Chapter 178 Yangcheng Chigo Motorcycle Factory

After all, when investing in other places, there will never be restrictions on shareholding ratios or the need to maintain foreign exchange balances.

Although Chigo International is not an industrial giant, when it invests in a place, these places basically already have corresponding supporting basic industries.

At most, they need to improve a small part, or import a small part of the supporting facilities.

Although there is a corresponding industrial chain in the mainland today, after investigation, it is found that it does not meet Chigo's standards at all.

Now Chigo International is required to build a related industrial chain in the mainland within the next few years, and to ensure foreign exchange balance. This is simply unimaginable in the eyes of ordinary investors.

Not to mention Chigo International, any foreign company coming here would be hesitant because this is completely inconsistent with the basic principle of clear division of labor in modern industry.

In this case, if Liu Zhicheng did not know the future development of the mainland, he would definitely choose to give up investing.

"In order to achieve this requirement of localization in the Mainland, the best way is to organize Mainland manufacturers to tackle the problem.
Only if they are willing to work hard and then obtain the recognition and quality review of the joint venture factory, can they establish a local industrial chain. Otherwise, everything is just a mirage. "Liu Zhicheng said directly.

As for investing in industrial industries in the country, Liu Zhicheng was determined to do so. He could not personally discuss the details raised by the mainland.

However, issues of principle and direction are still decided by him, such as localization and foreign exchange balance, but he already has his own plan.

At the beginning, although Orange Technology and Chigo International were not short of money, they were not able to build an industrial chain on their own.

Instead, it relies on many small factories in Hong Kong to provide supporting services for itself, which is an inevitable result of the market economy.

Although the motorcycle industry is not more complicated than electronic products, the materials used in the production of its accessories are not simple either, and it is impossible for one to build the entire industrial chain by oneself.

As the saying goes: "Every profession has its own specialty." This is what it means.

The only way is for local enterprises to work harder and become part of the industrial chain as soon as possible.

"But this may involve many technical standards of Chigo International and will also require the support of Chigo International," said Bai Zhan.

"Director Bai, we can't teach you how to produce parts one by one. We can only provide the corresponding drawings and technical requirements.
Then the domestic manufacturers will do their own research and development. Once the research and development is successful and meets our standards, they can produce the parts and become our supporting factories. "Liu Zhicheng said.

Although a motorcycle has only 6 major systems and 30 main components, these parts can be further broken down.

For example, a turn signal assembly may include multiple parts such as a lamp housing, a bulb, and a nut.

At least, a motorcycle has hundreds or thousands of parts.

Chigo motorcycles are produced in Hong Kong and Malaya, relying on the collaboration of numerous manufacturers to complete the production of parts.

In fact, when it comes to the technical mastery of many components, Chigo International’s engineers are not as proficient as their suppliers.

"If this is the case, I am worried that localization will be a long way off. Our current technical standards are far behind those overseas.
Moreover, the production equipment, test equipment and even quality control experience are far inferior. I am worried that it will affect our localization progress." Bai Zhan said.

"For quality control experience or development experience, I can arrange for Chigo International engineers to come to the mainland for unified training, or arrange for some quality engineers to provide on-site guidance, but the number of personnel may be limited."

Liu Zhicheng paused and said, "As for important parts, we at Chigo International have our own factories and can set up factories in Pengcheng."

"That's indeed possible, it's a solution." Bai Zhan nodded.

In fact, all the problems are about money. We are worried that after the cooperation, the already scarce foreign exchange will suffer serious losses.

Liu Zhicheng is so easy to talk to now. If problems can be solved with money, then use money. Then many problems will be solved naturally.

"However, there are many suppliers, and we still need to carefully examine which ones to cooperate with," Liu Zhicheng continued.

"Of course." Bai Zhan nodded.

"As for the issue of foreign exchange balance, I mentioned earlier that setting up a parts factory in Pengcheng, especially an engine factory, is a good option. The demand from the Malaysian factory is relatively large, so it can definitely contribute to the balance of foreign exchange."

After taking a sip of tea, Liu Zhicheng continued, "Besides, my idea is that within ten years, the RMB earned by the Zhigao Motorcycle Joint Venture Factory, in addition to the export portion of its parts factory,

I will not convert the dividends into foreign exchange, and will try to invest in new projects in the mainland. As for what will happen ten years later, no one can tell, and maybe there will be a solution?"

In the past, Volkswagen’s method of solving the foreign exchange balance was very simple. It built an engine production plant in Shanghai. In addition to using the production capacity for the joint venture factory, the remaining capacity was used for export to earn foreign exchange.

Zhigao International obviously does not have this ability. Now Liu Zhicheng is "putting aside the dispute". Anyway, the mainland still needs to continue to invest. Both foreign exchange investment and people's investment are investment.

After all, the policy of maintaining foreign exchange balance is to prevent the theft of foreign exchange reserves.

As for 10 years later, the mainland government will no longer be short of foreign exchange, and it will be able to exchange currency naturally at that time.

Besides, the domestic motorcycle market will experience a blowout in a few years, and by then the money earned by the joint venture factories will probably not be enough to cover the needs of expanding production capacity.

Therefore, there is no need to consider the exchange rate issue at all, and it may even be necessary to mobilize funds from overseas for investment.

"Not exchanging currency? This is indeed a method." Bai Zhan said after a moment of surprise.

Liu Zhicheng was the first foreign investor to make such a request, but in the eyes of current mainlanders, such a decision was also a naked patriotic sentiment, otherwise no one would invest in vain.

In fact, Liu Zhicheng is very optimistic about the future of the domestic economy and can invest in more industries openly.

"In this way, the problems of localization and foreign exchange balance have basically been solved. All that's left is for the two negotiating parties to work out the details," Liu Zhicheng said with a smile.

A normal company would certainly care about every penny of profit, but Liu Zhicheng doesn’t care at the moment and his main focus is on building his own brand.

Focus on quality, build brand, open channels, and then you can make money without doing anything.

"Mr. Liu's vision is admirable. Now that the general direction has been decided, the other details will be left to the teams of both sides." Bai Zhan nodded. Today's success was somewhat beyond his expectations.

"Any other questions?" Liu Zhicheng asked again.

"Indeed, there is another event. Today, our senior official would like to invite Mr. Liu to have a simple meal to express his welcome to Mr. Liu." Bai Zhan smiled and invited Liu Zhicheng to attend the reception.

Liu Zhicheng couldn't and couldn't refuse this kind of social engagement. After all, this was the circle.

...............

At 5:30 pm, the group returned to the reception hall of Guangdong Province, where the senior officials of Yangcheng City hosted a banquet to entertain Liu Zhicheng and others. Liu Zhicheng was naturally very happy to be invited by the senior officials of Yangcheng City. Yangcheng City has a very special status in the country and is more important than many provinces.

In the future, this place will be one of the country's super core cities, an economic center, an international trade center, and a world-class city.

"Mr. Liu, please take a seat." Liu Zhicheng had just entered the lounge area of ​​the private room when Director of the Investment Promotion Bureau Bai Zhan greeted him with a smile.

"Thank you, Director Bai." Liu Zhicheng replied politely and then sat down. Huo Haiqing and Niu Guangli, who attended the banquet with him, also sat down next to him.

"Mr. Liu, our senior official has arrived, but he has to handle some official business temporarily, so he will be a few minutes late. Please understand." Bai Zhan explained on the side.

Liu Zhicheng nodded to show his understanding.

After a while, the senior official from Yangcheng, accompanied by his secretary, walked into the lounge area of ​​the banquet hall.

"Mr. Liu, I'm sorry. I had something urgent to do and was delayed for a while." The senior official was very humble and smiled and stretched out his hand to apologize.

The banquet began with mutual courtesy.

There were not many people at the banquet. In addition to senior officials and the secretary-general, there was also Director Bai who was in charge of investment promotion and the director in charge of industry.

"Mr. Liu, let me toast you first." The senior official raised his glass first and said with a smile, "As a Chinese, Mr. Liu was able to defeat several British business giants in a place like Hong Kong and become a benchmark among Chinese businessmen. I have to say I admire you."

"Thank you for the compliment, senior official. We Chinese can hold our heads high thanks to the strength of the mainland. Otherwise, we Chinese businessmen in Hong Kong would not have the opportunity to have a fair business environment." Liu Zhicheng also raised his glass, stood up and said with a smile.

Behind the birth of a capital consortium, there is actually a powerful country.

The most fundamental reason why the United States' financial giants, oil giants, and military giants can dominate the world is the strength of the country behind them.

The same is true for the future of the Internet. This is one of the fundamental reasons why Europe cannot produce Internet giants.

The Chinese in Hong Kong can be more confident because they have obtained the status of the five permanent members of the UN Security Council.

Otherwise, even if the Chinese in Hong Kong really become one of the business giants based on their own strength, they will not be able to defeat British capital. At most, they can achieve some results in areas where British capital is not good at.

In the more distant future, when Liu Zhicheng becomes more powerful, he will definitely take more of North American capital's cheese.

If you don't have a strong backer, you may be "caught in the crossfire". The "Mouhang incident" and "Mouwei incident" in the past life are good examples.

"Yes, if China becomes stronger, everyone's life will be better." The senior official said with emotion: "Although I have never been to Hong Kong, I know a little bit, but Hong Kong is still much stronger than the mainland."

"Hong Kong has also developed step by step. Hong Kong in the 50s was not as good as the mainland today. I think in ten or twenty years, the living standards in the mainland will be much better than they are now." Liu Zhicheng said confidently.

In the past, many people on the Internet complained about the stress in their lives and envied the lives of previous generations in the 1970s and 1980s, which were free of stress and worries.

These people are just bored. In the 1970s and 1980s, many people couldn't even get enough food to eat, so naturally they wouldn't pursue anything else and had fewer worries.

In the previous life, the Sanhe gods felt that their work was too hard and wanted to lie down, but in fact, this was the result of the economic and industrial development of the entire country.

Because you can survive for a few days by working just one day, that's why Sanhe God can exist.

If this happened in the 21s, s, or in Africa in the st century, people would have starved to death if they didn't work hard.

"Thank you for your kind words, Mr. Liu." The senior official said with a smile, "However, if a region wants to develop, it must have industry. I heard that Mr. Liu's Chigo motorcycle is going to settle in Guangzhou. On behalf of the people of Guangzhou, I would like to express my gratitude!"

"You are too serious, senior official. This is just a business transaction." Liu Zhicheng said bluntly.

The senior official smiled and continued, "Mr. Liu's companies are all excellent, especially in the electronics industry, which is already at the forefront of the world. I wonder if Mr. Liu is interested in investing in Yangcheng?"

"This is quite difficult at the moment. I have already made investments in Pengcheng and Kyoto, and our production capacity is already saturated for the time being," Liu Zhicheng politely declined.

Orange Technology's electronic products, whether it was the arcade machines that started it all, or the Walkman and Famicom that were later launched on the global market, have been in great demand, especially in the United States.

However, this situation cannot exist forever. In addition, Hong Kong has already made preparations and has set up factories in the south and north of the mainland. It is impossible for it to build a factory in Yang for the time being.

As the pillar of Hong Kong's current industry and his own cash cow, Liu Zhicheng has no plans to transfer all of this industry away in the short term.

Because this is one of the foundations of his superior status in Hong Kong. As long as he controls the employment of more than 100,000 people under his own company and in related supply chains, everyone needs to respect him.

Moreover, when it comes to the transfer of the supply chain of the most core products, sufficient preparation is also required. Otherwise, if something goes wrong in the process and affects the quality at the sales end, the consequences will be disastrous.

In this case, the so-called low-cost OEM does not actually make much sense. It is a highly profitable industry in itself, and a slightly higher production cost does not matter at all.

In the past, the mainland was able to become the world's factory not by relying on cheap labor, but a complete industrial chain and a large number of high-quality people.

"What if our factory in Yangcheng provides supporting services? Even if we start with the simplest plastic parts, that will be fine," the senior official added.

For senior officials in Guangzhou, becoming a supplier is not something that is worth bringing up in person, but it also depends on who the client is and how much profit it can bring.

"We can try to cooperate in this supporting aspect, but I have to say this in advance. We have very high requirements for suppliers. If the accessories do not meet the quality standards, we will refuse to cooperate with them," said Liu Zhicheng.

With Hong Kong's current labor costs, some simple accessories no longer have an advantage over Guangzhou, which also has a partial industrial base.

Liu Zhicheng is a big capitalist who pursues profits and interests. Of course, under the same quality, he will purchase parts from whoever can provide the lowest price.

If Yangcheng City can provide cheap and good-quality accessories, it will be both profitable and beneficial, killing two birds with one stone. Why wouldn't Liu Zhicheng do it?

"No matter how difficult it is, we need to try to know if it works." The senior official nodded.

"That's no problem. You can contact Mr. Huo and Mr. Niu." Liu Zhicheng said, introducing Huo Haiqing and Niu Guangli to them.

Niu Guangli and Bai Zhan were already familiar with each other, but the others didn't know Huo Haiqing and Niu Guangli, especially the director in charge of industry, who was very active in making friends with them.

"Thank you, Mr. Liu." The senior official said, "If Mr. Liu has any requirements for our Yangcheng City, or if we can cooperate together, please feel free to bring it up. Our Yangcheng City is willing to cooperate with Hong Kong businessmen like Mr. Liu."

"Okay." Liu Zhicheng nodded and raised his glass in response.

(End of this chapter)