Siheyuan, Shazhu: I have both parents in this life

Chapter 378 The Rare Earth Dispute

The problems at the feed mill were ultimately resolved following Xu Damao's approach.

On the one hand, it could solve the employment problem; on the other hand, the commander of the engineering regiment was also cunning. He sent ten large trucks, with the tarpaulins covering them completely, and then two companies came down from them. Although they were not armed, their deterrent power was still there.

The commotion has subsided, and there's been a buffer period for introducing environmental protection equipment and technology. Actually, it's just that the logistics department is reluctant to spend the money, as the price is almost comparable to a complete set of equipment for a feed mill.

Xu Damao also chimed in with his words of advice.

"Chief Zhao, this equipment isn't just for the feed mill. Our next fertilizer plant will also need it. The pollution there is much worse than that of the feed mill. And other factories in the surrounding area will also need to treat their wastewater. Let them pay for it."

"You make it sound so easy, but which of those companies have you actually seen being harassed?"

"Well, there's nothing we can do about it. Don't worry, this thing will definitely be useful in the future."

"Let's have a meeting and discuss it."

"Ok."

In October, Xu Damao reported another matter to He Yuzhu: Huacheng had built the country's first analog cellular mobile phone system.

"Big Brother?" He Yuzhu asked.

"Oh, you know this name too?"

“Advertisements are flying all over Hong Kong. Ah Lang and his team even sent me one. How could I not know when they’re planning to release it online?” He Yuzhu said.

"It should be next month, but the specifics haven't been announced yet."

"Let them send it," He Yuzhu said.

"Brother, shall we stay put?"

“What’s the rush? You can expand your pager distribution channels when you have time,” He Yuzhu said.

"It's tough, the postal and telecommunications companies are really going after us."

“What if we change the brand?” He Yuzhu asked.

"I haven't tried this."

“Here’s what we’ll do: we’ll register a European company, re-register it in China, and then go talk to them again. You don’t need to go; find someone else to go,” He Yuzhu said.

"Okay, should I also transfer my mobile phone number? I'm worried."

"Yes, that's what I think. Is there anything else?" He Yuzhu asked.

“It’s true! Our electronics factory needs rare earth products for many components. Xiao Rizi sells them for a pretty high price. They’re not available in China. I consulted with A Sheng, and they all get their supplies from Xiao Rizi. Brother, do you know that Xiao Rizi doesn’t produce rare earth at all? They get their supplies from China. After processing, they make a hundred times the profit, a hundred times!” Xu Damao shouted the last hundred times with a heart full of indignation.

"Rare earth, I forgot about that. Let me think about how to handle this. For now, you guys can buy the smaller ones. And you're not just jealous of how much money they're making, are you?"

"How can I not be envious? A hundredfold profit, even murder and arson can't match this," Xu Damao said.

"Alright, stop being so envious. Focus on doing your job well. By the way, can the electronics factory expand?" He Yuzhu asked.

"Sure, there's plenty of land around here. The special economic zone is more than happy to see us expand. The question is, what should we do with it?"

"Regarding monitors, the CRT technology at the Hong Kong laboratory has made a breakthrough, and we need a place to mass-produce them," He Yuzhu said.

"Brother, why don't we get a TV?" Xu Damao asked.

“We will gradually give up the home appliance business. We have too many businesses, and there will be problems with management and other aspects,” He Yuzhu said.

"That's true, those joint ventures are giving us a real headache," Xu Damao said.

"So how's the training going for the people you've been training? Get them in the lead, I've said it so many times," He Yuzhu said.

“They’ve taken the lead, but they can’t handle big problems,” Xu Damao said.

"Okay, let's leave it at that for now. Remember to discuss the factory expansion. We need to increase the production capacity of pagers later. The boom period hasn't arrived yet," He Yuzhu said.

“I understand. The phone is also manufactured domestically and then labeled, right?” Xu Damao said.

"You're not stupid after all," He Yuzhu said.

"Hehe," Xu Damao chuckled.

After hanging up the phone, He Yuzhu thought for a moment and then called He Yuxin.

"Yuxin, where are you?" He Yuzhu asked.

"Brother, I'm in Hangzhou."

"When are you going back to Beijing?" He Yuzhu asked.

"I originally planned to go to Guangzhou and the Special Economic Zone again, and then go back to Beijing."

"Postpone your trip to Huacheng to see your wife. Go back to Beijing and see your daughter first," He Yuzhu said.

"Huh?" He Yuxin was a little confused.

"No, I have important business to attend to back home!" He Yuzhu said.

"Oh, brother, what's wrong?"

"It's like this, this, this, this is how it happened." He Yuzhu gave a brief explanation of the rare earth issue.

"Brother, this should be your forte. As far as I know, you should have connections in the companies that manage this."

Do you think it's convenient for me to step in?

"Uh, if I go there, won't I have to run up and down the ranks?"

"Is your brain full of dirt from buying land? Have you forgotten about Bai Ge's father?" He Yuzhu said.

"That's true, rare earth production requires mines."

“It has nothing to do with the mine, you’re doing this.” He Yuzhu explained.

"High, it is high!"

"Get lost, do you think I'm your translator?" He Yuzhu said irritably.

"Ah, oh, brother, I'm sorry, I'm sorry, but it really is tall!" He Yuxin said with an embarrassed smile.

"Alright, now that things in Hangzhou are mostly settled, let's head back to Beijing. The sooner the better," He Yuzhu said.

"Okay, I'll tell my people to handle it. I'll go back tomorrow."

"it is good."

He Yuxin hung up the phone and immediately bought a plane ticket back to Beijing.

He had originally planned to inspect a piece of land he was interested in near West Lake in Hangzhou, but he had also delegated this task to his subordinates. The matter that He Yuzhu had given him was much more important than that.

The following evening, He Yuxin returned home in Beijing, travel-worn and exhausted.

Chen Lanxiang was playing with her babbling son He Ningyu in the main room when she saw her son suddenly return. She asked, "Why did you come back so suddenly? You didn't even tell me beforehand."

"My older brother has something urgent that I need to come back to handle." He Yuxin then went to hug her daughter.

"Go away, go away. You're all cold, wait a bit before you hold her. Don't make my granddaughter cold." Chen Lanxiang slapped him away.

"Mom, it's only October!" He Yuxin said resentfully.

"Giggle giggle!" He Ningyu thought the two were playing around, and waved her little arms, laughing non-stop.

"Alright, go wash up before you come back to hug me," Chen Lanxiang said.

"Oh!" He Yuxin obediently went to wash his face. When he came back, he hugged his daughter and gently rubbed her little face with his stubble. He Ningyu was tickled and hurt by the prickles and kept pushing He Yuxin away with her little hands.

"Get out of here! Is this how you play games?" Chen Lanxiang snatched her granddaughter back.

"Hehe, where are my dad and wife?"

"He's watching TV in his room."

He Yuxin left the main house, greeted everyone in each room, and then went into the study to dial the phone number of Zhou's father's office.

The secretary answered the phone and, upon hearing that He Yuxin was looking for someone, quickly transferred the call.

"Uncle Zhou, this is Yuxin. I just returned to Beijing. I have something urgent that I'd like to report to you in person. Would it be convenient for you tonight or tomorrow?"

"Yuxin, I have a meeting tonight. Come to my office at 10 a.m. tomorrow."

"Okay, thank you, Uncle Zhou."

At 9:50 a.m. the next day, He Yuxin appeared on time in the corridor outside Zhou's father's office.

The secretary recognized him and led him inside.

Mr. Zhou was reviewing documents when he saw him come in. He pointed to the chair opposite him and said, "Sit down. What's the matter that's so urgent? Didn't you go to the south? Is there a problem with the project there?"

"No, Uncle Zhou, it's something else."

"What is it?" asked Zhou's father. "It's about rare earth elements," He Yuxin replied.

"Rare earth?" Zhou's father put down his pen, looking slightly puzzled. "I know about this. Our export volume is quite large, and it's one of our important sources of foreign exchange. Does Yellow River also want to do rare earth business?"

"No, that's not it. We don't have that technology right now, but we use quite a few finished products in the semiconductor field."

"What do you want to talk about? Roughly processed mineral powder is useless to you."

He Yuxin's expression turned serious: "Uncle Zhou, you may not know, but we buy processed finished products from Xiao Rizi merchants, and the price is almost a hundred times that of the raw materials. And Xiao Rizi, on the other hand, buys most of their raw materials from us at low prices, which are primary products."

Mr. Zhou frowned: "A hundredfold profit? That much?"

"It's normal that you don't know this because you don't do this work; those departments that export rare earths should know very well."

"If they knew that, would they still dare to sell it like this?"

"this."

"Alright, I'll ask someone about that. Now, tell me why you're here."

"Uncle Zhou is aware of the financial crisis outside, right?"

"I've heard a little about it, but what does it have to do with what you're saying?" In fact, the situation outside doesn't have much impact on the domestic situation, so departments that don't have a direct interest in it don't really care.

“This is very important; we want to take this opportunity to bring back some technology.”

"What does this have to do with rare earth elements?"

“We want to introduce rare earth separation and purification technology, but the other side is keeping the technology very secret. We can’t buy it through conventional channels at all. Because they have a stable source of rare earth, those companies are operating stably, and the external storms don’t affect them much,” He Yuxin said with a smile.

"So that's what you were planning, how cunning!" Zhou's father laughed.

"What harm does it do to our daily lives or to Europe and America? You're wrong to say that."

"Hahaha, you're something else. Yeah, a poor life doesn't deserve sympathy, it's the same in Europe and America!"

"Then what do you think about this matter?"

Mr. Zhou slowly leaned back in his chair, his fingers tapping lightly on the armrest.

The office fell silent for a moment.

It took a while before Zhou's father spoke.

“Yuxin, do you know how big this involves? Earning foreign exchange through exports is a crucial task, and many organizations rely on it to meet their targets. A sudden tightening will affect more than just one or two companies. Moreover, this involves foreign trade policy, which is not something any single department can decide on its own.”

"I understand the difficulties here. Therefore, Huanghe is willing to step in and buy out all domestically planned rare earth primary products for export for at least one year at a 50% premium over the current export price. In this way, the export targets and foreign exchange earnings of the relevant units will not only not decrease, but will actually increase. What we need is a window of opportunity, an opportunity for us to sit down and seriously discuss technology transfer."

A hint of surprise flashed in Zhou's father's eyes as he re-examined the young man before him.

Buying out the entire export quota for at least a year? That would require an astonishing amount of money.

"Does your brother know about this?" Zhou's father asked.

“This was instructed by my brother,” He Yuxin nodded affirmatively.

"You're taking a huge gamble," Zhou's father said thoughtfully.

"Uncle Zhou, this isn't a gamble, it's a strategic investment. Once we get the technology, won't it be better for us to sell it ourselves? We won't be held hostage by others anymore."

"Even if you manage to get this technology back, you probably won't be able to keep it in your hands unless you don't build factories in China. Besides, the government's actions will cause quite a stir, and they won't allow you to have exclusive access to this technology. What are you asking for?"

"Well... what if I said we never intended to use this technology in the first place?"

"What? How is that possible? What are you after?"

"It would be great if you could provide us with a stable supply of finished products in the future. Also, the Ministry of Posts and Telecommunications has some issues with our Yellow River Group. We'll see if we can coordinate that. You know our group has a telecommunications business, and it's quite large."

Mr. Zhou was taken aback. The finished product was no big deal, and the postal and telecommunications department shouldn't have any major problems either. Everything would be swept aside in the face of national progress, let alone something sordid. Mr. Zhou knew without even thinking what the postal and telecommunications department was up to.

After thinking for a moment, Zhou's father said, "I'll go and ask about this for you. It will probably take some time, since it requires communication with comrades from several relevant departments."

"I am clear."

"However, if you have any other bargaining chips, it would be easier to negotiate if you could bring them all out at once."

"Actually, Huanghe has done a lot, Uncle Zhou, from importing equipment to introducing technology and importing special semiconductor components. If this is not enough, I really don't know if it is right for Huanghe to invest back in China."

Mr. Zhou was taken aback and said seriously, "Did your brother tell you to say that?"

"No, my brother shouldn't really care about such a small gain or loss, but it's so difficult for us to get things done in China. It's just too hard to get anything done."

"I understand. It seems the post and telecommunications department has caused you a great loss and has disheartened you. You can't say this to anyone again, understand?"

"I know that if you hadn't asked me that question today, I wouldn't have said that I really am. Hey."

"Alright, you, as the big boss, also need to learn to be tolerant. Nothing can be accomplished overnight, nor will things remain unchanged forever."

“I understand, but once the hype has died down, it’s not worth it to get a piece of the pie, and it means all our initial investment has gone down the drain.”

"You little rascal, you've come to me to complain, but don't get your hopes up too high, after all, I'm only in charge of one department."

"There's always some hope, isn't there? If not, then we'll have to think of another way."

"Okay, is there anything else? If not, you can leave now."

"Then I won't disturb your work any longer. By the way, I'm going to Huacheng in a while. Is there anything you want to bring back for Baige?"

“Yes, there really is. Tell me before you leave and I’ll have someone send you some things. They’re all local specialties brought over by my old comrades from Northeast China. They said they’re good for pregnant women and babies.”

"Row."

After leaving Zhou's father's office, He Yuxin immediately called He Yuzhu in Hong Kong and gave him a detailed report of the meeting.

"Why couldn't you hold back, kid?"

"Brother Mao has told me so many times that if we can't get over this hurdle, we'll really fall far behind."

"So what if I said it? It might not be a good thing."

"what"

"It may not be a bad thing. If the higher-ups see the problem, they will eventually have to solve it."

"Phew, that's good, that's good."

"Alright, then just wait for news. I estimate it won't be long. Go check out the computer company's lab. Once you've set up the lab, you're done with it?"

"Oh, I'll go tomorrow, I'll go tomorrow."

The next day, He Yuxin went to the lab, and Huang Lingyi asked a lot of questions, mostly about equipment, and some about data and papers.

He Yuxin communicated with the Singapore laboratory, and they said they would send it over as soon as possible. Huang Lingyi was satisfied, and then He Yuxin had nothing to do. No one paid attention to him; everyone was too busy.

Over the next few days, He Yuxin handled the company's daily affairs, spent time with his daughter, and talked on the phone with his wife and baby.

A week later, Zhou's father had his secretary call and asked He Yuxin to come again.

This time, Zhou's father seemed more relaxed.

"Yuxin, I've had a preliminary discussion with the heads of several departments. In principle, we agree with your idea of ​​'trading market access for technology.' However, the specific implementation is very complicated."

Zhou's father handed He Yuxin a draft document: "This is a preliminary idea. We can have a special working group set up at the higher level to coordinate the foreign trade, metallurgy, and non-ferrous metals departments. We can first select a few major rare earth varieties and try to contact the Japanese side, using long-term supply agreements as leverage to bundle technology transfer negotiations."

He Yuxin quickly skimmed through the draft: "So, it means that it's no longer just the Yellow River acting alone, but rather the national level is involved in the discussions?"

"Yes, your Yellow River Engineering Group can be one of the recipients of the technology and participate in its subsequent industrialization. However, the initial negotiations must be conducted in the name of the state to ensure sufficient impact. Regarding the issue with the Ministry of Posts and Telecommunications, 'comrades will also investigate the situation.'"

“Uncle Zhou, forgive my bluntness, but I don’t have a high opinion of this so-called special task force. If they could have accomplished this, they would have done it already. Besides, doing this has nothing to do with the Yellow River anymore. We’re just offering suggestions, and we won’t get involved in the follow-up. Of course, if we can actually reach an agreement, we will purchase the finished products at market prices,” He Yuxin said.

Why are you pessimistic about it? What are your reasons?

“As far as I know, although we are short of foreign exchange, we are not so short that we cannot survive without this. Do you know how much our rare earth exports rank in the world?” He Yuxin said.

"How much?" Zhou's father actually knew some figures, but he wanted to hear what He Yuxin had to say.

“Fifty percent or even more, while the foreign exchange we receive is only one-third or even less of what other raw ore exporting countries receive,” He Yuxin said.

"Hiss!" Zhou's father gasped.

“I think those departments didn’t mention this at the meeting, or the data they gave me is different,” He Yuxin said.

“I understand what you mean. If there really are that many, and we stop, things will get really chaotic outside. So, if we don’t care about investment or partial technology imports, we are actually controlling the discourse power in this industry. But if we still can’t acquire the technology, then the problem definitely can’t be solved by any agreement, right?” Mr. Zhou frowned.

"Ah."

"Hey, I'll have another meeting with them. Just pretend you never saw this." Mr. Zhou put the document away.

"Okay, I'll be going now," He Yuxin said.

"Go ahead," Zhou's father waved his hand, his mood low.

(End of this chapter)