Traveling back to 1977

Chapter 866 Facing the Difficulties
What can you gain?
This is a good question.

Partnering with the Shenzhen Shekou Industrial Zone offers access to the most favorable policies in China at this time, a large pool of high-quality and inexpensive labor, convenient transportation and geographical advantages, and opportunities to enter the domestic market.

What about Northeast China?
First, regarding policy, I'm sorry, there really isn't one.

The Shekou pilot zone has only been open for a few days, and the concept of an export special zone has been proposed for almost a year but has not yet been officially released. The best policy at present is nothing more than a document that Guangdong and Fujian have obtained that allows them to "act conveniently"—yes, the one that Guangzhou used to approve the White Swan Hotel project.

It will probably be several years before other places can offer preferential conditions for foreign investment.

According to the original historical process, the first joint venture in Northeast China was "Guochen Food Company," established in 1984 by Hong Kong Morning Light Trading Company in cooperation with Harbin International Hotel.

The first foreign-invested enterprise was Nestlé, a Swiss company, which opened its first factory in China in June 1987 in Shuangcheng County, which was then under the jurisdiction of the Songhua River Regional Administrative Office.

In this regard, not to mention the coastal areas, many inland provinces were much earlier than the Northeast region, with most having actual cases around 81.

As for labor, I apologize again.

This is Northeast China! The country's most important industrial center. Here, with only 9% of the nation's population, Northeast China provides nearly 20% of the country's industrial output and about 18% of its GDP.

Who among us Northeasterners doesn't take pride in working in a factory?
Joint venture? Foreign investment?
If you send him to work for a capitalist, believe me, he'll slap you twice across the face.

So, a large pool of high-quality, cheap labor? Don't even think about it!

Or maybe we should think about it again in the 90s.

As for transportation advantages.

Believe it or not, Dalian Port is quite a good option.

In addition, before the major earthquake, Tangshan Port was quite prosperous, but it has not yet recovered.

But having a port is useless, because there are no direct shipping routes to the United States.

To ship the products out, they first had to be transported to Hong Kong by small cargo ships, and then transferred to ocean-going cargo ships from Hong Kong's international terminal.

With its long distance and extended shipping time, how can it compare to Shekou Port, which is right next to Hong Kong?

We have no advantage in any area, so how can we even begin to negotiate?
The leader is also aware of his own situation; that's why he's called a leader. Since these things are difficult to discuss, let's talk about what can be discussed.

"Our Northeast region is one of the most important industrial bases in the country. From light industry to heavy industry, it has a very complete industrial base, with technology, equipment and skilled workers."

"If you could cooperate with us, for example, by having us process your products, whether it's clothing, televisions, or other types of goods, we can provide them."

Zhou Yali raised an eyebrow and asked, "Is there a television factory here?"

Despite the impressive industrial strength of Northeast China, when it comes to radio technology, Shanghai, Beijing, Tianjin, and Nanjing still hold a slight edge, and even Guangzhou is not far behind. But what about television sets in Northeast China?

She had never heard of any well-known brands.

The leader smiled and said frankly, "Actually, making a television set is not complicated. There is a radio factory in the area. After purchasing all the necessary parts, we can assemble a television set."

Zhou Yali frowned slightly, about to speak.

At this moment, Chen Fan suddenly coughed and smiled at his leader, "Well, I know a little about this situation too."

Facing the gazes of the crowd, Chen Fan said with a smile, "I have a reader who is the son of an employee of a radio factory in Shenyang. In his letters to me, he talked a lot about things at the factory, so I learned a bit about it."

Upon hearing this, the leader's smile froze instantly.

He wanted to brag a bit more, but now someone has leaked the secret beforehand. How can he brag now?
There are "bad people" among the masses!

Chen Fan chuckled, turned to look at Zhou Yali, and whispered, "The gist of it is that this radio factory used to manufacture radios and broadcasting equipment. Then, starting last year, they tried to buy a complete set of television parts from Tianjin, Shanghai, Nanjing, and other places. They don't have a production line; it's just an assembly workshop that mainly produces black and white televisions."

This is not something he made up.

His readers are all over the country, and these days, in addition to discussing the plot and expressing their feelings with the author, readers also talk about themselves and the situations around them.

As children of factory workers who "live in the factory," 99% of them will boast about their workplace. For example, those from food factories might send snacks to their favorite authors, while those from soap factories might say they'll buy you a year's worth of laundry soap.

Textile factories also sent scraps of cloth and handkerchiefs, and radio factories sent small semiconductor radios.

If it's a radio factory, after they finish their boasting, they might casually add, "Our factory is about to start producing televisions, and we'll send you one another day." That's not really outrageous.

After all, it wasn't actually sent.

However, it does help Chen Fan understand the production situation of units all over the country.

These contents can sometimes be used as creative material... No wonder authors these days still read reader letters; a large part of the reason is probably to find inspiration from them.

However, the news about writer Chen startled Zhou Yali.

"No production line?"

Zhou Yali was immediately shocked. "Then how can we guarantee product standards, production efficiency, and pass rates?"

Chen Fan coughed twice, covered his mouth with his hand, and said in a barely audible voice, "Whatever happens, happens."

Zhou Yali blinked rapidly, unsure of what to say for a moment.

Chen Fan glanced at his boss, whose face looked slightly embarrassed, and muttered two words, "It's all about personal connections, sister."

Zhou Yali immediately took a deep breath, forced a smile, and uttered two words, "Understood."

Then, he smiled at his superior, resumed his normal speaking volume, and said, "Well, sir, please continue. Uh, this TV project is quite good. What other projects are there?"

I was confused just now. This isn't a proper business negotiation; it's a good time to return favors. Why would I ask for this or that?
This kind of thing is quite normal; it's the same in the United States, just called something else, like charitable donations or contributions.

They give you a little help, so you should repay them with a small token of appreciation.

Although the nature of the events is different, for the merchants, there is only one outcome.

Those who need to bleed will bleed, and those who need to bow their heads will bow their heads. Those who stand tall and make money are all top-tier families. Those who haven't reached that level still have to accept the consequences.

Besides, it's just throwing out some coins, no one's making them bend over or kowtow, it's no big deal!

The leader didn't know what Chen Fan had said to Zhou Yali. He was just a little confused when he saw that Ms. Zhou, who had been very serious just moments before, suddenly put on a smiling face and not only praised the TV project but also inquired about other projects.

However, being a seasoned veteran, this little incident was nothing to him. He quickly regained his composure and introduced the relevant projects as if nothing had happened.

It's really just repeating the same old tune.

First, we need to rule out heavy industry. He might want to earn the label of "exporting large machinery," but the foreign company doesn't have that kind of business, so we can't just force it on him.

So the topics we can talk about are nothing more than what I just mentioned: agricultural and sideline products, textiles and leather, beverages and alcohol, daily chemicals, cultural and sports education, furniture and home appliances, and so on.

The cooperation method is still the same old one. After he finished speaking, Zhou Yali hesitated for two seconds and said, "Leader, if I may be frank, the proposals you just put forward are very similar to the 'processing trade' in Shenzhen."

The leader blinked, smiled, and said nothing.

It was copied exactly, so how could it not be similar?

I must say, processing trade is a really good thing. The Chinese side provides factories, equipment and labor, while the foreign side provides raw materials and samples. It exchanges labor and means of production for foreign investment, which is more extensible than simple goods trade, and it doesn't require consuming your own materials.

I just don't know if the other party will agree?

At this time, Zhou Yali was also considering this question: if it was just a simple processing trade, why bother cooperating with them?
Wouldn't it be better to set up your own factory in Shenzhen?

She was wondering if there was a better way, or rather, a more direct way, to repay the favor without incurring too much loss.
If we could earn a little more, that would be even better.

After a moment of contemplation, Zhou Yali raised her head, smiled, and said, "Boss, I have a suggestion. Please take a look and see if it's appropriate."

The leader immediately gestured, "Please speak."

Zhou Yali smiled and said, "As far as I know, China and the United States have reached an agreement to open a direct flight route between China and the United States, and the first test flight is scheduled for May 1."

To this end, the Civil Aviation Administration of Beijing is negotiating with various parties to establish an in-flight catering station that meets international airline standards to provide in-flight meals for international routes.

If this project is established, it will very likely become the first joint venture in China.

Hearing this, Chen Fan couldn't help but glance at her. Was she planning to steal the title of her father's "second" joint venture?

Sure enough, Zhou Yali continued, "I have a suggestion. If Beijing Air Catering Company is successfully established, we might as well use it as a reference and set up a joint venture here as well."

We can provide funding, internationally advanced technology, and advanced management, while you contribute your factory and workers as capital.

What is the leader's opinion?

After listening attentively to her, the leader frowned and fell into deep thought.

He was genuinely tempted by the proposal, but he also had many concerns.

If it were just capital and technology coming in, he would have fewer concerns, but what about "advanced management"?
Is it some kind of capitalist sweatshop system?

However, if this project can actually be completed, its contribution to the utilization of foreign capital, especially the introduction of advanced foreign technology, will be remarkable.

Seeing that her boss remained silent, Zhou Yali smiled and said, "Of course, this is just an immature suggestion of mine. Whether it is appropriate or not requires more detailed communication."

Even if the joint venture fails in the end, it doesn't matter. My father promised to invest 20 million US dollars here, and that promise will remain valid forever.

Even if we can't jointly establish a factory, we can still fulfill this commitment through trade in goods.

A purchase of twenty million US dollars—even the biggest favor should be enough to repay, right?!

Besides, there are plenty of good things in Northeast China, especially the mountain products from Changbai Mountain. Back then, they were the key to the Zhou family's wealth. The Zhou family kept a clear record of what was good and what sold well.

If we can make good use of this opportunity and reach a purchase agreement with the local authorities, ... it's hard to say whether it will be a favor or a big profit!
Chen Fan saw through Zhou Yali's little scheme clearly from the side and couldn't help but sigh inwardly, "Don't let her usual crazy behavior fool you, her more than ten years of elite education from a wealthy family really didn't come for nothing."

Even in the most critical moments, they haven't forgotten about making money.

The leader on the other end was also very satisfied with Zhou Yali's words. He immediately raised his head and smiled, "We can fully feel Ms. Zhou's patriotic heart. As for your suggestion to set up a joint venture, I will definitely report it to the relevant leaders after I get back. I will do my best to make it happen as long as there is any possibility."

Business negotiations are never settled in a single session, so the fact that we've reached this point today represents a significant step forward.

At least Zhou Zhengdong's promise yesterday has been transformed into several feasible roadmaps by Zhou Yali. They are just waiting for the province to decide which roadmap to take before they can proceed with the detailed negotiations.

However, at that time, it wasn't Zhou Yali and him who came forward to negotiate, but rather the people below who were actually doing the work.

If Ye Yufeng, who is far away and busy preparing for the hotel, knew this news, he would definitely find a corner to squat down and draw circles.

……

They called Zhou Zhengdong and Zhao Wanru, found a private room in the hotel, and ordered a table of Liaoning dishes.

The Liaoning cuisine here is very authentic, and it is one of the few remaining time-honored Liaoning cuisine restaurants in the Shenyang area. When you come here, you must try the Liaoning cuisine.

Liaoning cuisine draws on the traditional techniques of imperial cuisine, Shandong cuisine, and other cuisines, while also incorporating the characteristics of Han, Manchu, Mongolian, and Korean cuisines. It utilizes the advantages of ingredients from Northeast China and is characterized by its rich variety of dishes, distinct seasons, strong flavors, and elaborate presentation.

Zhou Yali, holding her rice bowl, took a bite of braised sea cucumber with scallions, swallowed it in a few bites, and said without looking up, "Brother, do you think there's a good chance of a joint venture?"

Hearing this, Zhou Zhengdong turned to look at the two of them and asked curiously, "What, you two even mentioned a joint venture?"

Chen Fan pointed at Zhou Yali, "She brought it up. I didn't say a word during the conversation."

He then said to Zhou Yali, "If you give up getting involved in management, the chances of the joint venture are 90%; otherwise, there's only a 10% chance it will succeed."

Zhou Yali was stunned for a moment, then turned to look at him. "Why?"

Chen Fan smiled but didn't speak. Instead, he looked at Jiang Tiantian and asked with a smile, "Can you tell me?"

Jiang Tiantian had been paying attention to their conversation. Seeing that Chen Fan was going to test her, she quickly picked up a napkin to wipe her mouth, looked up and said, "Because many of our workers are used to being masters of their own destiny and treating the factory as their home, they will not be convinced if a capitalist is suddenly put in charge of them."

Zhou Yali's eyes widened. "Since they're in charge, of course they want things to get better and better. Using advanced management methods can improve production efficiency and product qualification rates. Isn't that a good thing? I don't see any contradiction here. Why are they dissatisfied?"

Seeing that Jiang Tiantian seemed hesitant to speak, Chen Fan turned to Zhou Yali and asked, "I'm asking you, what are you like at the company, and what are you like at home?"

Zhou Yali immediately said, "Of course I am at the company..."

She had barely begun to understand what Chen Fan meant when he said that, and her eyes widened in surprise. "So that's what it means to treat the factory like your own home?"

Although she often came to China, she always hung out with Chen Fan and Jiang Lili, and had never learned about the actual situation inside any factory. Hearing this now, she couldn't help but feel very incredulous.

Can workers be as carefree in the factory as they are at home?
Of course, that's a bit of an exaggeration, and not all factories are the same; at the very least, essential production tasks must be completed. However, things beyond production tasks are often unpredictable.

Chen Fan shrugged, picked up the food Jiang Lili had put in his bowl, hummed twice, and said, "That's the gist of it. They are the masters of the house. Why should they accept you putting a father figure on them?"

Zhou Yali couldn't help but feel a little discouraged. "So, there's no hope for a joint venture?"

Chen Fan glanced at her, then at Zhou Zhengdong on the other side, and said nothing, but gave him a look that seemed to ask, "Will you do it, or shall I?"
Zhou Zhengdong smiled slightly and immediately put a small chicken leg on his wife's plate.

Chen Fan instantly understood and turned to Zhou Yali, saying, "What did we say before? The business world is like a battlefield. How can we back down just because of difficulties? Do you think the foreign investors in the Jinghang Food Factory, which is currently under negotiation, will give up management rights?"

If they relinquish management, how can food quality be guaranteed? Wouldn't the project ultimately be rendered useless?

Zhou Yali looked at him, her eyes filled with thought. "So, you want me to face the challenge head-on?"

Chen Fan nodded, "This is a good opportunity for you to see what outrageous things you might encounter when managing a company!"

(End of this chapter)