Return to 1958 and build a century-old giant

Chapter 870 Choosing a Side
After listening to Yang Wendong's arrangements, MacLehose said, "That's enough. Everything will be done according to business rules. As long as it doesn't affect Hong Kong Electric's daily power supply, the Hong Kong government won't interfere."

The Hong Kong government's "free market" principle is no joke. The Hong Kong government really doesn't care about these companies. Even if they break the law, it will be handled by the courts. The main idea is that if there is no obligation, there is no responsibility, and the companies are allowed to develop on their own.
This was actually a last resort. After all, the decline of Britain might be kept secret from ordinary Hong Kong people, but the Hong Kong government was well aware of it. If it didn't have the power to interfere too much, it would cause a backlash that it couldn't suppress, and the British Empire would become a laughing stock on the international stage.

"Okay, I guarantee this won't cause any major problems; everything is under control," Yang Wendong said with a smile.

He is confident that he can handle things that Li Ka-shing was able to handle in the past.
MacLehose nodded, then pondered for a moment before asking, "Mr. Yang, there's something I've been wanting to ask for your opinion on, and since we have this opportunity today, what do you think is the best way for Hong Kong to develop in the future?"

Yang Wendong's heart skipped a beat, and he somewhat understood what MacLehose meant. He asked in return, "Is the Governor asking about industrial issues?"

MacLehose shook his head and said, "No, I know about the industrial relocation of your Cheung Hing Industries, but as I said before, the Hong Kong government implements the principle of free market. It is normal for low-end industries to relocate to places with lower labor costs. Many of Hong Kong's industries in the early years were also relocated from Japan, so I don't think there is any problem with this."
My question wasn't about business, but about the overall governance of Hong Kong. 97 is almost here, and I think you understand what I mean.

“Governor, I am just a businessman. It’s best if I don’t get involved in political matters,” Yang Wendong said, shaking his head.

As expected, it is related to this matter. The timing is about right. Although the Sino-British negotiations began in 82, the two sides had already started contacting each other in 79. Obviously, just like in the past, the British were too arrogant and always thought they were still the invincible hegemon they once were.

It was because of this incident that Hong Kong's status in the eyes of the mainland became very high, which enabled Li Ka-shing and others to gain substantial profits by playing both sides. Otherwise, HSBC would not have given Li Ka-shing face and sold Hutchison Whampoa to him at almost half price.

MacLehose said seriously, "Mr. Yang, you are too modest. You are one of Hong Kong's top tycoons, and your influence in Hong Kong is probably even greater than mine. You can decide the fate of tens of thousands of Hong Kong people with just a word. You probably have no choice but to get involved in this matter."

This statement is not entirely false. The Governor of Hong Kong is naturally the one with the most power on the surface, but this power is also constrained by the British Empire, the media, the Hong Kong government, and even conglomerates. He cannot do whatever he wants. Even ancient emperors had to abide by certain rules.

As long as the heads of business conglomerates do not break the law, there are few restrictions in many aspects. In terms of influence, unless it involves political incidents, Yang Wendong often has more power than the Governor of Hong Kong.

Yang Wendong said, "Okay, but I don't know much about the current situation yet. But my point is that whoever can make the lives of Hong Kong's 500 million citizens better is the one who matters. Nothing else is important."

It's really hard for him to escape this kind of situation. Both sides are big shots, and it's not convenient for him to clearly take sides at the moment.
However, given his current status, he is qualified not to take sides, and neither side dares to offend him too much.
In this way, as long as I invest in both sides, you can do whatever you want, I can just stay comfortably in Hong Kong.

While businessmen should be involved in politics, it's best not to become too deeply entangled with any side. Otherwise, if one side becomes an enemy, the other side may not consider you one of their own.

MacLehose laughed and said, "Mr. Yang, Hong Kong's transformation from a fishing village to the Pearl of the Orient in Asia today is all thanks to the British Empire. Only by continuing to govern Hong Kong under the British Empire can it continue to improve, right?"

"Britain has indeed contributed to Hong Kong, but the problem is that Hong Kong's economy is indeed dependent on the mainland." Yang Wendong looked at MacLehose and said, "Putting aside everything else, just the thought of cutting off fresh water would be devastating to Hong Kong's economy. I don't need to elaborate, do I?"

Water is the source of life. Without fresh water, any city would collapse, and even electricity would be cut off, because generating electricity also requires a lot of fresh water.
After listening, MacLehose frowned and shook his head, saying, "Actually, when I was governor, I thought about building a large reservoir in Hong Kong, but because we had already signed a 30-year agreement with the mainland, the cost of breaching the agreement was too high, so there was no way to do it."

“I know about this matter. When the previous governor, Perry, was in office, he also struggled with this issue for a long time, but it didn’t work out,” Yang Wendong said.

He's been through it all; he even helped transport water during a drought years ago.
In the 50s and 60s, the Hong Kong government had always wanted to get rid of its dependence on freshwater from the mainland. However, it invested in special reservoirs, which were so expensive that it was estimated that decades of fiscal revenue would not be enough to cover the costs. In contrast, the slow purchase of freshwater was much cheaper.
The protracted project resulted in a severe drought in 63, ultimately forcing the signing of a long-term agreement with the mainland. The mainland then built canals and pipelines to deliver water to Hong Kong, thus completely destroying Hong Kong's plan for freshwater self-sufficiency.

MacLehose frowned and said, "The mainland shouldn't be capable of doing something like this."

"Of course, only you bunch of foreigners could do that," Yang Wendong thought to himself, then added, "I was just giving an example. Hong Kong is too dependent on the mainland. It was able to develop in the past because of the mainland."

Therefore, regarding the matter you mentioned, it must be resolved through negotiation, otherwise it will only ruin Hong Kong's economy.

“Yes, that’s what negotiation is all about, so we need help from people like Mr. Yang,” MacLehose pressed again.

Yang Wendong frowned slightly and said, "Governor, this matter actually has nothing to do with me, and I don't want to get too involved."

After a moment of silence, MacLehose said, "Mr. Yang, aren't you worried that what happened to Jardine Matheson and HSBC back then might happen to you?"

I know you've started investing heavily in mainland China, and I need to inform you of the risks beforehand.

“I am aware of the risks, but I think it’s worth taking a gamble,” Yang Wendong said with a faint smile.

In fact, many Hong Kong people do have this idea, otherwise so many people wouldn't have emigrated in 83/84.

But he knew history, so naturally he wasn't worried, and neither were people like Li Ka-shing and Pao Yu-kang.

MacLehose nodded and said, "Alright then, I hope you'll reconsider, Mr. Yang."

"Okay." Yang Wendong didn't object and agreed.

After exchanging pleasantries for a while, Yang Wendong left the Governor's House.

MacLehose also summoned the Provincial Treasurer, Robert Lopez, and told him about the previous conversation;

After listening, Luo Bishi said, "It seems that Yang Wendong is still unwilling to stand on our side. His investment of several hundred million Hong Kong dollars in the mainland during this period probably says it all."

“His investments in the mainland are actually minor matters. Don’t forget his investments in Hong Kong are much larger, and he owns many more businesses there. For a tycoon of his caliber, a few hundred million Hong Kong dollars is nothing,” MacLehose said, shaking his head. Robert Roth then asked, “He also invested heavily in Britain. Knowing full well that the two countries were about to clash, why did he continue investing on both sides?”

After thinking for a moment, Mak Li-hao said, "I don't know, but I have a guess. Maybe he didn't take this matter to heart, thinking that neither side would offend him easily, so he refused to take sides or even cared about it at all."

Luo Bishi frowned and said, "So arrogant?"

“A top businessman like him, with assets all over the world, probably deserves this title,” MacLehose sighed. “Some of my friends in the United States also know Yang Wendong; his wealth in the United States is probably even greater than in Hong Kong.”
Furthermore, he has accumulated substantial assets in Europe, Southeast Asia, and even Japan over the years. To put it dramatically, even if he lost all his assets in Hong Kong, the impact on him would likely not be significant.

"So impressive?" Robert Lo was surprised. As the Chief Secretary, he usually focused on handling Hong Kong's internal affairs and didn't pay much attention to foreign events unless they were related to his work.

He was naturally aware of the astonishing wealth Yang Wendong possessed in Hong Kong. His industrial sector was leading by leaps and bounds, making him arguably the dominant force in many industrial sectors in Hong Kong. In real estate, he was in no way inferior to the former leader, Hongkong Land, and he also had a shipping business.

If he has several times more assets overseas than in Hong Kong, that's terrifying to even think about.

MacLehose nodded and said, "Yes, his wealth has also grown like a snowball overseas. Otherwise, how could he have dared to acquire Mini in the UK? You and I both know that it's a wound that's been bleeding all along."

Luo Bishi nodded and said, "If that's the case, then Yang Wendong certainly has the right to ignore us. Will he side with the mainland?"

“Probably not. He has a good relationship with the Thatcher government and has increased his investments in Britain in recent years,” MacLehose said. “I estimate that he will remain neutral and not take sides. For him, taking sides would actually be a loss, while not taking sides would allow him to benefit from both sides.”

“That’s fine too. At least Yang Wendong is in Hong Kong, which is under British rule. If we promote him, he probably won’t object, which is also beneficial to us,” Luo Bishi nodded and said.

MacLehose laughed and said, "Well, this matter is really getting complicated now, we can only take it one step at a time."

Luo Bishi said, "Yes, but it doesn't really concern us anymore. After all, our term is coming to an end."

MacLehose said, "Yes, but let's focus on our job first, at least we need to do the preliminary preparations well."

“Okay,” Luo Bishi replied.
After returning home, Yang Wendong went straight home and told Su Yiyi what had happened.
Su Yiyi asked, "Won't this offend both sides?"

Yang Wendong laughed and said, "No, taking sides will offend the other side. Besides, from my business perspective, both the mainland and the West are my strategic investment destinations. I can't afford to offend either of them. So, ignoring them is the best approach."

Historically, many businessmen simply stood by and watched without taking sides. In the end, nothing unusual happened when things were over. People on the mainland generally didn't care about this, as long as they didn't openly oppose the mainland.
The same applies to issues concerning Taiwan.

Of course, those who clearly side with the mainland will also have some benefits in the mainland in the future, but these people are able to do so because they don't have any assets or income overseas, which they can't do on their own.

Moreover, given its substantial investment scale and foresight, it doesn't matter whether or not the mainland deliberately provides any benefits;
In this matter, he naturally favored the mainland, but whether he personally intervened or not would not affect the outcome. He would still choose the direction that was most beneficial to him, because this way he could more easily make money overseas and then invest that money in China, thus creating a positive economic cycle.
Compared to just talking, isn't this better?

Su Yiyi nodded and said, "I see. But I'm worried that if things get serious later, we won't be able to just ignore it like this."

"It doesn't matter. If it really comes to that, we'll just go on vacation overseas. We have business overseas anyway," Yang Wendong said nonchalantly.

He had already thought these things through.

Su Yiyi smiled and said, "That's good. It seems you were prepared."

"Of course, everything is as I expected." Yang Wendong smiled and said, "Alright, let's not worry about it. Let's wait and see. Worrying about things before they happen is just anxiety, which is pointless."

"Okay, sure." Su Yiyi nodded, then said, "By the way, there's something I wanted to tell you. Many textile factories in Hong Kong have started to relocate, with many going to Taiwan and Southeast Asia. Do you think we need to do that here too?"

Yang Wendong thought for a moment and said, "That's about right. You can consider moving, but I suggest you go to the mainland. Shenzhen City next door is a good option."

The textile industry is a labor-intensive industry with the lowest profit margin. It was the first industry to be transferred from countries such as Europe, the United States and Japan. The technology involved is also very low, and small workshops can do a little bit of it.

Historically, in the early 0s, when China was not very wealthy and many people earned less than 1000 RMB a month, domestic textile and garment factories began to relocate to Southeast Asia.

The average wage in Hong Kong is now over HK$1000. Soaring property prices and factors like the Cheung Hing Group have made it difficult for low-end industries to survive.

“Okay, I’ll arrange for someone to go to Shenhai City to take a look,” Su Yiyi agreed.

Yang Wendong said, "Well, I'll also arrange for a few people to go with you. Considering that Nike and Berkshire may also relocate, I need to make preliminary preparations first."

Companies like Nike and Berkshire Hathaway, which target the high-end market, might be able to sustain Hong Kong's labor costs, but they're not fools. Capital is profit-driven, and even if they can hold out, they probably won't stay long, given that there are places with lower labor costs.

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