Rebirth 1977 Great Era

Chapter 1233 Traditional Chinese Medicine Must Make Money for Chinese People, A High-Value Meal (Two Chapters Combined)
Hearing Fang Yan say that, Zhang Lan agreed.

"Okay, let's discuss this in detail this afternoon."

The atmosphere at the dinner table became increasingly lively due to this pragmatic conversation, and the topic shifted to earning foreign exchange. The comrades from Northeast China talked about their methods for earning foreign exchange.

These days, there are really only a few ways to earn foreign exchange: exporting raw materials overseas.

Wang Song slowed down his eating, his brows furrowing into a knot:
"To be honest, we exported three tons of scorpions from Liaoning to Japan last year. Logically speaking, there are plenty of these things in our mountains and forests. But when the foreign trade company did the math, after deducting the freight and losses, they only made a tiny bit of profit per kilogram."

“The Japanese are very shrewd. They said our scorpions hadn’t been properly cleaned of mud and sand, and insisted on lowering the price by 30%. We were in a hurry to exchange foreign currency to buy fertilizer, so we had no choice but to accept it. Later we found out that they bought them, rinsed them twice with clean water, and sold them as ‘Kanto scorpions,’ then sold them to Southeast Asia for ten times the price.”

Li Jianguo shoveled rice into his bowl and sighed as well:

"Don't even mention the ginseng from Jilin. Two years ago, a batch of six-year-old garden ginseng was exported to South Korea. The price was agreed upon with the foreign trade company, but when it arrived at the port, they found fault with it, saying that two of the ginseng roots were broken, and they insisted on cutting the price by another five percent. Those ginseng farmers worked from dawn to dusk for three years, and in the end, the money they received was not even enough to buy a new planter."

"What's most infuriating is deer antler! The test report clearly shows that the amino acid content of our deer farm's second-grade antlers is higher than the standard, but they insist on buying them at the substandard price because they say the 'fuzz isn't dense enough.' Later, I heard that they slice our deer antlers, label them 'Korean ginseng antlers,' and sell them in the European and American markets for more than gold!"

Zhang Lan put down her chopsticks and said:
"The snow frog oil from Heilongjiang is about the same. Last year, we exported 500 jin to the Soviet Union, but they insisted on using barter trade instead of settling in US dollars. In the end, all we got back were some rusty tractor parts that were completely unusable. The old pharmacist was heartbroken and kept cursing, saying that we had traded our treasures from the Xing'an Mountains for a pile of scrap metal."

She suddenly raised her voice: "And there's Acanthopanax senticosus! We took it to East German herbal medicine merchants, and they said this stuff is called 'Siberian ginseng' in Europe and can fetch a high price. But when it came time to sign the contract, they insisted that we price it as 'ordinary herb' because we didn't have international certification. After we spent a lot of money on testing, they said the market was saturated and cut the order in half."

Wang Song took a big gulp of tea: "In the end, it's because we lack confidence. The medicinal herbs we buy from the farmers go through three intermediaries: the supply and marketing cooperative, the medicinal herb company, and the foreign trade company. Each layer takes a cut, and by the time they reach the foreign merchants, we don't even have the right to set prices. Last year, the Shenyang Institute of Pharmaceutical Research wanted to participate in the French pharmaceutical exhibition, but they couldn't even get a booth. They could only set up a stall outside the exhibition hall and have people see their products as fake."

Li Jianguo sighed: "I heard from colleagues in the ministry the other day that Tsumura Pharmaceuticals of Japan used ginseng from Jilin to make a kind of 'heart-saving pill,' which is selling very well internationally. The foreign exchange they earn in a year is more than the combined export of medicinal materials from the three provinces of Jilin. We have a golden rice bowl, but we can only be raw material suppliers for others. It's so frustrating..."

Before he could finish speaking, Zhao Xiwu suddenly said:
"So our research institute made the right move! By keeping the authentic medicinal herbs in our own hands and processing them into traditional Chinese medicine for export, we can preserve their efficacy and keep the profits in the country. Fang Yan's research institute exported medicines to Southeast Asia and earned dozens of times more than the raw materials! They earned $120,000 in just nineteen days."

Zhao Xiwu spoke with considerable pride, which surprised the crowd who were still talking about earning foreign exchange.

"120,000? That's so high?" Wang Song wiped his mouth, almost choking on the tea he had just drunk.

He asked Zhao Xiwu:
"Dean Zhao isn't joking? Traditional Chinese medicine can really be sold at this price?"

"Of course, we have channels through overseas Chinese businessmen, and we also have the local dialect as a living advertisement. If we sell through them, the price will naturally be higher."

Old Cheng, who had been silent until now, said:
"Don't you know what foreigners think of him?"

Upon hearing this, Wang Song realized that Western medicine was facing a Sputnik crisis!

But isn't this too much?
Judging from this, just 19 days in Southeast Asia would cost 120,000. If other markets are included, wouldn't that be outrageous?
Li Jianguo and Zhang Lan were still shocked when they heard the news, even though they were somewhat prepared.

Speaking in dialect:

"Dr. Fang, besides the Southeast Asian market, what other markets are there?"

The dialect responded:
"Europe, the United States, and maybe Japan in the future."

He took a sip of tea and continued slowly:
“Once our cooperation expands, we can build a deep processing base in Northeast China. We'll not only sell fresh ginseng, but also process it into ginseng paste and powder; we'll not only slice deer antler, but also extract it into deer antler essence; and we'll make snow frog oil into capsules. We'll print ‘Authentic Chinese Northeast Medicinal Herbs’ on the packaging, and sell it internationally ourselves, competing with Chinese medicine from Japan and South Korea.”

Zhang Lan's eyes lit up: "If that were possible, we could make cough syrup from the rhododendrons in Heilongjiang, and we wouldn't have to sell the leaves by weight anymore!"

Li Jianguo nodded in agreement: "Alright, let's see who's the real deal!!"

He said in dialect:

"Selling raw materials alone will only leave you at the mercy of others; only by joining forces to engage in deep processing can you gain pricing power. Your medicinal herbs each have their own strengths, and together they make a good prescription!"

Li Jianguo slammed his hand on the table, making the enamel bowl jump.
"Damn it! I've had enough of this humiliation! Director Fang, just tell us what to do, and we in Jilin will do whatever you say! Ginseng paste, deer antler extract, whatever process you need, we can immediately organize people to tackle it! You provide the channels, and we'll just put your brand on it."

"Don't rush, it's not about what I want, it's about proving myself," Fang Yan said.

"The Japanese can turn our medicinal herbs into 'famous traditional Chinese medicines,' and the Koreans can plaster our deer antlers into 'Goryeo treasures,' so why can't we stand up for ourselves? Why should outsiders profit the most from the treasures nurtured by the black soil of Northeast China?"

He pointed out the window:

“Go and take a look at the foreign trade warehouses. Our ginseng is packed in burlap sacks, while their ginseng powder is packaged in gold-plated boxes; our deer antlers are bundled up, while theirs are packaged in ampoules. It’s not that our medicinal materials are bad, it’s that we haven’t treated them like treasures! Once our deep processing base is built, our ginseng paste will be labeled ‘Origin of Changbai Mountain,’ and our snow frog oil capsules will be clearly labeled ‘Wild in the Greater Khingan Mountains,’ so that the whole world knows that these Chinese medicines are produced in Northeast China and have absolutely nothing to do with those Japanese and Koreans!”

"Yes, that makes sense!" Li Jianguo nodded.

He said in dialect:

"And that's not all. We have to register patents for everything that can enter the market, so that we can't give others loopholes."

Then Fang Yan mentioned that he had already started registering internationally.

Furthermore, they have already won a lawsuit in Hong Kong, causing losses for Tsumura Pharmaceuticals in Japan.

Zhao Xiwu stroked his beard and smiled, and Old Cheng nodded in agreement, confirming the news with everyone present.

This shocked the people in the three northeastern provinces.

This dialect from Beijing has actually started to compete on equal footing with giants like Tsumura Pharmaceuticals on the international stage?

Their information is still too outdated!
"By the way, Director Fang just mentioned that we might be entering Japan in the future? What's going on?" Wang Song, the only one who hadn't cooperated with Fang Yan, asked the question he had wanted to ask earlier.

Fang Yan looked at Zhao Xiwu beside him and asked:

"Can you tell me?"

This matter is still far from being settled; we still have to wait for news from Kobayashi Ichiya.

Zhao Xiwu waved his hand:

"Let's not talk about it for now."

After saying that, he smiled mysteriously at Wang Song and the others, and said:

"There are some plans that we can't reveal yet, but if it's successful, you'll see them in the newspaper. Keep an eye on the newspaper for the next two weeks."

Looking at Zhao Xiwu's mysterious expression, Wang Song was incredibly curious.

But there's nothing he can do if they don't speak the dialect.

However, they still believed that this meal was more effective than any meeting, as it also made them aware of this kind of thing.

The braised pork knuckle on the table behind them was empty, and the broth from the braised pork intestines was used to soak steamed buns. Zhao Xiwu put down his chopsticks, wiped his mouth with a handkerchief, and said, "Alright, we've eaten and talked things out. It's time to get down to business. Fang Yan, take Comrade Zhang Lan to your office for a detailed discussion. I'll go with Old Cheng and Director Wang and Director Li to talk about something else."

"Okay!" Fang Yan nodded.

As soon as he stood up, Wang Song suddenly grabbed his arm, the sweat from his palm soaking Fang Yan's sleeve.

The slight reserve he once had as a director had vanished, and his eyes shone like two flames.

"Hey... Director Fang, just wait a moment!"

Li Jianguo and Zhang Lan both stopped and looked at the director of the Shenyang Pharmaceutical Research Institute, who had just been somewhat cautious.

Wang Song swallowed, his Adam's apple bobbing beneath his relaxed skin.
"Well... when you're discussing cooperation with Heilongjiang, you can't leave out Liaoning, can you?"

“We also have medicinal herb bases in Shenyang! The scorpion farm over Qipanshan produced 50,000 scorpions last year, all of them sixth instar scorpions, stronger than those from Jilin! And the Fritillaria cirrhosa from Benxi, the pharmacopoeia standards are based on ours… If you want to do deep processing, you can’t do without people for the processing, Old Zhou’s three big boxes of manuscripts…”

Fang Yan was both amused and exasperated; this guy had been completely changed by just one meal.

Money really does move people's hearts! The allure of foreign exchange is indeed too great.

The key is that he sees the other two wanting to cooperate with this side, and Fang Yan and his group also have overseas plans. He is very anxious. People from the other two provinces of the three provinces are involved. If his side falls behind, it means that Japan and South Korea will continue to take advantage of him. They can sell at such a high price, but they are still being pressured to lower the price.

Now that such a great opportunity is in front of him, he can't afford not to make plans.

"Didn't Director Wang just say that Old Zhou is a treasure?" Fang Yan said calmly.

Wang Song blushed, but clenched his fists even tighter:

“Hey, you just haven’t figured it out yet! Think about it, Old Zhou’s processing skills combined with your recipe, and using herbs from Liaoning, the profit…” He quickly did the math, “Our herbs are pretty good too, at the price you mentioned, we can earn at least a lot more each year… It’s a win-win situation!”

“That’s not all.” Fang Yan shook her head, interrupting him: “I need more than just medicinal herbs; I need people too!”

Wang Song blinked, then gritted his teeth:
"Just say it!"

"I'll send anyone who can come, and I can even have people from the institute take turns helping out. No official positions are needed, just meals will do!"

Good guy!
Fang Yan was shocked. This guy was stingy before, but suddenly became ruthless after just one meal!
However, Fang Yan remained calm and said to him:
"I'll take note of Director Wang's boldness. But we have to take things one step at a time, and we have to discuss cooperation one deal at a time... I'll finalize the Heilongjiang matter with Comrade Zhang first, and then we can talk about the whole scorpions and fritillaria bulbs in Liaoning in detail later, how about that?"

These words were like a bucket of lukewarm water poured on Wang Song, neither agreeing nor refusing, but the phrase "we'll talk about it later" made him feel itchy.

Wang Song's hand was still frozen in mid-air as he watched Fang Yan turn around and nod at Zhang Lan: "Comrade Zhang, shall we go?"

Zhang Lan suppressed a laugh and followed along in the local dialect.

As she passed by Wang Song, she said in a cheerful voice, "Director Wang, don't be in such a hurry. Good things come to those who wait."

The moment the two stepped out of the cafeteria, the room erupted in chaos.

Li Jianguo pointed at Wang Song and laughed:

"Hey Lao Wang, your face changes faster than turning the pages of a book! Just a moment ago you were acting all protective of your own, but now you're practically begging to pack Lao Zhou up and send him over?"

Wang Song reluctantly withdrew his hand, wiped the sweat on his pants, and stubbornly insisted:

"What do you know? This is called assessing the situation! Didn't you hear what Director Fang said? Tsumura Pharmaceuticals earns more in a month than all three provinces combined in a year. If we keep clinging to the old ways, are we just waiting to starve?"

Just then, Fang Yan walked in from outside.

I happened to overhear what Wang Song said.

This put Wang Song in a rather awkward position, but Fang Yan seemed not to have heard him and said:

"I forgot to give the things to Director Li earlier."

After he finished speaking, he handed the flowchart that Su Yue had given him to Li Jianguo.

Seeing that Fang Yan still remembered this, Li Jianguo quickly cupped his hands and said:
"Oh dear, everyone said I was here to copy, Director Fang, you've gone to so much trouble!"

He waved his hand dismissively, pretending not to care, and then said goodbye.

After the dialect faded away again, Zhao Xiwu slowly spoke:
"Director Wang, you just said that Tsumura Pharmaceuticals earns more in a month than the three provinces earn in a year. Although Fang Yan has the opportunity to lead you out of a new path, I think you should take advantage of this time to think about specific cooperation matters and find a way to put your ideas into practice."

Upon hearing Zhao Xiwu's words, Wang Song came to his senses.

He said quickly:
"Dean Zhao is right. Just thinking about it is useless; we need to produce something real!"

After saying that, he quickly took out a notebook from his briefcase and picked up his pen to start listing things.

……

Meanwhile, Fang Yan and Zhang Lan went to the Secret Formula Research Institute to discuss cooperation.

Zhang Lan's idea can be summarized as: differentiate themselves from Jilin and leverage Heilongjiang's advantages.

The specific plan is to have them make targeted purchases and send technicians to teach and prepare the dishes.

The dialect requirements must be approved by the research institute and transferred through a state-owned pharmaceutical company; just follow the model used in Jilin.

Both sides were aiming for a win-win situation, so they didn't haggle over every little detail like they would with outsiders.

Of course, the main reason is that Fang Yan was more lenient in this regard, since Zhang Lan came to him for help, and Fang Yan didn't take advantage of her.

They quickly reached an initial agreement, and then Zhang Lan said to Fang Yan:

"According to the rules, shouldn't we also send three researchers?"

Fang Yan smiled and said:
"That's up to you; I won't force you."

Zhang Lan thought for a moment and said:
"Alright then, to show our sincerity, we'll send four people over! We guarantee they'll all be experts in traditional Chinese medicine."

“I’ll send a telegram to the research institute right away.”

He said in dialect:

"Wouldn't four be too many? I hope your research institute doesn't have to shut down."

He paused after speaking, and then continued:
"How about three?"

Fang Yan did the math: if the other two people each called three more, that would make a total of ten people. The three northeastern provinces would take up ten people, a third of the population? At that point, there wouldn't be many people from other places; nine would be more than enough. Fang Yan would even have to give his superiors a heads-up.

To be precise, only six seats were prepared for them.

However, once outside of Guangzhou, people aren't very enthusiastic about bringing others along. So, I figured it wouldn't hurt to bring more people from other places, since there might be some trouble in other areas anyway.

Zhang Lan didn't expect Fang Yan to actually consider her feelings. When she said four, she was already gritting her teeth, ready to be overcharged by Fang Yan. But unexpectedly, Fang Yan said she only needed three.

This surprised her somewhat.

The next step is to draft the written cooperation agreement. Just like in Jilin, it will only be effective after Zhao Xiwu signs it.

After watching Zhang Lan write everything down, Fang Yan carefully signed his name at the end of the letter of intent.

After reading it, Fang Yan said to Zhang Lan:

"Then you can send a telegram now. We have the equipment here, and I'll take this letter of intent to the leader for review."

Zhang Lan nodded, and then Fang Yan asked Su Yue to take her to send a telegram to Heilongjiang, while he went to find Zhao Xiwu.

Before leaving, Fang Yan told Zeng Luquan about what had happened.

This delighted Zeng Luquan. In just one meal, he managed to secure such a large supplier from a major producing area, who not only provided direct supply of medicinal herbs but also offered corresponding experts.
Wow, a negotiation genius!

Fang Yan told Zeng Luquan not to idolize her so much, and then left.

When they arrived at Zhao Xiwu's office, Wang Song was already waiting there.

Fang Yan ignored him and instead handed the things in her hand to Zhao Xiwu for inspection, and also pointed out some of the contents on them.

Hearing that Zhang Lan and his team were willing to provide some policy and medicinal material conveniences, Wang Song was a little scratched his head. He hadn't thought about this before he came. Zhang Lan must have discussed such a big decision with the research institute and the local leaders in charge of medicinal materials. Now he couldn't do what Zhang Lan did.

So Wang Song secretly hid what he had written behind his back.

Fang Yan noticed his subtle actions but didn't expose him. After reporting to the dean, Fang Yan asked Wang Song:

"Director Wang, what have you thought about what you said after dinner?"

“Director Fang…” Wang Song swallowed hard, pushed his notebook forward, and said in a slightly unsure tone, “My proposal may need some revisions.”

Fang Yan took the notebook, glanced at the contents, which were mostly fairly standard conditions, smiled, and said nothing.

Zhao Xiwu stroked his beard and spoke up: "Director Wang, Heilongjiang has promised that the snow frog oil harvesting period will be uniformly managed by the forest farm, and ginseng farmers who deliver according to standards will receive an extra 20% subsidy. This is not just a simple supply of medicinal materials; it's establishing rules for the entire industry chain."

"You've thought about this for so long and this is all you've come up with? Why don't you send a telegram back, or talk to your colleagues at the health bureau?"

Wang Song nodded awkwardly and said:

"There are some things I really can't do. I originally wanted to sign this first and then change it later."

"We're all on the same side..."

Zhao Xiwu put down his enamel mug, the bottom of which made a soft sound as it struck the table.
"Director Wang, we need to come up with concrete plans since we're on the same side. Do you think Zhang Lan made the decision to give a 20% subsidy on a whim? She had it all planned out before she came. Look at all this, she's clearly calculated the orders, the profits from deep processing, and the income of ginseng farmers. She came here with policies to discuss cooperation."

Wang Song's Adam's apple bobbed: "Then... shall I call Shenyang now?"

"No rush," Fang Yan suddenly said, pushing the notebook back to him.

“Your plan states that ‘all scorpions should be screened according to the six-year instar standard,’ but it doesn’t specify how to screen them. Is it based on the number of tail segments or weight? Last year when we exported to Japan, they used the ‘unclear standard’ to negotiate a lower price. We can’t afford to make the same mistake again.”

He opened the letter of intent for cooperation with Heilongjiang and pointed to one page:
"Comrade Zhang clearly marked the soaking rate and moisture content of the snow frog oil, and even included the identification formula of an old pharmacist. This is a standard that can be put into practice. You should have someone extract the whole scorpion processing method from the manuscript, and write down each step of removing mud and sand and each step of dehydration as a standard. This is more effective than just saying 'guarantee quality'."

Wang Song said:

"The curvature of the stinger of a sixth-instar scorpion is important; I'll add it now!"

Zhao Xiwu laughed and said, "Policies can be discussed slowly, but professional matters cannot be ambiguous. Isn't the pharmacopoeia standard of your Shenyang Institute of Pharmaceutical Research the result of generations of data accumulation? Applying this meticulousness to cooperation is better than anything else."

Wang Song slammed his notebook shut: "Okay, I'll go back to the guesthouse and make a call right away! I'll have the institute sort out the standards, and then have the comrades from the medicinal materials bureau bring the ledgers over. We'll go through everything clearly, from how much the subsidy is, how to screen scorpions, to the testing standards, and give you the new plan before the conference!"

After saying that, he got up, grabbed his notebook, and walked out in a hurry.

Zhao Xiwu watched his retreating figure and smiled at Old Cheng, saying, "The fire is almost done burning."

Old Cheng stroked his beard: "The dialect method is still the most effective. It doesn't rush or pressure, but only gets to the heart of the matter. This kind of person can only be persuaded with solid reasoning."

Fang Yan said, "Once the cooperation in the three northeastern provinces is all sorted out, we'll hold a 'Standard Exhibition of Authentic Medicinal Herbs' to showcase the planting, processing, and testing of ginseng, scorpion, and snow frog oil, making it impossible for Tsumura Pharmaceuticals to hide anything."

The ginseng and deer antler from Jilin, the snow frog oil from Heilongjiang, and the Liaoning plan that Wang Song hadn't had time to perfect—like three pieces of a puzzle—that Fang Yan could piece together as a major supply base for traditional Chinese medicine. In the months before the reform and opening up, Fang Yan had accomplished something significant.

P.S.: There will be an extra chapter later after this one is finished.

(End of this chapter)