America: My Time

Chapter 115 Communication
Chapter 115 Communication

"I've heard of it, but never tasted it. I must savor it properly today; this is a rare opportunity." John paid no heed to the Consul General's probing, his eyes fixed intently on the pot of tea. John was also a tea lover, but unfortunately, there wasn't much good tea in the United States. He was very happy to have this opportunity to taste Da Hong Pao.

"Since Mr. John is also a tea lover, I'll give you some when you leave. However, I can't give you much, just enough for three to five pots. Don't think it's too little!"

“Then I won’t stand on ceremony. This is Da Hong Pao tea, and it’s already quite rare to have three or five pots of it. How could I possibly complain that it’s not enough!” John wasn’t ignorant; he knew exactly how precious Da Hong Pao tea was.

"Mr. John, what are your thoughts on the current state of investment attraction in China?" The Consul General quickly got to the point!

Upon hearing this, John couldn't help but sigh. This was no simple matter! If it were anyone else, John wouldn't say anything and would gloss over it, but he couldn't do that now!

After gathering his thoughts, John said, "Well, I don't know much about the investment situation, but based on my personal understanding and feelings, the current investment environment in China is not enough to entice many entrepreneurs. Investment regulations are restricting everyone's investment ideas."

John paused at this point, then continued, "The reason for this situation is the difference in perspectives between the two sides. Putting aside other issues, the union issue alone has become a major obstacle to investment!"

"Unions? How can that be a major problem restricting investment? American companies also have unions?"

Faced with the Consul General's doubts, John was not surprised: "Yes, American companies also have unions, but American unions are different from those in China. This is something you all don't understand. American unions are not as simple as you think, and they certainly don't represent the interests of workers. Let me give you a simple example: AMC, you should all know it. Why did it go bankrupt and get acquired? It was actually caused by the union. Of course, the workers were also partly to blame."

"That can't be right. How could the union and workers bring down the company?"

"Nothing is impossible. It's all about mindset. The American auto union and workers have always been eyeing their bosses' wallets. As long as the auto company makes money, they'll keep demanding wage increases. If the company doesn't agree, the union will incite workers to strike or even take extreme actions. That's how AMC was brought down. Workers started taking extreme actions against the company when they didn't get the wages they demanded, causing serious quality problems with AMC's cars, resulting in huge losses for the company, and pushing it step by step into dire straits. At the same time, these workers were blacklisted by major auto companies!"

"If Mr. John hadn't explained, we really wouldn't have known that the union's problems were so big!"

"Unions are only one aspect; joint venture restrictions are another major problem. Many American companies are relocating overseas, but after inquiring about China's investment regulations, they have to give up. They cannot accept the restrictions on joint ventures. Capital is profit-driven. It is precisely because of labor costs and union issues in the United States that they choose to relocate and invest in China; they see no hope of making money there!"

John paused again at this point, giving the Consul General time to process the information, before continuing, "In fact, in my opinion, even if companies invest now, you should be prepared for them to withdraw their investment in a few years. As I said before, capital is profit-driven, and when they don't get the returns they want, they will inevitably withdraw their investment!"

"Was it for these reasons that Mr. John also considered investing in China?"

John nodded and said, "That's part of the reason. The clothing company I wanted to invest in before was an OEM company, which didn't have much profit to begin with. If it were a joint venture, I'm afraid the profit wouldn't even be as much as it would be in the US. What's the point of such an investment? It's just like the production of the game world. In the US, due to workers and unions, the production needs of the game world cannot be met. So we had to choose the three major Japanese companies as the OEM for the game world!"

"Mr. John, is there any way to change this situation?" "It's difficult. Without changing the investment regulations, the problem will be hard to solve. China has its concerns about investors, and the investing companies also have their concerns about you. For large enterprises, such as those in the automotive, aircraft, and chemical industries—those with long-term interests—joint ventures are acceptable, given China's huge market potential; short-term gains aren't that important. However, the current global economic situation isn't very good, so large investments need to be approached with caution. It's not something you can just decide to do; companies must prioritize survival."

For some small businesses, such as clothing, small commodities, food processing, or even auto parts, it is difficult for anyone to accept a joint venture where profits are split 20/20. Capital is for profit, and without profit, there is no recognition. This is why many American companies choose Southeast Asian countries after relocating.

To be honest, if there weren't investment restrictions, I would choose to invest in China, in clothing, food processing, and auto parts—all good investments. However, the current situation in China isn't suitable, so we can only choose Hong Kong and Taiwan. Time is crucial for us; a step ahead is a step ahead in everything. Brand development cannot be delayed!

The Forever Group now needs to accelerate its strategic layout, with production being of paramount importance. Delaying will only hinder the group's growth and expansion. The Forever 21 brand cannot stop, nor can Victoria's Secret's development. Now that John has completed his media and entertainment strategy, the surrounding supporting infrastructure naturally needs to be developed at a faster pace.

When John decided to enter the automotive industry, although he chose British car brands as acquisition targets, he did not abandon the US market. However, his goal was not car production, but the sale of auto parts. He had already secretly investigated the US auto parts market, preparing to make an acquisition decision.

It's not just about selling auto parts; supermarkets are also in the works. However, my energy is limited right now, and everything is still in the planning stages. We need to wait for the right time, and all of this takes time. If we can complete the retail layout, we will naturally need to make arrangements for production. The best place to invest is China, but unfortunately, China currently has investment restrictions.

"In fact, for China, attracting foreign investment is very important, but it is also necessary to understand foreign companies well, and to be well-prepared in the cultivation of scientific and technological talents, because talents are the foundation of everything."

"We certainly want to cultivate scientific and technological talents, but our funding is limited, and our selection criteria are also limited. Many universities do not accept our students!"

John was aware of the situation at American universities, noting the numerous hidden obstacles, especially at private universities. These universities faced many constraints, making the financial burden on Chinese students too heavy without scholarships. Applying to public universities was also difficult. Most importantly, even after graduating from their studies abroad, many students didn't necessarily choose to return to China; many opted to stay overseas, further impacting China's burden in cultivating scientific and technological talent.

"If you have outstanding students, I can help recommend them. My company has partnerships with Stanford, UC Berkeley, and USC. If a school only has three to five spots available, it's not a big problem!"

"Thank you for your help, Mr. John!"

John shook his head slightly and sighed, "This is all I can do, it's nothing, but I have to say something beforehand to avoid any problems that might affect our relationship. The selection of candidates is very important; they must have sufficient ability, and it's related to their lives in the United States. Having a scholarship and not having a scholarship are two completely different situations. If they need to work, I can also arrange for them to work in my company. However, there is one thing I need to say beforehand: not everyone can resist the temptation of profit. Many people will not choose to return to their home country. If that happens, I don't want it to affect our relationship."

The Consul General could understand John's caution. At this time, many Chinese and overseas Chinese held a cautious attitude towards their motherland. Even if they were devoted to their motherland, they had many concerns. It was already very commendable that John was willing to help his motherland, and he also made everything very clear!

"Mr. John, please rest assured, we are already extremely grateful for your help in arranging student placements. Even if some of them are unwilling to give up the high quality of life in the United States and return to their home countries to work, we will not blame you. If we have to assign responsibility, it is only on us; we failed to make proper arrangements for the students!"

As the Consul General, how could he not know how difficult it is for Chinese people to work in the United States? John's willingness to help Chinese students find jobs is already an immense favor. It is unreasonable to blame John for not wanting to give up the high quality of life in the United States!

(End of this chapter)