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Chapter 447: The United States is preparing for a major move, and Japanese capital has confirmed its

Due to the time difference, what happened in Longguo in the early morning was being transmitted to the West at full speed through the Internet.

America, Wall Street.

Buffett listened to his assistant's report, a rare look of joy appeared on his face, and he asked again: "Please repeat it again."

"It seems that the negotiations between the Japanese FSA and Longxing Group have broken down, and they are now withdrawing Japanese companies to put pressure on Chen Xing and Longguo."

"it is good!"

As soon as the assistant finished speaking, Buffett couldn't help but applaud and said, "Great! If Japanese capital really announces its withdrawal from Longguo, then Longguo's auto companies will be the first to bear the brunt."

"Want to short?" The assistant has followed Buffett for more than ten years, and through what he has seen and heard, he can already guess his next move.

"Not only do I want to short, I also want to use ten times leverage!" Buffett's eyes were fierce, like a beast that had been hungry for more than ten days.

He fought in the Dragon Country's stock market several times, but was defeated every time.

There is no suspense this time. Even if the Longguo stock market does not fall, the auto companies will plummet, because Japanese capital is too important to Longguo's auto companies. It is not an exaggeration to say that they are the financial backers who feed them.

why would you say so?

Take the Brilliance Automotive Group as an example. It has made a fortune through its cooperation with the BMW Group and its ambitions are growing.

No one wants to always depend on others, so Brilliance Auto Group made a decision to build cars independently.

Equipment, top of the line.

The drawings were copied from the BMW Group.

The workers were poached here with high salaries.

Almost all car companies around the world thought that Brilliance Automotive Group was planning a big move to reshuffle the auto industry. At that time, senior executives of Longguo also believed that Brilliance Automotive Group might have the qualifications to independently build cars.

But the result?

It's not that it held back a big poop, but that it just pooped a big poop.

Since the BMW Group did not provide technical support, Longhua Automobile was unable to produce cars. The cars it produced either had abnormal chassis noises or mechanical failures and could not pass safety tests.

It is precisely because of this example of the Brilliance Automotive Group that a large number of Chinese automakers are unwilling to invest in the research and development of domestic vehicles, but instead sit back and enjoy the results, and strengthen their cooperation with foreign automakers.

Now that Japanese capital is leaving, the first to be affected are the car companies that are not enterprising and have no technological accumulation and are relying on their age to bully others.

Don't think that Buffett's trading is too stable. He advertises an annual rate of return of only 20%. In fact, for a Wall Street tycoon, one success is enough to multiply the investment several times. As for the 20% annual rate of return, it only includes the value of Buffett's large assets.

Not only Buffett, but other Wall Street tycoons were so excited that they couldn't contain their emotions when they heard the news.

"Great! This time we must raise funds and fight a comeback!"

"Japanese capital is withdrawing from Longguo, right? Well, then there will be a perfect opportunity to short sell in their auto industry. Immediately notify the trading team and prepare to encircle and suppress Longguo's auto companies!"

"Even Japanese capital has fled, which means that Longguo's economic system is already on its own. It's time to make in-depth layouts and prepare to make money."

"Hahaha, I've been waiting for this news."

The Wall Street tycoons all burst into shrill laughter in their offices at the same time; they had finally waited for the trading window.

They have always remembered the many failures they have experienced in the Longguo stock market.

And at the same time.

Building 666 on the other side.

Davic had never thought that the island nation would actually make this decision. He could not hide his joy and said, "Japanese capital is withdrawing from Dragon Country. This is a huge surprise. I must tell my father immediately."

Without any hesitation, he dialed Clayton's cell phone number.

"Dudu-"

After several busy tones, Clayton answered the phone and asked, "What's going on?"

"Good news. The FSA talks seem to have failed. Island capital is going to withdraw from Dragon Country. I heard that car companies have taken the lead."

As Davic was telling the story, he could no longer suppress the joy in his tone; he had been waiting for this opportunity for too long.

"Okay, okay!" Clayton also showed a happy expression, and said in a deep voice: "There is no need to continue raising interest rates this time. The withdrawal of Japanese capital is enough to put Longguo into a vicious cycle of deflation!"

Originally, they were planning to falsify economic data and continue to raise interest rates to attract the attention of global capital, burst the economic bubble of US stocks, and then rebuild.

But now?
Is it still necessary to do this?
Why is the Fed raising interest rates?
Exploding global finance.

To be more precise, the US interest rate hike is actually intended to blow up the financial and economic system of the European Union or China.

Since the EU is composed of developed countries, faced with the aggressive wave of US interest rate hikes, they chose to raise interest rates to counter it. The deposit rates in Britain, France and Germany also soared to 10%, following the interest rate hike of the US Federal Reserve.

They know better than anyone that if they don't follow the interest rate hike, both foreign and domestic capital will go to the United States to earn interest.

Once all EU countries run out of money, society will fall into a deflationary crisis, and it will be difficult to make money in all walks of life.

The strategy of EU countries is to prefer economic expansion to deflation.

Unlike EU countries, Longguo adopts direct confrontation.

Because the people of Longguo are famous for their love of saving money, this is also largely related to the imperfect social security and welfare system. For example, medical treatment and education require a lot of money.

It is precisely because the people of Longguo love to save money that after understanding the US Federal Reserve's idea of ​​raising interest rates, in order to stimulate the domestic economy, the central bank chose to cut interest rates, hoping that people would withdraw their money from banks to cope with possible deflationary situations.

Looking around the world, when all other countries chose to follow the interest rate hike, only China chose to cut interest rates, directly facing the edge of the US dollar hegemony.

"Then I'll tell the people at the Federal Reserve that there's no rush to raise interest rates."

Davic stood up, feeling refreshed, as if a stone weighing on him had been lifted.

"Well, hold off on raising interest rates." Clayton nodded in agreement, and then continued, "Let's see if the withdrawal of Japanese capital can puncture the financial system of Dragon Country. If it can cause an economic crisis, then we can have a good meal."

Perhaps many people don’t know that the economic crisis is a carnival for a few people.

For example, the Asian financial crisis in 1997 was a disaster for Asian countries, but for the United States, it was an excellent opportunity to buy up the real assets of other countries.

To put it more bluntly, the Wall Street tycoons are eager to create more economic crises so that they can reap the wealth.

Of course.

The premise is that the United States is not involved.

Davic: “I’ll do it now.”

"Go."

After hanging up the phone, Davichi drove to the Federal Reserve headquarters without any hesitation. This top-secret information had to be told in person without the help of any communication tools.

In the current global information and communication field, Longxing Group is the undisputed big brother. No one knows whether it can monitor conversations, so Davic wants to be cautious.

After hearing the good news, Clayton at Rothschild Manor couldn't hold back his excitement and said in a deep voice, "It's time to decide the winner, right?"

He did not sit idle but called the President of Parliament, Renato Marotta.

Not a moment.

The call was answered.

Renato Marotta was not surprised at all. When the call was connected, he asked directly: "Has Patriarch Clayton also received the news?"

"Yeah, I just found out." Clayton responded, and immediately said, "Now we need to add fuel to the fire."

"How to add? We can't raise interest rates anymore." Faced with the Federal Reserve's continuous interest rate hikes, Renato Marotta is still a little scared.

From 0% to 3%, then to 5%, 7% and now to 10%, this frequency of interest rate hikes is like a fight to the death.

The current inflation rate in the United States will not be able to make up for the deficit economy if it cannot swallow up the Dragon Country or the European Union economy.

“Add tariffs on goods.”

Clayton spoke his mind.

Renato Marotta's eyes lit up, and he spoke faster and louder, asking, "Are you talking about imposing tariffs on Dragon Country's goods?"

"Yes." Clayton replied, his eyes filled with plundering enthusiasm, "Now that Japanese capital has withdrawn, if Dragon Country's products are still largely unsalable, the result we are waiting for will occur."

“Economic deflation?”

“Yes, it’s economic deflation.”

Clayton nodded.

China is a major manufacturing country and the United States is a major consumer country. Many of the former's products have to be shipped to the United States for sale.

If tariffs are imposed at this time, it will be no joke.

For example, before the tariffs were imposed, the profit from an ordinary electrical appliance was 50 yuan. But if the tariffs were increased by 30% or even higher, the profit would definitely not be 50 yuan. It might be only 40 yuan, or even less than 30 yuan.

If other costs are taken into account, exporting companies may even lose money.

Assuming that there is a real loss, a company engaged in export trade will naturally not continue to do it at a loss, but will suspend trade.

Once trade is suspended, factory orders will decrease. As factory orders decrease, workers' wages will also decrease accordingly, and there may even be layoffs.

"In which areas should we impose additional taxes?" Renato Marotta obviously knew what Clayton was thinking and continued to ask for his opinion.

Imposing tariffs, like raising interest rates, is a double-edged sword.

Since cheap foreign goods cannot be imported, people can only consume expensive goods, which further leads to rising prices.

Anyone familiar with the U.S. industrial structure knows that its mid- and downstream industries are very weak, and all kinds of daily necessities are relatively dependent on imports.

“We can release the news first to impose tariffs on daily necessities and see how the market reacts. If it is not drastic, we can then cover all categories,” Clayton suggested.

"Okay, I'll call a meeting to study it." Renato Marotta neither agreed nor refused immediately. As a double-dealer, he needed to refer to the attitude of the Ansa Consortium.

"Reply as soon as possible."

Clayton was not in a hurry for an answer. He actually knew very well that although it was the Rothschild family that supported Renato Marotta to take this position, this man was not a puppet completely controlled by them.

"I'll give you an answer tonight."

Renato Marotta gave a deadline.

"Okay, I'll wait for your call back."

"Then I'll hang up."

"Chat back."

When the phone call was hung up, Renato Marotta did not take a moment to rest and called the Ansa Consortium family again.

Among the Jewish consortium, the Rothschild family is the big brother, and its opinions represent the opinions of the entire Jewish capital.

But the Ansa Group is different.

There is no leader in the Ansa Group, or rather, everyone is the leader, checking and balancing each other, and cooperating with each other to make money. Renato Marotta did not dare to neglect it and called each of them to ask for their opinions.

About an hour later, he got the answer he wanted.

"Just do it," this is the attitude of the Ansa family.

"It seems that the Dragon Country's economy is doomed this time as Ansa and Jewish capital have reached an agreement again." Renato Marotta muttered to himself as he began to look through the documents on his desk, studying which products should be subject to additional tariffs.

……

While the United States was planning a big move, other countries were holding meetings overnight. No one expected that the island country would be so tough and actually want to withdraw Japanese investment from Dragon Country.

There are two questions in the whole world now.

1. What happened?
2. Is the island country really willing to do so?
No one knows the inside story of the sudden withdrawal of foreign capital and can only make rough guesses.

Even if some countries have guessed it almost right, they will ask in the end: Are Japanese car companies really willing to give up the Dragon Country market?

There are 13 billion people, and if we assume an average of 5 people, that would mean to million households, which is equivalent to a car market of to million units.

Assuming the market is 2 million cars, and each car costs only 10 yuan, then the potential of this market is conservatively estimated to be 20 trillion yuan.

According to the latest statistics, Japanese cars account for 32.1% of the market share in Long Country. Taking 20% of the 32.1 trillion market means that 6.4 trillion has been earned.

How could an island country be willing to give up such a large amount of money?
No one can guess.

However, the Japanese car companies do not want to leave. Now they are just threatening, wanting Chen Xing to sit down and have a good talk, and stop targeting Japanese semiconductor companies and the Nikkei 225 Index.

As Longxing Group launched a price war for semiconductor silicon wafers and photoresists, the market share of Japanese semiconductor companies such as Shin-Etsu Group, Sumco Group, JSR Corporation and TOK Tokyo Ohka Group is declining rapidly.

Originally they had a monopoly, but now their share has dropped to less than 20%, and is still declining further.

There are cheaper and higher quality semiconductors and photoresists. The bosses of chip foundries are not fools and will definitely choose photoresists and semiconductor silicon wafers produced by Longguo enterprises.

Originally, the United States wanted to intervene and prevent foundries such as TSMC and UMC from using semiconductor silicon wafers and photoresists produced by Japanese companies.

However, due to the existence of two chip foundries, Longxing Group and Loongson International, if TSMC does not use 16-inch and 18-inch semiconductor silicon wafers, their production costs will double.

To put it bluntly, if TSMC and UMC don't keep up, Loongson Group's chips can be half the price of yours.

There is a saying that goes, "If my friend dies, I'd rather die than suffer the consequences." Since there is no way to stop it, they can only go with the flow.

It was precisely because of the impact of the Longxing Group that Saito Ii of the island country's FSA Financial Agency wanted to sit down and negotiate, but he did not expect that Chen Xing would be so disrespectful. He had no choice but to resort to this last resort and try to put pressure on him to force him to submit.

……

As time passed, in the early morning, the topic of "Japanese capital withdrawal" had already appeared on the Longguo Internet.

Clicking on the entry, you will see holiday notices for many car company workers.

Domestic automakers that have cooperated with Japanese companies, such as GAC Group, FAW Group, and Changan Automobile Group, have all issued announcements in the WeChat groups of workers at relevant joint venture factories.

The content of the announcement was very simple and did not include any reason. It just stated that except for patrol posts, all other workers would be given two days of paid leave.

The anomaly naturally led to discussion, and the workers also posted the news online.

[Beijing Drifter Xiao Chen]: "What the hell is going on with you guys? Two days of paid leave, could it be that the boss's mistress gave birth?"

[Sanhe Your God]: "If you don't understand, just ask, brother, what kind of factory is this?"

[骑马奔腾]: "Are you from the GAC factory? We were also notified of the holiday, and we don't know what's going on."

[Invincible Harashao]: "The screw workers at the FAW factory said that we are also on holiday. We are confused when we just woke up, but it’s okay. Let’s go back to sleep. Good night, no, good morning, brother."

[Love to Eat Poor Guy Meal]: "We are all factory brothers, I am going to take a nap too, no matter why we have a holiday, we should enjoy it, finally we can take ten days or half a month off, hehe."

Due to the lag in news and the information cocoon, the grassroots workers have no idea what is happening. From their perspective, it is just like they wake up from a sleep and are suddenly announced to have a holiday, and it is a paid holiday.

For them, getting paid during holidays is the most practical thing.

Workers of other car companies who do not have holidays are jealous. They have to work very hard just to get today's salary, while workers of other car companies just do nothing and get the salary.

However, what they don’t know is that taking a holiday rashly is not a good thing.

Imperial Capital, Social Security Bureau.

Director Ma Wenbo was in his office, furious at the person on the other end of the phone and no longer beating around the bush.

"Duan Peifu, Duan Peifu, I think you are so bold that you did this without holding a meeting to discuss it. Do you know how important Japanese investment is to us, especially the car companies? Without their technical support, our automobile level will regress by at least 5 years. Do you understand? 5 years!"

"I know Director Ma, but the situation is special." Duan Peifu was about to explain when he was interrupted by Ma Wenbo:
"It's useless to be special. Do you know that since the US dollar interest rate hike, our unemployment rate has been soaring, and the number of people receiving unemployment benefits has increased several times!"

"..."

Duan Peifu is now in deep pain but cannot express it in words.

Of course he knew that the current employment situation was grim, but this was not something he could control at all.

On one side is Longxing Group, and on the other side is Island Capital. Who does he favor? Who can he favor?

Ma Wenbo vented his anger for another five minutes, and finally said in a shameless manner: "I don't care, you must get the Japanese capital back immediately, no matter what method you use."

"Can I say a few words?"

Duan Peifu looked worried.

"Tell me what you can say." After several minutes of verbal venting, Ma Wenbo calmed down a lot.

"This matter involves the Longxing Group. If you really want to know, just call Secretary Chen." Duan Peifu sighed.

"Longxing Group?"

"Yes, Longxing Group."

"Okay, I want to see what the Longxing Group did to force the island country's capital to withdraw en masse."

Ma Wenbo refused to believe it and today he was determined to get to the bottom of the matter.

After asking for the cell phone number, he called Secretary Chen directly.

Secretary Chen, who had not slept all night, received the call and threw the matter to Zhang Wei, asking Ma Wenbo to figure it out himself.

Layer after layer, Ma Wenbo is not a fool, he also understands the seriousness of the matter, but he still chooses to get to the bottom of it.

When he called Zhang Jinzong's number, Ma Wenbo's tone became much more restrained and he asked, "Mr. Zhang, what happened with the Longxing Group and Island Capital?"

Just after he finished speaking, he added: "Now that the wave of US dollar interest rate hikes is still continuing, a large number of foreign companies have chosen to leave. The employment situation is extremely severe, and Japanese companies really can't leave."

"This matter is complicated and simple at the same time. You'd better not ask. If you really want to know, call Wang Shan and ask him why he made this decision."

"Captain Wang???"

As soon as Zhang Jinzong finished speaking, Ma Wenbo was completely shocked.

what's the situation?
How did Wang Shan get involved?

Could it be that this was Wang Shan’s idea?

"It's him. Go ask him. I can't beat him." Zhang Jinzong also wanted to stabilize the island country's capital, but Wang Shan felt that a short pain is worse than a long one, so he chose to take a gamble with Chen Xing.

Ma Wenbo: “…”

Ask Wang Shan?
He doesn't have the guts.

After asking a few more simple questions, he hung up the phone in a hurry.

Sitting in the office, Ma Wenbo was thinking about countermeasures. He had already anticipated that if Japanese companies really chose to leave, the unemployment rate in Longguo would soar to an extremely terrifying level.

There is no need to explain the impact of soaring unemployment rates.

"Longxing Group, Chen Xing, what exactly are you selling?"

Ma Wenbo muttered to himself.

……

And on the other side.

Shanghai, Tesla Gigafactory.

When Masike learned that the Japanese automakers were going to withdraw from the Dragon Country market, he could no longer hold back and thought, "Should we hold a new car launch conference? This is a great opportunity to grab the market."

"No!"

"no!"

Suddenly, he thought of something and said in a deep voice, "This might be a trap set by Chen Xing. The purpose is to force me to hold a press conference first, and then he will strike back based on the parameter configuration. Yes, it must be like this."

In the eyes of the Western camp, Chen Xing's image can be described as a despicable, scheming villain. They are afraid of being cheated and will be extra cautious.

Faced with the market share that could be snatched away, Marsik chose to wait and see.

Not only him, BYD CEO Wang Fu and SAIC Group CEO Chen Hong also chose to wait and see how things develop.

Saito Jing was also waiting, or rather, the entire island nation's top leaders were waiting for Chen Xing to change his mind and sit down to have a good talk.

However, two days later, Chen Xing remained silent, as if nothing had happened, and had no intention of sitting down and negotiating.

"hateful!"

Saito Ii, who had been waiting in the hotel for two days, finally couldn't sit still anymore and called the high-level officials of the island country and said, "Chen Xing is determined to fight to the death. What should we do now?"

"What else can we do? We can only do as they wish and transfer all investment projects to Southeast Asian countries." The person on the other end of the phone spoke calmly, but if you listened carefully, you would feel that there was a hint of viciousness in the calmness.

"Does it really have to come to this?" Saito I didn't really want to see this scene.

"What else can we do?"

The person on the other end of the phone asked back.

The Longxing Group clearly wanted to eat them up completely. If they didn't resist with all their might, they would be like fish on the chopping board and could be manipulated at will.

Give it a try, maybe there is still a chance of survival.

After the two talked on the phone, the general managers of Honda Group and Toyota Group's joint ventures in Longguo, who were originally thought to be just a deterrent, were notified to move their equipment, lay off workers, and stop producing vehicles.

"Are you serious?"

"No way, are you really leaving?"

"This...is this really going to close the factory?"

They had never expected that they would actually have to close the factory and leave Longguo. This is a 20 trillion supermarket!
Not only did they not expect this, but the top leaders of the island country's JSR Corporation, TOK Tokyo Ohka, and Shin-Etsu Group were all stunned when they heard the news.

This time there is really no way to avoid it, we have to fight to the death with Longxing Group!

(End of this chapter)

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