Nanyang 1931: From piglets to giants

Chapter 38 Grand Vision
At the dinner table, Zheng Yi was still talking, but with Chen Liushi's arrival, he naturally felt much more confident.

"Since Mr. Liu is here today, let's just talk about rubber and nothing else."

"These past few years have been an economic crisis, and all commodity prices have been falling, including rubber. Since 28, almost all Chinese and Japanese banks in Southeast Asia have collapsed. Those that haven't collapsed are basically struggling."

“To put it bluntly, European and American capitalists have not had a good time in recent years. They can’t get enough to eat in Europe and America, so they come to our Nanyang to grab food.

If we, the Chinese in Southeast Asia, don't seek change, we will sooner or later be completely eaten up by these European and American capitalists. As I said before, it's either me or me. The traditional rubber production method that relies on manual labor is bound to die."

"But crisis, crisis, is the opportunity hidden in danger. In times of crisis, heroes are revealed. If the price of rubber drops, those who use machines will eliminate those who don't."

“Those who use the machines well can eliminate those who use them poorly.”

"This is a consolidation and reshuffle of the entire industry. Have you heard of the Matthew effect? ​​It means that in this industry, the big ones will get even bigger in the next few years, while those who can't keep up will die quickly."

"To put it in a broader context, even though Nanyang accounts for more than half of the global rubber industry, there's still the remaining half in South America. If we can use machinery to expand production capacity and produce more and cheaper rubber, can we squeeze them out? I think it's still possible."

"Currently, the rubber produced in Southeast Asia accounts for approximately 60% to 70% of the world's total. If our rubber production in Southeast Asia could exceed 90% of the world's total, completely destroying all the plantations in South America, then why the hell would the world rubber trading center still be in London or New York? Why not Singapore?"

"Similarly, since the European and American markets are sluggish, they will definitely be sensitive to prices. Some money may be a piece of chicken ribs to those big European and American capitals and big foreign companies, but for us, it may be a feast."

"The vulcanization of natural rubber involves mixing sulfide and rubber and then applying pressure to them. The principle of a rubber press is the same as that of a sheeting machine. We can press our own rubber, and we can do it. This is the rubber used in car tires."

"How many car manufacturers are there in the world? How many motorcycle manufacturers are there? We can definitely sign stable, long-term rubber supply contracts with them. There's no need to go through foreign companies, exchanges, or traders. They save money, and we make more. What's wrong with that?"

"We produce our own rubber and machinery. To be honest, the land and labor are much cheaper than in Europe and the United States."

"I've already negotiated with Shell Oil. I can buy the chemical raw materials needed for rubber processing directly from them. The production area is in North Borneo. I can say that the cost is no higher than that of the British."

"The remaining costs are electricity and water. Due to the economic crisis, British businesses are struggling, especially the manufacturing sector, with many going bankrupt. Even the power grid is largely idle, with no operations anywhere."

"The British used to be reluctant to place manufacturing in their colonies, but now, I don't think they can care less. Shell, British Electric, Royal Water, and Wales—these capital giants are already very rich, but they also need new profit growth points."

"Nanyang is their new growth point."

"As long as our infrastructure in Nanyang can keep up, rubber vulcanization is only the first step. Later, we will be able to do at least half of the rubber deep processing. The cost will definitely be much cheaper than in Europe and the United States, and we can still make a profit."

"When the economic environment is bad, cheap things and things with high cost performance will easily occupy the market.
As long as major rubber producers in Europe and the United States buy rubber from us, it won't be long before other companies and factories with rubber needs come to us with technology, equipment, and even experienced workers."

"Guys, imagine how much money we can make this way?"

Of course, it is impossible for Zheng Yi to master all the technologies in an industry or produce all the equipment in an industry. The industry he worked in in his previous life was not even related to it.

But what did that matter? This was the main production area for natural rubber. As long as he could localize general equipment, achieve large-scale production, and industrial cluster production, the technologies he couldn't master would naturally come to him. Synthetic rubber technology was not mature at the time.

"Before, we were only responsible for planting and harvesting rubber. Even selling the rubber was done by Europeans and Americans. Out of ten points of profit, they took nine points, and we only took one point at most."

"But as long as we can unite, we will get at least 70% or 80% of the rubber profits in the future."

"Sixth Master, if you don't give up, who else but you will be the chairman of the Nanyang Rubber Association?"

Upon hearing this, Chen Liushi laughed and accepted it.

After all, his original goal was to become the cross-regional Nanyang Rubber King. No matter from which angle, the chairman of this rubber association can only be him.

"I understand. If you follow us, you will make a fortune in the future. Big fish eat small fish, small fish eat shrimp. If you don't follow us, you will be a small fish or shrimp and will be eaten soon. Hahahaha, Lao Zhang, do you want to be a big fish or a small fish?"

For a moment, no one knew whether they were shocked by the vision described by Zheng Yi or fascinated by Chen Liushi's demeanor. No one spoke, and everyone lowered their heads, not knowing what they were thinking.

After a while, it was Zhang Yucai who spoke again, "Since no one is saying anything, then I'll tell you. Those who get on the bus can survive, and even leap over the dragon gate. Those who can't get on the bus will die. Is that what you mean?"

"The big fish eat the small fish... the strong prey on the weak, it's only natural. I won't argue with you. Nowadays, we old guys are really becoming the weak ones. It doesn't matter if we die. There are still hundreds of thousands of Chinese workers in Kuala Lumpur who rely on rubber for their livelihood. They have to have a place to go."

"Hey, since Sixth Master is here today, I can't scare you anymore. Brother Zheng, let me tell you the truth. I haven't made any money in the past five years. I've only lost money."

"Everyone here is probably not much different from me. People say I, Zhang Yucai, have a rich family and a lot of wealth, which is true, but my wealth is huge, and my expenses are also huge. During the World War, the British used coercion and bribery to make me buy a full 20 million worth of bonds!"

"What happened? The damn British said everything was fine when they lent me the money. Now the war is over and they're the victors, but I haven't even gotten back half of my principal, let alone the interest on the bonds! I'm actually broke!"

"So today, Sixth Master, and this young brother Zheng, I have to admit my weakness. After all these brothers and I have to pool our resources, we can only come up with no more than four million in cash."

"The survival of the fittest is natural selection. In other places in Southeast Asia, even if you kill him and a river of blood flows, you two can still sit high on the stage and watch the world go by with a smile. But in Kuala Lumpur..."

"Mr. Zheng, your people, your factory, your equipment, and your home are all still here. After all, you are half a Kuala Lumpur person."

"You can't just stand by and watch Kuala Lumpur fall into chaos! If all of us were to die, believe it or not, there would be no business in Kuala Lumpur!"

"Mr. Zheng, just think of me being a scoundrel today. Four million. This four million is all the cash we can come up with. I'm giving it all to you. It's not enough. No matter how you arrange it, you have to let all of us get on your car."

"Sixth Master, I know you want to support him, but you have to let us live. I am almost dead, how can I care about your face? Not to mention you, even if your uncle came, I would still say the same thing, you have to let me live."

"Today, I really am acting like a rogue!"

(End of this chapter)