Chapter 608

The United States has a population of 300 million and sold 24 million televisions last year. With a population of 1.2 billion, China sold only 7.82 million TVs last year, far from reaching its full potential. Being able to own a color TV is a symbol of the prosperity of Chinese families nowadays, especially in rural areas, if there is a "little village", it will be a great joy that newspapers at all levels in the provinces and cities will vigorously report.

With the rapid development of China's economy, when the per capita income is bought to a higher level, the washing machines, refrigerators, and televisions, which are now called the "three major items", will certainly become as rare as the old "three major items" -- radios, watches, and bicycles -- ten years ago.

At that time, the annual sales of television sets in China were at least several times higher than they are now, and this was the tremendous power of the demographic dividend! Therefore, Li Xuan has repeatedly emphasized in the Oriental Group that the Chinese market represents the future of the Eastern Group.

And even if China has not really shown its true potential for consumption, the Eastern Bloc was able to easily reap $100 million in domestic profits last year. If this figure is placed on domestic enterprises, it is enough to make provincial governors and ministers compete to bend their waists. And even if it is placed in Hong Kong, this performance can easily hype up a new company with a market value of more than 10 billion Hong Kong dollars.

But within the Eastern Bloc, $100 million is insignificant. Because the total pre-tax profit of the Eastern Group last year was as high as 6.26 billion US dollars. The domestic television business only accounts for 1.6% of the entire Eastern Group, so naturally there is nothing to write about.

When Hong Kong Political and Economic Weekly previously launched the Hong Kong billionaire list, it estimated Li Xuan's personal wealth at 130 billion Hong Kong dollars, equivalent to about 16.5 billion US dollars. But if the Hong Kong Political and Economic Weekly can get the full annual report of the Oriental Group, it will understand that its estimate is not reliable at all.

You must know that although the Eastern Group has been promoted to a world-class multinational company, it still has many differences from other mainstream Fortune 500 companies. First of all, the establishment of the Oriental Group is still short, and most of the shares are firmly in the hands of the founder Li Xuan.

Second, the core assets of the Oriental Group, the Oriental Research Institute, the Oriental Game Company, and the Oriental Commercial Company, are all non-listed companies. This has made the outside world very vague about the real business situation of the Eastern Group, only that it is very profitable.

"Hong Kong Political and Economic Weekly" is based on the tax data of the Oriental Group to estimate the profitability and market value of the Oriental Group, so as to obtain Li Xuan's asset level. However, as a ******, Hong Kong's tax policy is relatively relaxed, and the Hong Kong tax department is far less brutal than the IRS (US Federal Inland Revenue Service).

The Eastern Bloc has carried out a series of reasonable tax avoidance operations, which has greatly reduced its own tax costs. And this also directly leads to the fact that if the outside world judges the profitability of the Eastern Group by the amount of tax paid, the situation is completely far from the real situation of the Eastern Group!

And Zhong Chuhong, the proprietress of Oriental Group, is far clearer about the company's real profitability than the outside world. Although she doesn't fully know the exact revenue figures of the Eastern Group, she really doesn't take the $100 million seriously. You must know that the Oceanpower Foundation, which she is now in charge of, spends more than $300 million a year.

"Didn't you always say that color television is a sunset industry, and the future of the Oriental Group lies in the construction of high-tech industries, creative industries, and marketing channels! Not to mention that compared with computers and mobile phones, even your attention to the Internet is far higher than that of televisions! This is a money-losing product, and in the words of the newspapers, there is no hope of making a profit for ten years, and other people's televisions can still make you a lot of money!"

The couple did not go back to the house after seeing off the guests, but walked leisurely in the garden behind the villa. Zhong Chuhong snuggled in her husband's arms, and continued to ask about the topic just now.

In addition to a strong physique, what men are most willing to appear in front of women is career success. So when Zhong Chuhong and Li Xuan are together, in addition to chatting about the interesting stories of a few little devils in the family and creating a warm family atmosphere, she also chats with her husband about the company from time to time to satisfy the vanity of men.

Now Aunt Hong, she is managing her relationship and family, and she has become more and more calm. Men are essentially creatures who like the new and hate the old, and she is becoming more and more aware of how to constantly create novelty.

"Alas, don't listen to half of what you're told Okay, when did I say that televisions are outdated. Otherwise, why should I invest hundreds of millions of dollars every year to improve liquid crystal display technology! My original words are that CRT color TV is already sunset technology, and liquid crystal technology will become the new king of the display industry!

The old king is about to die, and the new king is on the rise! This kind of opportunity for technological upgrading has just given us an excellent opportunity to change the dynasty and re-establish the pattern of the global color TV market! Liquid crystal technology, like semiconductor integrated circuits, is a core part of our high-tech development strategy!" Li Xuan stretched out his hand and rubbed Zhong Chuhong's wavy curly hair, and said with some tears and laughter.

And he didn't understand that Zhong Chuhong didn't care what CRT and LCD technology were, she just understood her goal from the strong confidence exuded by the man next to her.

High-tech industry, creative industry, and marketing channel construction are the three major development directions in the future blueprint planned by Li Xuan for Oriental Group. In fact, they correspond to the three core assets of the group: Oriental Research Institute, Oriental Game Company, and Oriental Commercial Company.

Li Xuan can unreservedly provide a full set of TV production technology, including CRT CRT picture tube manufacturing, to other companies in Hong Kong and mainland China, but he will never easily spread the core patents of LCD technology.

Li Xuan didn't think of himself as a business wizard like Jobs, but the reborn golden finger gave him an incomparably huge advantage. In the beginning, he relied on the technology in his mind to be ahead of the times, and quickly made the Eastern Bloc stand out. However, with the continuous expansion of the company, the power of individuals began to become small, and the total number of engineers engaged in technology research and development in the Oriental Group had already exceeded 10,000, and the little technical reserves in Li Xuan's mind could no longer support the expansion needs of the Eastern Group.

For example, the ERM architecture created by him copycat the ARM architecture in another time and space, after nearly ten years of continuous research and development, has long been detached from the template of ARM in another time and space, and there are many innovations that Li Xuan has never seen at all.

The biggest advantage that the reborn golden finger brings to Li Xuan is not actually the technological leadership, but the grasp of the general trend of the times. For example, Li Xuan knew that Bush Sr. would be picked by Reagan to become the other party's partner in the presidential race, so he still vigorously supported the Bush family even though Bush Sr. was defeated in the party primary.

It was precisely because of its close relationship with the Bush family that during the entire 80s when the Republican Party was in power, the Eastern Bloc was able to avoid all kinds of tricks of its domestic competitors in the early stage of its growth, and it gained precious time for steady development in the early stage of its rise.

Although he and the butterfly wings of the Eastern Bloc have instigated many changes, the general direction of the times is still unswervingly moving forward according to the predestined trajectory. CRT display technology is about to be inferior to the grave, and Li Xuan successfully used it to maximize benefits before it completely showed its decline.

With his intentional support, Hong Kong electronics companies represented by Lu's Electronics have risen rapidly. The technical strength of these companies is relatively poor, and it is impossible for them to enter high-tech industries such as computers from the very beginning, but on the contrary, television sets, which are already very mature in industry and have a very broad market, have become the only choice for these enterprises.

The massive orders of the Oriental Group have injected a boost into the early development of these enterprises. The rise of Lu's and other companies has completely changed the pattern of the global TV industry, and the original situation of Japanese manufacturers dominating the world has been broken in an instant.

Television manufacturers from Hong Kong and Taiwan first relied on price advantages to completely drive Japanese companies out of the low-end market, and then gradually encroached on the mid-end market. Originally, China's reform and opening up brought a lot of dividends to Japanese and South Korean enterprises that were close to the water. But now, a large share of these dividends has been eaten up by Hong Kong companies, led by the Oriental Group.

This is particularly prominent in the television industry, where RCA has the largest share of hundreds of TV production lines introduced by domestic enterprises in the 80s. Because Li Xuan is not like other foreign companies, he often pinchs his neck in technology, but half sells and half gives, and does not hesitate to hurt others in order to hit competitors such as Sony.

As a result, the influence of Japanese electronics manufacturers on the domestic TV industry is far less than in another time and space. What was supposed to be a phenomenon of joint ventures of Japanese brands such as Sony, Panasonic, and Toshiba blooming all over the country has now been replaced by companies within the Eastern Group system such as Lu's.

For example, Lu's company alone has carried out technical cooperation with eight domestic TV factories, and the production equipment of these and assets is undoubtedly provided by RCA. Of course, Li Xuan did not choose to let the Oriental Group directly enter the mainland market, but gave the opportunity to other younger brothers, which is naturally for a reason.

Because the foundation of the Eastern Bloc in the 80s was not stable enough, it may have far surpassed many traditional giants in terms of profitability, but its influence in all aspects is actually a cut behind. However, Hong Kong, the stronghold of the Eastern Bloc, happened to enter a special period of Sino-British negotiations in the 80s.

Despite the fact that China seemed to have entered a honeymoon period with the West in the 80s, this cooperation was based on the premise that there was a common enemy, the Soviet Union. The world of the 80s was still clouded by the Cold War. As China, the second communist red power after the Soviet Union, how can the Western camp led by the United States and Britain really be unguarded. This can be seen from the fact that the Pakistani Unification Council still imposes strict restrictions on technology exports to China!

Therefore, in order not to be labeled as pro-communist politics, Li Xuan's attitude towards investment in the mainland can only show an unpositive appearance. The large-scale investment of the Oriental Group is also settled in the deep-sea special zone, which is only across the river from Hong Kong. This made Li Xuan at least have an excuse to find, Hong Kong has few people and the cost of building a factory is too high, so the Oriental Group has no choice but to go north in order to control costs.

The industries of the Eastern Bloc going north are all industries that are not prohibited by the Pakistan-Unification Committee from being exported to China. In this way, Li Xuan not only released goodwill to the mainland through a large amount of investment, but also because he kept the group's core business in Hong Kong, he was also able to explain the past to the Hong Kong government.

Don't look at the fact that last year, China was embargoed by Western countries because of political reasons, and China's relations with the West suddenly fell to a freezing point. But in Li Xuan's opinion, his previous caution was not necessary now.

Because the Soviet Union fell, the United States became the only superpower in the world. Although the Western world, led by the United States, has played a dead dog, it has begun to look at China, the second red power, unpleasantly. But China is not the Soviet Union after all, and the degree of threat in his eyes is much smaller than that of the Soviet Union.

Especially after the outbreak of the Gulf War at the end of this year allowed the United States to regain the self-confidence it had lost, the world's policeman could not be taken seriously by China at all. Although Sino-US relations throughout the 90s were full of twists and turns, they were far better for Li Xuan than in the 80s.

On the one hand, after the Great Man's 9-2 Southern Tour, China's reform and opening up was further accelerated, and the influence of the planned economy quickly faded. On the other hand, the end of the Cold War has accelerated the process of global economic integration. This is a huge opportunity for the Eastern Bloc, at least he will not have to be cautious about entering the Chinese market.

You must know that if the United States had dealt with China as it had done against the Soviet Union, it would have been impossible for China to become a powerful country that has the confidence to wrestle with the United States in all aspects in just 20 years! As a result, the Americans have succeeded in raising tigers because of pride and complacency!

Throughout the 80s, the focus of the development of the Eastern Bloc has been mainly on the European and American markets, especially the United States, the largest market in the world, which has provided a lot of nutrients for the rise of the Eastern Bloc.

However, in the next decade, the strategic focus of the Eastern Group will be adjusted to meet the pace of global economic integration, and the previous layout will further expand the group's business and market to emerging markets such as South America, Southeast Asia, and the Middle East.

In the United States, Li Xuan's most pessimistic plan is to enter a period of waiting. This is because the situation facing Bush Sr., the largest political spokesman of the Eastern Bloc in the United States, is quite difficult. His predecessor, President Ronald Reagan, famously made a name for himself in the "Reagan era," but that prosperity came at the cost of the administration's massive fiscal deficits.

After George H.W. Bush became president of the United States, what he inherited was actually a mess. He was not good at managing the economy, but he had to wipe his old partner's ass. The U.S. economy is in a violent recession, with investment falling, consumption falling, unemployment rate rising, and the American people's satisfaction rate with the Bush administration is declining!

Once Bush Sr. is defeated by Clinton, a fledgling junior in Arkansas, as he did in another time and space, and the Eastern Bloc will not be able to completely break with the Republican Party in the short term, then it will naturally not be easy for the Democratic Party to come to power! )