Return to 1958 and build a century-old giant

Chapter 815 Two Major Investment Plans in Mainland China

“I understand, but this also requires the cooperation of local policies,” He Guoyuan nodded.

Yang Wendong said, "Of course, I wouldn't go without the policy. You play a mediating role. Those who are willing to go can be helped appropriately, and those who are not willing can forget about it. There's no need to force them."
Furthermore, Beijing and Shanghai have a considerable amount of industry, which we should make good use of. However, the quality and technology there are quite worrying. This is where your expertise will be needed to help local companies willing to cooperate with us to optimize their operations.

"Is Shanghai's industrial base really that bad?" He Guoyuan had never been to Shanghai, so he naturally didn't know.
Decades ago, Shanghai's industry far surpassed Hong Kong's, but after such a long time, things must have changed a lot.

Wang Zhiqun said: "It's very bad. Many of the equipment is from the Republic of China era. Since last year, we have tried to have some very simple parts processed in Shanghai, but the finished products that are sent always have many problems. In the end, many collaborations have been forced to be canceled."
Some factories in Shanghai have a good attitude, sending people to Hong Kong to communicate and express their desire to improve, but they don't know where to start. Even we on the other side are unsure. That's why Mr. Yang values ​​your abilities in this area and wants you to go to Shanghai to investigate and see if you can offer some suggestions.

“Yes, that’s pretty much the situation,” Yang Wendong continued. “One reason we had trouble getting started was that the mainland didn’t have money. Without money, even the best ideas can’t solve the problem.”

Now that things have changed, joint ventures are possible. I can form joint ventures with local companies at any time. However, after the investment is made, how they use the money requires my input and review. You also have some right to offer suggestions in this area, which is something you're good at, right?

Historically, under He Guoyuan's management, Wang's Electronics underwent a remarkable transformation in just five years, growing from a hundred employees to a large electronics group with thousands of workers. Given its future creation of ATI, it is bound to be highly capable in this regard.

This is also why Yang Wendong trusts him so much. He always needs to find talented people to serve him, and blindly selecting people would most likely not be as good as someone who has made great achievements in his previous life.

The advantage of the prophets lies not only in their businesses, but also in their talent pool. Such a large corporate group would easily fall into chaos if it lacked sufficient talent for management, which is something that time travelers are not good at. Therefore, it is necessary to find these high-quality talents.

“Okay.” He Guoyuan nodded. He knew that he had a lot of responsibility and therefore more power. He could also influence the investment direction of Changxing Group, although it was not the final decision yet.

Yang Wendong smiled and said, "Labor costs are lower in the mainland. As long as they find suitable operating methods, both local enterprises and enterprises investing from Hong Kong can reduce costs, which will ultimately reduce our company's procurement prices."
Mr. He, once you join the company, we can set up a dedicated supplier evaluation department. You can build the team and be responsible for finding suppliers, both domestic and international, as well as potential suppliers in mainland China.

I hope that you can achieve results in the next few years, enabling Shanghai and Shenzhen to have relatively complete industrial chains in electronics, plastics, and other sectors. This way, the main factory can be gradually relocated.

The relocation of a large factory with tens of thousands of employees also requires great caution. The destination must have a complete industrial chain, if not all, but at least most of it. Otherwise, given the current state of telecommunications and transportation in mainland China, logistics and efficiency costs will be frighteningly high.

He Guoyuan's mission is to guide mainland capital or capital transferred from Hong Kong into Shenzhen and Shanghai, forming a basic supply chain for industries such as Changxing Industrial, Glory Electronics, and Watsons.

He Guoyuan nodded and said, "Mr. Yang, I understand."

“Okay, after you join the company, please prepare a rough plan for me.” Yang Wendong said, “You can contact the headquarters office directly, and you can also come to me directly if there is anything.”

"Thank you very much, Mr. Yang. I will certainly not let you down," He Guoyuan said gratefully.

He had realized that he had become one of the senior executives of Changxing Group. He might not be as high-ranking as Wang Zhiqun or Wei Zetao, but he was at least at the second level.

Of course, I also bear a great responsibility, which involves planning the industrial chain for two major cities and making preliminary preparations for the future relocation of some of Changxing Group's production capacity in Hong Kong. If any problems arise, the company's losses will be in the hundreds of millions.
Yang Wendong smiled and said, "You're welcome. Just do your job well. If the reform and opening-up policies in the mainland become more comprehensive in the future, and our group's large-scale investments in the mainland are successful, you will have a higher position waiting for you."

Yang Wendong naturally wanted to give such talent an important position, placing him on the same level as Wang Zhiqun, Wei Zetao, and others; otherwise, such a person might have gone off to start his own business.

Of course, as long as the relationship is handled well now, even if He Guoyuan really goes to start a business again in the future, I can still invest in him early and get a good return.

"Mr. Yang, shall we begin now?" He Guoyuan asked somewhat uncertainly;

After all, the mainland's reform and opening-up policy has only just been released; it's still just a decision, and specific policies haven't been implemented yet.

Yang Wendong shook his head and said, "You don't need to do this for now. Just prepare it first. Send people to the mainland to familiarize themselves with the local environment, understand the local economy, and build good relationships with government officials. Prioritize the major cities in the mainland, as well as the neighboring Shenzhen City."

Whether it's for long-term investment value or the need to attract talent, megacities are inevitably his primary investment targets: Beijing, Shanghai, Guangzhou, and Shenzhen.
In March of this year, Bao'an County, which is next to Hong Kong, was renamed Shenhai City. However, like other cities, it is not a special administrative region, so he has not made any changes for the time being.

"Deep Sea? Yang Sheng thinks that the future Deep Sea can be on par with Beijing and Shanghai?" He Guoyuan asked incredulously.

Although he had never been to the mainland, he knew from his childhood textbooks that Shanghai was once the largest city during the entire Republic of China period, and Yenching was the capital, which goes without saying.

Yuezhou is actually not as good as these two, but it is close to Hong Kong and uses Cantonese. Many people in Hong Kong come from eastern Guangdong Province, so it makes sense to put them together.

But Bao'an County next door is just an ordinary county. In terms of economy alone, even the villages in the New Territories that Hong Kong people look down on are much better off there. "It's naturally not as good as it is now, but the future is hard to say. Besides, it's close enough to us, which is its biggest advantage." Yang Wendong smiled and didn't explain further.
Actually, the most important thing is not just proximity, but the special economic zone policies. With these policies, it is easier to attract foreign investment, and you can invest independently with peace of mind. That is the most important thing.
I wouldn't say all of my future electronics industry, but most of it will definitely be transferred to the deep sea. The deep sea will also be the electronics industry capital in the future, even stronger than Shanghai and Beijing in this respect.

“Okay,” He Guoyuan nodded in agreement.

Yang Wendong added, "By the way, later you can have the HR department at headquarters introduce you to Zhou Haoran from Watsons. He's currently preparing to negotiate investment matters with people in Shanghai and Beijing, and he'll get to know them first."
If you have time, you can talk to him more, or even go with him to China to get a basic understanding of the situation, especially to Beijing, where you can meet and discuss things with relevant people.

“I know Zhou Sheng’s name, and I’m honored to work with him,” He Guoyuan said with a smile.

After leaving Yang Wendong's office, He Guoyuan felt an unprecedented sense of relief. He never imagined that he would become one of the middle and senior managers of Changxing Group in the blink of an eye, wielding enormous power and able to decide the life and death of countless suppliers. At the same time, he could also travel to the mainland with the group's veterans to participate in the group's investment plans in major cities across the country.

He never dreamed of these things before. Even when he was the general manager of the Philips branch, he was only in charge of sales and after-sales service and didn't have much power. Compared to now, it was completely different.

However, with great power comes great responsibility. Ho Kwok-yuen knew that he was also valued by Yang Man-tung, the head of Hong Kong's top conglomerate, so he had to achieve results.
The next day, led by the personnel at headquarters, He Guoyuan arrived at Watsons headquarters in Shatin and met Zhou Haoran, the person in charge of Watsons.
He Guoyuan said politely, "Hello, Mr. Zhou."

"Mr. He, you're too kind. We'll be colleagues from now on, just call me Lao Zhou." Zhou Haoran didn't dare to underestimate the young man in front of him.
Within Changxing Group today, there aren't many senior executives who can speak with Yang Wendong, and some middle-level managers are hard to even meet. But He Guoyuan was personally interviewed by Yang Wendong, who chatted with him amiably before granting him an important position.

The group had already begun planning for the next generation of successors for each subsidiary. The heads of each subsidiary were well aware of this and had extensive information channels. The person in front of them was very likely one of the people favored by the boss.
Although there were some conflicts of interest with these long-time employees, Yang Wendong's power within the group was beyond question. These high-ranking officials could be replaced with just a word from the boss.

They can retire peacefully first, because they will all grow old eventually. Even if there are conflicts, that will be a long time from now. Besides, He Guoyuan represents Glory Electronics, which has little to do with Watsons.

He Guoyuan laughed and said, "Then just call me Guoyuan."

"Alright, Guoyuan, please have a seat," Zhou Haoran said with a smile.

After exchanging pleasantries for a while, the secretary served coffee, leaving only the two of them. They quickly got down to formal topics.
He Guoyuan said, "Zhou Sheng, Yang Sheng hopes that I can go to the mainland with you, especially to Yanjing. I also want to get a general idea of ​​Watson's recent plans."

However, if it involves Watsons' confidential information, you don't need to tell me.

"Haha, Watsons investing in the mainland is such a big deal, how could it be a secret? You're a high-level executive in the company, it's okay for you to know a little bit." Zhou Haoran smiled;
Core operating data between the various subsidiaries of the group must not be leaked to each other; it can only be reported to the headquarters or the boss, Yang Wendong. However, there is no need to hide any large-scale investment plans, because such actions are not necessarily concealed even from outsiders.

"That's good," He Guoyuan said with a smile.

Zhou Haoran said, "I'm planning to set up a cola company in Yanjing, specifically for producing Very Cola, and I'm also planning to set up an instant noodle company in Shanghai."

The total investment of the two companies exceeds HK$100 million, and this is only the first phase. The target production capacity is to cover the needs of the entire mainland China market. Further developments will depend on the demand in the mainland market.

After listening, He Guoyuan said, "Instant noodles and Very Cola are bound to be bestsellers in mainland China. As I understand it, the poorer the area, the higher the demand for these high-sugar, high-calorie foods and drinks."

The poorer the place, the worse the food. In fact, even sugar is a controlled substance in China, and even wealthy people can buy sugar.
But sugar and cola are two different things. People who don't lack sugar generally won't eat white sugar for no reason, but they will definitely like to drink cola.

Of course, compared to developed countries like Europe and America, the total sales volume is definitely still lower. It can only be said that the demand for these two products is higher in poorer areas, but there is nothing that can be done if people cannot afford them due to economic reasons.

But the mainland has a population of one billion, and there are always tens of millions of wealthy people. These people can still afford it.

Zhou Haoran nodded and said, "Yes, that's our plan. So the first investments we'll make are in cola and instant noodles. I submitted the investment application to the central government in Beijing through China Resources a month ago."
We just received a reply from them in the last few days. I'll be going to Yanjing in a week, and you can come along too. It'll be good for you to familiarize yourself with the situation in mainland China. Honor will need to invest in mainland China in the future.”

"Then my arrival is truly timely," He Guoyuan said with a smile.

A week would also give him time to hand over his work from his previous company. Although he was switching to a major client of Wang's Electronics, and Wang's Electronics certainly wouldn't dare to say anything, his basic professional ethics still made him hope that they could part ways amicably.
Zhou Haoran said, "Okay, I have a book on current domestic laws regarding commerce. Take a look at it carefully when you have time these next few days. You must pay attention to it, as many laws in mainland China are different from those abroad."

Some of these demands are unacceptable to us, and similarly, some of our demands may be unacceptable to the mainland side. We need to familiarize ourselves with the other party's legal regulations beforehand. This will save time during negotiations, allowing us to get straight to the point. Being prepared in advance can also help avoid unnecessary conflicts.

He Guoyuan took the book Zhou Haoran handed him and nodded, saying, "Okay, I will read it carefully."

PS: Please give me a monthly ticket
(End of this chapter)