At present, the interior is still practicing a planned economic system, and the reform of the market economy has just begun to be proposed, and all factories are producing in accordance with the task targets assigned by the higher authorities. Developing products by oneself but not producing them, and asking other factories to produce them for them is impossible in China unless there is an executive order.

"Is this the same as processing with incoming materials, you come out with equipment and raw materials, and then find someone to help with production, and then pay a certain amount of cost!" Xie Li thought for a while and said, "Your company can cooperate with domestic enterprises, and the fees we charge are definitely much lower than those of Hong Kong companies!"

Li Xuan shook his head, organized his language and said, "There are some similarities, but there are more differences. Specifically, we provide samples and technical data to our partners, and then they organize production with quality and quantity. We will not undertake the investment of the foundry company's plant, equipment, etc., which are all necessary for the cooperative enterprise to undertake the order, and they need to gradually recover the cost from the profits earned by the OEM contract!"

"Wouldn't it be a big investment for the OEM company to build a new production line specifically for you?" Xie Li asked after thinking for a while.

"This is also an opportunity for the other party to show their strength, and we can't choose a small factory without any foundation to cooperate. And as long as the other party can sign a cooperation agreement with us, you can take the contract to the bank to apply for a loan, so the threshold is not as high as you think!" Li Xuan said with a smile.

The reason why Dongfang Electronics outsources the manufacturing process is because electronic products are replaced quickly, which means that the depreciation of the production line is also very fast, if you can't quickly update the equipment. Productivity will be reduced. As a result, companies are not investing a lot in equipment. And once cash is turned into fixed assets, it is not easy for enterprises to turn around.

After Dongfang Electronics outsourced the production process. It is equivalent to throwing the pressure and risk of fixed asset investment to the foundry, and you can travel lightly. The shape shì is not right, and you can withdraw at any time.

What's more, the manufacturing process needs to recruit a large number of workers, and the resulting management costs are not cheap. If an Oriental game company alone produces arcades, handheld consoles, and FC game consoles by itself, it will instantly become a huge enterprise with thousands of employees. Such a large enterprise needs a high level of management art, otherwise it is likely to cause bloated and redundant personnel, and the production cost is not as cheap as outsourcing.

"Oriental Trading, a subsidiary of the Oriental Group, purchases large quantities of various electronic components every quarter. If Minister Xie is interested, he may wish to organize mainland electronics companies to participate in the bidding!" Li Xuan said suddenly.

"Oh, haven't you already outsourced all your production? Why do you still purchase parts by yourself?" Xie Li asked, his eyes lit up.

"We are not responsible for production, but we are responsible for the procurement of major components. This is mainly due to several considerations, first of all, in order to control the quality, we are responsible for procurement, and we can prevent inferior parts from entering the manufacturing process from the source, so as to control the quality of the product. In addition, the unified procurement by Oriental Commercial also has stronger bargaining power when negotiating with upstream suppliers. It can reduce procurement costs!" Li Xuan explained.

"Do you have any specific requirements for suppliers?" Xie Li continued.

"First of all, the supplier must have a sufficient production scale to be able to ensure the supply in a timely manner. The products of several subsidiaries of Dongfang Electronics are still selling well, and the number of raw materials purchased every month is relatively huge. If the size of the supplier is too small, it is likely to cause the supply to be undersupplied. Influence our production schedule!

Secondly, the quality of the product must meet our requirements! I have to remind Minister Xie that we have a very strict set of quality control regulations. Compared with the mainland, the standards are much more stringent. Many of the products you consider to be acceptable may be returned as defective by our quality inspectors.

Therefore, if a mainland enterprise is ready to participate in the procurement bidding of Dongfang Electronics. Be sure to supply according to the quality standards we give, otherwise it is likely to cause unnecessary trouble! The best of the best is the principle that every enterprise will follow when purchasing, after all, we have to reduce costs as much as possible!" Li Xuan explained in detail one by one.

The mainland has a huge advantage that Hong Kong does not have, that is, it has a very complete industrial system, for example, most of the parts and components of the electronics industry can be produced in China. The only thing to worry about is whether the quality performance is up to par and whether it can be produced cheaply on a large scale.

In the following years, the northward movement of Hong Kong's industry was an irreversible trend, and with the development of the Special Administrative Region, many mainland electronics companies also moved south. The Shangbu Industrial Zone, which has just been planned in the Shenhai Special Economic Zone, has already decided to settle in a number of large state-owned electronics factories within a few months. The Fourth Machinery Department and the Deep Sea Special Economic Zone intend to rely on the advantages of proximity to Hong Kong to build Sheung Po Industrial Park into an electronics industry cluster.

Although Europe and the United States are gradually easing their domestic blockades, this will take a process after all. Before '84, many electronic components imported from the mainland had to be submitted to the Batumi Committee for approval. Relying on its proximity to Hong Kong, the deep-sea special zone can circumvent these restrictions and smuggle electronic components in large quantities through grey channels.

Throughout the 80s, the SAR Government turned a blind eye to this. So much so that this confused account, after the gradual transformation and development of Shangbu Industrial Zone into the Hua-Qiangbei electronics market, is still a troubled problem.

Many of the counterfeit goods sold in Huaqiangbei Market are imported through abnormal channels. Manufacturers can't get the purchase invoices of raw materials at all to deduct VAT, and if they want to make profits, they can only work tax evasion. At the same time, there is no warranty for parallel parts, and the quality level is uneven, making copycat products synonymous with low-end and inferior quality.

Li Xuan's eldest brother has a trading company in Heletang, which specializes in cooperating with some counterpart companies in the mainland. According to the needs of the other party, purchase various electronic components from abroad, and then send the goods to the designated joint location from Hong Kong to guò speedboat. Such a gray channel that combines internal and external affairs has been deeply rooted in operation for decades, so much so that the Shenhai SAR government has spent a lot of energy to crack down on it in the 21st century.

Of course, none of this has much to do with Li Xuan, and he is not interested in participating in this kind of business. The Shenhai Special Zone is undoubtedly the place where China's electronics industry developed most rapidly in the 80s, and Dongfang Electronics naturally hopes to draw nourishment from here.

Unlike foreign countries, the industrial agglomeration in the mainland relies on the guidance of the administrative department. For example, the reason why state-owned electronics factories have set up factories in the deep-sea special zone is also the result of the promotion of the fourth machine department of the competent department. Hong Kong's electronics industry now has nearly 1,000 factories of all sizes, and Dongfang Electronics does not dare to say that it has completed all the integration work, but at least it has included a large number of companies into its own industrial chain plan.

Since the beginning of this year, Dongfang Electronics has gradually promoted the transfer of peripheral enterprises in the system to the special zone. After all, with the soaring price of land and wages, the congenital deficiencies in the development of Hong Kong's manufacturing industry in all aspects have become more and more obvious. For example, Dongfang Electronics' picture tube factory, which is preparing for a joint venture, did not consider choosing a site in Hong Kong, but directly aimed at the deep-sea special zone.

In the future, China is the world's factory, and the cheap human resources in the mainland, whether it is manufacturing or technology research and development, can bring great benefits to Dongfang Electronics, and it has more advantages than Hong Kong, which is a corner of the city. It is naturally beneficial and harmless to establish a good relationship with the four machine departments in charge of the electronics industry.

"Then I have to inform domestic companies that this kind of opportunity to earn foreign exchange at their doorstep can't be missed!" Xie Li said with a smile.

"I will ask Oriental Commercial Company to send a detailed purchase letter, and you can arrange powerful enterprises to participate in the bidding according to the needs of our order!" Li Xuan nodded with a smile.

If the products of mainland enterprises can meet the procurement standards of Dongfang Electronics, handing over orders to mainland factories can definitely further reduce costs. After all, throughout the eighties, the domestic thirst for foreign exchange reached a very crazy point. As long as the enterprise can earn foreign exchange, even if the production cost is higher than the export price, the government will use a series of measures such as tax rebates and subsidies to make up for the company's losses.

Li Xuan had a very happy conversation with Minister Xie Li, and finally he said that he would let Oriental Commercial send special personnel to help the Fourth Machinery Department and organize the major electronics factories under the ministry to participate in the procurement and bidding of Oriental Commercial. Although Li Xuan is not ready to invest directly in the mainland for the time being, he has the opportunity to carry out mutually beneficial and win-win cooperation with mainland electronics companies, and he feels that his trip to the north is worth the fare.

Although the banquet dishes were very exquisite, the portions were not large, and everyone did not pay attention to the food. After the dinner, there was also a symposium attended by Mr. Deng and others, who listened carefully to the various opinions of all those from Hong Kong.

The most enthusiastic speaker in the Hong Kong delegation was undoubtedly Mr. Chung Sze-yuen, who was the only politician in the 12-member Hong Kong delegation and a figure of great importance in Hong Kong's political circles.

Beijing's message is clear: the Chinese government's determination to take back Hong Kong in 1997 cannot be ignored. The resumption of Hong Kong is by no means out of consideration for economic interests, and the central government will not take a penny from Hong Kong in the future, and Hong Kong's return to the motherland is a matter of sovereignty and dignity of a major country, and bargaining is not allowed.

Li Xuan barely spoke during the whole process, only with ears and no mouth, just listening to the temptation and confrontation of everyone's words. He naturally knows the bottom line of the central government, but he does not need to come forward directly for this kind of political speculation.

ATV, a subsidiary of ATV, is preparing a talk show called "Qiang Qiang Threesome", with a host and a guest with a positive and negative point of view, and each episode will debate the hot topics in Hong Kong recently. (To be continued......)

ps: Thank you for your enthusiastic votes, thank you!Please smash the votes and don't stop, the gap has not been widened! Unconsciously, this book has come to 200 chapters, more than 500,000 words, from 100 chapters to 200 chapters, Sky is working hard step by step, thank you for your support and encouragement all the way!