Chapter 153: Disaster to the Pond Fish
When you're only focusing on the domestic market, the things you need to consider are complicated but manageable, but once you step out of the country, the content of your brain to focus on and think will multiply in a straight line, enough to drain the whole person's energy.
Han Hao is now facing such a situation, as soon as he solves the problem of the US market, he will rush to the Middle East to fight the fire.
The Iranian nuclear issue and Han Hao are not in one place, but it is this hot spot that may lead to the collapse of the Zhonghua Group's layout in the Middle East.
Blessings and misfortunes can be said to be the crystallization of the wisdom of the ancients, and the good fortune may usher in disasters today.
In the past, Chunghwa Group saw the gap in the Iranian auto market and cut in, and easily relied on the joint venture model to become the largest local car manufacturer without the intervention of international competitors. In order to maintain its leading position, the Chunghwa Group has also continued to invest in Iran as a bridgehead in the Middle East. Iranian-made cars are eating into the local market share in the Middle East and even North Africa.
Now, with the new US administration taking office to implement a tough policy against Iran, in the face of Iran, which is immersed in the development of nuclear technology, the president announced that he will implement a new round of sanctions against it, and requires multinational companies not to have business dealings with Iran in sensitive areas.
In addition to oil, Iran's automobile exports are also an important source of foreign exchange. Cheap and beautiful Chinese cars have opened the door to the Middle East market with their super cost performance and have begun to become a force to be reckoned with.
This means that Zhonghua Group is also on the list of potential sanctions, and if the US government sanctions are implemented, then Zhonghua Group will face punitive retaliation, not only entering the US market, but even other international companies dare to do business with Han Hao.
When he first entered the Iranian market, he had considered this, but with the smooth opening of the business in Iran, international public opinion also demanded the lifting of long-term sanctions on Iran, which made Han Hao relax his vigilance. In addition, the Zhonghua Group was small and inconspicuous before, and the US government also turned a blind eye, but with the hat of the world's sixth largest car company put on, it is no longer realistic for Han Hao to want to be an ostrich again.
What capital is most afraid of is policy uncertainty and constant political turmoil, and it will slip away as soon as there is a storm.
In the face of a huge investment of more than 10 billion yuan in Iraq, Han Hao has to be stripped of a layer of skin even if he wants to leave, not to mention that now that the business is thriving in the local area, if he gives up, it will be in vain for many years of hard work.
Judging from the sanctions package temporarily announced by the US government, there is no doubt that the Zhonghua Group is on the list of countries that cannot do business in Iran.
Why Toyota, Volkswagen, Citroen and other companies have to be afraid of the face of the global hegemon US government when they watch Iran's millions of car sales in disregard. With strong control, once the U.S. government announces sanctions against a company, no one can stand up to it on its own.
If you want to rely on the China Group to resist the US ban, it is undoubtedly a mantis arm as a car, and there is no chance of winning.
At this time, Han Hao's hopes can only be pinned on the Chinese government, and only opponents of almost equal weight can sit at the negotiating table and negotiate.
As the engine of the global economy, China's monster is constantly consuming global qualification resources, and oil, which is known as the blood of industry, is naturally a big buyer.
The largest purchaser of Iran's oil exports is China, as well as Europe, the United States, Japan and South Korea. The U.S. government's ban on oil is an excellent target for cutting off Iran's economic lifeline, and banning the country's oil exports is a bargain measure. Iraq, which was sad at the time, has proved that the country's oil exports are restricted by sanctions, and people's livelihood is withered and all industries are in ruins, which will be the most powerful weapon to bring down a big oil country.
The ban on oil imports from Iran is an intolerable demand for China to cut off its own arms while developing its economy at full speed, not to mention that the major eastern powers that have always adhered to an independent foreign policy will certainly not obey US orders.
This also gives the Chunghwa Group a glimmer of light, and with the support of the state, it can gain the right to survive in the Iranian market.
Protecting the legitimate rights and interests of Chinese citizens and enterprises overseas is, of course, the duty of the Chinese government to do so. Especially for the Chunghwa Group, a successful example of China's multinational operation, the country is always paying close attention to its development.
Knowing that he might be included in the sanctions list, Han Hao immediately rushed to the capital for help, hoping to use the power of the country to resist the threat of a powerful United States.
There is no country, there is no home!
The Chinese people who were stormy more than half a century ago felt it firsthand, and Han Hao experienced it again.
Ordinary people may worry about firewood, rice, oil and salt every day, and Han Hao, as the richest man, also has his own troubles, constantly controlling the steering wheel and adjusting the direction in order to make the Zhonghua Group sail smoothly.
Without the protection of a strong state, a wealthy enterprise may be a fat pig waiting to be slaughtered.
People are afraid of being famous, and pigs are afraid of being strong.
Originally, the possibility of sanctions on the Chunghwa Group for its Iranian business was only circulated on a small scale, at least most people were ignorant of it.
However, due to the pride of the British homeland - Land Rover Motors, once the China Group is sanctioned by the US government, the newly acquired Land Rover brand will be buried together, which is great bad news.
BBC reporters were the first in the global media to make a report on Land Rover and Chung Hwa Group that could be sanctioned by the US government. In this way, the lid of the pot will be lifted, and the super bearish news will lie across the originally stable stock price.
"In the current international situation, it is the most advantageous choice for the China Group to have to abide by the international rules of the game. Chinese often say that the lesser of two evils should be the best option, and that withdrawing from the Iranian market in exchange for an exemption from the U.S. government should be the best option.
Iran and the United States, the balance between the two sides is absolutely unequal, and there is no need to say much about how to choose.
As a result, the investment worth tens of billions of dollars in Iran will be greatly reduced, and the original thriving offensive of Chinese automobiles in the Middle East will suffer a serious setback, which is very likely to affect the stability of the world's sixth-largest car company.
Of course, this is a big benefit for other car companies, at least in the Middle East car fertile soil everyone is on the same starting line, they no longer need to look at the back of the Chinese with envy.
In order to continue to see Land Rover cars on the streets of England, we have to pray - good luck for the Chinese!"
The BBC, which is good at poisonous tongues, reveals a smell of schadenfreude over the China Group in a seemingly neutral tone.
For them, the China Group, which swallows the Land Rover brand with deep pockets, is a nouveau riche, and it may be an invisible sense of superiority to see Chinese people eating deflated.
Breaking report, the BBC knew that this article would cause a certain sensation, so it was extremely secretive, and it spread to the far east through the Internet soon after its release.
As soon as the Hong Kong stock market opened, China Auto shares fell 8%, and the green figures continued to fall. It can be seen that investors have a negative attitude towards such negative news, and the stock price fell by 15% at one time, and then rose slightly by 3% to maintain a decline of 12%.
Such an abnormal movement occurred within 40 minutes, and after Han Hao, who was far away in the capital to ask for help, learned the news, the company's shares had been collectively applied for suspension by the financial housekeeper Yin Qingxun.
The change in the H-share "China Motor" also infected the A-share "Huaxia Automobile", and even related stocks such as "Shenzhou Seiko" and "China Bus" also fell.
Investors are more afraid of the U.S. government's sanctions than the closure of Iran's operations, which is a thunderbolt for companies that advertise themselves as models of internationalization.
All kinds of messages and rumors are flying all over the market, and it was even rumored that Han Hao has been detained in the United States, and tomorrow the US government will put the Zhonghua Group on the sanctions list.
Fortunately, the suspension was timely, otherwise if the stock continued to trample on the effect, the company's stock price should be miserable, and Han Hao's net worth is estimated to be wiped out.
Timely clarification of rumours and the publication of facts and progress are the best ways to prevent things from getting worse.
"The Chunghwa Group has been informed in advance of the U.S. government's plan to impose sanctions on Iran, and is deeply concerned about it and has actively responded to it. At present, people have been sent to contact the Ministry of Commerce, the Ministry of Foreign Affairs and other relevant departments to actively seek solutions.
As a Chinese company entering the international market, we have always complied with the laws and regulations of various countries, and acted strictly in accordance with international business standards, without any illegal acts.
In the face of possible U.S. bans, Chung Hwa Group will use legal means to protect its rights and interests, and will not give up any negotiation plan, so as to control the losses within an acceptable range as much as possible, and will not affect the long-term normal development of the enterprise.
Before the sanctions plan is finalized, the shares of China Group will apply for a long-term suspension of trading, and the listing and trading will resume after the relevant matters are resolved. ”
As a listed company, he had to take into account the feelings of investors, and Han Hao issued an official announcement in a timely manner to stabilize market sentiment.
The content of the announcement is very clear, that is, Chung Hwa Group has urgently sought help from the Chinese government, and at the same time, it will try its best to control the losses within a certain range, and will not lead to the closure of the company. As for how the sanctions plan will be implemented, companies will do their best to lobby for public relations in the United States, and will not hesitate to use legal proceedings to reach an acceptable agreement.
The BBC said that the lesser of two evils is the lesser of two evils, but Han Hao hopes to continue to have both fish and bear paws together. The Middle East market has great potential, and compared to China, it is the land of nouveau riche.
For this reason, he had to turn to Hu Yiming, one of the national think tanks and his respected mentor.
"According to the analysis of the US government, they are strongly advocating the withdrawal of troops from Iraq and Afghanistan, and will not really detonate the powder keg of Iran. It is more just hoping to bring Iran back to the negotiating table with a stick and carrot policy, after all, the best policy is to surrender without a fight.
China will certainly not agree to a ban on oil imports from Iran, regardless of the conditions offered by the United States. In order to enforce the ban plan internationally and maintain the authority of world hegemony, the United States should use the exemption list to conduct relevant transactions.
If nothing else, the name of China should be on the list of exempt countries that prohibit oil imports. And your China Group, although it is included in the list of potential sanctions, it is not impossible to be exempted after some operation.
Different from ordinary interpersonal interactions, the way countries get along with each other is more about naked interests. If China does not make a statement this time, the environment for its own enterprises to operate across borders will deteriorate greatly in the future.
I think this should be a situation that the Chinese government does not want to see!"
After some analysis, Hu Yiming fully demonstrated the judgment of the overall situation, and also greatly alleviated Han Hao's anxiety.