has already begun. We not only have Xinli Aviation established with Baoli Company, but also Xinfei Aviation Industry Company established with Xifei Group, which has entered the upstream aviation manufacturing industry. ā€

"It is obviously inaccurate to say that ST Group has no influence in China's aviation sector. ā€

Douglas nodded, but as the general manager of McDonnell Douglas, he obviously would not be led by Hu Jiefang's words, but insisted on the key points and pursued them relentlessly. He quickly ended the conversation with the staff officer next to him and asked the crucial question.

"So, can ST Group help us influence the decision of the Civil Aviation Administration of China? Or can your Xinli Airlines eat up a large aircraft order worth five billion dollars?"

Hu Jiefang said matter-of-factly: "Xinli Airlines is a new company, and although we have abundant funds, our management and business teams are still limited. Five billion dollars would require at least 100 units, which we can't reach at the moment. ā€

Douglas asked, "Can you influence the decision of the Directorate General of Civil Aviation?"

Hu Jiefang shook his head: "ST is a law-abiding company in China, and we are managed and led by the higher authorities, not the other way around. ā€

"Well, then I don't understand. Douglas stared into Hu Jiefang's eyes: "How can you guarantee McDonnell Douglas to get this $5 billion passenger plane order?"

"It's simple. Hu Jiefang was not pressed by Douglas's step-by-step pressing, and still said unhurriedly: "Mr. Douglas should know that the earth is round. Chinese planes can fly east across the Pacific Ocean to reach the United States, and west across Eurasia and the Atlantic Ocean to reach the United States. ā€

Douglas spread his hands, "Well, I'd love to hear what kind of power you have." There are many planes that can fly across the Pacific Ocean, but if you want to fly half the world in one go, you really need a big guy. ā€

"Of course, this is not Mr. Douglas's problem. In fact, the vast majority of people are ignorant of the power of the new section. ā€

Hu Jiefang now understands Hu Wenhai's feelings, and it is really addictive to ridicule this kind of thing in person!

Although Hu Jiefang was only sitting in a corner of the negotiation table, he had already become the focus of the entire conference room at this time.

"In addition to investing in the aviation sector, ST Group has also developed its business in various fields such as railways and finance. ST Group is one of the major shareholders of China Railway Investment Bank, a state-owned investment bank in China that is qualified to invest in any industry in China. ST Group has reached a cooperation agreement with China Railway Construction Investment Bank to inject US$5 billion in capital to establish ST Aviation Investment Company. The company's business scope includes providing aircraft leasing and other financial services to airlines in China. ā€

"Well, there's one more point. ā€

Hu Jiefang added a sentence lightly: "The New Railway Aviation Investment Company has reached a cooperation intention with the United States and China Bank, and the United States and China Bank have agreed in principle to provide loan financing services for the New Railway Aviation Investment Company. With the aircraft as collateral, Sino-Chinese Bank is willing to provide a 70% loan ratio. ā€

After Hu Jiefang said this, even Douglas, who was accustomed to seeing strong winds and waves and was a business elite in the United States, couldn't help but feel dizzy in his mind.

Hu Jiefang's last sentence is much more lethal than the previous paragraph.

To sum up, to sum up, it means that New Railway Airlines provides leasing and purchasing services for Chinese airlines, and does not require airlines to purchase aircraft directly from the United States, which perfectly avoids the jurisdiction of the Civil Aviation Administration. As long as the aircraft obtains the airworthiness certificate and does not spend the state's money to buy the aircraft, there is naturally no need to go through the channels of the Civil Aviation Administration.

Renting an airplane to run a route is much more advantageous than cash. With less risk and more flexibility, you can scale your business quickly, and the benefits are simply innumerable.

The money was not directly given to McDonnell Douglas, but was loaned to the U.S.-China Bank as a down payment. The U.S.-China Bank said the down payment on the loan could support 30 percent, more than doubling the size of the transaction.

The total transaction figure is likely to be as high as $16.7 billion.

Douglas felt his knees go limp.

This money is enough to build another McDonnell Douglas.