The Grandmother in the Siheyuan

Chapter 471 Lame
"Professor Liu, do we actually have the technology to manufacture these steel balls?"

Some people were determined to get to the bottom of things, so Liu Hua sighed and said, "It's not right for you to be so petty. Our country's industry has developed to this point now; we can go to the sky and dive into the sea. It's impossible that we can't even make a new ballpoint pen ball."

"Then why not study it?"

"Why should we study it at this stage?" Liu Hua spread his hands: "The input is huge and the output is small. It does not conform to economic interests. It's like we haven't even eaten enough rice yet, and you insist on studying how to make desserts. This does not conform to the laws of development. When we really become rich, someone will study this thing."

Liu Hua looked at everyone, then smiled and said, "Don't worry, I'm giving you a heads-up. The more this goes on, the more rumors there will be about face reading. They'll either talk about high-end stuff or cheap stuff, but they'll just say we can't make it. And it's true, we just haven't started researching it yet."

"Professor Liu, most of our country's enterprises are currently engaged in low-end processing industries, providing raw materials to others. When will we be able to change this situation?"

"This is a matter of the laws of development." Liu Hua smiled. "Because we don't have money, our technological level is low. Because of our low technological level, we can only produce primary raw materials. Once we make money from raw materials, we can develop technology. Then we can move towards mid-range industries, and then continue to follow this law until we develop high-end technology."

Some people naively asked, "Why can't we concentrate our efforts on developing a particular high-tech area and then use that as a starting point to drive broader development?"

“Comrade,” Liu Hua shook his head, “our country has 9.6 million square kilometers and a population of over one billion. You can’t ignore the needs of the masses. If you only develop one industry while neglecting others, the lessons learned from our northern neighbor are not far off.”

Liu Hua paused for a moment and said, "Moreover, developing only some industries while neglecting others is like a person with a lame leg. Do you think a lame person can run faster or farther, or a person with all their legs can run faster or farther?"

Once this was explained, everyone understood, and the next day many media outlets published a report on industrialization that couldn't be done with a limp.

The leaders also saw the newspaper article. The next day at the meeting, Liu Hua gave an industrial development report that received applause from the audience. However, his development report did not mention the issue of walking with a limp.

After the conference concluded on the last day, a white paper on industrial development was produced, which will serve as a guide for industrial development in the coming years.

That evening, the leaders and several experts held a closed-door meeting. The leader said to Liu Hua, "Your theory about having one leg lame is very well explained. We must learn from the lessons of our northern neighbor."

"In fact, the benefits of a full range of industries are not limited to this."

The leader's eyes lit up, and he asked with a smile, "What other benefits are there? Tell us in detail. You, who run a business and do scientific research, have a different perspective than us office workers. I'd like to hear if you have any other fresh insights to share."

"The reason why our country's goods can enter the US market is because they are cheap. The reason why the US allowed us to join the WTO is also because we can provide cheap goods."

The leader nodded: "It's frustrating to say, we are a big country, but we can only produce cheap goods."

"Actually, it's nothing, it's just an inevitable path of development." Liu Hua smiled. "The reason our goods are cheap is because our labor is cheap, but our labor can't stay cheap forever. People's wages have to increase. Isn't the purpose of development to enrich the people?" "That's right. What will our advantage be then? I estimate that our technology won't be able to dominate the field by then."

"A complete industrial chain and a convenient supply chain," Liu Hua said with a smile. "These are our advantages. They can save costs and attract a lot of foreign investment and brands."

"Oh, what other benefits does this bring to attracting investment?"

Liu Hua nodded: "Of course. For example, if Dell wants to invest in a production base in Asia, they can choose Japan, us, Vietnam, or India. That's when our advantages come into play."

How will this be demonstrated?

"Compared to Japan, we have a clear advantage in human resources. Compared to Vietnam and India, our personnel are of higher quality," Liu Hua said with a smile. "Of course, the most important point is that we have a complete industrial chain. Whether they want to find an electronic component or a screw, we have it here. But in other countries, they may need to import it. Importing from us would increase costs significantly."

The leader slammed his fist on the table: "This is a great idea! It can be used as an advantage for attracting investment right now. Our technology is indeed a bit lacking, but our industry is comprehensive. No matter what kind of parts you want, we have them, and they are cheap. This is an absolute advantage that even the United States cannot match."

The leader specifically instructed his secretary to put this statement into writing and forward it to the investment promotion department.

The Yangtze River Delta and Pearl River Delta regions have been incredibly successful in attracting investment by using this suggestion. While entrepreneurs are certainly interested in policies such as tax rebates and exemptions, having a supporting industrial chain that enables stable production is undoubtedly a major plus.

After the conference, Liu Hua went to Tangshan to visit his factory, which he hadn't even glanced at since construction began.

The boss didn't even glance at this behemoth with an investment of tens of billions; one can only say he has a very big heart.

He Jianguo is now basically a permanent resident here. In addition to communicating with officials, he has also become Liu Hua's personal representative.

This was something their department tacitly approved because of his relationship with Liu Hua. You could say that when he gave orders here, he basically represented Liu Hua, and the managers of those merged small steel plants all had to listen to him.

"Uncle, you've finally arrived." He Jianguo complained as soon as they met, "You have such a big heart. You entrusted a multi-billion dollar investment to a young person like me. I'm bearing a burden that is not commensurate with my age."

"I'm just giving you a good workout, aren't I? Once this project is done, you'll probably get promoted."

He Jianguo nodded: "That's right. Once this project is completed, I will be an expert in steel plant construction. I must say, your design plan is too advanced."

(End of this chapter)