Hong Kong's manufacturing industry previously had the ability to assemble TV sets, but it did not have the ability to involve key upstream industries, and all core components were imported. This time, Li Xuan allowed a large number of key technologies to be authorized externally, and also supported them in the form of orders.

Dongfang Group is preparing to build an annual production capacity of 10 million color picture tubes in the deep-sea special zone, which is not a satellite. RCA sells 5 million TVs a year in the U.S. market, and if it can reduce production costs and fight a price war, it will definitely be able to regain some market share from Japanese manufacturers. The TV business alone can eat up more than 5 million picture tubes.

Oriental Games' arcade business is also reaching a peak, with the company selling more than 2 million arcade machines in the whole of last year. Each arcade machine also requires one CRT, which can eat up another 2 million CRTs.

Even if the golden age of the arcade industry doesn't last long, it's likely to boom and fall in the next two or three years. However, the shrinking demand for picture tubes due to the decline in arcade sales can be fully compensated for by the rapid growth of the personal computer business.

The principle and structure of a computer monitor is almost the same as that of a television set, and the picture tube is also the core component of the monitor. In 1984, the total global sales of Aikang's ABC series personal brain exceeded 1.7 million units.

According to the analysis and prediction of the Eastern Economic Research Institute, a think tank within the group, in the next five years, the annual sales of Aikang computers will exceed 5 million units, which is enough to offset the gap in the demand for picture tubes caused by the decline of arcades.

In other words, in the whole of last year, the total number of picture tubes consumed within the Eastern Bloc was at least about 9 million. Then count the CRT data exported by RCA. The Eastern Group can easily absorb the production capacity of 10 million picture tubes.

And this also means that as long as they can take orders from the Eastern Group, the upstream raw material factories will be enough to eat with a mouthful of oil. There is this kind of business that is sure to make money without losing money. Naturally, other capital in Hong Kong is very willing to enter.

Since last year, the Eastern Group has taken a stake in technology. It has successively supported two phosphor factories, three glass shell factories, a shadow mask factory, a deflection coil factory and two metal parts stamping factories in the Shenhai Special Zone.

"At this time last year, it was still full of farmland. However, the efficiency of the SAR government is very high, and it only took half a year to complete the work of land requisition and the work of three links and one leveling! According to the current pace of construction, these factories will be completed and put into operation by the beginning of next year!" Ke Lilun pointed to the rows of tall tower cranes not far away and introduced to Li Xuan, who was standing beside him.

The construction sites are all part of the newly established National Electronics Industry Development Zone in the Deep Sea Special Zone. One of the core projects in the development zone is the RCA TV manufacturing base.

Li Xuan proposed it in person when he met with Mr. D last spring. We are willing to invest on a large scale in the deep-sea special zone to build a giant electronic manufacturing base with picture tubes and televisions as the core. After receiving the affirmation and support of Mr. D, the central and local governments gave the green light to this plan all the way.

For example, the central government quickly approved the application submitted by the Shenhai Special Zone for the establishment of a state-level electronic development zone, giving the SAR government more autonomy in terms of foreign investment approval, land approval, and tax incentives.

On June 1 last year, the Guangdong Provincial People's Congress issued the "Interim Regulations on the Administration of Wholly Foreign-Owned Enterprises." This "Regulation" allows foreign investors to build wholly-owned factories in the three special economic zones in the province under certain preconditions.

In the past, there was no precedent for wholly foreign-owned factories in China except for Shekou Industrial Zone. All investment promotion is carried out in the form of Sino-foreign joint ventures and Sino-foreign cooperation. The "Interim Regulations" promulgated by the Guangdong Provincial People's Congress have also resolved the legislative gap. The National People's Congress is also speeding up the formulation of the "Law of the People's Republic of China on Foreign-Funded Enterprises", which is expected to be promulgated next year.

Li Xuan suddenly proposed on a whim. I want to come to this new national electronic development zone established last year to have a look. In fact, the development zone is now full of messy construction sites, and there is nothing to see at all.

On the way back, Ke Lilun pointed to every factory outside the car window and introduced his boss in detail: "Li Sheng. This factory is a metal parts stamping factory invested by Mr. Wang Jianzong, the second son of the Wang family of Johnson Electric. This Dexing metal manufacturing company, in addition to taking orders from us. He is also responsible for some of Johnson Electric's orders!"

Johnson Electric is the only Hong Kong-funded mechatronic industry in a single field. A manufacturing company that can achieve global leadership. Johnson Electric was founded in 1959 and initially relied on Hong Kong's large toy manufacturing industry. Production of low-end toy motors. After completing the initial accumulation of technology, Johnson Electric has been gradually moving into the field of high-performance micro motors in recent years.

Johnson Electric's founder, Mr. Wang Songliang, is over 70 years old and has begun to hand over most of the company's affairs to his eldest son. In order to avoid the two sons falling apart because of the fight for family property after his death in the future, Wang Lao is very willing for his second son to jump out of the family business and start his own business.

Mr. Wong was also one of the first people to come to our door. In order to support his son, Mr. Wang personally came forward to guarantee him and borrowed 35 million Hong Kong dollars from Jiahua Bank to establish this Dexing metal manufacturing company!"

In fact, when the Oriental Group first revealed its willingness to accept external capital and jointly undertake the industrial transfer of RCA Company, many people tried Li Xuan either explicitly or implicitly.

Naturally, he was embarrassed to say bluntly that I don't look down on the profits of manufacturing anymore. This also hurts other people's self-esteem too much, so he just perfunctory the past. Anyway, Li Xuan's attitude is that Jiang Taigong is fishing, and those who wish will take the bait.

And the Eastern Bloc has never had a precedent for cheating its partners before, on the contrary, all those who followed the "God of Wealth Lee" made a lot of money. Therefore, in the past year, the RCA Industrial Park promoted by the Oriental Group in the Deep Sea Special Zone has leveraged more than 1 billion Hong Kong dollars, of which the Oriental Group's own investment is less than 200 million Hong Kong dollars.

"Many people in Hong Kong are still skeptical. Do I have some ulterior motives? Otherwise, why would I give away the opportunity to make money to others for no reason? Because assembly line manufacturing is in the whole product cycle. One of the least cost-effective links. The height at which we stand in the Oriental Group is no longer at the same level as other Hong Kong enterprises!" Li Xuan said with a very domineering smile.

Li Xuan didn't have no money in his hands. On the contrary, the Eastern Bloc has a very strong cash flow. In particular, after transferring a stake in NBC Broadcasting to GE last year, the Eastern Group recovered more than a billion dollars in cash. Coupled with the strong revenue capacity of each subsidiary, the huge debt that Oriental Group had previously incurred due to the acquisition of RCA has been digested.

But if it weren't for the fact that the monitor is also an indispensable accessory in personal computers, Li Xuan had no intention of letting the Oriental Group get involved in the CRT (cathode ray tube) industry. Even when he bought RCA, he went to NBC TV, and the TV business was purely a side product.

In Li Xuan's view, CRT TV is already a sunset technology, and its lifespan is only ten years left. The era of the future belongs to liquid crystal technology. Since the time of CRT technology is running out, Li Xuan naturally does not care too much about the confidentiality of technology.

The most core component of the TV is the CRT picture tube, which in turn is mainly composed of five parts: the electron gun, the deflection coil, the shadow cover, the phosphor layer and the glass shell. Among them, the most technical part is the electron gun, which directly affects the picture quality of the TV.

Therefore, the Eastern Group's own investment is mainly in the production of electron guns, and the rest is handed over to other companies to manufacture in the form of technology shares. If it weren't for the fact that he still didn't believe in the current technical level of Hong Kong companies, Li Xuan would even let other companies take charge of the production of electron guns.

The proliferation of technology is bound to lead to more intense competition, causing the profits of the entire industry to decline rapidly. But for the Eastern Bloc, the television industry is just a non-core peripheral business. And whether it is Sony, Panasonic, or Hitachi among Japanese companies. Or South Korea's Samsung, the TV business is an important source of profit for them.

In Li Xuan's view, the biggest competitors of the Oriental Group in the future are destined to be Japanese companies and Korean companies that are still growing. If we can quickly make the global TV industry a cabbage price. It is bound to greatly weaken the profitability of Japanese and South Korean companies. This is definitely more good than bad for the Eastern Bloc!

In Li Xuan's eyes, it is just a chicken rib CRT industry, but in the eyes of others, it is indeed a delicious big chicken leg. Therefore, Li Xuan is willing to do his best to support Hong Kong's local capital to enter the TV industry. Let them compete with Japanese and South Korean companies on the price in the global market.

For example, the benchmark enterprise supported by Li Xuan, Lu's Electronics Company, in addition to OEM orders for televisions and computer monitors for the Oriental Group. Self-created TV brands are also growing rapidly. Especially in Southeast Asia and Chinese mainland, it is gaining more and more market share.

Chinese mainland is definitely in the next fifteen years. One of the fastest-growing markets for home appliances in the world. In another time and space, Japanese and South Korean electronics companies have grabbed a lot of profits in the Chinese market. Taking the TV industry as an example, the mid-to-high-end market is basically in the hands of foreign brands.

For this reason, Changhong also fought a bloody price war in the name of "serving the country by industry" in 1996. Then, the price war became the most important magic weapon of the domestic electronics industry, and China also became the world's factory in just 20 years.

Therefore, in addition to supporting Hong Kong capital to enter the electronics industry represented by televisions and picture tubes, Li Xuan also began to vigorously support the domestic electronics industry. His visit to the Special Economic Zone this time was not simply to visit Xiangmi Lake Resort, but also to attend the ribbon-cutting ceremony of the joint venture factory established by RCA and Huaqiang Electronics.

In later generations, there was a well-known electronic market called Huaqiangbei in the Shenhai Special Economic Zone, which was known as the world's largest electronic parallel wholesale market. In fact, the predecessor of Huaqiang North Business District is the location of the factory of Huaqiang Electronics Company in the Shangbu Industrial Zone planned before the Shenhai Special Economic Zone.

After the establishment of the Shenhai Special Zone in 1979, the Guangdong Provincial Government relocated a number of "small third-line" factories originally established in the mountainous areas of northern Guangdong to the Shenhai Special Zone. As a result, Huaqiang Electronics Co., Ltd. was established, hoping to rely on the favorable conditions of Hong Kong to develop into an important electronic manufacturing base in China.

Since its establishment, Huaqiang Electronics Co., Ltd. has been mainly engaged in material processing, mainly undertaking foreign trade orders such as radios and tape recorders from Hong Kong businessmen. With the increasing demand for TVs in the domestic market, Huaqiang Electronics Co., Ltd. hopes to introduce advanced TV production lines from abroad in the form of joint ventures.

This time, the Oriental Group actually snatched this joint venture opportunity from the mouth of Japan's Sanyo Company. Because there are strict restrictions on the import of TV sets in China, Japanese companies have to choose joint ventures with domestic companies in order to enter the Chinese market.

But the ultimate goal of Japanese companies is to maximize profits. Therefore, the conditions of cooperation proposed by them are naturally more harsh. In contrast, Li Xuan can be called a model of "patriotic entrepreneur"!

You want the most advanced TV production line? We can provide it, but it's a little more expensive. In fact, we have an old assembly line in Mexico, although the level of automation is slightly lower, but it is actually very suitable for the actual situation of abundant labor in China, and the most important thing is that its price is much lower than the new production line, which can greatly save the cost of building a factory.

Of course, you want to build your own picture tube factory, of course, no problem, but if you want to build a complete picture tube production line, not only is the investment expensive, but also the technical requirements are very high. It is better to take one step at a time, starting with the CRT assembly line. Anyway, in the electronics development zone in the special zone, there are already complete sets of picture tube parts factories.

Can you guarantee the export ratio of the products produced by the joint venture factory to ensure that the joint venture company can earn foreign exchange? Of course, this is no problem, but we have to use OEM production! By the way, if the domestic side is short of funds, we can also provide Hong Kong dollar loans!

In this way, it took only 12 months for a large factory with an annual output of 250,000 color TVs to stand in the Shangbu Industrial Zone of the Deep Sea Special Zone, showing everyone what is called deep sea speed!

This is only the first phase of the project, and the second phase of the project is already under intense construction, and it is expected to be put into operation before the end of the year. At that time, the new Huaqiang RCA joint venture company will have an annual production capacity of 400,000 color TVs of various models, of which 200,000 will be used for export, and it will also have the ability to assemble and produce 500,000 color picture tubes!

This production capacity may not be a big deal for the Eastern Group, but for the domestic electronics industry, it is already one of the top two manufacturers. According to the statistics of the Ministry of Electronic Industry, in the list of top 100 electronic enterprises last year, Huhai TV Factory No. 1, which ranked first, had an annual sales revenue of only 400 million yuan. After being fully put into production, the annual output value of Huaqiang RCA Company can almost reach this level......!