On May 24, 1990, George H. W. Bush announced the extension of China's most-favored nation status, but he also put forward many conditions, one of which was that China could no longer sell missiles to the Middle East. As for whether China agreed or not, that was another story.
After the reform and opening up, the US became China's third largest trading partner, and China's exports to the US accounted for about 10% of China's total exports.
Extending the most-favored nation status and enjoying preferential taxes was, of course, beneficial to China's export earnings.
In addition, the most-favored nation status was the cornerstone of the GATT. If the US did not grant China the most-favored nation status, it would definitely make it more difficult for China to enter the GATT.
Before Li He could enjoy himself for a few days, Yu Dehua came with a long face.
"The European Community has included China's polyester staple fiber, shoes, oxalic acid, videotape, small color TV, and lighters in the anti-dumping investigation, and increased the tariff by 17%."
"Just go to Hong Kong or Macau." Li He did not care. It was not surprising that China's products would become the top target of global anti-dumping investigations in the next few decades. In fact, as early as the early 1980's, the US began the anti-dumping investigation on China's chemical products.
The state-owned export companies led by Sinochem basically sold saccharin sodium, potassium permanganate, barium chloride, oxalic acid, dihydrostreptomycin, antimony trioxide, and other chemicals at the price of cabbages. They were invincible in the world.
But he did not expect that because of his appearance, the West would advance the anti-dumping investigation on cotton products. This was absolutely unexpected. But then again, what was to come would come sooner or later.
Yu Dehua sighed. "They counted China's re-export or re-export products through Hong Kong and Macau as imports from China."
"This is awkward. Damn." Li He did not expect the European Commission to be so ruthless. "Did you go to the Ministry of Commerce? What did they say? "
Yu Dehua said, "The leaders of the Ministry of Commerce and the Ministry of Foreign Trade and Economic Cooperation asked us to wait. They said that we are still a non-market economy that is not recognized by the West, so we can't respond in China."
"Ask Old Shen. He is a law student, and he should know. If he doesn't know, ask him to find someone who knows and use the Hong Kong company's name to respond to the lawsuit." This was the best solution Li He could think of. Even the government could not think of a solution, what else could he do?
Moreover, this time, the anti-dumping investigation was not only targeted at his company. Basically, all the companies in the country were targeted.
Yu Dehua smiled bitterly. "I did ask, and Shen said the lawyer fee is expensive. It will cost at least 40 to 50 million USD. Hemp soled shoes and polyester staple fiber aren't our main export products, so the profits aren't much. Besides, we might not even win. What I mean is that if it doesn't work, then forget it. Let's just focus on other products. These two products don't affect the overall situation. "
Although these two products had little impact on Dehua's operations, he was worried that with this start, it would involve more export products in the future. That would be endless.
"You still have to respond to the lawsuit. Otherwise, you will really become a pushover, and they will target you next time." Li He thought about it and asked, "Which company is suing us from?"
He could only take the lead and hope that Sinochem would accompany him in responding to the lawsuit. The possibility was almost zero. Many state-owned export companies had a wide range of business, and one less chemical product did not matter. They would not respond at all.
"Two factories in Spain and Italy. They are also mainly cotton textiles and footwear. "
Li He gritted his teeth. "Kill them! Can we buy them? "
Yu Dehua shook his head. "This kind of family business is concentrated, and it is hard to buy them."
"Then buy two similar factories where they are located, and force them into bankruptcy." Li He was determined, and he followed suit. Many wealthy home appliance companies did the same.
Since they could compete with the same domestic products, it meant that their technology was not that high, and there was hope for them to win.
"We will lose a lot of money." Yu Dehua did not agree.
Li He said, "These are usually regional monopolies. As long as we kill them, we will have no competitors in the future. Don't be so slow. Just go. "
When a company's activities reached a certain scale, in order to save time and process, they would usually resort to violence. Acquisitions and mergers were not uncommon. MNCs also did the same when they entered China, from toothpaste and other daily products to the beverage industry, food and oil industry, and machinery manufacturing.
At the Shangri-La Hotel, Yang Yong finally handed Li He a three-page handwritten paper. This was the so-called proposal.
Li He held it in his hand. The handwriting was strong, and there was no alteration. It was obviously copied.
After reading through the content, he rejected the idea of choosing a location.
"Only 50 million USD?" Li He shook his head. He also did not agree with this budget.
Yang Yong's overall plan was very conservative. According to this proposal, they would start with cargo trucks, and they would focus on mini trucks under 3.5 tons.
He looked at Li He's frown and explained calmly, "Boss Li, Guangzhou Peugeot, Huizhou Panda, Pujiang Volkswagen, Jeep, FAW Xiali, Shiyan Erqi, Hongxing, Hongqi, Wonder, and Yizheng all produce cars. They have mature cars, and there are many imported cars. If we enter the car industry from the beginning, it will be very difficult for us to compete. "However, mini trucks are a niche model, and the price is low, and the profit margin is small. Therefore, there are very few automobile manufacturers in the market. Furthermore, mini trucks have mature technology, and the localization rate can reach 70%. This is very advantageous for us. This model is suitable for rural mountain roads, muddy stone roads, jishui roads and other urban and rural fringe markets. It mainly meets the needs of building materials, agricultural and sideline products, department stores, home appliances, equipment accessories, small hardware, food and beverages, and other bulk goods in short-distance logistics, as well as the needs of high-end users. It has good market prospects.
Li He touched his head out of habit and realized that his hair was a little long since he had not cut it for a long time.
He could only touch his forehead helplessly. After careful calculation, he realized that there were 20 to 30 automobile manufacturers in the country! Including those that were going to be built, there were at least 40 to 50 of them!
First Automobile, Jianghuai, Second Automobile, Beijing Automobile, Sichuan Automobile, Nanjing Automobile, Phoenix, Yizheng Liming, North Frontier Arrow, Qinghai Lake, Hafei, Red Star, Dongfeng, and even Zhengzhou Longsword Automobile, the parent company of Chery, were all living a carefree life.
However, as the competition in the automobile industry intensified, none of them survived, including the newly built Dafa, Guangzhou Peugeot, Guizhou Skylark, Nanjin Fiat, Sanjiang Renault, Jeep, and Beiqi Mitsubishi.
Li He had expected the difficulty of building a car, but now he realized that it was much more difficult than he had expected.
In terms of difficulty, Longsword, God Arrow, and Liming Automobile were all developed from rural enterprises. In terms of difficulty, there were only a few that survived. Miracle, Chunlan, Luminous Pearl, Camellia, Mountain Deer, Pegasus, Tongbao, Clouded Leopard, and Hafei. There were at least 40 to 50 automobile brands. Who could remember them?
He had money, and he was not afraid of losing money!
Do it!
"I will invest 100 million USD!" Li He made up his mind.
"Boss Li, isn't this too much?" Yang Yong was not excited. Li He had a lot of funds, and compared to his pitiful capital, he could not get many shares. It was equivalent to helping others.
Li He knew what he was worried about and asked Zhang Xianwen and Yang Yong. "Have you heard of the VAM?"
"I know a little about it. What do you mean?" Yang Yong nodded, but Zhang Xianwen was confused.
"I don't care how much you can invest in the initial stage, but I can put 20% of the shares into the option pool. If the automobile factory's development is in line with our expectations, the exercise price can still be the same as now. I have seen your proposal. You said that the production period will be 3 years, and the annual production will be 5,000 cars, right? "
The more important employees the startup needed, the more important the role, and the bigger the option pool. To Li He, Yang Yong was completely different from Shen Daoru, so the way he treated him was different.
Yang Yong stood up and said, "Boss Li, according to what you said, if you really invest 100 million USD, you can produce 10,000 cars a year! The revenue is over 100 million! If the profits and taxes are less than 50 million, I will resign, and I will not take a single cent! "
Zhang Xianwen poked Yang Yong and said hurriedly, "Old Yang, you're talking nonsense. A four to five ton heavy truck is only worth less than 50 thousand, and both FAW and FAW have a backlog. How much can your small truck sell for?"
Yang Yong said, "Then why don't you say that a Santana costs more than 200 thousand? Their carriages are still wooden, so of course they won't be able to sell for a good price. "
Li He smiled and asked, "What about the approval for the production of the car?"
Yang Yong said, "I will do that, but what brand of the car should be called? It has to be loud and clear."
"BMW." Li He replied without hesitation. Anyway, he had the Chinese logo, and he could think of an English one when the time came. As for Bayer, he would continue to call him Bayer. There was nothing wrong with that.
"BMW?" Yang Yong and Zhang Xianwen looked at each other and said in unison.
Yang Yong said, "Ferghana horse. Very appropriate."
Li He asked, "Do you have a candidate for the chief engineer position?"
From planning to choosing a location, they had to find someone with experience. Otherwise, if they were to rely on a newbie to figure it out, it would take forever.
Yang Yong said, "I have a candidate, but he might not be willing. He's retired now and is a committee member of the Science and Technology Association. He participated in the construction of the FAW and FAW factories."
"Try your best. If not, we'll poach people from elsewhere." Actually, according to Li He's plan, it was mainly to poach people from the Russians' territory. He said to Zhang Xianwen, "You know Huang Bingxin. Go and find him. I will set up the capital account with him, and I will entrust the capital transfer and financial supervision to him. You guys can do whatever you want. Once you're done with the paperwork, we can sign the agreement."
Zhang Xianwen asked curiously, "What's your relationship with him?"
Li He smiled and said, "I might as well tell you. The Commercial Bank is completely owned by me. Do you understand now?"
After saying that, he did not wait for the two people in front of him to recover from their shock and left immediately.
He had revealed a little of his background to build up some confidence in these two people.
The car stopped at the entrance of the alley. At the hairdresser's stall, he got his hair cut. The old hairdresser was familiar with him. He would get his hair cut every once in a while, and needless to say, it would definitely be a short haircut.
After getting his hair cut, Li He returned home. Li Lan looked at the big baldy in front of him. He did not seem to recognize him. Li He hugged him in his arms and he burst into tears. His eyes were red from crying.
Li He was extremely depressed and could only put him down. "Little bastard, come on, look at me in the eyes. Look carefully."
He Fang said unhappily, "He's the little bastard, and you're the old bastard?"
"Ah …" When Li Lan saw He Fang, he immediately threw himself into her arms and cried even louder. Now, he could even call her mother subconsciously. He Fang doted on him even more. As for his father, no matter how Li He tried to teach him, Li Lan would not know.
If he didn't know, then he wouldn't. He looked as if he could not do anything to him.
After lunch, Li He went to the post office to send a telegram, mainly to Pan Song. Whether it was Lan Shifang or Ding Shiping, one of them had to be at the Czech Republic. Otherwise, he would really be at a loss.
At the same time, he also called Shen Daoru in Shenzhen. There was only one purpose, and that was to inform him to prepare the money. The arrangements in Japan were beginning to retreat. In the past two months, the Nikkei index had fallen by 30%.
The revitalization plans that the Japanese government had introduced had not worked, and the housing market and stock market were still on the way to collapse. In fact, the Japanese government could no longer control the situation. The reason was that there were too many buyers and sellers in the market, and 30% of the investors in the Tokyo Stock Exchange were foreigners, and most of the rest were in the hands of hundreds of listed companies.
Li He still did not know the exact returns in Japan, but the put options on the Nikkei index that he had obtained through the American Stock Exchange last year were being sold one after another.
As long as he waited patiently for the next stage, he would be able to find out the results this time.
By that time, he would be able to invest in cars or other industries, and he would not be short of money. For the investment in front of him, he did not choose the industry with the lowest risk, but the industry with the highest profit.
In the golden age, a little ability could make money, at least that was the case for now.
When Li He heard that Mu Yan had resigned and pulled a big shot from the School of Chemical Engineering out, he hurriedly invited the two of them to dinner.
"Comrade Hu Dayi, I must write the word 'admire' on your face!" Li He had known Hu Dayi for a long time. Not only was he a teacher in the School of Chemical Engineering, but he was also a researcher in the Parameter Extraction Laboratory.
Li He really admired Hu Dayi. This guy actually made a fully sealed strain gage by himself!
How was China National Aviation Electrical Engineering going to survive in the future?!
Hu Dayi drank two glasses of wine, and his face was red. He said modestly, "If it wasn't for Old Mu's financial support, I wouldn't have been able to do it. Thank you, Old Mu. So when he said he wanted to resign, I immediately agreed. If it can be put into production, I can't guarantee that it will be the best in China. It has a reasonable structure, reliable and convenient installation, and it can guarantee high field sensor cable connection efficiency and good connection quality. A lot of companies will definitely fight for it. "
"No, no." Li He said affirmatively, "This is definitely the best in the world!"
Strain gauges were the most commonly used sensitive components in the world for stress analysis. In terms of function, it was a passive electronic sensitive component that converted deviation, deformation, or strain into electronic signals. It was often used to make sensors to measure physical quantities such as force, torque, pressure, and acceleration.
Therefore, this component looked inconspicuous. Although many people didn't realize it, most people came into contact with devices containing strain gauges almost every day.
"I'm satisfied to be recognized by you as a reference." Hu Dayi clinked his glass with Li He's and continued, "Currently, the best in China is the 521 Plant's foil resistance strain gauge. They are a key project of the country's Sixth Five Year Plan. They imported a production line from the United States, but I've done an appraisal. Mine is definitely better than theirs. But you know, there's still a long way to go before we can have mass production capacity. I've talked to the school's asset department, and in one sentence, there's no money, we can't produce it. Many teachers' research results are still there, and it's not my turn. I'm anxious, and when Old Mu mentioned it, I came out. I don't want to waste my efforts. "
Li He said, "I support the two of you. The strain gage industry has a bright future. Let me know if you have any problems, and I will fully support you. "
It's not a problem to make this small component into a listed company.
"It's mainly because the two of us are not as experienced as you in doing business, and our foresight is not as good as yours. If you say it's okay, then it's definitely okay." Mu Yan doesn't lack funds, and Hu Dayi doesn't lack technology. However, the two of them are still uncertain, and they are mainly here to ask for Li He's opinion. "We want to build the factory next to the factory in that direction."
Li He laughed. "Then it's even better."
"I've discussed with Old Hu. He will take 30% of the technology shares, and we will take 70% of the land and funds. What do you think?" Li He is the major shareholder of the teaching center, and Mu Yan naturally wants to discuss with Li He.
"That's not a problem. But I have another suggestion. If you want to bring in experts in the electrical testing industry in the future, you can't just pay them their salaries, right? I suggest we set aside some of the shares. "Li He treated this as he did with the car factory.
Hu Dayi and Mu Yan didn't object. From a technical point of view, Hu Dayi is indeed a little weak.
Mu Yan paid the bill and left with Hu Dayi.
Li He also received a call from Qi Gongxun to meet him at the airport on the morning of the 3rd.
Li He made some arrangements at home in advance. He originally wanted to ask Xiaowei to take care of it, but he thought that this brat was not reliable, so he called Lu Bo over, mainly to take care of his brother-in-law and his brother-in-law.
As for He Fang, Li He isn't worried about her.
When He Fang heard that Li He is going out, she specially took a day off to pack for him.
Li He said, "I've never seen you so serious when I go out before."
He Fang smiled and said, "How can going overseas be the same as being in China?"
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