The Grandmother in the Siheyuan

Chapter 346 You think too highly of me
Liu Hua countered, "We've visited more than a dozen village-run factories along the way. What are your impressions?"

The leader thought for a moment and said, "Full of vitality, that's the word that describes them. They are full of enthusiasm, full of confidence in the future, and have the determination and passion to make a name for themselves. They are also full of enthusiasm for their work and are determined to make a name for themselves."

“That’s right.” Liu Hua said with a smile, “This stage can be advanced into a stage of rampant growth of capital, or it can be understood as a stage of passionate and reckless entrepreneurship.”

The leader became interested and asked curiously, "Tell me more about it."

"When you first start a business, you have nothing. If you retreat, you'll face a storm. Since you can't have a good life anyway, you can only charge forward with your head held high. During this period, you're full of enthusiasm. The harder you charge forward, the more wealth you can grab."

The leader nodded: "That's right, that's what I mean. So, what about from now on?"

"Don't forget, this is spring rice and tea. It represents the collective interests of the whole village. This leader led everyone to move forward together, and his contribution should be the greatest. But when it comes to distributing the benefits in the future, will he feel at ease if he is treated the same as those who did not participate? That's one issue: unequal distribution."

"If there's one, there must be two."

"Secondly, they just put down their hoes yesterday, which means they lack the most basic management common sense. At the beginning of a business, all you need to do is charge forward single-mindedly. But when the business grows and involves all aspects, do they have the ability and qualities to manage it?"

The leader nodded again: "Is there a third one?"

"Of course there are. Right now, the products they're making are very, very basic, but they can't keep doing this basic work forever. As the market opens up further, more and more people will get involved in the distribution of profits, doing the same basic work. Profits will be squeezed, and large companies can't survive on such meager profits. How do they transform? This requires great wisdom, vision, and a broad perspective. Do they possess these qualities?"

The leader frowned: "So, according to you, village-run factories have no future? Then how come Huaxi Village is doing so well?"

"It's not that there haven't been saints in history, it's just that there are very few." Liu Hua shook his head: "Moreover, Huaxi Village is essentially a clan enterprise. Its management core is very stable, consisting of these people in the clan. Even the imperial family in ancient times, with all the training, could produce incompetent rulers. Do you think that as Huaxi Village develops, its successors will be as capable as ever?"

"So what do you think the future of Huaxi Village will be like?"

"It will develop smoothly during the period of manufacturing in China, but if it transforms into a high-tech company, it will likely experience growing pains. As for whether it can expand beyond China, I cannot predict."

"Made in China, what does that mean?"

"We are currently in the early stages of opening up. Whether it is foreign investment or our own factories, the vast majority of investments are in primary processing or labor-intensive industries. To put it bluntly, the profit margins are low and the technological content is not high. At the peak of development, we will only be a world factory, providing products to the world."

"So what's the next stage?"

"By combining planting flowers with innovation, we will lead the way in high technology and produce things that others cannot."

The leader clapped his hands and said, "Great, I like this one."

"Liking it is useless. The difficulties and obstacles we will have to overcome to transform from the world's factory into a high-tech mecca are unimaginable. We may not only have to sort out our own problems, but also suffer external suppression."

"External suppression?"

“Now others are the representatives of high technology. Sometimes, if we stand in the same position, we will inevitably push them out. After all, there is only so much space at the top of the pyramid. Would the Americans be willing to do that?” After this conversation, the leader became taciturn throughout the journey. Although he still contacted local collective and private enterprises, he was less excited and more cautious.

He talked a lot with the leaders of several village-run factories, and each time he talked, he was filled with worry.

The research trip was originally scheduled for a week, but the leader left after only five days and decided to return to Beijing. He had too many things on his mind that he needed to think about carefully.

Liu Hua didn't go back with him, but instead went to Liangxi. He wondered how their research on active phased arrays was going, so he decided to give them a boost.

The 60* Institute naturally gave Liu Hua a warm welcome. Last time, Liu Hua directly gave them the sea-based and air-based versions of the passive phased array radar, ensuring they wouldn't have to worry about funding for several years. They would never forget this favor.

After warmly welcoming Liu Hua, the next day, preparations were set up in the conference room for Teacher Liu's mini-class to begin again.

Liu Hua joked, "Your hospitality really paid off last night. You won't be satisfied until you've thoroughly emptied my belly."

"How can one not seek guidance from a good teacher and helpful friend?" the chief engineer of the institute joked. "How can you not offer some pointers to us diligent students?"

"I wouldn't dare accept that title. I'm just here to discuss things with you all."

Liu Hua didn't talk much about Xiangong Town, but he emphasized the role of gallium nitride and germanium nitride. You should know that these were the magic weapons that later gave us a surprise victory and also the magic weapons that strangled the West.

The head of Institute 60* frowned and said, "Since rare earth elements are so important and have such wide applications in the future, and high-tech weapons cannot function properly without them, I must suggest to the higher authorities that export controls on rare earth elements be strengthened."

"In addition to strengthening export controls, we also need to strengthen our domestic support for the rare earth industry." Liu Hua said with a smile, "If we master the world's most advanced and cheapest rare earth processing and refining methods, and squeeze out other rare earth-related companies in the world, then we will decide how the Western bloc manufactures its advanced weapons in the future."

Liu Hua left, waving his sleeves and taking away many Liangxi specialties.

Before he even arrived in the capital, the 60* proposal and project approval report had already been submitted.

When Liu Hua arrived in Beijing, he was invited to join Ma Shan of the Air Force.

"You were giving a lecture in Liangxi?"

Liu Hua nodded: "Can't we attend class?"

"I just wanted to confirm with you. If you did indeed teach the class and inspired them, then we'll approve the project proposal."

Liu Hua laughed and said, "You think too highly of me, giving me so much face."

"You probably don't realize how famous you are now, do you?"

(End of this chapter)