Chapter 263: A More Positive Posture
"Mr. Li, you may have some misunderstandings about us! Before, the cause of reform and opening up in China had just begun, and our cooperation with foreign parties was also crossing the river by feeling the stones, and bumps and bumps were inevitable! However, with the deepening of exchanges between China and the world, this state of affairs is changing!
For example, a few months ago, our Huhai Instrument Corporation reached a 20-year joint venture agreement with the American Fox Polo Company, with a total investment of up to 17.5 million US dollars!" said a man with a somewhat thin face and a very wide forehead.
When they introduced each other before entering the table just now, Li Xuan knew that his name was Hu Kang, and he was the director of the Huhai Instrument and Telecommunications Industry Bureau. The Bureau of Instrument and Telecommunications Industry is responsible for the management of all instrument and electronic enterprises in Huhai City, and has jurisdiction over hundreds of state-owned and collective enterprises of various scales. Huhai City is one of the most developed areas of light industry in the country, and the electronics industry not only has a complete range of categories, but also the overall scale is one of the best in the country.
This Director Hu has a somewhat old face, his hair has turned slightly gray, and he looks like he should be sixty years old. In fact, among the people at the table present, except for Li Xuan and Li Zhi, the rest of the people were over fifty years old. The year 1982 was the time when the aging of domestic cadres was the strictest, and it was described by foreign media as an old-man politician. But it was this group of old people who changed the country's previous twilight and opened an economic reform that shocked the world.
Hu Kang's Mandarin has a strong Sichuan flavor, which is not as standard as Li Xuan said. He continued to say with a smile: "As early as 1979, the central government promulgated the Sino-Foreign Equity Joint Venture Law to provide legal protection for foreign investors to set up business in China, and at the same time, joint ventures can enjoy the most preferential tax exemptions.
China is a large country with a population of 10, and the future market prospects here are extremely broad. And it is still an uncultivated virgin land for foreign enterprises! I believe that a person with a vision like Mr. Li will certainly not ignore such a very potential market!"
Tax incentives, market for technology. These are some of China's tried and tested tricks to attract foreign investment, but Li Xuan shook his head with a smile.
"Foxboro is a company that manufactures automation instrumentation and automation control equipment. Their products can help domestic enterprises improve efficiency, so they have a huge market demand in the mainland. However, Dongfang Electronics Company under my name is different, we produce consumer electronics, personal computers and game consoles are mainly sold to ordinary consumers. ”
Foxboro is a big name in the field of automation control in the United States, and its main competitor is GE (General Electric). Unexpectedly, it moved very fast and has already entered the domestic market first. He smiled and explained, "Director Hu, do you know the number of computers imported into China last year? The total number is less than 1,000, except for dozens of small computers. Most of them are the ABC series of personal computers produced by the Aikang Company, as well as the Apple computers of the Apple Company of the United States! However, in the first half of this year, the monthly sales of the ABC series computers of the Aikang Company were close to 100,000 units.
In the U.S., Europe and Japan, the main uses of ABC computers are primary and secondary school computer teaching, home computers, and business offices. But in China, the personal computer is still a luxury scientific research instrument, which greatly limits its market. As for our other flagship product, the game console, even the lowest-priced Gameboy handheld, is equivalent to as much as 40 yuan. This price is already equivalent to a month's salary of an ordinary worker, and it is impossible for domestic families to buy such expensive toys for their children!
Therefore. If Dongfang Electronics Co., Ltd. builds a joint venture with a domestic enterprise, the final product will still be sold abroad. Then the mainland market will not be so attractive to us!"
Li Xuan's meaning is obvious, the market for technology is useless for him, and Dongfang Electronics Company's products do not have much market in China.
Hu Kang still said with a smile on his face: "Mr. Li." The mainland has an abundant labor force, lower labor prices than Hong Kong, and greater tax incentives. Building a factory in the mainland can greatly reduce your company's production costs!"
"But these are not the advantages of Shanghai, a deep-sea special zone just across the river from Hong Kong. and a little farther away in the city of Guangdong, they also have the conditions for this. Case. Why should I go to invest in Huhai City?" Li Xuan asked rhetorically.
Hu Kang was stunned and could not answer. The other people at the table listened to their conversation and couldn't help but fall silent. With the exception of large-scale Sino-foreign cooperation projects arranged at the national level, other regions, including Shanghai, are far less attractive to foreign investment than the southern province of eastern Guangdong.
The main reason for this is that in the early 80s, Hong Kong capital was the main source of foreign investment in the mainland, and most Hong Kong bosses naturally preferred to invest in Guangdong Province, which is adjacent to Hong Kong.
"Even if the conditions are not yet ripe, I believe that after the domestic economic level improves, we will still have the opportunity to cooperate with Mr. Li!" Zhao Xiulin said to his subordinates.
"Secretary Zhao, in fact, we have another way to cooperate!" Li Xuan said with a smile.
"Oh, I want to hear about it!" Zhao Xiulin didn't expect that there would be a chance to turn around.
"As a matter of fact, as early as last year, we launched a series of cooperation with mainland electronics enterprises through the matchmaking of Peng Fei, director of the Xinhua branch in Hong Kong! We, the Oriental Commercial Company, hold several rounds of procurement bidding meetings every year, and last year the Ministry of Electronics Industry and the Guangdong Provincial Government organized a number of enterprises to participate in the competition!
The electronic industry in Shanghai City is complete, and I believe that there are always a few enterprises whose products can meet our technical standards! Director Hu can organize relevant enterprises to make bids, and if we can win the bid, our purchase volume will be very large, and we can contribute to the export of Shanghai City!" Li Xuan explained.
"Is there such a thing? The ministry did not do it authentically this time, and it didn't notify the relevant situation at all!" Hu Kang was obviously a straight person, and complained directly, "Mr. Li, are there any specific requirements for participating in the bidding?"
"My assistant will arrive in Huhai City in the afternoon, and he will bring the relevant rules when the time comes!" Li Xuan said.
As early as yesterday evening, after getting the invitation, Li Xuan was thinking about today's luncheon, and he already had a detailed plan in his heart. The reason why he was aggressive just now and made a look of rejection was to suppress the other party's momentum. Only by letting the other party understand that they have less place to use them, Dongfang Electronics can be in an advantageous position in the next cooperation.
Although the main products of the Eastern Group, game consoles and personal computers, will not be able to make much profit from the mainland market for a long time to come. However, Li Xuan is ready to start adjusting his previous strategy and will enter the mainland market with a more active attitude. With the thaw in U.S.-China relations, previously feared political risks are rapidly dissipating. (To be continued......)