Return to 1958 and build a century-old giant

Chapter 857 Investment in a Courtyard House
"Alright, we'll discuss the details further later," Director Zhou agreed after a moment's thought.
Today's negotiations with Yang Wendong were purely preliminary, discussing with the other party's boss to see if cooperation was possible. It has clearly been successful so far, and they have also reached a consensus on some key issues that SAIC and Volkswagen have been at odds with. That's quite good.

As for the subsequent negotiations, they will certainly involve many details, just like with Volkswagen. After all, it is the automotive industry, the crown jewel of global industry, second only to large aircraft. Such negotiations are highly professional, and neither he nor Yang Wendong really understand the details.

Yang Wendong said, "Okay, then tonight I will call the UK side. Mini will organize a preliminary delegation to visit the mainland's automotive industry and potential joint ventures."

Similarly, your side could also prepare to send someone to the UK to investigate the situation of my Mini company.

Before formal negotiations, it is naturally necessary to understand each other's conditions and then conduct negotiations based on both sides' conditions.

"Going to England, okay." Director Zhou nodded in agreement;

Although sending delegations abroad is very costly in terms of foreign exchange, it is unavoidable, as it involves a large investment project.
Yang Wendong also saw through Director Zhou's situation, but he couldn't offer to help on his own initiative, nor could he get involved in every little thing. So he said, "That's settled then. I also hope that the new car factory can be built in the mainland as soon as possible."

The automotive industry needs a foundation, and that foundation is the mainland. Whether it's the industrial chain, the market, or the technical talent, everything can be cultivated here.
The only drawback is that we are still foreign-owned, so we need to form a joint venture. However, as the party that controls the technology, although it seems that we only have 49% of the shares, we can actually get as much as 70% or 80% of the profits. This was the case in the joint venture car industry in my previous life.

Of course, many joint ventures in the past deliberately designated factories in their own countries to produce many parts that could be manufactured domestically, resulting in significant losses of foreign exchange and the development of the automotive industry chain. This is one of the reasons why, although the mainland has basically caught up with foreign countries in various industries over the past few decades, the gap in fuel vehicles has remained very large.

On his side, he wouldn't deliberately do that. He couldn't let the British benefit from it. Producing various parts domestically would also truly reduce his own costs. He already faced significant competitive pressure from other top brands, so this would also be beneficial to him.

"Haha, we hope so too." Director Zhou chuckled, then said, "Mr. Yang, how about we go to the Yanjing Automobile Factory later? You can have a look around."

"Okay," Yang Wendong nodded.

He also wanted to see what car production was like in mainland China. Although he wasn't a professional, he had at least visited the production lines of Chrysler, Mini, and Toyota, and had a general understanding of the industry. This would give him, as the boss, a general understanding of future car cooperation negotiations.

At noon, Yang Wendong had a simple meal in the ministry's canteen, and then went directly to the Yanjing Automobile production plant.
After visiting the production line, Yang Wendong's first impression was that it was too backward. There was basically no assembly line; instead, various cars were assembled separately. The standardized process was even worse than that of his own factory in Hong Kong, and there were no process cards.

He even saw a bearing that couldn't be installed, and several workers were frantically hammering at it.
"Mr. Yang, how are you feeling?" Director Zhou asked.

"Based on my experience observing production at other car factories overseas, there is still room for improvement," Yang Wendong could only say tactfully.

Director Zhou understood the implication and said awkwardly, "Yes, we have also visited Japanese car factories, and compared to ours, they are still much stronger."

It's a pity that the Japanese automakers won't cooperate with us; they'll only sell us cars. And we've tested them, and their cars are even more fuel-efficient than American and German cars. From an oil perspective, importing Japanese cars is truly the best choice.

"That's not entirely true. It's true that Japanese cars are fuel-efficient, but their safety is lacking. You can't have everything," Yang Wendong added, offering a slight reminder.
As an international celebrity, he couldn't comment too much on this matter, otherwise it might provoke protests from Japanese car manufacturers. After all, he had considerable cooperation with Japanese car manufacturers in Southeast Asia, and his car retail group would need to cooperate with them globally in the future.

Japanese brands will dominate the global market for the next few decades, and this is unlikely to change.

"I see. It's just that we have fewer cars in the mainland, and people drive slower due to road conditions, so accidents are rare," Director Zhou said with a smile.
Yang Wendong nodded and said, "That's a good idea. I was just saying, but the specifics are up to you. If you need them, I can get Mini in the UK to give you a discount and send over a batch of cars. They'll be very cheap, but the quantity can't be too small."

Even if the cooperation with the mainland goes smoothly, it will be several years before cars can be produced. So for now, importing cars is a good business in the mainland. In any case, the factory in the UK is also their own property, and it is good to get extra large orders. It can also boost Thatcher's performance.

The demand for imported cars in mainland China is also extremely high. In 1985, more than $20 billion was spent on imported cars. Of course, this has a lot to do with Hainan, but in any case, it shows that the domestic demand for imported cars is very high.

Director Zhou thought for a moment and said, "This is not something I can decide, but we can discuss it when we visit the UK later. I can also submit the results of the discussion to other departments and see their opinions."

"Alright then." Yang Wendong nodded;
Director Zhou then said, "Mr. Yang, how about we take a ride on this BJ212?"

"Sure, I'll give it a try," Yang Wendong readily agreed.
The BJ212 is the type of car he visited this time. It is a model that imitates the American Jeep. This type of car was initially intended for military use, but later it became popular with many off-road enthusiasts and people who like to drive big vehicles. In the United States, it is used for both military and civilian purposes.

This vehicle model is available in mainland China, and it's quite suitable; the military needs it, and civilians can also use it.
Needless to say, the result of the test drive was far worse than the van in Yang Wendong's previous life. The whole car shook violently even on flat ground, indicating that the chassis was obviously not good.

This is normal. Even decades later, when we enter the era of electric vehicles, the chassis will still be one of the weaknesses of the mainland automobile industry.

He didn't offer any comments, just smiled and dealt with the trial ride. Around three or four in the afternoon, everyone returned, and Yang Wendong went back to his hotel.

At this moment, assistant Aying came to Yang Wendong and said, "Mr. Yang, we have the results of your investigation." "Oh, good, please sit down." Yang Wendong asked, "Tell me about it."

Ah Ying said, "Mr. Yang, currently, courtyard houses in Yanjing can be traded, unless they are listed as cultural heritage by the state."

However, we cannot sell to overseas institutions at the moment, meaning we cannot purchase them directly.

“We can’t buy directly.” Yang Wendong frowned slightly and said, “We’re from Hong Kong, is that not allowed either?”

In this era, he is not in a hurry to invest in China, except for a few industries that require him to first capture the market, such as cola, instant noodles, automobiles, etc.
In the 90s, there was no rush for land, unless it was for some mega projects, such as the China World Trade Center, Oriental Plaza, or some mega projects in Shanghai, Guangdong and other cities.
The courtyard houses in Yanjing are one of them. These are all scarce resources. In the future, these will not only be a matter of money, but also a matter of having a price but no market. You can't buy them even if you want to. They can be said to be unique in the world.

So when he came to Yanjing this time, he arranged for Ah Ying to investigate. As a time traveler, he couldn't possibly know the policies on certain things at this time.

Ah Ying said, "Theoretically, it's not possible unless we specifically negotiate with the relevant departments on the mainland, then maybe it's possible."

"Then forget it, we can't owe someone a favor over this," Yang Wendong said, shaking his head.

Ah Ying said: "I've thought of another way, which is to find an agent in China to buy a batch of courtyard houses first, and then bind them through an agreement. When the courtyard houses can be traded in the future, we will get them."

If the transaction cannot be completed in the future, the profits from the sale will also belong to us; everything can be stipulated in the contract.

“But that would pose a significant legal risk, since legally we cannot purchase these properties right now,” Yang Wendong said, frowning.

Some basic legal loopholes in various countries are not so easy to bypass. For example, in the United States, a major company is restricted by Congress from holding a certain percentage of shares by foreign companies.

If foreign investors acquire a certain equity stake in a company through a US-based agent via a contractual agreement, and then indirectly manage the company through the agent, that is absolutely illegal.
At best, the shares will be stripped of their voting rights; at worst, it could affect U.S. national security and lead to arrest.
Of course, purely economic investments, as long as they are kept low-key, are fine. For example, he invested in Chrysler, and even with the consent of the U.S. Department of Commerce, he did not interfere with Chrysler's operations, nor was there any need for him to interfere.
Similarly, while the importance of a traditional courtyard house may not be comparable to that of these top companies, they are legally the same. If the foreign party falls out with their client and the case goes to court in mainland China, the outcome is truly unpredictable.

Ah Ying said, "I think the best way is that our clients on the mainland also have a lot of interests in Hong Kong. That way, we can just restrict them on the commercial level. Even if they fall out one day, we won't have to go to court. Actually, it's not a good thing for either of us."

If the case goes to court, it will certainly be difficult for one side, but it is also illegal for the other party to act as an agent for a foreign party.

Yang Wendong thought for a moment and said, "You mean China Resources?"

With substantial interests in Hong Kong, sufficient cooperation with the Changxing Group, and a certain level of influence in mainland China, only China Resources stands out.

Ah Ying nodded and said, "Yes, many of China Resources' businesses in Hong Kong, including retail and real estate, depend on us. If they fall out with us, the losses will be unbearable for them."
The main purpose of having them purchase courtyard house assets on the mainland for us is to first consolidate enough properties so that they can be resold to us when foreign investment becomes available.”

"That's acceptable," Yang Wendong agreed, finding no problem with it.
According to his recollection, around 00, after China joined the WTO, foreign investment was not allowed in most industries except those that affected national security, such as oil, telecommunications, and automobiles.

Courtyard houses had some value around 00, but not much. Given the current cooperation between myself and China Resources, the cooperation would inevitably increase around 00. China Resources would not fall out with me over a few courtyard houses.

Furthermore, China Resources is a top-tier state-owned enterprise. Exposing this kind of thing wouldn't benefit them; it could even ruin their reputation in Hong Kong and abroad. Even if this business is considered shady, how many businessmen in the world are entirely above the law? There are always some in the middle, as long as it's not shady.
Ah Ying continued, "Actually, although our cooperation with China Resources is a normal business relationship, you could say that we've always taken care of them, so it's not unreasonable for them to do things like this for us."

“Yes, generally speaking, only suppliers we invest in receive this kind of treatment,” Yang Wendong nodded.

A top-tier company will inevitably have supply chain partners and other businesses established around it. Changxing Group will certainly treat some of these companies very well, which is also a necessity for its own business development. After all, it is impossible to do everything itself.
Those who receive this special treatment, apart from a few top-tier companies, are all people he has invested in, so that he can also profit from it and form deeper relationships.
But China Resources is a special case; Changxing Group cannot invest in it.
However, after the reform and opening up in mainland China, although China Resources Group will not introduce foreign investment in the future, many of its businesses will be financed or even listed, and he will have the opportunity at that time. He has already discussed this with the head of China Resources.

Ah Ying said, "Yes, then I'll go find the person in charge of China Resources Group in Yanjing."

"Let's arrange to meet with Mr. Zeng, the person in charge in Hong Kong. That would be more convenient." Yang Wendong nodded and said, "Just discuss the details, and then show me the contract before signing."

The courtyard house business has high future profits, but from his perspective, it's just a purely tactical investment to make some money. He won't get involved; he'll just let his subordinates handle it.

PS: Please give me a monthly ticket
(End of this chapter)