industrial overlord

Chapter 320 They Will Lose After All
Hearing He Lan's question, Lin Zhenhua explained: "He Lan, this problem can't be solved by being angry. Our country's foundation is weak, and there are still a large number of rural surplus labor forces. These surplus labor forces have no basis for industrial production. Under such circumstances, we can only start from the low end. But at least so far, we have not given up on the equipment manufacturing industry. It is just that our equipment manufacturing industry still has some gaps compared with foreign countries, and it is still necessary to surpass them in the short term. Unrealistic."

"Senior Brother Huang, do you think Manager Lin is right?" He Lan turned to Huang Gang and asked.In front of everyone, He Lan was embarrassed to call Lin Zhenhua brother, which seemed a bit too cute.

Huang Gang nodded and said: "I have studied the case of Manager Lin and his company, and I think many of their company's practices are very good. Some domestic enterprises chose to give up when the technology level was backward, and Manager Lin's company is still They are persisting. While trying to extend the life cycle of outdated technologies, they are actively developing a new generation of technologies. The last time the newspaper said that Hanhua Heavy Industry successfully developed a 40-ton large chemical fertilizer complete set of equipment. I don’t know what the technical level is, but from Judging from the reports in the newspapers, at least it has filled the gap in the country.”

Lin Zhenhua said: "I can introduce this to you. The 40-ton large chemical fertilizer has indeed filled the gap in China. It is a relatively advanced technology in the world, but compared with the most advanced level, there is still a certain gap. gap."

Huang Gang said: "Manager Lin, don't worry. In fact, for a backward country like ours, adopting a follow-up strategy is the most appropriate. With our technological level, it is unrealistic to compete with developed countries at the forefront. It is remarkable that the technology you have developed can achieve import substitution and occupy the domestic market and the market of developing countries.”

"Manager Lin, why do you stop working hard and rush to the forefront? Isn't it said that the most profitable ones are at the forefront?" Zhang Qiong interjected. As a freshman, she has limited understanding of the economy, but From the conversations of the crowd, she knew that the cutting edge was the most profitable.

Huang Gang shook his head and said: "My junior sister, there is actually a misunderstanding here. From the perspective of a single product, the cutting-edge is indeed the most profitable. But from the perspective of the entire market, the most profitable products are actually products that are a generation behind. "

"What does this mean?" Both He Lan and Zhang Qiong were puzzled.

"Manager Lin, do you think I'm right?" Huang Gang asked Lin Zhenhua. His knowledge comes from books, but he doesn't know much about it. Lin Zhenhua is doing practical work, so some knowledge will be more accurate.

Lin Zhenhua thought for a while, then laughed dumbly and said: "Xiao Huang is really a genius. We are actually aware of this problem, but we have never summed it up. It is true. The most advanced products have the highest profit margin, while the products of a generation behind are the most profitable. highest total.

For example, for the 40-ton large chemical fertilizer equipment that Xiao Huang just mentioned, Nihong Heavy Industry quoted a price of 2000 million U.S. dollars. It can probably have a gross profit of about 500 million, and the gross profit rate is about 25%.At present, the most advanced equipment in the world is the 80-ton equipment in the Netherlands, and the price is 5000 million US dollars. Because there is no competitor, its gross profit rate can reach almost 50%, which is 2500 million US dollars.

On the surface, selling one set of 80-ton equipment is equivalent to selling five sets of 5-ton equipment.But in the international market, the number of orders for 40 tons of equipment is not even one tenth of that of 80 tons of equipment.Therefore, the total profit is higher than that of 40 tons of equipment. "

Huang Gang asked curiously: "Manager Lin, for the 40-ton equipment you mentioned just now, Nihong Heavy Industry's quotation is 2000 million US dollars. What is your quotation? Is it lower or higher than them?"

"Of course it is lower." Lin Zhenhua said, "Our labor cost is much lower than that of Japan. Both R&D cost and manufacturing cost are lower than it. This is especially true for after-sales service. The cost of sending a worker abroad in Japan is It is more than several times higher than ours. We currently sell 40 tons of equipment in the international market, and the quotation is less than 1200 million US dollars, which is lower than the cost price of Nihong.”

"Then is there anyone willing to buy its products?" a boy asked.

Lin Zhenhua nodded and said: "Of course it still has some traditional markets. In terms of heavy equipment, it is not entirely based on the price, but there are other considerations. The reputation of Japanese equipment is better than ours. Some countries would rather spend more. They are willing to buy their products. However, after our products came out, on the one hand, they robbed some of their traditional markets, and on the other hand, they forced them to lower their prices. To be honest, Nihong’s life is very sad now. The boss probably even wants to bite me."

He Lan said: "Manager Lin, I understand. This is what you often said to my father: follow your own path and let others have nowhere to go."

Everyone laughed, and Huang Gang said: "Manager Lin's words are very good. I was thinking just now, if what Manager Lin said is true, you don't need to attack the technology of 80 tons of large chemical fertilizers now, as long as Just occupy the 40-ton market. I think if your price is so low, the Dutch 80-ton equipment will also be affected. If it doesn’t want to be unsalable, it can only reduce the price.”

Lin Zhenhua said: "Whether it is unsalable or price reduction, it is a dead end. Let's guess: in order to develop 80 tons of equipment, it has invested at least 5 million yuan, and it must sell 20 sets to recover the development cost. If it A price cut means that more must be sold, but looking at the world, there is not such a large demand. If the sales are slow, then this project will be a net loss. I think, from the day our 40 tons of equipment appeared , it's over."

"Is this what you mean by letting others have nowhere to go?" He Lan said.

Huang Gang said: "Manager Lin, hearing what you said, I have a premonition that maybe 20 years from now, these developed countries will be squeezed by you. Developed countries rely on advanced technology to earn money. For those with excess profits, once your products come out, even if they are a generation or two behind others, they will take away their market and prevent their advanced technology from being sold. After a long time, the economy of developed countries will become a problem.”

Zhang Qiong said: "Senior brother Huang, are you too optimistic? Their technology is so advanced, and you are saying that their development will be a problem. How is this possible?"

Huang Gang scratched his head and said, "Junior Sister is right, I also feel that I am a little too optimistic. I just heard Manager Lin say this, so I have such a feeling. Manager Lin, what is your feeling?"

"They still have some skills." Lin Zhenhua said, "But they will lose in the end."

Coming out of their dormitory in Huanggang, He Lan and Zhang Qiong were still immersed in the domineering assertion that Lin Zhenhua said.In China at that time, few people would think that China could compete with developed countries on the same stage, let alone make wild claims that developed countries would have nowhere to go.

Lin Zhenhua is a time traveler. In the era before his time travel, the decline of developed countries was already very obvious.These countries, which once advocated free trade, have frequently wielded the big stick of trade protection in order to allow the remaining domestic industries to survive.On the Internet of later generations, young netizens gave China a name called "developed country grinder". Under the pressure of "Made in China", one developed country after another gradually shrank its industry and eventually fell into high debts and financial problems. bankruptcy situation.

Of course, at this time in 1987, if Lin Zhenhua wanted to say these words, no one would believe him, except for young students with long-term vision like Huang Gang.

Walking downstairs to He Lan's dormitory, Lin Zhenhua stopped and said, "Okay, I'll take you here. I'll go out and take a car back to the guest house."

"Brother Xiaohua..." He Lan looked a little reluctant.

"Please say a few more words of heart, I'm not here to be a light bulb." Zhang Qiong secretly poked He Lan, and giggled and ran into the building door.

Seeing Zhang Qiong run away, Lin Zhenhua smiled and said to He Lan: "Lan Lan, it's broken now, I guess this rumor will spread widely."

"What rumor?" He Lan was stunned for a moment, and she immediately understood that what Lin Zhenhua meant was the friendship between them that Zhang Qiong said.He Lan did not respond to Lin Zhenhua's words, but asked, "Brother Xiao Hua, how many days can you stay in Beijing this time?"
Lin Zhenhua said: "I am here for a meeting of the Machinery Committee. After two days of meeting, I will go to Shandong, visit the Luzhong Machine Tool Factory, and then take a few engineers there to the United States. During this time, I will I’m going back to Beijing to fly, but I’m afraid I don’t have time to see you.”

"I know you are busy." He Lan looked a little lonely, "Sorry, you are so busy, I asked you to accompany me to a lecture."

Lin Zhenhua smiled and said, "Look at what you said, I should thank you. If I hadn't listened to this lecture, I wouldn't have known Huang Gang. Many things he said were very inspiring to me."

"Really?" He Lan asked.

Lin Zhenhua said: "Yes, I used to have some doubts about the overall development of Hanhua Heavy Industry. After talking with Huang Gang for a while, I am more confident. In fact, we don't need to be too anxious. We just need to be steady and steady, little by little. It’s enough to eat away at other people’s space.”

"Great, then come to our school to listen to lectures if you have time in the future." He Lan said.

"Well, fine, as long as you don't find me annoying." Lin Zhenhua said with a smile.

He Lan said seriously: "No, the door here is always open to you."

"Okay, go upstairs quickly, should the lights be turned off later?" Lin Zhenhua said.

He Lan nodded and said: "Well, then I'll go up first, be careful on your way. If you go to the United States, if you see Miss Xiaofang, say hello to her for me."

"Don't worry, I will greet you. When I come back, I will bring you American chocolates." Lin Zhenhua said.

"I don't want chocolate, I want a doll, like the one you gave me when I was a child." He Lan said.

"I gave you a doll? Is there such a thing?" Lin Zhenhua wondered.He really didn't remember it, but it was the doll that Toft bought from Hong Kong when he first went to Guangzhou.That doll cost more than 100 yuan back then, which was very high-end.

He Lan said: "You are a big shot, so of course you don't remember these little things. But I do remember, and that doll is still in my room."

"Okay, I'll give you another one later." Lin Zhenhua said vowedly.

"Bye-Bye."

He Lan waved to Lin Zhenhua, and ran into the building like a light deer.Lin Zhenhua stood where he was, looked at He Lan's back, and shook his head slightly.

　... I have been very busy at work these days, and the effect of hasty code words is not good, so it affects the update, sorry.People are in the rivers and lakes and cannot help themselves. Please understand.The content of the past few chapters is to use the mouths of everyone to expound some thoughts on China's economic development. The phrase "shredders in developed countries" is based on an article on the Internet. The sentence "They will lose after all" comes from the online article "What kind of 20 years has it been?" I recommend you to search for these two articles. ... The debate between Huang Gang and Yu Jian was based on a real confrontation more than 20 years ago.On the one hand is an expert who is in the limelight, and on the other is a second-year undergraduate student in the Department of Engineering and Economics of the National People's University, Huanggang Talent.

　　


(End of this chapter)