bonanza

Chapter 169 High-end and Low-end

"Aren't they a free economy?" Liu Kang asked puzzled.

In this era, the vast majority of Chinese people are brainwashed by the media and film and television dramas, naively thinking that foreigners are more straightforward and kind-hearted than Chinese people.

What foreign countries practice is a purely free economy, and everything is market behavior.

The argument that it is better to buy than to make is popular.

The well-known old thieves in later generations can not only give lectures and publish books in universities, but also give lectures to government departments. They say that China should rely on its large population to be a low-end industry in the international division of labor chain and a high-end industry. would annoy foreigners.

If it weren't for the foreigners repeatedly jumping out to slap them in the face, these people don't know how long they would make trouble.

"Don't believe them, there has never been a completely free economy in this world!" Yang Dongsheng couldn't talk about things from later generations. After thinking for a long time, he thought of a current example, "Do you know color film?"

"Color film? Of course!"

"But you don't know that the price of color film in China may be the cheapest in the world. Color film manufacturers in the United States and Japan sell film in China at a fraction of their domestic price."

"Why did they do this?" Liu Kang didn't understand what Yang Dongsheng was going to say, but was attracted by this example.

"First, in order to crush our national film companies, as soon as our national color film is dumped, they will raise the price. The color film in the Chinese market will immediately change from the cheapest in the world to the most expensive in the world."

"But our color film has been around for years."

"That's because our film company is a state-owned enterprise, and the state understands the importance of film and has been supporting it."

Liu Kang immediately thought of the next question, "Since there is state support, the Americans and Japanese should have figured it out after so many years. Why don't they stop?"

"This is also the second reason I want to say. Due to the lower prices of the Americans and Japanese, the color film companies in our country will also drop accordingly. If the companies do not have enough profits, they will not be able to carry out research and development. Our country is poor and cannot provide color film. Film companies inject too much money, color film technology is inferior to that of the United States and Japan, and it is difficult to open the international market. Americans and Japanese can calmly reap huge profits in the international market, and then subsidize the Chinese market, forming a virtuous circle. "

"President Yang, I understand!"

Liu Kang is not stupid. He already understood what Yang Dongsheng meant. Even if foreign manufacturers temporarily lose money in China, they can still make profits in the international market and subsidize the Chinese market.

The machinery factory is now a private enterprise, and the government will not support it. The machinery factory can only resist by itself.

The machinery factory has a weak foundation and cannot handle it at all.

"President Yang, I'm leaving!" Liu Kang walked out with his head down.

"Wait a moment!"

"Do you have anything else to do?" Liu Kang turned his head.

"Give it to me!" Yang Dongsheng stretched out his hand to Liu Kang.

Liu Kang looked at himself suspiciously, and finally realized that what Yang Dongsheng wanted was the list in his hand.

Yang Dongsheng took the form and quickly signed it, "Go to Manager Chen, he has already vacated a space for you! It was originally a vegetable market and a bus station, and the conditions are a bit rough. Please bear with it for now. Once the factory is built , just move over there."

Liu Kang was a bit stupid. Yang Dongsheng just rejected his proposal just now, and what he said was justified. He couldn't refute it. Why did he turn his head and go back on his word?

"Mr. Yang, didn't you just say you disagreed?"

"Can't do high-end ones, can't we do low-end ones?"

"This, I forgot!" Liu Kang smiled embarrassedly.

This is Liu Kang's limitation. Originally, he was a doctor of mechanical engineering and a graduate of the famous Chang'an Jiaotong University. He had enough education and a suitable major.

But from contact, Yang Dongsheng found that Liu Kang was not a qualified manager.

If Yang Dongsheng appoints Liu Kang as the manager of the machinery factory, and a few cunning tricks from below, he can play tricks so that he can't find Bei.

"Mr. Liu, if we want to produce high-end feeders and mixers, we must do at least two things: first, the quality must not be inferior to that of foreign countries; second, the cost must be much lower than that of foreign countries. It is delicious, and at the same price, we will definitely not be able to sell it to foreigners. The investment of a float glass production line is hundreds of millions, and the main ones that can invest are state-owned and collectively-owned enterprises. For them, it costs tens of millions of dollars. Foreign exchange is not a problem that cannot be solved, as long as conditions permit, they will definitely choose to import goods, otherwise if there is a problem with the production line, the responsibility will be theirs."

Yang Dongsheng actually supports the machinery factory to develop high-end feeders and mixers. Everyone can manufacture low-end products. When the time comes, the market will easily become saturated.

The iron and steel industry is a typical example. In later generations, domestic crude steel production could not be cut down. Instead, there was a strange phenomenon of decreasing and increasing.

In addition, the international iron ore giants have played tricks, importing iron ore at a price of one day, and the vast majority of steel companies have meager profits, and even have to pay for every ton of crude steel produced.

This situation occurs, in the final analysis, because of GDP.

If local governments want to maintain GDP growth, how can they really cut steel production?

The same goes for low-end mechanical equipment.

"I'm afraid it's not easy!" Liu Kang shook his head instead, "Making machinery and equipment is not making clothes. Our country's labor is cheap, but the labor cost of making machinery is only a small part, and the cost of materials is the big one. Not only do we have no advantage in materials , is still at a disadvantage, and many steel products cannot be produced.”

Many people in later generations proposed to develop iron mines in Africa to check and balance Australia and Brazil. This is of course a method, but it is not a fundamental solution.

It is no longer beneficial to blindly produce crude steel, and it will only produce huge pollution.

Our country has excess crude steel production, but high-end steel needs to be imported in large quantities.

From the cold-drawn seamless steel pipes required for the production of hydraulic cylinders to the main girder plates of cranes, a large amount of imports are required.

If you want to keep GDP while reducing crude steel production, the best way is to upgrade the steel industry and replace imports.

But it is easy to increase production. The blast furnaces are built one by one, just like building blocks.

To engage in technological upgrading is to enter uncharted territory.

As a result, enterprises are willing to build new blast furnaces to produce excess crude steel, but are unwilling to invest in technological upgrading.

Yang Dongsheng looked at Liu Kang's back and felt that the blow just now was a bit heavy.

As soon as Liu Kang left, Zhou Yong immediately closed the door.

Yang Dongsheng was taken aback when he saw Zhou Yong's attire. He saw that Zhou Yong was wearing a white linen hat, wearing a white linen filial piety dress, and holding a stick wrapped in white cloth in his hand.

"Brother Yong, what's the matter?"

(End of this chapter)