Return to Hong Kong Island for a Century

Chapter 435 We must get them into GATT (5000 words)
Li Song had mentioned this matter before, but there had been no further news since. The main leaders really wanted to ask, but they had no way to do so.

Because Li Song and his team brought in so many new technologies, and new technologies mean investment.

First, the technology must be verified theoretically before it can be put into testing. If the theory is not fully understood, it is impossible to enter the testing stage.

Once you enter the trial phase, you need money and supplies.

So Li Song didn't give them the satellite technology, and the leaders didn't ask either, because once they got the technology, they would have to spend money.

The south is still not peaceful, so military spending also requires money.

Moreover, new technologies are accompanied by various investments, from the source mines, transportation, smelting, processing, and manufacturing.

All of these require investment.

Fortunately, export data is getting better and better; otherwise, there simply wouldn't be enough money in the country to invest.

Even so, the domestic fiscal deficit is still quite serious.

So Li Song didn't bring up the satellite technology, and the leaders didn't ask.

"Mr. Li, of course, no problem." The leader readily agreed when he heard that Li Song wanted to launch a satellite.

"However, Mr. Li, how many satellites do you plan to launch?" the leader asked again.

"We will prioritize global positioning, launching 6-8 satellites initially, and aim to complete the launch within the next year."

"We will first serve our Asian and surrounding regions."

"Ultimately, a global positioning system will consist of more than 24 satellites," Li Song said.

The reason Li Song launched 6-8 satellites first was because it involved updating and iterating satellite technology.

Because semiconductor technology is developing so rapidly, launching too many at once would be a burden.

"Provide GPS services for our aircraft and ships."

"Then there are communications satellites, we'll talk about that later."

"Whether it's GPS or communication satellites, the initial investment is huge. We can't build our own product supply chain, so we'll have to rely on the official supply chain, or even order satellites directly from the government."

Li Song said this because it is impossible to establish two satellite industry chains in the mainland, which would be redundant.

Li Song could even directly order satellites, since the technology is shared with the mainland anyway.

"No problem." The leader didn't know what to say. Although he trusted Li Song, he couldn't say too much without seeing the actual product.

"Mr. Li, shouldn't you resolve your personal issues?" the senior leader asked.

"Huh?" Li Song was a little surprised. Wasn't it supposed to be a satellite?

What Li Song didn't know was that the leader didn't know much about these specific things, such as mobile phones, computers, and chips. The leader wasn't in that field, so when it came to these things, the leader felt he couldn't join the conversation.

Li Song was unaware that the leader's visit was also related to his personal issues.

"I have no plans to get married," Li Song replied directly.

"Huh? Doesn't Mr. Li want a child?" The leader was also somewhat surprised. Not getting married?
"Of course not. I won't object to anyone having a child for me, and I won't force anyone not to." Li Song is from 2080 and doesn't value children that much.

When the leader heard Li Song say this, he thought that Li Song was still young and that's why he had this idea.

Moreover, if you get married, you won't be able to flirt with other women outside. Since you're not married yet, even if some people bring this up, it's not a big deal.

“Besides, I’m still young. It’s not too late to have a child at forty,” Li Song added.

"But you have such a large business?" the leader asked again.

"Boss, ancient emperors had even larger fortunes, yet most of them squandered them. So even if I have a child, he might just be a spendthrift." Li Song chuckled.

Upon hearing this, the leader was speechless. He had considered countless possible responses from Li Song, but this was the one that didn't come to mind, so the leader didn't know what to say.

By this time, the car had arrived at the office building, and the leaders inspected the workshop before having lunch with the workers in the canteen.

Then the leaders inspected the entire industrial park, and they will come to the aircraft manufacturing plant the next day to participate in the type finalization and naming ceremony.

As for whether to use the 22M3 or the 160, this still needs to be decided in a meeting, because the procedures must be followed.

The next morning at 7:30, the leader arrived at the aircraft manufacturing plant.

After lunch, at 8:30, the group arrived at the airport runway, where two CA201 aircraft were parked.

The main leaders stood in front of the first aircraft and officially announced: "Congratulations to Chang'an Aircraft Manufacturing Plant on the first domestically produced passenger aircraft, the Chang'an 201, passing the national acceptance test and officially being finalized for mass production."

Fireworks were set off in the distance, and behind the leaders was a long banner that read "Congratulations to Chang'an Aircraft Manufacturing Plant on the mass production of its first passenger plane."

The people around applauded, and then the main leader continued to speak: "Here, on behalf of the higher authorities, I wish Chang'an Aircraft Manufacturing Plant all the best."

There was another round of applause, and then the local leaders from Chang'an went on stage to say a few words, followed by Ma Gong. Li Song did not go up to speak.

Then came the group photo.

After the group photo, the civil aviation department signed an order for 100 passenger planes with Chang'an Aircraft Manufacturing Plant. It wasn't that the civil aviation department didn't want to buy more, but that Li Song was unwilling to sign more contracts.

Because prices rose sharply afterward, the price of each of the first batch of 100 aircraft was 2000 million RMB.

The exchange rate is around 2.8 to the US dollar, which is about 700 million US dollars. This price is really a steal.

Even in the 90s, when the exchange rate was 5, it was only 3500 million RMB.

The Boeing 757 was priced at $80 million in the mid-7000s.

In the past 90 years, the civil aviation sector purchased 72 Boeing passenger planes for $4 billion. At that time, the exchange rate of the US dollar was about 5, which is equivalent to 20 billion RMB to buy 72 planes. Each plane cost 270 million RMB, or 55 million US dollars.

Commercial airliners are expensive to begin with, and since you can't manufacture them, the price is naturally very high because there are only a handful of companies in the world that can produce them.

Moreover, anything you don't have can be incredibly expensive, like carbon fiber. When you don't have it, it's incredibly expensive, but once you have it, it's dirt cheap.

Just like imported cars in the 80s, which were more expensive than they are decades later.

Historically, in the 90s, a Passat would have cost 30 yuan, and a Mercedes would have cost a million yuan, making them more expensive than in 2025.

Even so, you still have to be mindful of others' opinions, pay extra, and spend more money to buy this and that. It's fair to say that historically, imported car dealers have made the most money.

Furthermore, foreign automakers have historically been highly discriminatory towards mainland China, and recalls have not included mainland China.

Historically, it was only after the East developed its own domestic car manufacturers that car prices came down.

Of course, decades from now, imported cars will still be expensive in countries without production capacity.

To put it simply, industrialized countries have all maintained a tacit understanding.

Especially for fully industrialized countries, there will be no more support for other countries to become industrialized countries in the future, because the pie is only so big. If you recklessly support other countries, the consequence will be that no one will have any business.

This is why many countries are underdeveloped or developing countries, because the world doesn't need so many industrialized nations.

If everyone can produce their own products, then who will they sell them to?

Just like COCOM in this era, it is essentially an open restriction.

Li Song offered such low prices to aircraft manufacturers in mainland China mainly to disrupt the market.

Boeing's classic 757 will not be finalized until next year.

Airbus' classic A320 will not begin development until next year.

而经典的波音737现在还是100，200，波音737-300要84年首飞。

Therefore, the Chang'an 201 is positioned at the most advantageous time. The Chang'an 201 comes in several types, with a standard layout of 220 seats, and of course, there are also versions with 185 seats, depending on the configuration, such as adding first-class seats or other features.

After the leaders finished lunch, two Chang'an 201 aircraft took them directly to Kyoto, where they were officially handed over to the civil aviation authorities.

These two 201s received a grand reception at Kyoto Airport, including a water salute.

And there were also reporters interviewing them.

The evening news (historically, it seems the evening news was broadcast at 8 pm, but here it's consistently 7 pm) is broadcast at 7 pm.
At the Chang'an Aircraft Manufacturing Plant, Li Song was anticipating the reactions of European and American aircraft manufacturing companies; he was there to cause trouble.

However, Li Song did not have his sights set on Aramco's market. Aramco's domestic market was mostly regional jets serving dozens or hundreds of passengers, and Boeing later launched a shortened version of the 757.

Aramco's aviation market is huge, but don't forget that Aramco is sparsely populated. Unless it's a transoceanic flight or a flight between major cities, large aircraft are more commonly used, such as the Boeing 737-200 (carrying 104 passengers).

Li Song is targeting countries that cannot produce aircraft. "This station reports that my country's first domestically produced Chang'an 201 medium- and long-range civil airliner has passed the acceptance inspection by national departments and has officially entered mass production."

"The Chang'an 201 is the first civil airliner manufactured by Chang'an Aircraft Manufacturing Plant..." Li Song watched the news anchor announce the aircraft parameters of the Chang'an 201.

"The civil aviation authorities have signed an order for 100 aircraft with Chang'an Aircraft Manufacturing Plant." The news anchor's voice accompanied a video of leaders visiting the aircraft.

The price isn't mentioned here, but those who want to know will find out, mainly because the supply chain prices at Chang'an Aircraft Manufacturing Plant are not commercial prices.

The prices of planned materials in China are now much lower than in the international market.

The news reported that two planes from Kyoto Airport passed through a water salute; both planes belonged to Kyoto Airlines.

On the other side of the world, Boeing's shareholders and executives looked extremely grim.

"700 million US dollars, how did they do it?!"

"This is dumping! This is dumping!" Boeing is in a bad position now, as the Boeing 757 is about to be finalized, mass-produced, and put into service.

Because the Boeing 757 has 200-228 seats.

Historically, the Boeing 757 lost market share to the Airbus A320 due to its lower price, and production ceased in 05.

However, the Boeing 757 enjoyed a period of prosperity before the Airbus A320 was introduced.

But this time, the Boeing 757 may end before it even begins.

Because of this price, it's feasible.

"The East must join GATT (General Agreement on Tariffs and Trade, the predecessor of the WTO, which was established in 95)," the Boeing president said.

"This can't go on like this!"

"The material costs of Chang'an Aircraft Manufacturing Plant are only one-third of ours, not to mention the labor costs."

"If this continues, it will be difficult for us to compete with them."

“After all, capitalists aren’t fools,” the CEO continued.

The Boeing shareholders present were so eager to kill Li Song that someone asked, "Can we make Li Song disappear?"

"Of course, but it's not very useful because the entire Chang'an aircraft manufacturing plant is located in the mainland, and the entire supply chain is there. So far, we can only see the Chang'an aircraft manufacturing plant from news reports or satellite maps."

"Moreover, Li Song never goes anywhere else. When he travels in Hong Kong Island, he is always protected by bodyguards, who are all from the mainland."

"Moreover, Li Song was originally a puppet put forward by the mainland."

"If one dies, they can replace him anytime."

"The only way is to get the East to join GATT, at least to raise material prices, and that way we can keep them in check," the Boeing president continued.

"Isn't there a better way? Like tariffs or something?"

"Of course we can. We can even use political power to impose a 100% tariff, or even more. But Chang'an Aircraft Manufacturing Plant has no market in the world. Even if they haven't sold a single aircraft in other countries, everyone knows that a 200-seat medium-to-long-range passenger plane is worth $700 million!"

"That's right, they're trying to disgust us here!" The Boeing president shrugged.

"Disgusting!" The shareholders realized that the other party didn't want the global market, but the pricing was clearly disgusting.

"The only way forward is to bring them into our trade circle."

"Should we contact Airbus and see what they say?"

“And McDonnell Douglas, this isn’t our company’s business. Also, I propose suspending the 757 program!” a Boeing shareholder suggested.

"no!"

“We must have a competing aircraft model against the 201. Right now, our main market is wide-body passenger aircraft and the 737-200. If we don’t have a competing model, then they will seize this market share and then affect more aircraft models.”

"Moreover, the 757 should be finalized and make its maiden flight within a year at the latest. The losses from interrupting it now would be too great," the president quickly objected.

Are you kidding me? The R&D stopped, the prepared funds couldn't be used, and they were all taken by the shareholders anyway.

By spending the funds, the CEO can also pocket some kickbacks.

"The stock price later..."

"Damn Wall Street, kill them all," Boeing shareholders thought of today's stock price.

What is night in the East is morning in Ame.

"I have something else to do."

"I have other things to do too!" The shareholders hurriedly left, trying to get their shares sold off quickly, otherwise they wouldn't be able to leave.

The president of Boeing contacted the president of McDonnell Douglas, and the two had a long talk.

When McDonnell Douglas received the call, he looked incredulous: "700 million US dollars for a standard passenger plane with a capacity of 220 people, wouldn't those airlines go crazy?"

Most airlines opt for leasing because purchasing an aircraft is too expensive. A single aircraft costs tens of millions of US dollars, and such a large amount of capital tied up in aircraft incurs enormous annual costs.

If McDonnell Douglas's president also made Boeing bring the East into GATT, then the rules can be used to constrain or punish Chang'an Aircraft Manufacturing.

Of course, the US can now conduct anti-dumping and anti-monopoly investigations domestically, but it's not very useful because the East is not in your trade circle.

Eastern passenger planes are not sold in your country, so fining Chang'an Aircraft Manufacturing Company is meaningless because they have no assets in your country.

Joining GATT changes things; as a member state, one must take responsibility.

“I personally agree with your idea, but our company’s performance has been poor recently, and the new aircraft will take some time to arrive, so we can’t participate.” McDonnell Douglas’s president had a strange expression, because Boeing would have to spend a lot of money to push this forward.

Of course, Boeing is pushing this in order to allow their own aircraft to enter the Eastern market.

It is obvious that the Chang'an 201 has just begun to be finalized and production will not be able to pick up in the short term. Boeing can take this opportunity to lease the aircraft to the Eastern market at a low price.

Boeing's low-price leasing strategy aims to seize market share. Civil aviation is a complex system involving ground staff, maintenance, pilots, and more. If Boeing can capture market share through low-price leasing, it can squeeze the market share of Chang'an Aircraft Manufacturing Plant.

Moreover, Chang'an Aircraft Manufacturing Plant mainly manufactures medium- and long-range passenger aircraft, while Boeing can focus its efforts on the wide-body passenger aircraft market or the smaller regional jet market.

Furthermore, there are political factors at play, so Boeing believes there are still opportunities in the Eastern market.

Moreover, once Dongfang joins GATT, a circle dominated by the US, they can use the rules to target Chang'an Aircraft Manufacturing Plant.

They could even create some disasters and ground flights worldwide.

The Boeing president said on the phone, "This isn't just a Boeing issue; McDonnell Douglas also has a stake in it?"

“We don’t have the money; our money needs to be invested in research and development, but we won’t object,” the CEO of McDonnell Douglas refused over the phone.

Because this is a trap, Boeing is working hard on one side, while McDonnell Douglas is reaping the rewards.

McDonnell Douglas also knew that the DC-10 crashes were not so simple, but there was no evidence, and too many people were involved in these accidents.

Moreover, the CEO of McDonnell Douglas wanted to grow the company so that he, as CEO, could earn a higher salary.

Even if it's just selling the slow-moving DC10, that's still an achievement.

Moreover, once the shares are sold, the non-performing assets will be disposed of, and the stock price will surely soar. So McDonnell Douglas's stock has been falling, but the shareholders are not in a hurry at all. The more it falls, the better, so they can slowly accumulate shares.

Sell ​​after the non-performing assets are disposed of and the stock price takes off.

Furthermore, we could also take a hit on Boeing, since its stock price would fluctuate.

"This is such a shame..." The Boeing president knew that McDonnell Douglas would definitely back down, but communication was still necessary.

"We hope your company will join us in taking further measures against Chang'an Aircraft Manufacturing Plant," the Boeing president added.

“Of course, no problem. Chang’an Aircraft Manufacturing Company’s behavior must be punished.” President McDonnell Douglas nodded.

"Okay, I'll contact Airbus..."

In Europe, it was afternoon. Airbus received the news, and before they could react, Airbus stock plummeted again.

Although there was no media coverage, financial companies are very well-informed.

The entire aviation sector fell as a result, and people at major airlines were stunned. $700 million could buy a standard 220-seat aircraft!
This!
So who are we?
At $700 million apiece, we have to buy it outright!
$700 million, even a used cargo plane costs more than that!
$700 million, and we broke even very quickly!

Then these airlines held meetings and demanded that Airbus lower its prices, saying that they were making too much profit. Of course, they also demanded that Boeing lower its prices, otherwise they would buy planes from China Eastern Airlines!
(End of this chapter)