Traveling back to 1977

Chapter 828 To Vote or Not?
Everyone else left, leaving only Ye Yufeng behind.

She used the office phone to call the management committee directly.

After exchanging a few words, he put down the phone, walked to the sofa, sat down, and skillfully arranged the tea set, taking on the role of a tea master.

Chen Fan asked curiously, "Did Shenzhen also install a program-controlled telephone exchange? How can you make a call so quickly?"

Zhou Yali immediately replied, "There aren't any in Shenzhen, but two have been installed in Guangzhou. However, I heard that Shenzhen ordered one, but because they don't have the money, they're using an installment payment plan, so the installation won't be quick and the schedule is quite far off."

Ye Yufeng nodded and said, "I'm quite clear about that. Shenzhen did indeed order a 9-line program-controlled exchange from the company affiliated with the master, and the schedule is around September."

However, inside the management committee's industrial park, to solve the communication problems of Hong Kong businessmen, General Manager Yuan specially spent a high price to order an 8-line PBX from Hong Kong. So making calls inside the park is relatively convenient, but not outside.

Chen Fan blinked, a circle of question marks appearing on his forehead.

8 doors?
How long ago was this product phased out?
A few years ago, a residential community in Beijing started using a 16-line program-controlled exchange.

Well, okay, only that one community used a programmable switchboard; the rest still used old-fashioned manual machines.

We can't say there aren't any model projects.

What he didn't know was that even this 8-line program-controlled exchange was originally planned to be purchased two years later. The fact that it was purchased two years earlier was due to the influence of Wan Muchun Communication Company and him, which can be considered a variable under the wings of a small butterfly.

Thinking of the switch, Chen Fan turned to Zhou Yali and asked, "How's the self-developed switch project in the US going?"

Zhou Yali pursed her lips and said helplessly, "It's still in progress."

After a two-second pause, she explained in a low voice, "Developing a switch is not actually difficult. The difficulty lies in bypassing the technical barriers erected by several existing communication equipment companies, which means starting all over again from another track, and that's very troublesome."

Chen Fan thought for a moment and asked, "Have you invited experts in computer science and mathematics to participate?"

Zhou Yali looked at him with confusion and said, "There is indeed a close connection between program-controlled exchanges and computers. We have invited several computer research experts, but mathematics?"

Chen Fan's lips twitched slightly. "Mathematics is the foundation of modern science. You don't even know that?"

Zhou Yali made an "uh" sound and muttered, "I feel sleepy when I see math, I don't care about this."

Seeing Chen Fan roll his eyes, she quickly added, "Alright, alright, when we get back to Guangzhou, I'll call the US headquarters and ask them to find some math experts."

Ye Yufeng watched from the side, covering her mouth and chuckling to herself. She thought to herself, "I never thought that the lawless eldest daughter of the Zhou family would actually have someone she's afraid of. If I tell everyone about this when I get back, it will definitely surprise them."

After Zhou Yali finished speaking, she smiled and said, "Although the park's program-controlled exchange is relatively outdated, it can make direct calls to Hong Kong, and of course, it can also make direct calls to the United States. You can make calls to the United States directly from your office without having to wait a long time."

Zhou Yali quickly nodded, "Okay, I'll make the call later."

As the three were talking, the receptionist downstairs called to say that President Yuan had arrived and Ye Yufeng had asked her to bring him up directly.

Chen Fan checked the time; it hadn't even been ten minutes.

Out of business etiquette, the three did not sit in the office, but went to the elevator to greet him.

Not only did they not come downstairs to greet him, but they also sat calmly in their office while the person was about to come up. Did they really not consider him a leader?!
Upon their reunion, President Yuan remained as enthusiastic as ever, holding Chen Fan's hand tightly and refusing to let go. "Vice Chairman Chen, your suggestion has been a great help. Especially that VIP reception area; without it, I doubt any Hong Kong businessmen who come to inspect the business would be satisfied."

But with this, their food, lodging, and transportation are all taken care of, and they can listen attentively as our staff explains the park's planning.

Moreover, after they returned, they brought back their observations from here to Hong Kong, which greatly promoted our outreach efforts there.

Chen Fan smiled and gestured for him to come inside, saying, "You flatter me too much. I just offered a suggestion. The key is that your people implemented it well. Otherwise, even the best ideas are just castles in the air and are of no use at all."

In the time it took to exchange a few words, the group returned to the office reception room and sat down.

It was also Mr. Yuan's first time here. He looked around and said, "I didn't expect that your park would have such a nice place. I think even the executive office of HSBC can't compare to this. It's really impressive."

Chen Fan glanced at Zhou Yali and Ye Yufeng. Zhou Yali immediately returned the look and smiled at President Yuan, saying, "You're exaggerating. Compared to here, whether it's Europe and America, or small countries, or even Middle Eastern countries with more money than they can spend, there are countless luxurious offices. Our place is just a small fry, nothing special."

There are some things that Chen Fan can't say, so Zhou Yali will speak on his behalf.

For example, here, it would be inappropriate for Chen Fan to say anything. If he agreed with President Yuan, wouldn't that mean that Wan Muchun Company was making money in China and was still indulging in extravagance and showing off?
Disagree? What's the reason? What about their pride?

Instead, Zhou Yali skillfully deflected the topic, directly shifting it to the luxurious scenes in Western countries, which then allowed Chen Fan to take the lead.

When President Yuan heard Zhou Yali's words, he blinked in surprise, just about to ask if Western countries were really that extravagant?

Then Chen Fan said, "Capitalist society likes to show off. The bigger the show, the easier it is to gain other people's trust. There is an old saying in our country, 'Buddha is made of gold, and people are made of clothes.'"

Wanmuchun Company was new to the area and had little reputation in mainland China and Hong Kong. To do business, it was necessary to project a certain image to gain the trust of other companies.

Upon hearing this, General Manager Yuan seemed to understand something, nodded slightly, and then said, "This is the same principle as your suggestion that we build a reception area first!"

Chen Fan laughed and nodded, saying, "Indeed."

Having discussed this, Chen Fan naturally moved on to the main topic, saying to General Manager Yuan, "Now that the Shekou Industrial Zone has a reception center, the establishment of a national export special zone is just around the corner. When does Shenzhen plan to establish its own 'reception center'?"

Mr. Yuan's eyes flickered slightly. Hearing this, and thinking about how Chen Fan had invited him over, it must be related to this "reception area".

However, he didn't rush to point it out, but instead smiled nonchalantly and said, "There really is."

Pointing towards Luohu, he said, "Right at the Luohu Port, there used to be a 'land king' from the 50s, which caused quite a stir at the time, but it was later repurposed."

However, since becoming a city last year, the city government has decided to renovate the area and build a high-end hotel catering to foreign guests. That place isn't far from the Xin'an Hotel; eating at Xin'an and staying at the Luohu Port would make it a kind of "reception center" for Shenzhen, wouldn't it?

Upon hearing this, Chen Fan immediately knew that it was the Overseas Chinese Building, which would later become Shenzhen's first high-end hotel.

Moreover, it wasn't the five-story Overseas Chinese Building Hotel that later became the hotel, but the small building next to it that operated for 22 years and was later transformed into a commercial complex.

The five-story building is called the New Overseas Chinese Building, which was built in 1991. Before that, from 79 to 91, the small Overseas Chinese Hotel received more than 50 overseas Chinese.

Unfortunately, when Chen Fan and his group came here last time, the place was still under renovation, otherwise they wouldn't have been left without a decent place to stay.

The thought quickly passed, and Chen Fan smiled, saying, "I know that place. It would be acceptable as a reception area for an industrial park, but as a 'reception area' for Shenzhen, it's far too stingy." Upon hearing this, President Yuan raised an eyebrow and looked at him, saying, "Then tell me, what kind of 'reception area' wouldn't be stingy?"

Chen Fan smiled meaningfully and said, "If there were a five-star hotel that meets international standards, then no matter who comes, they wouldn't be able to find fault with it."

Upon hearing this, President Yuan's eyes nearly popped out of their sockets. "Wow, a five-star hotel? That's extraordinary!"

He paused, then looked at Chen Fan and Zhou Yali with a serious expression, and said solemnly, "So, are you planning to invest in this five-star hotel, or do you hope that Shenzhen can have a five-star hotel?"

Chen Fan glanced at Zhou Yali, then turned to President Yuan and smiled, "If possible, Wanmuchun Company hopes to invest in a five-star hotel. If that's not possible, then we hope there can be a five-star hotel in Shenzhen. Money is not the problem; the problem is, can this hotel be built?"

Mr. Yuan slowly exhaled a long breath, looked at the three of them and smiled, and said, "If it were half a year ago, I really wouldn't dare to say anything, but now, I can tell you very frankly that the hotel can be built and your investment can be accepted. However, no matter how much money you invest, you can only hold 49% of the shares, and you will also face many difficulties."

In that case, would you still invest?

Chen Fan raised an eyebrow and looked at him, saying, "From what you're saying, there's already a precedent?"

Mr. Yuan nodded solemnly and held up two fingers. “So far, there are only two examples in the country of hotels that have actually been built using foreign capital: one is the Jianguo Hotel in Beijing, and the other is the White Swan Hotel in Guangzhou.”

Ye Yufeng picked up the teapot, refilled his teacup, and said with a smile, "I'd like to hear the details."

Mr. Yuan tapped his finger twice on the table to express his gratitude, and then said, "The earliest was in August 1978 when the Tourism Administration was officially established, and the deputy director in charge was Zhuang Yanlin. At that time, Mr. Liao, who was in charge of overseas Chinese affairs, tourism, and foreign affairs, talked to him and made a clear request: 'The current work is to attract investment and build tourist hotels.'"

He picked up his teacup, took a sip, and continued, "Do you know the context in which Elder Liao said that?"

Chen Fan rolled his eyes slightly, staring at President Yuan, and said in a low voice, "I heard that at that time, there were only 7 hotels in Beijing that catered to foreigners, with only more than 1000 beds. However, due to the expansion of tourism, Beijing's reception capacity was severely insufficient."

I've heard that when foreign guests arrive in Beijing, they don't check into their hotels immediately. Instead, they visit tourist attractions first, and only in the evening are they taken to hotels to wait for beds.

If there are no beds available at the hotel that night, the travel agency will have to use cars or even planes to transport guests to Tianjin, Nanjing, or Shanghai, and then pick them up again the next morning to return to Beijing?

As he said this, he thought of Guangzhou under the Canton Fair, and what was the point of sending merchants to Panyu and Conghua for accommodation?
Those people from Beijing are truly impressive; they travel around Beijing and live in Nanjing and Shanghai. I've never even heard of them before, let alone met them.

Upon hearing his words, Zhou Yali and Ye Yufeng were both stunned, staring at Chen Fan in astonishment, and exclaimed in unison, "Is this for real?"

Mr. Yuan shook his head with a wry smile, "What he said is true!"

He paused for a moment, sighed softly, and continued, "This matter even alarmed Xiyuan at the time. In the end, it was the old political commissar who asked, 'What can foreign investment do with building hotels?' which led to Liao Lao entrusting Deputy Director Zhuang with this matter."

Deputy Director Zhuang lived up to expectations. Having long been engaged in foreign economic liaison work, he immediately contacted overseas Chinese and foreign businessmen to seek funding for the hotel construction.

At this moment, Zhou Yali suddenly muttered to herself, "Why doesn't he go to my daddy? My daddy is rich."

Chen Fan glanced at her. "Stop joking. Back then, Uncle hadn't even started selling switches yet. Where would he have gotten the money to invest in the hotel?"

A hotel costs tens of millions of US dollars, which was far beyond the Zhou family's assets at the time.

Zhou Yali blinked. "Oh, right."

Then he sighed, "What a pity, it was only half a year too early."

Seeing her like that, President Yuan almost lost his composure and froze for a moment, trying to figure out how to regain his composure.

Upon seeing this, Ye Yufeng immediately poured another glass of water and offered a way out, "And then? Deputy Director Zhuang successfully found funding, and that's how the first joint venture hotel came about?"

Mr. Yuan smiled and nodded, saying, "That's true. Deputy Director Zhuang took the initiative to contact overseas Chinese and foreign businessmen and invited them to dinner, which has attracted a lot of gossip."

Fortunately, Mr. Liao trusted him and not only did not find it strange, but also introduced him to his distant cousin, a Chinese American businessman named Chen Xuanyuan who runs four Holiday Inn hotels and an architectural firm in the United States.

After negotiations, it was finally decided that both the Chinese and foreign parties would invest US$10 million each, totaling US$20 million, to build a luxury hotel. Because the hotel was located inside Jianguomen (the area around Jianguomen), it was named the Jianguo Hotel.

After he finished speaking, Zhou Yali immediately grasped the core question: "What are the rights and obligations of foreign businesses?"

Mr. Yuan said solemnly, "Although the investment amounts of both parties are equal, the foreign party only holds 49% of the equity, while the Chinese party holds 51%. The two parties will cooperate for 10 years. After 10 years, all the foreign party's equity will be transferred to the Chinese party for a price of US$1. In other words, the Chinese party will fully own the hotel after 10 years."

He looked at the three of them and continued, "Don't think that this plan will be implemented smoothly. After the plan was submitted, there were many voices of opposition. It was only after the old political commissar agreed and Mr. Hua made the final decision that it was finally approved."

Hearing this, Zhou Yali couldn't help but open her mouth slightly. "This is clearly a case of the domestic side benefiting. Foreign investors might not even be able to recoup their investment, and yet there are people who object?"

She couldn't understand what those people were thinking.
Foreign investors invest $10 million but only enjoy the right to receive dividends for 10 years, while the management rights remain in the hands of the domestic company. After 1000 years, they practically give away their shares for free. What are those people worried about?
Hearing her words, General Manager Yuan, who had met her many times, couldn't help but feel deeply moved. He sighed and said, "Who can argue with that? But that's how reform is; every step is fraught with difficulties."

He paused for a moment, then looked up and continued, "Although the project has been finalized, it is still unknown when the hotel will actually begin construction."

Almost simultaneously, the Swan Hotel project initiated by Hong Kong businessman Mr. Fok was also approved in January of last year. However, due to the high investment amount of US$50 million, the local government did not have the authority to approve it and could only report it to the higher authorities. Like the Jianguo Hotel project, it was also blocked.

Finally, provincial leaders sought help from Marshal Ye, who offered a single piece of advice and helped them find the necessary grounds for approval, allowing the project to be successfully implemented.

Chen Fan squinted and thought for a moment, then said, "Is it the report from July last year, 'Approving and Transmitting the Two Reports from Guangdong and Fujian on Implementing Special Policies and Flexible Measures for Foreign Economic Activities'?"

Mr. Yuan looked at him in surprise, "You're interested in this?"

Chen Fan smiled and said, "My uncle and sister are both investing here, and the initial amount is as high as one hundred million US dollars. Even if I don't care much, I should still pay attention to it."

Upon hearing this, Mr. Yuan couldn't help but burst into laughter, "Indeed, it deserves our attention."

He looked at the three of them and said seriously, "The White Swan Hotel and Jianguo Hotel are in similar situations. Mr. Huo mainly provides the funding, but the management rights are shared by both parties. In addition, after a certain number of years, the shares will also be returned."

These are the two examples currently existing regarding foreign investment in the domestic hotel industry.

Then he turned to Chen Fan and asked, "That's the situation now. Do you still plan to invest in the hotel?"

Chen Fan frowned slightly. He had to admit that investing in hotels nowadays was indeed subject to very stringent conditions.

In his recollection, Mr. Huo did indeed later transfer all the shares to the public, and the profits were entirely used for charitable causes.

After a moment's thought, he turned to look at Zhou Yali, saying nothing, but his meaning was clear: What to do? Should he vote or not?
Zhou Yali was also in a dilemma. Should she still submit her application given such stringent conditions?

(End of this chapter)