A Tale of Two Cities Supporting Xinjiang

The chairman of Tianye Group was anxious in the conference room, saying, "That piece of fat meat from the EU is about to be eaten up by others."

If we don't squeeze in, Tianye will forever be stuck in this red ocean of domestic markets, with prices being driven lower and lower, profits thinning, and only death awaiting us!

The CFO pushed the report directly to him, saying, "Chairman, last year's net profit was 80 million, which is clearly stated in the accounts."

More than 20 million yuan was invested in purchasing equipment, not including the losses from work stoppages during the renovation period.

Our initial estimate is that the renovation period will last at least three months, and production capacity will drop by 15%.

She paused, then emphasized, "What does this mean? It means this year's financial report will be very bad. How will we explain this to the shareholders?"

What should you do if banks withdraw loans when profits decline?

This is a risky undertaking that could shake the very foundations of the nation!

"Director Liu is right."

The gray-haired senior technical director, Engineer Chen, sighed, adjusted his glasses, and said, "Our processes definitely meet national standards, and some even exceed them."

But the EU's approach... is too strict and too vague.

I've never even heard of full life-cycle carbon footprint tracing!

The limits for some pollutants are significantly lower than the levels that our current equipment can reliably achieve.

This is not just about changing equipment; it's about changing the entire production logic.

We old folks probably can't handle this.

The chairman is well aware of these things.

But after visiting the Canton Fair at the beginning of the year, he saw that similar products that had obtained EU certification could have their prices skyrocketed with just a small green label, and he felt a burning desire to do so.

Tianye's product quality is not bad, but because it lacks this license, it can only be trapped in the low-end market, fighting price with countless domestic manufacturers, with profits as thin as razor blades.

What frustrated him even more was that he had tried to find a way on his own.

I made phone calls, sent emails, and tried to contact several EU certification bodies, but they either gave very bureaucratic replies and demanded a bunch of documents that I had no idea where to begin, or they simply disappeared without a trace.

The biggest problem is that Tianye's existing technology and management system are completely lacking in the carbon footprint traceability system and precise monitoring methods for certain pollutants proposed by others.

There isn't even a team that knows how to fill out the application or how to deal with professional organizations.

He visited all the relevant departments and received mostly encouraging feedback, but when it came to specific, cross-border certification guidance and resource matching, everyone looked hesitant.

"Are you asking for trouble?"

The chairman looked around at everyone, his voice turning somber: "Now it's because others aren't giving us a good path to follow."

The domestic market is almost saturated. If we don't venture out, we'll be slowly worn down.

Looking at our factory area, I felt anxious.

The meeting room was silent, with only the sound of suppressed breathing.

Just then, there was a gentle knock on the conference room door.

The secretary poked her head in and said, "Chairman, Director Zhou Mingyu would like to know if our company has any difficulties with export certification."

The chairman waved his hand, about to tell someone to refuse, when Zhou Mingyu walked in.

"Chairman, excuse me. I work in the management committee, mainly dealing with matters related to enterprise exports and environmental standards."

I overheard a few words at the door just now, and if I may ask, is your company stuck on obtaining EU environmental certification?

The chairman paused for a moment, sizing up the uninvited cadre. He had some doubts, but also a faint hope.

He briefly explained the predicament Tianye was facing: they wanted to invest money to upgrade equipment and obtain certification, but were afraid of wasting huge sums of money; they couldn't understand the technical standards; they couldn't find a reliable way to get certification; and there was no consensus within the company.

After listening, Zhou Mingyu didn't respond immediately. Instead, he picked up the financial statement that Liu Mei had pushed over and quickly glanced at it. He then asked Engineer Chen a few questions about the existing sewage discharge data and process details.

Then, he put down the documents, looked at Zhang Jianguo, and went straight to the point:

"Chairman, what Tianye is facing is not a simple technical or financial issue of whether or not to buy equipment."

"This is a common problem that almost all companies in our border regions that want to expand overseas will encounter."

First, they lack awareness of the latest international standards and don't know how to play the game.

Second, there is a lack of bridges and resources to effectively connect with authoritative foreign institutions, leaving them clueless about the process.

Third, and most importantly, there is a lack of specific policy support and service systems to help businesses reduce risks and protect their interests.

Going it alone, relying solely on enthusiasm and grit, is unlikely to lead to success; in fact, it's more likely to cause serious damage.

The chairman felt a jolt in his heart and quickly asked, "Director Zhou, do you think there's any way to break this deadlock?"

There are always more solutions than problems.

I came here to hear exactly where the problem lies.

Many companies in coastal areas have gone through the certification process in recent years. The pitfalls they've encountered, the experience they've accumulated, and the reliable resources of international organizations they've worked with might be worth learning from and connecting with.

Some issues may not only involve technological upgrades, but also the reengineering of production management processes. We can work through these together.

He glanced at the CFO and Engineer Chen, and continued, "Of course, the investment and risks are real."

My idea is, could we work together to come up with a step-by-step plan first?

For example, we should first ask an authoritative institution to conduct a preliminary assessment to find out exactly where the core gap between us and EU standards lies, and what the bottom line of investment is, instead of blindly throwing in 20 million in one step.

At the same time, let's see if we can secure some special policy support for your company's green transformation and export certification. Even something as simple as subsidized loans or expert guidance could reduce some of your pressure and risks.

The atmosphere in the meeting room subtly changed.