214. The price of cabbage
"One thing you must firmly believe is that in the end China's manufacturing industry must win, we have a complete education system at this stage, a complete industrial system, rich labor resources, as long as we adhere to the current policy, our industrial products will be able to have a place in the world. Pen ~ fun ~ Ge www.biquge.info You have to articulate your beliefs at the meeting and show your confidence in China's manufacturing industry", Li He began to give Yu Dehua a lesson.
"En", Yu Dehua saw Li He talking eloquently, and he didn't know where Li He got so much confidence, but he had to take notes on paper to deal with tomorrow's speech.
"The economic transformation of the SEZ from an inward-looking economy to an export-oriented economy has only just begun, and the policy of the SEZ is to focus on industry and exports. If the products are not exported in large quantities, how can they become an open base? What industrial products can be exported? They are nothing more than some products processed with supplied materials, and these products can only be made in the initial stage. We would like to do it in the high-tech manufacturing industry, precision instruments, precision machinery, and advanced materials industries, but do we have the technology? Do we have the funds? From the low-end to the high-end, we must always have a process."
Yu Dehua said, "I understand these, not only the Special Economic Zone, but also the Pearl River Delta and the Yangtze River Delta are these clothing textile and small hardware workshops, which are very good starts, and I also gave them some orders according to your requirements."
"But these low-end products are easy to produce, how can we have a place in the world?"
Yu Dehua said, "We are cheap in labor, cheap in price, and naturally competitive."
"Yes, it's cheap. But we don't just want the price to be cheap, we want to do it at the cheapest price of the same quality, we make it the price of cabbage for him, break the international monopoly, and force them to bankruptcy first. To force the opponent to bankruptcy, it is useless to rely on one or two domestic enterprises, to rely on the chemical fiber, textile, garment industry to huddle together, to upstream and downstream enterprises supporting cooperation, this is the purpose of I asked you to set up the Garment Textile Federation before, as long as we hold together, we are not afraid to fight the price in the international market", Li He still according to the old routine of China's manufacturing industry, many things Chinese will not do before are high prices, once the Chinese master the core technology, are cabbage prices.
Lao Tzu is the price is low, you bite me!
You have high quality, I have low price!
Your craftsmanship is good, my price is low!
You are durable, I have a low price!
You have high technology content, and my price is low!
You have a good shape, I have a low price!
Anyway, fight the price, either you die or I live!
What kind of innovation and development will be said, but it is not a day or two to do, Lao Tzu's stomach is almost full, who has the kung fu to talk to you about the spirit of craftsmanship! Don't think about how many forced qualifications, the key is that you can't do forced things!
If light industrial products are not made into cabbage prices, I am simply sorry to God!
"Our opponents are mainly Japanese and South Korean enterprises, all of which are large textile factories with 10,000 people, can we squeeze him out of bankruptcy?", Yu Dehua really didn't believe it, he also visited foreign factories, not to talk about the technical level, the management level alone is several times higher than that of China.
At present, it cannot be compared with the clothing industry in Southeast Asia.
"Yes, must be able, not only the garment industry, as long as it is a light industry, we can squeeze him bankrupt, glasses, arts and crafts, plastic products, hardware products, household appliances, down and its products, let's take our time, there will always be a day", Li He couldn't help but yearn for a little, he thought that even if he could advance the process of domestic light industry a few years earlier, it would be good.
"Then the purpose of our establishment of this light industry federation is to fight a price war?"
Li He said with a smile, "Then what do you think? It is to fight a price war in the world, there is no more industrious and hard-working workers than China, if the labor force can't fight, where can China's manufacturing industry have a future."
It is incorrect to simply attribute the development of China's manufacturing industry to the abundant labor force, India and Southeast Asia have rich labor force, even Africa is not short of people, but only China's manufacturing industry has risen.
It is still due to the hardships and hard work of the Chinese.
Although there will be a sense of déjà vu of a sweatshop, but to talk about treatment aside from productivity is to play hooligan, with a sense of superiority of "not eating minced meat". The division of labor is originally the embodiment of the progress of this world, and the pain point of Chinese at this time is how to solve the problem of dressing and eating, rather than suffering and tiredness.
Workers work hard to get very little wages, and the reason for all this is very simple, that is, the country is poor.
It's all about productivity.
"Many of our foundries are in accordance with our requirements, the use of piecework performance wages, many workers are eager to stay on the production line 24 hours a day, can indeed endure hardships", Yu Dehua had to sigh the workers in order to pay a few more dollars per month for overtime wages, that ruthlessness made him moved and admired.
"So a country's manufacturing industry is like this, from scratch, from there to fine, from fine to strong, from qualitative change to quantitative change, there will be a process, don't ignore this process."
Yu Dehua took a sip of tea and couldn't help but be happy, "Listening to you say this, it seems that what we do is like a thousand years of merit, how great it is."
"I don't dare to say that it is a meritorious achievement, at least to contribute to society. Besides, it's also for the benefit of the country and yourself, don't you want to think about it, you have done this, and you will be on the Forbes wealth list one day?".
Yu Dehua smiled, "It's really possible."
As long as the Light Industry Federation is completed, how many foundries will he have in his hands, how many products he can export, and how much money he can make!
"Also, the technical transformation of the foundry continues to be done, let's continue to lend to them", Li He asked Yu Dehua to make foreign exchange loans to some enterprises with poor technical equipment last year, the amount is not large, only more than 100,000 US dollars, used to import equipment from abroad, and most of them are old equipment and obsolete equipment, but the quality of the factory's products has been improved by several levels.
"We have lost more than 6 million yuan in the foreign exchange rate alone" , Yu Dehua said a little distressed, according to his ideas, giving a loan is enough for many factories to be grandfathers, the key is to pay a fixed exchange rate, that is, what is the exchange rate when borrowing, what is the exchange rate when repaying, it is simply generous to these factories, there is a difference of 6 yuan between the official exchange rate and the market exchange rate, and lending 1 million US dollars a year is a difference of 6 million yuan, strictly speaking, he Yu Dehua has to earn 6 million yuan less a year.
"If they were allowed to use a floating exchange rate, few of these factories would survive. Li He can't help it, for the sake of long-term development, these are all things that must be done. Some factories have made foreign exchange loans for technological transformation, and the equipment has been upgraded, and they have earned back foreign exchange, but these foreign exchange cannot fall into the pockets of the factory, and eventually they have to be converted into RMB according to the official exchange rate.
"Then I'll listen to you", Yu Dehua also complained, he still enjoys the feeling of being supplied by the manufacturer, he has heard good words in recent years, more than he has heard in his life, wherever he goes, he is now hugging the front and back, and he dares to blow a word wherever he goes, and he has many friends.
(To be continued.) )