Sail across the sea

Chapter 425 has at least three advantages.

After listening to Gao Fan's account, Zheng Linong asked with some doubt:

"Can you be sure that our technological level is no less than that of Europe, America, and Japan?"

"Absolutely certain," Gao Fan replied without hesitation.

"Then why can't our rare earth exports compare with those of Europe, America, and Japan?" Zheng Linong asked.

"On the surface, it's because our rare earth smelting enterprises are generally small in scale, have outdated equipment, low levels of automation, and produce a limited variety of products with unstable quality. But the root cause is that relevant departments and research institutions at all levels lack the determination and courage to participate in international competition," Gao Fan said emphatically.

"How do you understand the determination and courage you mentioned?" Zheng Linong pressed.

As a veteran leader in the industrial sector, Zheng Linong actually had some understanding of the issues Gao Fan raised. However, he still wanted to hear Gao Fan's explanation in order to corroborate his own understanding.

Gao Fan was not intimidated. He said, "Taking the cascade extraction process pioneered in my country as an example, to improve the purity of the extraction, we need to increase the number of extraction stages. Or, conversely, as long as we can continuously increase the number of extraction stages, we can obtain higher purity."

"The increase in the number of extraction stages means an increase in equipment investment. I consulted Professor Xu a couple of days ago, and he said that if you want to obtain heavy rare earth with a purity of four nines, that is, 4N grade heavy rare earth, the number of extraction stages needs to reach more than 100 stages."

“Each level requires a set of equipment, so 100 levels would require 100 sets of equipment, and the investment could reach hundreds of millions of yuan. It takes determination and courage to invest so much money.”

Zheng Linong commented: "If we can indeed obtain 4N grade heavy rare earth, an investment of over 10 million yuan is worthwhile. The price of rare earth can increase tenfold by increasing the purity from 2N to 4N. The investment of 1 million yuan should be recouped in two or three years at most."

Gao Fan said, "The problem is that many people don't believe we can mass-produce 4N-grade heavy rare earth. They worry that with so much investment, the final product won't meet the expected technical specifications and won't fetch a good price, making the initial investment a waste."

"That possibility does exist."

"But if we are afraid of failure and dare not try, then we will never be able to enter the forefront of the world and can only follow in the footsteps of others."

"Given China's current stage of development, at least in most areas, following in the footsteps of others may be a wiser approach."

"It seems that you also believe that this should only be done in 'most areas,' but it is entirely worth trying in certain areas."

Zheng Linong laughed. His words had indeed left such a flaw, which Gao Fan had noticed with remarkable keenness.

In fact, Zheng Linong and Gao Fan belong to the same type of people, both of whom have a spirit of not believing in evil.

The difference between the two lies in the fact that Zheng Linong is a high-ranking leader who needs to consider the consequences of his words and actions and cannot act impulsively. Gao Fan, on the other hand, has a less sensitive position, and given his younger age, he can be forgiven for his reckless behavior.

Of course, there's another difference that Zheng Linong is unaware of: Gao Fan's identity as a time traveler. As a time traveler, Gao Fan holds "developed Western countries" in utter disdain. These countries can still boast for now, but in 20 years, they'll all be obsolete. Since the beginning of the new century, almost all Western countries have lacked innovation. Often, Western countries are responsible for creating PowerPoint presentations, while China is responsible for turning those presentations into reality.

How much reverence could someone who traveled from that era possibly have for the West?

“My view is exactly the same as yours. I also believe that in most fields, we can follow in the footsteps of Western countries and learn by imitation. But in the few areas where we have a chance to gain an advantage, we should be bold and compete with advanced foreign companies. Doing so will have at least three benefits.”

"Oh, there are three benefits. Tell me, what are they?"

"The first benefit is that cutting-edge technology means high profits. Just like the 4N grade rare earth we just mentioned, its price is dozens of times higher than that of mixed rare earth. Exporting one ton of high-purity rare earth is equivalent to exporting one hundred tons of mixed rare earth. Our country is currently facing a severe shortage of foreign exchange, and these cutting-edge products can become the main force for export earnings."

"Just like that Vitamin C you're working on, it's said to be a major exporter and foreign exchange earner in Maolin Province now."

"The initial revenue from the Vitamin C project will be used to repay the loans from the Hatch Group. Only after the loans are paid off can we truly become a major exporter."

"That's already quite remarkable. Now tell me what the second benefit is."

"The second benefit is that cutting-edge products can establish the overall brand image of Chinese products. China will not always exist as a country that exports low-end products. One day we will move towards the mid-range and high-end. We need to let the international market know that China has considerable technological strength and that we can make world-class products. In this way, when our cars, machine tools, and tunneling machines are exported in large quantities in the future, foreign users will not be surprised."

"Wow, what a boastful tone. By the time we're able to export cars, I'll probably be meeting Marx by then."

"I can bet you it won't take that long."

"Okay, I'll take the bet. So, what about the third benefit you mentioned?"

"The third advantage is that we can gain a voice in international economic and trade cooperation by occupying the high-end market. Just think about it, if the world's electronics companies can only buy rare earths from China, and once China stops exporting rare earths, the world's electronics companies will have to stop production, and even the United States will be unable to manufacture missiles. What kind of position will we have on the international economic and trade stage?"

Hearing this, Zheng Linong's expression turned serious. He thought for a moment and asked, "Gao Fan, do you have any clearer ideas about your last point? For example, what technologies do you think could produce such an effect?"

“Rare earth elements, and photoresist,” Gao Fan said. “Actually, there could be some other things, but I think these are the two things I’m confident I can achieve right now.”

"However, the situation is different for rare earths and photoresists. It would be easier for us to monopolize high-purity rare earths, since the raw materials are in our hands. If we don't export the raw materials, no matter how capable Western countries are, they will have no way to make a meal without rice."

"As for photoresist, that's a matter of human intervention. I do have a plan, but it requires the active cooperation of the Fenglin Institute, and may need government support if necessary."

(End of this chapter)