Chapter 593: The two sides have differences
"Mr. Hase, our policy of opening up to the outside world has always been the same, and we support the policy of free trade and are building a market economy. We welcome all enterprises that are friendly to China to invest in China, including direct investment in the establishment of enterprises, or joint ventures with existing enterprises in China.
Therefore, our attitude towards the joint venture between Sanli Steel and Qinzhou Heavy Machinery Factory is positive, and we fully believe in the sincerity of Sanli Steel and hope that this cooperation can be a complete success. β
A few days later, in a conference room of the Ministry of Foreign Trade, negotiations on a joint venture between Sanli Steel and Qinzhong were resumed. Feng Xiaochen, assistant general manager of the State Equipment Industry Corporation, who participated in the negotiations for the first time, made an enthusiastic speech at the beginning.
Including this one, the negotiations between China and Japan have been carried out five times, and several officials have already said statements similar to those mentioned above, but this does not prevent Feng Xiaochen from repeating these words like a repeater. Yuto Hasegawa and Maya Yoshioka were also used to this, and when Feng Xiaochen's tirade ended, they expressed their gratitude to the Chinese side as usual, and said some clichΓ©s such as sincere cooperation.
The warm-up process was over, and the negotiations between the two sides got to the point. Feng Xiaochen said: "Mr. Changtani, in the previous negotiations, the personnel of the Northwest Provincial Economic and Trade Commission and Qin Chong have already stated our views to you on the valuation of Qin Chong's assets and the distribution of equity between the two parties. As a representative of the State Equipment Industry Corporation, I would like to discuss with you how to ensure the supply of equipment for China's metallurgical industry after the establishment of a joint venture between the two sides, and I would like to invite Mr. Hasei and Mr. Yoshioka for advice. β
"We are very much looking forward to Mr. Fung's insights. Yuto Hasei bowed slightly.
"Mr. Changgu should know that Qinzhong is the backbone enterprise of metallurgical equipment manufacturing in China, especially in the complete set of thin plate continuous casting and rolling equipment, which is the highest technical level in China. If Qinzhong's production capacity is affected because of the joint venture, China will suffer great losses in the autonomy of metallurgical equipment. As Japan is a country that has long suffered from the restrictions imposed by the Batumi Agreement, Mr. Hase's concerns about the independence of equipment should be understandable. Feng Xiaochen said.
Yuto Haseki nodded again and said: "We understand your country's concerns in this regard, in fact, the cooperation between Sanli Steel Institute and Qin Zhong also hopes to help China improve the technical level of metallurgical equipment and make your country's equipment manufacturing capacity to a higher level." β
"However, I have heard some rumors that Sanli Steel intends to abandon Qinzhong's original technology and reduce Qinzhong's investment in research and development after the joint venture with Qinzhong, so that Qinzhong will completely become Sanli's manufacturing base. Mr. Hase, can you tell me if this rumor is true? Feng Xiaochen said with a solemn expression.
"This is completely baseless speculation! It's a lie made up by some malicious people!" said Yuto Hase, with an indignant expression on his face, as if he had been greatly wronged.
In his heart, there was another thought: What Feng Xiaochen said was exactly the idea of Michihiko Kobayashi, chairman of Sanli Steel Institute, which was not a secret among the top leaders of Sanli, but how could it reach the ears of the Chinese? When Feng Xiaochen said these words, did he really hear some rumors, or was he trying to hear Sanli's intentions?
In fact, where does Feng Xiaochen need to listen to any rumors, what he said has indeed happened in real history, although it did not happen in the field of metallurgical equipment. It has happened more than once that a certain technology has just improved in China, and foreign competitors have come to seek a joint venture with "good intentions", and then used the controlling stake obtained in the joint venture to strangle the domestic technology in the cradle.
This time, Sanli insisted on obtaining a controlling stake in Qin Chong, and Feng Xiaochen could smell the smell of conspiracy from three miles away. To put it bluntly, isn't it because Qin Chong's technology is developing too fast and poses a threat to Sanli, and Sanli wants to eliminate this potential opponent once and for all.
Hearing Yuto Hase's answer, Feng Xiaochen replied lightly: "Yes, Mr. Hase, can you tell me whether Qin Chong's original technology will be retained after the joint venture between Sanli and Qin Chong, and whether Sanli will have specific measures to help Qin Chong improve his technology." β
"Of course, Qin Chong's original technology will be retained. Not only that, we also intend to transfer part of Sanli's core technology to Qinzhong, so that Qinzhong's metallurgical equipment technology will at least reach the international level in the late 80s. β
"Did Mr. Hase-chan say your own idea, or did you mean it?"
"Of course it's the company. β
"So, does your company have a mature opinion on this issue?"
"Uh...... Of course, there is. β
"That's great. Feng Xiaochen suddenly showed a face full of joy, happy like a child who had just received the New Year's money, he turned his head to look at Cui Yongfeng who was sitting on the side, and said: "Chief Engineer Cui, have you discussed with Mr. Hasei about the transfer of technology from Sanli Steel to Qinzhong?"
"I mentioned it, but I didn't discuss it in detail. Cui Yongfeng said.
Feng Xiaochen said dissatisfiedly: "Why hasn't such an important matter been discussed in detail until now? What have you talked about in the past four negotiations?"
"This ......" Cui Yongfeng showed hesitation, and his eyes kept glancing at the officials of the Northwest Provincial Economic and Trade Commission and the Ministry of Foreign Trade, meaning that it was inconvenient for him to say some things.
A deputy director named Xu Zhenbo sent by the Ministry of Foreign Trade coughed lightly and said, "Assistant Feng, this matter has nothing to do with Chief Engineer Cui. In the previous negotiations, we mainly discussed the issue of controlling interest in the joint venture, and there were some relatively large differences between the two sides on this issue......"
"Controlling stake, is this issue worth discussing so many times?" Feng Xiaochen muttered with a frown.
Wang Genji, who was sitting next to Feng Xiaochen, lowered his voice and said: "Assistant Feng, this question is this, Sanli Steel wants to own 51% of the equity of the joint venture company, and we hope that they will have no more than 49% of the equity. As a result, the two sides are divided, mainly over the question of who will have the final say in the future joint venture. β
He made a private chat with Feng Xiaochen, but his voice was not controlled to the extent that others could not hear him, perhaps because he had some problems with his own hearing, so even if he spoke quietly, everyone could hear it clearly.
Feng Xiaochen didn't care, he turned his head to Shi Fulin, deputy director of the Northwest Provincial Economic and Trade Commission, and said: "Director Shi, when we exchanged two days ago, didn't we reach a consensus?
"Yes, yes, Qin Chong is still in the country after all. Shi Fulin couldn't understand Feng Xiaochen's meaning, so he could only follow his words.
Feng Xiaochen turned back to Wang Genji and said: "Old Wang, you are also confused, what our equipment company likes is the technology of Sanli Steel Institute. Didn't Mr. Hagatani say that after the joint venture, Sanli will transfer all their most advanced technologies to Qin Chonglai, so that the level of metallurgical equipment in our country will suddenly reach the forefront of the world?
"Yes, yes, yes, it's really not good, let's build another Qinzhou No. 2 Heavy Machinery Factory, let Qin Chong copy the technology, and that's it......" Wang Genji made a sudden realization.
They were chatting lively, and the translator on Sanritsu's side kept translating their words into Japanese and whispering them to Yuto Hasei and Maya Yoshioka. Hearing Wang Genji's idea, Yuto Hase's face darkened, and he quickly interrupted the chat on the other side and said, "Mr. Feng, we didn't promise to transfer all of Sanli's technology to Qin Chonglai, after all, there are still some differences between our company headquarters and the joint venture company in terms of technology. β
"Why?" Feng Xiaochen asked puzzled.
"Because...... Some technologies belong to our company's core technology, and the joint venture ...... after all" Yu Hasei didn't say any more, and the rest of the content was waiting for Feng Xiaochen to understand it himself. Nima, your Director Wang has already said that once we transfer the technology to Qin Chong, you will let Qin Chong transfer the technology to other enterprises, and even the name of the enterprise has been named, what is the name of Qinzhou Second Heavy Machinery Factory. Do you understand the rules of business, how can you do this?
Feng Xiaochen looked at Yudu Changgu for a long time before he asked in surprise: "Mr. Changgu is saying that Sanli Steel will not transfer advanced technology to Qinzhong?"
"Of course not, we will definitely transfer advanced technology to Qin Chong. It's just that the technology we transfer will ...... Well, it's going to be a little bit behind the latest technology that we've got. In fact, all international multinational companies do this, and a certain technological gradient must be maintained between the company's headquarters and overseas branches. In addition, the ownership of the technology we transferred to the joint venture belongs to Sanli Steel, and it cannot be transferred to another company without our permission. Yuto Hasei stammered.
He felt very tired, these questions were obviously common-sense questions, which did not need to be explained, and should also be mutually agreed upon. But how can it seem that this Assistant Feng doesn't think like this, does he have any misunderstanding about the concept of joint venture?
If the other party's expectation is to obtain Sanli's latest technology, and it also intends to transfer it to other companies for use, then the differences between the two sides are immeasurable, what can he do to make the other party accept the reality? Also, once the other party is asked to give up this unrealistic expectation, will the other party retaliate with the issue of controlling interest?