The Grandmother in the Siheyuan

Chapter 311 What the Capitalists Want

The people from the business department studied the contract for two days. In fact, how could they not understand the patent licensing contract? Their main purpose was to see what Liu Hua's conditions were, whether there were any special clauses, and whether it would have an impact on the domestic motorcycle market.

Of course, we also need to learn what is the best way to license our patents to others in the future.

"Mr. Liu, why do you want to authorize two companies?"

"I am absolutely confident in my engine. If we really use this engine, it can really dominate the majority of the market." Liu Hua said with a smile: "If he occupies the majority of the market, then I should beg him instead of him begging me, so this kind of monopoly behavior must not happen."

"Then why do you want to guarantee a minimum dividend?"

Liu Hua shrugged: "I have to protect my own interests."

"But since your engine is so good, they will definitely produce it in large quantities, and your profits will only increase, not decrease."

Liu Hua shook his head: "That's hard to say. For the sake of profit, the capitalists may put my engine on ice after obtaining the patent. In this way, they don't need to pay me dividends and can make profits from their own engines."

"Isn't this just making things difficult for myself?"

"No, this is their strength." Liu Hua said with a smile: "A perfect product is not popular. For example, if a motorcycle engine is not perfect, it will involve many other interests. For example, after-sales, such as upgrades, you can increase the price, and so on."

"understood."

"What if they work hard, only pay you a guaranteed dividend every year, and still have to wait for your engine?"

Liu Hua laughed: "That's even better. I will just authorize them to operate the markets outside of our flower-growing country. I will use their money to develop my own industry and use the domestic market to expand the scale. When my industry reaches a certain scale and the five-year authorization expires, I can go overseas and directly destroy their market."

A comrade from the Ministry of Commerce gave a thumbs up and said, "We didn't expect the last situation. It really broadened our horizons."

"Sometimes you can't predict the evil intentions of capitalists." Liu Hua said seriously: "Since you are so eager to learn, I will give you a reminder."

"Oh, what's the matter?"

"We are now actively introducing foreign investment and even promoting joint ventures between our domestic enterprises and foreign investment."

The comrade from the Ministry of Commerce nodded and said, "Yes, but we are also using foreign funds, advanced technology and management experience to promote the development of our own enterprises, which is also good for them. By expanding our production scale, they can also make a profit."

"You are smart, but they are not stupid." Liu Hua shook his head and said, "Let's take the soda industry as an example. There are two soda companies abroad, called Coca-Cola and Pepsi."

"Yes, these two companies are the largest in the world. We are now planning to introduce their technology, management and capital to enhance the competitiveness of our own enterprises."

"Do you know what people like about us?"

"Money, isn't it all about money?" Liu Hua shook his head. "No, they see our market. If they compete with us directly, we Beijingers are used to drinking Arctic Ocean. If they want to occupy our market, they will have to spend a thousand times more effort. If they form a joint venture with us directly, that will be exactly what they want."

The comrade from the Ministry of Commerce asked in confusion: "How exactly will they do this?"

"They will gladly agree to form a joint venture with you and are willing to invest money, technology, and management. However, since they are in charge of you, you have to let them take the lead."

"It will probably be something like this."

"They will gradually reduce the production volume of our brand, and then use their own brand of cola to take over the market share of Arctic Ocean. After three to five years, they can say that Arctic Ocean's market competitiveness is not good enough, and for the survival of the company, it is better to directly produce their beverages. By then, this market will be completely controlled by them."

"and then."

"Then, you still ask, the market is controlled by others, the brand is gone, and no one will remember Beibingyang in 20 years. By then, even if we eliminate foreign investment, the Beibingyang brand will have collapsed. Even if we start over and want to open up the market, we will face the same dilemma as foreign investment today."

"I understand." Both people from the Ministry of Commerce nodded. "The market has been monopolized by others. If we want to compete for the market again, we will have to pay ten thousand times the cost. By then, they can make money without doing anything."

Liu Hua nodded: "That's what I mean. Capitalists don't value technology, they value the market. For the market, they can do anything to buy you, freeze you, or even destroy you."

The two of them went back satisfied. Liu Hua also went into the laboratory. The first thing he did was to draw the blueprints. There would be thousands of blueprints for a mature engine, which was definitely a huge project.

The first choice is naturally the engine of the Type 99 tank. As our main battle tank in the future, it is definitely the top existence in the world.

Liu Hua thought that since he was able to customize the drawings last time, he should be able to do so this time as well, so he put forward his own requirements: a reinforced Type 99 tank engine that is fuel-efficient, powerful, easy to process, and stable.

The silent golden finger gave Liu Hua the result directly. As a pseudo military fan, Liu Hua still clearly remembered the Type 99 engine, which was later optimized to have 1,500 horsepower.

After the system was optimized, it directly burst out with 1,800 horsepower. It's simply amazing. With such a high-horsepower engine, it is ready to allow the tank to fly at low altitude.

The system also has instructions for modular design, which allows the number of cylinders and piston stroke to be adjusted as needed. It is ultra-quiet so you can feel quiet even when sitting in the tank, and most importantly, it can adapt to various extreme environments.

The most terrifying thing is the ease of processing. Even with the processing conditions in the 1980s, this engine could be processed. Of course, there is still some gap with the later high-precision processing, but if it has been optimized to this level, what else do you need?

Liu Hua was busy in the laboratory day and night, and his wife at home could only complain silently.

"I'm not at home, my son, my son is not at home." Liu Feifei said to her little cotton-padded jacket, "Our home doesn't even look like a home. You're the most obedient one, right, baby?"

My daughter is only four years old this year. She can’t even speak fluently, so she can’t understand her mother’s complaints. She is having a lot of fun playing with the toys her father bought for her.

To her, her father is a familiar stranger whom she sees every day but is not very familiar with.

(End of this chapter)