Chapter Seventy-Seven: Brothers of One Heart
Song Qiong is well aware of the development potential of the mainland, especially the unique conditions for the development of manufacturing: cheap land, abundant labor, and a huge and vast market are all not available in Lungang, and they are enough to support the development of Hop Kee into a super-large corporate empire.
In particular, if you enter the mainland as a foreign capital, you will be able to enjoy various preferential policies and will not have to worry about various policy changes like self-employed and private owners.
At present, there are still some policy obstacles, but the first layout, will also enjoy the first-mover competitive advantage.
Of course, in Song Qiong's view, if Hop Kee wants to become a big consortium with international surnames, it must develop in the mainland, but it cannot give up London Port and the international market, and even the focus should be based on London Port.
Only in that way can we be more comfortable in the mainland.
"Ah Qiong, you mean we should come to the mainland to invest?" Zhao Guoqing asked suspiciously.
Thinking that at the beginning, they had to run to Lungang even if they didn't want to die, but in a few months, Song Qiong seemed to be a different person, he no longer seemed to want to go to Lungang, and even had to stay in the mainland to develop.
Song Qiong nodded: "Yes, the sooner you come in, the better." β
"So, you've decided to stay in the mainland?"
Song Qiong was silent for a moment, he remembered that in later generations, many wealthy businessmen chose to immigrate abroad and change their nationality, but they still did business in the mainland.
Perhaps, it cannot be said that they are not patriotic, a successful person with a net worth of hundreds of millions will not shallowly think that the moon in a foreign country is rounder than in China, and he must go abroad to pay inheritance tax, there must be his reasons.
The daughter of one of the richest people once expressed the idea that doing business in the mainland was too tiring to deal with officials and wanted to move the company abroad.
In addition, there have also been bizarre incidents of private bosses transferring hundreds of millions of assets at zero price......
The construction of the legal system for people's housing in China has always lagged behind economic development, which is the reason why wealthy businessmen are keen to immigrate.
Of course, the original sin in the early days of capital's fortune is also the reason why they feel insecure, and the unsound environment in the country is the soil that breeds this original sin.
Therefore, it is difficult to say who is right and who is wrong. At least Song Qiong doesn't want to explore more now, because this is just an online novel.
Song Qiong is interested in the development of officialdom in China, so he naturally will not consider it.
He thought about it for a while, and said to Zhao Guoqing with a smile: "No, after all, we were born and raised in Si, if we didn't have enough to eat, we wouldn't have to go outside, and now the situation in China is also changing, so I'll stay." β
"When the time comes, you are outside, I am inside, brothers are of the same heart, and the profits are broken, and we can still create a business together."
"Alright then!"
Zhao Guoqing was a little disappointed, but quickly lifted his spirits: "Okay, then listen to you, you say, Heji wants to come in, what should I do?" β
Song Qiong said: "What is lacking in the mainland, you will do anything, just now Mr. Wang said, want to do hotels, I think it is okay, the hotel industry in the mainland is still very backward compared with Lungang, and with the development of the economy, especially the increase in foreign economic exchanges, the demand for hotels must be great, you come in early, early card position." β
"In addition, the hotel is a place where people come and go, and there are more opportunities to deal with the political and business circles, which will also help you understand the situation in the mainland, accumulate contacts, and lay the foundation for future development."
Zhao Guoqing looked at Song Qiong in surprise, as if he didn't know him: "Ah Qiong, you, you have changed too much in the past few months, right?" How do I think, if you arrived in Lungang, I was still the hillbilly? β
Song Qiong couldn't help touching his nose: "Hehe, I was also forced, I had no way to go to Lungang, stay in the country, so I could only fight hard." β
"Heyβ"
Zhao Guoqing seemed to think of Song Qiong's difficulty, and sighed: "Well, you have a point, I used to think that the guest house in the county was the same as the imperial palace, and when I went to Lungang, I knew that there was a sky outside the sky, and I couldn't even talk about sitting in a well and watching the sky before." β
At present, there are still many policy restrictions on foreign investment, which are mainly carried out through cooperation, including land, profits, taxation, labor and other issues, and there is no set of mature methods to deal with them.
In addition to trying the hotel industry, Song Qiong also suggested that Heji should cooperate with local governments in China to develop "three to one supplement", that is, "processing with supplied materials, processing with samples, assembling with supplied parts, and compensation trade", which is also an important form of foreign trade in the mainland.
Zhao Guoqing was a little confused about the form of "three to one supplement": "Isn't this barter trade?" How can it be considered a joint venture? β
Song Qiong explained to him that three to one supplement can indeed be regarded as barter trade, but it can also be said to be investment cooperation, especially compensation trade.
This is because under the current policy of uncertainty, the local government does not dare to accept foreign direct investment, because according to the previous view, foreign businessmen are capitalists, and it is a mistake to allow capitalists to set up factories in China and exploit the proletariat.
Later, the local government put forward the idea of "compensation trade", for example, Heji wants to invest in a refrigerator factory in China, you can't invest directly, but you can provide a set of refrigerator production line, and the local government provides land and workshops, and then the two parties sign an agreement to agree that within 20 years, the refrigerators produced by the refrigerator factory will be provided to Heji at a reasonable ex-factory price to compensate for this production line.
Through this cooperation, the local government gets the production line and capital, as well as reasonable profits, while Hop Kee does not have control of the factory, but it can still participate in the management of the factory according to the agreement, and get the products produced by the refrigerator factory at a low price.
This kind of "compensation trade" was adopted by many foreign-funded projects in the early days of reform and opening up.
Later, there were also some bold mainland businessmen who solved the problem of lack of funds and inability to expand investment in the early stage of the business, such as the founder of Huiyuan Juice, who once imported juice extraction equipment from Germany in the form of compensation trade, and then sold the products back to Germany.
The way of "compensating trade" is not necessarily equipment, but also capital, raw materials, and even technology.
For the mainland, through compensatory trade, not only can you get the shortage of funds, raw materials, technology, equipment, but also do not have to worry about sales, so it is very popular.
As for "processing with supplied materials, processing with samples, and assembling with supplied parts", it can be either a simple processing trade or a compensation trade.
Zhao Guoqing listened for a long time before he figured out what this "three to one supplement" was about, but he was a little disapproving: "Hehe, some people will really take advantage, if I have a choice, I would rather run my own factory and control everything by myself." β
"Hehe, if you can control it yourself, of course there are a lot, but no matter how big Heji is, it is impossible to do everything yourself, to put it bluntly, whether you are doing it in the mainland, or in London and Hong Kong, only the approach that is suitable for the market situation is the most beneficial, Heji can control the core market and technology in their own hands, and package out the processing with a relatively low gross profit margin, which is not a good choice."
Song Qiong said with a smile: "What's more, you don't have any other choice. β
"That's the truth!" Zhao Guoqing said angrily. (To be continued.) )