Winner Takes It All, Resurrection 2009

Chapter 670: Dongda Exclusive Settlement System

In 2012, Tokyo University did not actually have many core resources to counter American capital. Although the slogan of "world factory" had been shouted out, it had huge production capacity but not much technological content.

Industrial upgrading is at the most critical transformation period. A large number of new technologies and equipment have been introduced, and the vast majority of enterprises are still in the stage of adaptation and exploratory imitation.

It will take at least two years to fully transform it into one's own strength.

Especially in the field of high-end and high-tech, Dongda Manufacturing has basically no competitive advantage overseas, while in the domestic consumer market, a large number of foreign brands firmly occupy the high-end position in the market.

The high-tech products that relevant companies have worked hard to develop and have a certain level of technical content do not have enough market to take over. Their brand image and product quality are not as good as others. How can they compete?
Even when a major Dongda enterprise successfully achieved a breakthrough in a key area, foreign brands and joint ventures in the industry immediately chose to cut prices to compete.

Now, let alone reasonable profits, even the initial costs cannot be recovered. All foreign capital, including American capital, is trying to force Dongda's manufacturing industry to give up industrial upgrading in this way.

We should honestly serve as the world's blood factory, providing the world with massive amounts of cheap primary industrial products that can be replaced at any time and have no technical content.

For those companies that attempt to invest huge amounts of money in research and development and persevere in their efforts to make progress no matter how much they are suppressed, foreign capital has always used the method of attacking everything from products to companies, including the actual controllers.

The whole line is shady. Some of the product technologies are suspected of being borrowed, have no technical content, are of poor quality and high price, and the service attitude is not good. The company has always deceived consumers.

In more serious cases, they will arrest the actual controller and magnify any flaw infinitely, attempting to prove that this person is not capable and then deny the efforts of the company, the industry and even the entire Tokyo University.

Therefore, those CEOs of manufacturing and high-tech companies who are truly down-to-earth, engaged in production research and development, and have achieved breakthrough results in the industry are generally very low-key and rarely appear in public to express their opinions.

It’s not that they are introverted by nature, but they have learned lessons from their bloody experiences. The world is so cruel that it does not meet the expectations of capital, especially for companies and entrepreneurs that affect the interests of foreign capital.

As long as they do not give up scientific research and industrial innovation, no matter how they compromise in other aspects, they will not be favored by public opinion controlled by capital, and they will be beaten to death if they get the chance.

This is almost an unspoken rule in the industry: if you want to be praised by public opinion, you must first become a so-called talent.

If smear campaigns don’t work, a second round of malicious competition will follow, with prices cut drastically, to below the production cost line of leading domestic companies.

Following means long-term huge losses. Enterprises that are not favored by capital have few financing channels, difficulty in financing and high interest rates, and have to bear huge debts. It is easy to imagine what their future will be like.

99% of companies that take this path will be ruthlessly eliminated in the competition.

If we don't follow, it means that all the previous huge investment will be wasted, just like a flash in the pan, and the technological advantage we have finally gained in the industry will be lost to others.

Then public opinion will take the opportunity to convey a wrong idea to the public, that is, Tokyo University has no soil for scientific research, and it always makes breakthroughs for the sake of breakthroughs, and immediately abandons them after achieving success.

Over time, this view has gradually become mainstream, but the general public will never explore the truth behind it and will only follow suit.

Companies that know the truth suffer from a lack of discourse power in public opinion and are unable to explain themselves clearly to the public. It is also difficult for them to arouse resonance, so they have to consider the comprehensive considerations of maintaining their own interests and reducing risks.

The vast majority of business CEOs will choose to give up on the path of technological research and development and just make do with what they have as long as it does not interfere with making money.

“… That’s basically the situation.”

Li Zehua sighed, "In Dongda, private enterprises with the worst risk resistance not only contribute the most jobs, but also have to undertake technology research and development work that can easily lead to a total loss.

Ever since I learned about these appalling inside stories, I have come to admire from the bottom of my heart those scientific research-based manufacturing companies and outstanding entrepreneurs who have suffered so much and stood up under pressure from all sides.

To this end, starting from the year before last, Qingyun Group established a separate industry support fund, which invested more than 20 billion RMB in the first three months alone, helping 76 scientific research companies to successfully overcome difficulties.

Last year, QingCloud invested more than 140 billion yuan to help more than 800 related technology manufacturing companies solve the problems of difficulty in financing, unsalable products, and malicious price competition.

At the same time, Qingyun WeChat Technology and Douyin Interactive Entertainment Platform provided traffic support worth over 10 billion RMB in the form of public service advertisements to help companies that have been suppressed by foreign capital to overcome difficulties.

Everyone present showed appreciation and admiration, but no one knew what they were thinking in their hearts. Some might even think that Li Zehua was a big fool.

If one or two billion yuan were invested in other industries, the money would have been made a lot long ago. But investing in these manufacturing companies that do scientific research has a long payback period, high risks, and may go bankrupt tomorrow.

It would be better to throw the money into the water, at least you can hear the sound.

But Li Zehua was willing to be the fool. He said so much just to introduce the next topic, "It is true that the external environment we are facing is not friendly enough.

Various industries are still in a fragile and dangerous stage where upgrading is not yet complete, but there are some things that someone must take the lead in doing. If they do, there is at least hope. If they don’t, there is no hope at all.”

At this point, he changed the subject and said, "But from the beginning to the end, I have never figured out one question, that is the domestic market, because there are joint ventures and foreign-funded enterprises.

They have the first-mover advantage, are at the upstream of the competitive chain technology, and are very familiar with the market, so they can respond immediately to any disturbance in the industry.

Local science and technology companies that can go overseas have clearly avoided the European and American markets and focused on backward areas in the third world. They are prepared to exchange space for time, slowly improve product quality and reduce production costs.

I have to say that this idea is correct. The primary task of an enterprise is to survive. If there is no market, we have to create one ourselves. Multinational corporations are seizing the high-quality market, and we cannot compete with them.

Just avoid their sharp edges and focus on those corners that are ignored by large foreign companies. As long as you can survive, you will be able to counterattack sooner or later.

But what is shocking is that even if we choose to survive in a market ignored by big European and American companies, we will not be able to escape the focused competition from our rivals in the end. Even if we do not make money locally, they will drive us out.

I didn’t understand it at the time, so I went to do field research at a number of science and technology companies that had similar experiences, and I came to a horrible truth.

Foreign capital has actually established a monitoring system covering all walks of life by relying on its channel advantages and internal bribery. Don’t rush to question it, just listen to me first.”

Li Zehua waved his hand and quickened his pace, saying: "This is by no means an exaggeration, but the final result obtained through collecting a large number of real cases.

For example, a company in eastern Guangdong chose to conduct business in Southeast Africa, a small country that no one had even heard of.

In that place, there wasn't even any small-scale primary handicraft industry. The entire country relied on extensive agriculture and the weather for its livelihood, not to mention any business that large Western multinational corporations had in the local area.

Oh, I forgot to mention that even Coca-Cola, which is sold all over the world, is not sold locally because the people are too poor. They are so poor that even the birds flying in the sky have to put bags behind their butts to avoid enriching the local area.

At that time, I was wondering, what kind of market prospects can there be in a place with millions of people where not everyone can even have a set of clothes?
Then the boss told me personally that there was really no other way. The newly developed technology and products of their factory were considered top-notch on a global scale. But when he sold everything he had and gambled his entire fortune, he raised a large sum of money to expand his business.

When they were full of confidence and thought they could seize the market, they were hit hard: as soon as the company was launched in the domestic market, it was deliberately discredited by its competitors.

At that time, negative news was overwhelming, causing a huge public opinion crisis for the brand.

Channel dealers didn’t want the goods, and their self-built channels were always forcibly interrupted by competitors. After trying many ways to no avail, they had no choice but to find another way and change to a new brand to barely survive in the country.

Unable to recover its investment and burdened with huge debts, it was forced to find ways to go overseas, with even worse consequences.

He had gone through this three times before, doing business in Southeast Asia, South America, North Africa and other regions to avoid more advanced technology.

Foreign companies with lower costs and more complete sales channels entered the market to compete, and they were really willing to turn the table over if they disagreed with us. A main brand of equipment produced by this company cost 1.5 yuan, while the competitor sold it for 8000 yuan.

The most exaggerated incident happened in North Africa, where a foreign company gave away products for free in an attempt to wipe out the foreign company. The result was just that: the company invested millions to open up the market, but was driven out before it could even make a profit.

Finally, I had no other choice but to choose this corner forgotten by modern society. I tried my best to save it. When I learned what they had done in the past three years, it completely overturned my three views..."

There aren’t even many iron farm tools locally, so where would the money come from to buy their company’s large-scale agricultural production and processing equipment?
At that time, the company was also thinking of a last-ditch effort, bankruptcy and liquidation if it failed. Of course, the boss himself was unwilling to accept his fate. However, there was no consumer market and no mineral resources in the local area. It was said to be a poor place with no one living there. More than 95% of the country had no modern water and electricity facilities.

If it were someone else, they would have left long ago.

Only this company persisted, but had no money to buy products?
give away!
Set up an agricultural demonstration area, bring one piece of each equipment, and production tools costing hundreds of thousands of dollars, and bring them here for free to demonstrate the effects on site (they are all unsold backlog inventory).

Although the locals have not been exposed to the modern scientific production system, they still have the ability to simply tell that the production efficiency has been greatly improved. They were immediately tempted, but they had no money to buy it.

The company is not in a hurry. Even if they have no money now, it is impossible that they will have no money forever, right?
Even if there is no US dollar, the agricultural products can always be worth some money thanks to the improvement of agricultural productivity through advanced production equipment, right?

At worst, you can sign a contract, contract local land yourself for large-scale cultivation, find a way to sell the grown specialty agricultural products yourself, and then use the unsaleable inventory of industrial products to offset the cost of contracting the land. That should be all right, right?

When the locals heard about this good thing, they were very excited.
They don’t want money, but they want the least valuable land in the area, and they are also willing to use advanced agricultural production equipment to pay off the debt?
Why rent it? I’ll just sell it to you permanently!

Thus, a new era of tripartite trade began. The factory used unsaleable advanced equipment to directly exchange for large tracts of local land, and then hired people to carry out large-scale planting, and harvested the agricultural products for profit.

If it were a more normal company, they would have packed up and run away when they heard how troublesome it was.

But the boss of the company was stubborn and insisted on proving that he was right to stick to the path of technological research and development. So he borrowed money from all his relatives and friends, and finally raised the funds to develop the local land.

As expected, they suffered huge losses. Are you kidding me? The production equipment was transported thousands of kilometers away, but they couldn’t receive the money directly and had to invest huge sums of money to develop land to grow products.

It takes more than half a year of hard work to sell it and make a profit. The most important thing is that there is no labor cost for hiring someone to plant it. Seeds, fertilizers and pesticides are all useless locally and have to be purchased from foreign countries and shipped back.

If you can make money, damn it!
By mid-2010, the company was seriously insolvent. Just before the boss was about to jump off the building, Qingyun came and brought hope.

Because of cotton!

At that time, Qingyun was aggressively building short positions in cotton futures. In order to cooperate with the market crash, it was looking for cotton stocks all over the world, even old quilts and old cotton-padded clothes were not spared. It happened that this small country in southeast Africa was warm and humid, which was very suitable for growing cotton.

The company did grow some, but not much, just a few hundred tons, and even if it sold it would not be enough to cover its investment.

But who can blame Qingyun for having such a huge appetite? He saw that the local conditions for growing cotton were unique, the key strategic location was also very good, and it was a corner ignored by Europe and the United States.

I immediately became interested and sent people to investigate further. It turned out that the company's good days were coming. It turned out that this manufacturing company engaged in agricultural machinery and hardware production was not doing its main business.

Come here to farm?
Upon further investigation, it turns out that these are the few technologically advanced science and technology companies in the industry that have been squeezed out by foreign capital and have no choice but to go abroad to find orders?

Why are you still hesitating? Mr. Li waved his hand and invested 10 million to pay for the dream and sentiment, which is called strategic investment. Boss, don't rush to jump off the building, come back quickly to organize and expand production.

Let’s take a look at the Pinxixi experience store, which is a huge sales channel that penetrates the rural market and directly faces the consumers. Is it a smear campaign?

That doesn't exist. Can you expect farmers to read Internet quarrels, learn negative information about the company, and then refuse the company's products?

That's nonsense. It was a complete seller's market at that time. Farmers would listen to whatever the terminal sales said. The star products promoted by Pinxixi had great quality and price. You could go no wrong by buying them with your eyes closed.

As a result, the factory that was on the verge of bankruptcy came back to life in an instant. That was not all. The Strategic Planning Office of the Qingyun Decision-making Committee placed another large order and invested another 10 million to test the waters for production equipment.

Qingyun gave money to the factory, and the factory was moved to a small country in southeast Africa. It continued to exchange land to expand the cotton planting area. Qingyun was responsible for improving the seeds, fertilizers, pesticides, etc. in the local area, and building a series of supporting factories.

For the local area, it was a godsend. For the first time in history, they had a modern industrial chain. It was said that the president personally attended the groundbreaking ceremony of the pesticide factory.

(The equipment is a production line from the 80s that was eliminated in a certain county in China. This has opened up a new world for Qingyun. A lot of obsolete production capacity in China can be moved to Southeast Asia and Africa.

Especially for low value-added industrial chains such as cement, pesticides, and fertilizers that must be close to the consumer market, the freight costs of transporting them from far away will be huge.

This will not only speed up the progress of domestic industrial upgrading, but also effectively expand the market. Qingyun's African business group has tens of thousands of salesmen and is preparing to make a big move.
1200 million US dollars, which also set a record for local investment attraction since the founding of the People's Republic of China.

Qingyun not only relies on the company's channels to purchase land, but also purchases large amounts of land through other means for growing grain and cash crops.

It really doesn’t matter whether money is made or not. The key is that these important resources must be controlled by Dongda. Over the next year or so, Qingyun sent more than 3000 people to the local area under various names.

He continued to increase his investment, spared no expense to win over all local classes, and even helped the local government to establish the first modern rumbling force.

Well, there are four companies with a total of 16 trucks, 4 jeeps, more than 100 two-wheeled electric bicycles, and 200 Roewe mobile phones (for communications only), etc., with "many" technical capabilities.

Don’t underestimate the power of these 2011 people. At the end of , when European and American capital noticed the changes in the local area and tried to drive Qingyun out, they played a decisive role...

“It was later discovered that European and American companies did not detect local changes through normal channels, but confirmed them by investigating the flow of funds in the world trade settlement system.

At the same time, they also bribed some shameless people to look for local import and export trade lists for them in the country, and judged our specific investment situation in the local area through the details.

If Qingyun had not acted decisively to fight back, the company would not only face bankruptcy, but even the local staff would not be able to stay. "

Li Zehua is still frightened. Fortunately, Qingyun itself is not a normal business group and has strong information collection capabilities. It took advantage of the situation before European and American capital failed in negotiations and intended to overturn the table.

He took the initiative to clean up the local people who tried to get their hands on Qingyun's assets one by one. Li Zehua didn't care how many people were killed in private. In short, European and American capital did not get local cooperation, so they could not play any shady tricks.

As for openly transferring people from outside, Qingyun is not afraid at all. The existing international order is beneficial to Europe and the United States. If they dare to openly trample on it, wouldn't Tokyo University use a loudspeaker to publicize it all over the world?

For the sake of a mere hundreds of millions of dollars in economic value (and subsequent increase in investment scale), European and American companies would be crazy enough to overturn the table if they were to destroy a favorable order that could not be bought with trillions of dollars.

At worst, European and American capital can just come in and wait. Qingyun is not worried about failure. If something really happens, he can just call for help with a satellite phone.

Thousands of miles to the north, the Rumble Fleet is patrolling the Sumali waters in the name of escort. It will arrive within a few days. As it is within the range of the Rumble Fleet, Qingyun has nothing to fear.

Therefore, Li Zehua’s core demand is very simple: “Based on the current level of cooperation among Southeast Asian economies, we can definitely establish an international trade settlement system exclusively for Dongda.

At the beginning, there is no need to make a big move. Just attract trustworthy financial institutions to join, and still use the US dollar as the main settlement currency unit, and wait until you are strong enough in the future.

It is entirely possible to require all third parties that have trade relations with Southeast University to switch to it before trading, or even completely abandon the US dollar when the time is right.

In preparation for the RMB to become the world's main settlement currency, in order to reduce resistance, while the relationship with Ou Meng, Jiaobenji, and San Ge is good, you can also share some of the profits accordingly.

It is used to attract the euro, pound, and yen to join this settlement system..."

Before everyone could react from their shock, he continued, "Another matter is about the national level industry support fund. Qingyun is a private institution after all.

As the scale of the industrial support fund grows, I feel that I am unable to cope with it. I would like to ask Mr. Xie from the Finance Department to come forward and convene relevant units to preside over it.

Qingyun is willing to donate a large sum of money to this fund every year to support scientific and technological manufacturing companies that master core technologies.

At the same time, I also ask the CEOs who have made a lot of money here to donate generously to help our peers in the manufacturing industry who are in danger. After all, the financial industry cannot exist alone and must rely on strong support from the manufacturing industry to earn more excess profits. "

When they heard that they had to pay, everyone here became a little nervous... (End of this chapter)

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