Chapter 177: The Beginning of War 4

The cooperation between the companies of the two major economic powers of the Far East has long been formed and dominated by various interests for a long time, and the relationship is unbreakable, and what to do with each other and how to besiege each other has long been familiar; On the other hand, most Chinese companies were rivals a few months ago, but now it's nice to be able to sit down and negotiate together. Fortunately, there is one thing that everyone understands, cooperation is strong, division is weak, cooperation may be able to withstand the siege of opponents, once dispersed, it is bound to be crushed by international counterparts one by one, this is a war without compromise and no difference, no Chinese manufacturing company and opponents cooperate, and Japan and South Korea and North Korea have not let go of any single Chinese counterpart. This kind of cruel collective duel, even the fairies are a little frightened, and the world's big giant, which has always been alone, has to win over some partners to "enhance the strength of confrontation with international forces"! Although China has always been a country with uneven hearts, the national disaster is at the head, there are traitors and lackeys, there are also traitors and thieves large and small, it is even more commonplace to make a fortune, a plate of scattered sand is China's inherent characteristics, but businessmen are the people who attach the most importance to interests and understand the stakes, so that the whole world is worried about the terrible anger of the Chinese has appeared again, but this terrible has been accepted by Japan and South Korea and North Korea, which promote collective confrontation!

If the trade war in the Far East were to be waged in the form of a single company, the end result would be much more complicated, to say the least, as long as the companies of the two countries did not unite first, then Chinese companies, which have always preferred to "put interests first", and Chinese companies that have always preferred to "go it alone" and "friendly neighbors" will certainly not unite, at least not on their own initiative. Although everyone knows that the enterprises of Japan, the ROK, and the DPRK have a strong national character and often join forces to engage in xenophobic competition, they still lack the psychological readiness to join forces for collective confrontation. However, for the enterprises of the two countries, the lack of geographical advantages and people, coupled with the lessons learned in the Chinese market earlier, in order to maintain their own survival, they must join forces to compete together! They have always been in advance and retreat together, and they know that if their partners are weakened, then they will also be severely weakened, at least not to maintain their previous strong position; Moreover, in the eyes of some national activists, the economic war in the Far East is a "bloodless" national life-and-death war, and if you want to survive, you have to trample on the bodies of your Chinese counterparts! Originally, for most Chinese, there is no strict nationalist concept, for many years products from all over the world have been sold well in China, the use of international products has become a habit with the increasing globalization of the world, not to mention the growing national strength makes them also have the awareness that "the Far East is the Far East of the Far Easterners". However, the cruelty of the opponents to their Chinese counterparts, and such an obvious "national economic war" in the Chinese market, not only provoked the counterattack of the Chinese counterparts, but also aroused the almost unanimous antipathy of the ordinary Chinese people, and finally let them reap the consequences and once again put themselves in a disadvantaged position in the competition. Human beings are a very strange animal, once they taste the sweetness, they will hold on to it, and now the Chinese manufacturing companies that have tasted the sweetness have brought this cooperation into full play, and its tacit understanding can be described as a thousand miles a day, leaving international observers stunned and international counterparts shocked. As a result, a three-country war officially began, and later, even without the support of the people, domestic companies can at least maintain a market share of more than 55%, that is, it has become easier to maintain a 65% share!

As the Chinese counterparts are blocking and counterattacking more and more fiercely, the life of the two East Asian opponents is becoming more and more difficult, since the market share has been pushed to 35%, they have found that it is no longer difficult to advance half a step, and the means are exhausted, and it is still impossible to achieve an inch!

Statistics show that the market share of Chinese companies' products rose to 65.5% in March, rose to 65.5% in April, fell back to 65% in May, 67% in June, and hovered between 65% and 70% until October. In the face of strong competitive pressure from their Chinese counterparts, the two East Asian powers abandoned their preconceptions and cooperated with each other in an all-round way, but one plus one does not equal two, and sometimes it is smaller than two, and their cooperation has not achieved the desired effect. In fact, since the market war began, Chinese companies have faced pressure on two fronts, these two opponents have almost launched a siege together, each taking what it needs, although there have been some conflicts of interest, but basically each other's well water does not violate the river water, all have been minimized, so that Chinese, "the two countries have long partnered to plot China", so the effect of their alliance is not large. In August, the market share of domestic enterprises fell from 68% to 66%, maintained at the level of 65% in September, and remained at a high level of 65% in October. Of course, China's domestic demand has been fully mobilized, for example, in October '38, it increased by 150% compared with the beginning of the year, and the production volume of various companies has increased a lot.

Compared with February '37, China's domestic production increased by 4.6 times, Japan's by 6.5 times, and South Korea and North Korea are similar to Japan, but with the domestic consumption of each country, there is still a difference between the three countries. If China produces about 325 products, then Japan produces only 200 products (80 in the domestic market), and the DPRK produces 130 products (75 in the domestic market), which approximately maintains the balance of its production and sales. But in fact, Chinese companies need 400 to meet the requirements, Japan needs to produce 300 to meet the requirements, and South Korea and North Korea need to produce 180 to achieve balance, which makes the production shortage rates of various countries 18.75%, 33.3% and 27.7% respectively, China is the best, Japan is the most "worrying", about a third of the production can not be carried out. There are no eternal interests between companies, especially when life and death are at stake and when each other's interests are in fierce conflict, there is no such thing as an ally. Japanese companies have a higher economic level than China, but for some special reason, they cannot gain an advantage in competition with Chinese companies, and if they can get another 5 percentage points from the Chinese market, then they can maintain a growth balance with their East Asian neighbors, but after 10 months, they cannot achieve their goals. Although the overall situation of Chinese enterprises is slightly inferior, there are not weak companies in each industry, coupled with local advantages that cannot be ignored, so for the long-term interests of enterprises, especially the country, they can only obtain from South Korea and North Korea. Compared with Japan, South Korean and North Korean enterprises have reached or maintained the leading level in many fields, but in general they are not as good as the north, especially the north (the original *) is more backward, although they are slightly higher than the average level of their Chinese counterparts, in the absence of the local advantages that Chinese companies have, they are naturally not the opponents of "allies", and in October they can still maintain the previous ratio with Japan (about 11:24), and in November, it has dropped to 9 to 25, entering the beginning of 39 years, The sales volume is less than one-third of that of Japanese companies, and her market share is constantly being lost by Japanese counterparts, and of course, some of them have fallen into the hands of Chinese counterparts.

In the face of the "civil war" between the companies of the two countries, Chinese companies will naturally not let go, "persimmons to pick up soft pinch", this is something that everyone is used to, although everyone has opinions on Japan, but they do not have a good impression of South Korea and North Korea, they have never been merciful to their counterparts in the country, and take the opportunity to weaken the neighbors who "don't know what to do" and become the first choice of many company combinations, that is, it can be said to "beat the water dogs". By the end of 38, Chinese companies have achieved two percentage points from Han and North Korea, reaching 67% of the market share, at this time her market share has been less than 8%, on the eve of the Chinese New Year, it has dropped to about 6%, almost half, on the other hand, domestic enterprises have risen to 68.5%. South Korea and North Korea fell victim to this stage of market competition, and during this period, due to strong stimulus measures by merchants, consumption in the Chinese market continued to rise, with an increase of 20%. Of course, the markets of the two countries have also grown, but not as fast as China, for example, Japan has reached 10%, and South Korea and North Korea have reached 12%. Judging from the start of construction at this time, Chinese enterprises accounted for 85.6% of the requirements (480) with 411 products, an increase of 4.37 percentage points, Japan with 241 products accounted for 69.9% of the requirements (345), an increase of 2.1 percentage points, and South Korea and North Korea only accounted for 63% of the requirements (200) with 126 products, a decrease of nearly 10 percentage points, and the actual output also decreased slightly. The failure of the ROK and the DPRK lies in the serious reduction of China's market share, because its domestic market is not at all comparable to the Chinese market, and the success or failure of the Chinese market is the key to their survival, which is also an important reason why their neighbors attach importance to the Chinese market. For them, the domestic market is small, the demand is not strong, and at the same time the productivity is relatively high, coupled with the fact that large companies are focusing on China, the policy of giving priority to China has led to a large number of preferential conditions being invested in China, which has relatively weakened the recovery of the domestic market!

However, there are various indications that Japanese companies have stepped up efforts to recover the domestic market, and from the beginning of 39, the government has encouraged companies to support the domestic market, and at the same time, South Korea and North Korea have also carried out similar measures. From their point of view, this is also a necessary thing, because judging from the situation in the past two years, the enterprises of the two countries have not received enough benefits from the Chinese market, and in order to enhance the overall vitality of domestic enterprises, it may be better to accelerate the development and recovery of the domestic market while intensifying the competition for the Chinese market, and this has opened a new stage of the battle for the Far East. The two economic powers in East Asia have strong national strength, a relatively good economic foundation, and the domestic market has recovered relatively smoothly and well. As soon as the Spring Festival has passed, the rumbling drums of the market war have been beaten, and economists have developed a habit of receiving the country's salaries and dealing with market statistics every day, analyzing statistics, drawing conclusions, and expressing opinions...... According to the figures, in January at the beginning of the year, there was a large backlog of South Korean and North Korean products, and the backlog rate reached about 50%, far higher than Japan's 35% and China's 25%, and the export ratio has dropped from the highest 43% to 34%; Japan, on the other hand, has risen from 33% to 64%, which shows that Japan's upward momentum is not good news for the government or companies of country Z. Economic reviews are published every once in a while, and the slightest stir will be exaggerated, guiding the actions of companies to preserve the fruits of commercial warfare, such as the market statistics that have humiliated Chinese companies and Chinese in 37 years are made under their guidance and statistics.

Over the decades, China has established a well-established system of social statistics, from customs to various business departments in the cities, from manufacturing companies to specific business customers. The power of the people is endless, this is a well-known adage, when the Chinese market was seized by the products of the two countries, under the guidance of the public opinion circles, the people broke out the "national salvation" movement, the current situation can be said to be created by the people, the people's credit is indispensable. For the two neighbors in East Asia, the feelings of the Chinese are very complicated, they neither like nor want them to weaken too much, especially do not want them to become strong, thousands of years of central power thinking, so that they especially hate other countries to point fingers at them, in front of them to show off their might, they like freedom far more than any other country and people, what makes them feel more uncomfortable is that the nationalism of the two countries is too strong, the level of domestic economic development in the past is relatively low, In order to develop the economy, they have attracted investment, so that the Chinese are fed up with the thoughts and actions of the two countries, and those who have worked in Japanese-funded enterprises and Korean-funded enterprises are hardly in a happy mood!

The slight change in the situation in the two countries immediately attracted the attention of Chinese experts, and in February, domestic demand in South Korea and North Korea rose by 35 percent, and in Japan by 30 percent, which led to a significant increase in their shipments and a decrease in the squeeze rate of factories...... The Chinese are not good people, especially when it comes to the future balance of strength, and no one will think that Japan is willing to give up its ambitions for China's marine resources, and how to weaken the two countries, especially Japan, has become a common concern. Chinese companies do not have the energy or the ability to penetrate the markets of the two countries, so they have no choice but to attract their attention and use China's large market to squeeze the small markets of the two countries. In March, Chinese companies abandoned the South Korean and North Korean enterprises that were losing one after another, and regarded their Japanese counterparts as the main objects of competition, on the one hand, the enterprises that South Korea and North Korea left in the Chinese market are some hard bones, and large enterprises, no matter how compressed, they cannot be driven out, and retaining 6% of the market share is already the minimum; On the other hand, Japan has a quarter of the market, but some people are very angry, and if we can reduce the market share of Japanese products, it will play a greater role in the long run. In April, the Chinese market share of Japanese companies fell to 25%, and in May it was now 22%; The products of South Korea and North Korea have risen from 6% to 7.5% and then to 8%, and in just half a year, the fate of South Korea and Japanese companies has changed completely!

First, through their efforts, their market share has increased by 1.5 percentage points and their own market share has expanded; second, the market share of Japanese companies has continued to decline, falling by 3.5 percentage points, while on the contrary, the ROK and DPRK enterprises, which have greatly reduced the pressure, have increased by 2 percentage points; and the third effect is the fundamental purpose of some people, that is, to shift the attention of the enterprises of the two countries to China. Because the Chinese market is huge, it has already reached more than twice the market of the two countries before it has fully recovered, which is related to the key to their later development, and they have to pay attention to the market share in China, and they have to shift their main energy to increase the recovery of the Chinese market and weaken the recovery of their own market. The effect of this move is very obvious, the domestic market rose by 15 percentage points in May compared to the previous month, Japan rose by 14 percentage points in the same period, and South Korea and North Korea rose by only 20 percentage points. Through the means of the market, China has made the two rivals slow down the pace of recovery of the domestic market, and the war has since entered a situation of fierce melee, at this time, it is basically China and South Korean companies to deal with their Japanese counterparts together, compressing the living space of Japanese enterprises. Statistics for May show that sales in the Chinese market have increased significantly, but actual sales of Japanese products have declined, causing a severe squeeze. Of course, Japanese enterprises are not willing to be squeezed out of the Chinese market and go all out to fight back, and even the Korean and North Korean companies have no choice but to vigorously maintain and expand their market share in China, because they have no other choice, and only by seizing the Chinese market can they maintain and expand the company's market interests; once they are squeezed out of the Chinese market and closely rely on the domestic market, it will be difficult to survive and will inevitably lose in the future world competition.

Although theoretically, the products of the three East Asian countries can be put into other markets in the world, but in fact, at this time, it is simply impossible, the European and American markets with relatively large sales volume, after more than two years of "closed development", have long been iron barrels, it is difficult to quickly open the market, especially the cost is not suitable, other markets are too small, and it is a place where everyone competes with each other, no one can get benefits, Japan, North America, China, South Korea, North Korea and the European Union and other regions of the international companies in those places are fighting, basically evenly matched, No one can have an absolute advantage. Today, the three major markets in the world are the European Union, North America and China, and the Chinese market is even more promising than the North American market. For more than two years, from February '37 to May '39, The EU market expanded to 1.9 times, the North American market expanded to 2.3 times, and the Chinese market expanded by 3.3 times, if the EU market in February 34 was 100, then North America was 70, and China was only 39, then in May 36, the EU grew to 190, the North American market that was more seriously damaged has recovered to 160, and the Chinese market, which was more seriously damaged, has also reached 128, and the gap between the three major markets is narrowing sharply;

In fact, this is indeed the case, the companies of the three countries have launched another round of entanglement in China (especially the mainland), the offensive and defensive between the various companies, the cooperation between the ROK and the DPRK and the Japanese companies for a while, the cooperation of the ROK and the DPRK against the strong Chinese enterprises, the cooperation between China and Japan for a while, the cooperation between China and the DPRK, or the cooperation of China and the ROK and the DPRK to deal with the increasingly powerful enterprises into Japan, the social statistics are still published once a month, and the domestic market conditions of the three companies and each country are analyzed. By June, the share of Japanese products continued to decline, just over 21 percent, while Chinese companies broke through the 70 percent mark and reached more than 71 percent; In July, Japanese companies fought back strongly, and the share of Chinese companies began to decline, and 1.5 percentage points were quickly lost; Then South Korean and North Korean companies took advantage of the fire to rob their Chinese counterparts, so that their market share continued to decline, less than 67%; However, in September, Chinese companies still held on to their 67% share, while South Korea and North Korea had retreated to 8% share, a decrease of one percentage point; In October, Chinese companies began to fight back, with sales of Japanese products falling sharply and South Korea rising to 11 percent. Soon, however, the Korean and North Korean companies suffered a big loss, falling to 8% in November and 5.5% in December, while Chinese companies rose to 71.5%...... In the past seven months, the market share of Chinese companies has fluctuated by 4.5 percentage points, with South Korea and North Korea reaching 5.5 percentage points, and even Japan reaching 5 percentage points.

According to statistics, in the second half of 39, the EU market rose by 22%, the North American market increased by 31%, while the Chinese market increased by 33%, Japan was only 11%, and South Korea and North Korea were only 17.5%. By the beginning of the 70s, China had surpassed the United States (160) and ranked behind the European Union (232) in terms of relative consumption in the world's major markets with 170, while the South Korean and North Korean markets were only 47 and the Japanese market was only 51. In the 35 months from April '37 to December '39, among the world's major markets, the European Union increased by 1.3 times, the United States by 2.0 times, China by 3.4 times, Japan by 1.2 times, and South Korea by 2.0 times...... The growth rate of China's market is the largest, Japan's is the smallest, and the reason why the Chinese market has been able to grow rapidly is closely related to its own large market capacity and huge potential, and it is also closely related to the battle for the Far East. In order to compete for the Chinese market, under the strict constraints of the agreement, companies from various countries have stimulated the Chinese market with preferential policies, which has stimulated the rapid increase in market consumption, so to speak, if there is no battle in the Far East, then the recovery of the Chinese market will definitely not be so fast, it is impossible to quickly reach the level of the European and American markets, and it will be necessary to wait longer in the "small high-speed growth"!

The consequences of the Far East War are also very obvious, for the Japanese enterprises, they have been given a respite, the production of products increased by 3.7 times, higher than that of the United States, did not put them at a disadvantage in the competition with the world powers, it can be said that the expected goal has been achieved, and the production volume of the Republic of Korea and the DPRK has also increased by 3.15 times, which can be regarded as comforting, as for the slow recovery of the domestic market and the widening of the gap between China, these are all side effects that have to be borne. Generally speaking, Chinese enterprises have gained the greatest benefits "with the support of the people", and Japan has also obtained the benefits it deserves, but South Korean and North Korean enterprises are always at a disadvantage in the showdown with the two strong neighbors, and they can not fight against the powerful Japan, but also suffer from the Chinese counterparts who have various convenient conditions, so that this economic power has to withdraw from the direct struggle with the two strong neighbors, and finally become the little brother of China or Japan!