Hong Kong Island: From a small stall to a global supplier

Luo Wenhua was really put through the wringer just now. Logically speaking, someone in his position should have seen all sorts of storms, but he'd never seen anything like this before...

China Resources' contributions as the leading state-owned enterprise over the years are undeniable. It is no exaggeration to say that it has made great contributions to the country. The Canton Fair can be said to have been initiated by China Resources. Back then, nearly 90% of foreign trade was generated by China Resources.

With the reform and opening up, foreign trade volume gradually expanded, and China Resources' share inevitably decreased. Although... however, as the person in charge of China Resources' overseas operations, his situation was not very good.

In the past two years, China Resources has shifted much of its efforts to attracting investment, and has encountered a bottleneck in foreign trade and economic cooperation. After nearly 30 years, it feels like the markets that can be developed have been almost fully explored.

Of course, there were indeed many problems within the company. One major reason was that older employees were resting on their laurels and becoming increasingly unmotivated, while new employees, unable to advance, also lacked motivation.

They're all secure jobs, what can we do...?

In short, Luo Wenhua is having a major headache from all sides.

Now that Wang Yaotang suddenly claims to have a way to double Southeast Asian foreign trade, how could he not be tempted?

To put it bluntly, even if the whole company really worked together, it might not be possible to achieve this result in three to five years...

Having lived in Hong Kong for a long time, Luo Wenhua already had a broad perspective, but he couldn't imagine what kind of vitality his hometown would unleash.

Ultimately, people cannot imagine things beyond their own imagination.

Not to mention Luo Wenhua, even the policymakers above couldn't have imagined it, nor could so many top business talents in the United States and other Western countries.

So Luo Wenhua was thinking that even if the price only increased by 10% or 20%, even if it was a bit of a short-sighted move...

Only Wang Yaotang knew!
This is the source of his confidence in saying this.

After eating a few bites of food to fill his stomach and drinking two cups of wine, Wang Yaotang finally spoke his mind: "Leaving aside the foreign trade channels that the joint venture company finds on its own, our main way of finding foreign trade orders now is through the Canton Fair, right?"

Luo Wenhua nodded.

"This method was indeed very effective in the early stages, bringing together the best products from all over the country for foreign merchants to observe on-site. It is also a major form of foreign trade exhibition in various countries around the world, which is commendable. It will definitely get better and better in the future. After all, for the vast majority of manufacturers, they do not have the ability to contact foreign merchants, let alone find the corresponding needs."

"Just tell me the shortcomings and solutions directly. We don't need to use the 'praise first' approach. I can handle it," Luo Wenhua said with a smile.

Wang Yaotang laughed heartily, "See, isn't this just playing along with you?"

"The downside is that it's passive. It's like setting up a shopping mall and passively waiting for customers to come in. The only thing you can do is promote the mall, but this kind of promotion ultimately depends on the country's reputation. To put it bluntly, if it were the United States or Russia promoting it, their appeal would definitely surpass ours."

Luo Wenhua nodded. Having worked at the Canton Fair for so many years, how could he not know about it? The increasing difficulty in recent years was also due to this reason. The products they brought out were not without technological content, but they were better than nothing. Although no one called them industrial waste, their only advantage was that they were cheap.

Thinking about it, Wang Yaotang continued, "First of all, we need to clarify our own advantages and disadvantages. Our advantages compared with similar products from developed countries are that they are cheaper, produced in larger quantities, and have uniform standards."

Wang Yaotang held up three fingers, "Compared to underdeveloped countries, our advantages are high quality, unified standards, and large volume."

"In that case, we need to operate based on these four characteristics. First, we will focus on Southeast Asia, which is full of underdeveloped countries. Their people have low incomes, to put it bluntly, they are poor. In addition, the gap between the rich and the poor is huge!"

"Only the rich can afford those high-priced Western products, while the poor cannot. Does that mean the poor should not live their lives?"

"They not only need to make a living, but there are also huge numbers of them. What they need most are cheap, relatively good quality, and standardized products. This can effectively solve the pain points they encounter in their production and life. Solving the pain points can generate a huge market!"

Luo Wenhua's eyes grew brighter as he listened. These were not uncommon observations; many top talents and academic giants could certainly see them, but while they could raise questions, they lacked the means to solve them. But things were different now. Wang Yaotang was a true self-made man who had risen to become one of Southeast Asia's super-rich in a short period of time.

When it comes to earning power, Luo Wenhua believes that Wang Yaotang is definitely number one among the people he knows.

His undeniable worth speaks for itself; who can question it, and what grounds do they have to question it!
Regardless of whether Wang Yaotang used some unscrupulous means to get started, who the hell can start out cleanly? How can easy money-making opportunities be left out for you to grab? Without some tricks up your sleeve, how can you protect yourself from being devoured by those big fish in the sea?

Luo Wenhua slapped the table a few times, seemingly unable to fully express his excitement. He then picked up his glass and said loudly, "Your word 'pain point' is so apt! It perfectly summarizes the problems we encounter in life. Well done! Cheers to this word!"

This immediately boosted Wang Yaotang's emotional value!

"Haha, Mr. Luo, Brother Luo, you flatter me. Come on, cheers." Wang Yaotang happily raised his glass, clinked it together, and then drank it all in one gulp.

The same compliment can evoke completely different feelings depending on who says it.

This drink is great!
Setting down his wine glass, Wang Yaotang continued, "The construction of the Jingdong mine is the best proof of solving this pain point. Myanmar wants to develop tin mines, but they lack the technology, funds, channels, and talent. Major international mining groups do have them, but they are expensive, demanding, and have huge appetites. Of course, these international mining groups are indeed very costly; their labor costs alone are dozens of times higher than ours. Putting aside political factors, it is almost impossible for them to cooperate. Under these circumstances, many of our advantages can precisely solve these problems."

"This is the foundation; otherwise, no matter how much I try, it will be useless."

"It's not that it was useless; it played a crucial role as a key." Luo Wenhua said with a stern face, "Without your key to open this door, no matter how much room for cooperation there is between the two sides, it's useless; they won't be able to see each other."

Wang Yaotang laughed heartily, "Brother Luo has a keen eye; he hit the nail on the head right away!"

"Huh?" Luo Wenhua was taken aback, then his expression turned somewhat strange.

Are you praising yourself?
“I saw it!” Wang Yaotang said emphatically.

"Saw it?" Luo Wenhua frowned slightly and repeated.

“Yes.” Wang Yaotang held up his finger and gestured. “The Canton Fair provides a platform for manufacturers like ours who don’t have the ability to reach foreign customers. The purpose is to make us visible. Similarly, many distributors in Southeast Asian countries have the same problem: they can’t see the market.”

"For various reasons, the number of foreign businesspeople who can come to the Canton Fair each year is very limited, and it is also difficult for us to promote it to every corner of every country."

"If distributors can't see it, how can there be any purchasing?"

“That’s right!” Luo Wenhua clapped his hands. “This problem has been bothering us for a long time, but it’s very difficult to carry out propaganda work in other countries.”

"The goal is to get more people to see it, and then the answer to the problem will come out: go out and explore. This approach can be called a 'trade fair,' which means bringing the Canton Fair directly to their doorstep."

“You mean…” Luo Wenhua suddenly sat up straight.

“Yes, we’ll still bring together domestic manufacturers, but the venues will be located in various Southeast Asian countries. If the mountain won’t come to me, I’ll go to the mountain.” Wang Yaotang said loudly.

There is actually a template for this. In third-, fourth-, fifth-, and sixth-tier cities in China, there are often cars with advertisements and loudspeakers that drive through the streets and alleys to promote "exhibitions and sales fairs". All you need is a large tent. They sell all kinds of discarded clothing, shoes, hats, etc., and the main selling point is that they are cheap. This can attract many local elderly people and the sales volume is very large.

Southeast Asian countries like Malaysia, Indonesia, and Siam are like third-, fourth-, fifth-, and sixth-tier cities, while local small and medium-sized distributors are like elderly people.

The method may seem outdated, but it actually sells very well.

In more sophisticated terms, it's called the lower-tier market.

"This...this..." Luo Wenhua stammered excitedly for a moment. He picked up his wine glass, took a big gulp, and squeezed his eyes hard to calm down. He immediately raised the key question, "This requires permission from the corresponding country, and the venue rental fee will be very high. That's not difficult, but the publicity issue is very difficult to handle."

“The same promotional effect can be achieved without these distributors going abroad, and the promotional revenue can easily be several times higher,” Wang Yaotang said with a smile.

"Another issue is financial security. These trade shows don't involve endorsements from the host country, and we can't get official endorsements from abroad either. How do we ensure the safety of distributors' funds? How do we guarantee they won't cancel orders later? These are all issues..."

Wang Yaotang said with a smile, "Brother Luo is indeed a pragmatist. He has hit the nail on the head. We need to set up a special trading company to operate it, we need to cooperate with well-known banks in Asia to ensure the safety of funds, we need to cooperate with local advertisers for promotion, and we need reputable local companies to step forward and provide credit endorsement."

"Of course, the company will definitely charge a fee for organizing such a large-scale exhibition, based on a percentage of sales."

Luo Wenhua's mind raced. China Resources was indeed a massive company with extensive connections and an excellent reputation, but its official status prevented it from doing this kind of thing. The different systems posed numerous concerns.

And now it seems that no one but Wang Yaotang has the ability to do this.

At this point, only a 'powerful figure' can get things done!
Why call him a 'powerful figure' instead of a 'famous figure'? ... At this point, simply being famous isn't enough.

A powerful figure can make those who are unwilling to cooperate bow their heads and prevent those monsters and demons from causing trouble, and can quickly eliminate some troubles in the process.

A powerful character can guarantee a minimum standard.

For a newly established 'exhibition', successfully completing its first edition is of utmost importance!

"This is something we can do." After a moment's thought, considering the potential drawbacks, Luo Wenhua nodded slightly and said.

Organizing domestic manufacturers is something only China Resources has the capability to do; the real challenge is taking the people and products abroad…

Going abroad is a big deal these days, and you have to be very careful about everything you do. As a nation of etiquette and a great country, China attaches great importance to its international image. If you do anything shameful abroad, China Resources will have to take responsibility.

Moreover, having traveled abroad and met foreign businessmen for so many years in Hong Kong, Luo Wenhua knew how sophisticated and corrupt capitalism could be. He had also witnessed the various methods those businessmen used to corrupt people and how powerful their allure was.

That's really upsetting to him just thinking about it. This isn't just one or two manufacturers. It would be too embarrassing to organize such a large-scale event without dozens of manufacturers. With so many people, there's a 100% chance that some won't be able to handle it.

What if someone takes the opportunity to escape...

This isn't the first or second time that someone has used the opportunity to go abroad to abscond; this is even with carefully selected individuals.

Do you really think no one has thought of holding the Canton Fair in recent years? It's just that there are too many difficulties, and it was stopped before it could even be held.

If Wang Yaotang hadn't proposed this idea, Luo Wenhua wouldn't have even considered it. What's the use of just having ideas? The key is being able to get things done.

"but……"

“I know.” Wang Yaotang laughed. “First of all, I have to say that I don’t expect to make much money from this trade fair. I have plenty of ways to make money. You can imagine how troublesome this is. But first and foremost, I am a Chinese. I am happy from the bottom of my heart to be able to contribute to my hometown, expand foreign trade to earn foreign exchange, expand sales channels for domestic factories, stabilize employment and create benefits.”

"This is also contributing to the country. After all, I am just a businessman, and there is only so much I can do. This is just doing my best."

"After all, when the country is strong, I have face when I go out and have a strong backer. Making money is secondary to me. I have more assets now than I could spend in several lifetimes."

“I understand, I understand. This isn’t about money. Your intentions are noble and lofty. The country fully recognizes you, and the Party and the people will never forget it,” Luo Wenhua said with a serious expression.

Wang Yaotang couldn't help but chuckle. He was so happy to be described with words like "lofty" and "noble."

Just for that one sentence, the matter must be done!

Of course, if this were to succeed, it would also be of great benefit to Wang Yaotang.

Being able to organize such a large-scale transnational cooperation will not only rapidly increase his influence in China, but also make him more respected by higher authorities.

His influence in Southeast Asian countries will also expand rapidly, making him a true leader in the Asian business world.

The trade fair lasted for less than a year before his influence deepened. Because of this influence, people from all walks of life, from politics to business, had to give him face. Countless people in Southeast Asia depended on him for their livelihood.

This is something no real estate developer can compare to.

No matter how much money real estate developers have, it won't work.

The two then discussed many details about the 'exhibition,' the most important of which was where the first one would be held.

"You did the Pattaya Tourism City project in Siam. What do you think of Siam? Siam has a large population, a relatively good economy, is open to the outside world, its currency is pegged to the US dollar and can be freely traded, and it can also radiate to several countries in the Southeast Asian peninsula?" Luo Wenhua thought for a moment and said.

After a moment of contemplation, Wang Yaotang slowly shook his head. “I have only met the King of Siam once and have had no interaction with him. I also have little contact with the upper echelons of Siam. My relationship with him only extends to the mayor of Bangkok. Although I have caused a great stir in Pattaya, the local government there is very autonomous. Large-scale investments are local issues and do not affect the higher-ups.”

"In the end, it's just a tourist city. Its tertiary industry is still in its infancy. It's far from being fully developed, and its influence isn't that great."

"The issues in Malaysia and Indonesia are more complicated, and we also have to consider religious issues. Singapore... can be compared to Hong Kong. There are many fake foreigners there, their eyes are all in the sky, and they prefer to lick the boots of foreigners. Using domestic products will make them a laughing stock. So I think it would be better to place it in Myanmar."

"Myanmar?" Luo Wenhua glanced outside subconsciously. He had traveled quite a bit during his time in Yangon. Of course, China's urban development wasn't particularly advanced, so he wouldn't look down on Myanmar too much, but the way it was managed...

Just look at the situation of the Myanmar Kyat in its own country and you'll know.

If your currency is unstable, it's difficult to even price your products. How can you do business like that?

“You underestimate Myanmar,” Wang Yaotang chuckled. “There are some things that the authorities don’t actually know much about.”

"How so?" Luo Wenhua asked, intrigued.

“Myanmar has a large population and abundant resources. Although its geographical location is not ideal, it is still quite good. It has almost no natural disasters or man-made calamities. In ancient times, it was able to develop a civilization that threatened the Central Plains. But in modern times, it has developed into this state.” Wang Yaotang sneered, “It’s all man-made disaster.”

"In Myanmar, from the military government to the rebels, from the high-ranking officials to the poor, no one is immune to corruption. Those at the top do it through official channels, while those at the bottom do it through smuggling. Food, rubber, medicinal herbs, timber, precious metals, psychotropic drugs—almost everyone has been involved in smuggling. Otherwise, the Myanmar kyat to US dollar exchange rate wouldn't be so high. Back home, the black market exchange rate is only about 3.5 times. The difference is too great."

"I only learned after going deeper that Myanmar's grain production is actually quite high. Rice is the number one export product every year. Shan State does produce less grain, but if they really grew potatoes and corn, they could have enough to eat, hehe, but..."

"Anyway, it's true that the people aren't as poor as people imagine. It's also true that the government can't afford to make large-scale purchases in US dollars, but it's not a problem for these businessmen to make small-scale purchases in US dollars." Wang Yaotang said confidently, "It's the first time we've done this, so we don't have much experience. Myanmar has little influence, so the purchase volume is small, and it's easier to handle any problems that arise. It's a good testing ground."

"Furthermore, I am confident that I can persuade Naing Win to agree in Myanmar, or rather, force him to agree. I can vouch for it, and the issue of mutual trust between the two sides can be resolved. After all, my words still carry some weight in Myanmar."

“They might dare to owe money to the King of Hell, but they would never dare to owe me money!” Wang Yaotang said, raising his eyebrows.

Luo Wenhua didn't want to comment on the last sentence. He didn't know much about the trouble Wang Yaotang had caused here, and the Court of State Ceremonial wouldn't specifically inform him. But he knew the nature of the protective umbrella; it was nothing more than those kinds of methods.

He didn't feel there was any problem when he got to his position. Every company will encounter debt collection issues, even international banks.

Some bad debts cannot be resolved through legal channels due to high costs, so it's better to "sell" them at a low price to a professional debt collection company.

Isn't it illegal to not pay back debts?
The other party has broken the law, so why should I be expected to collect my debts legally?

"How do you plan to force him to agree?" Luo Wenhua asked in a low voice, his tone hinting at a secret plot...

“Hey, there’s no need for that.” Wang Yaotang laughed. “Naiwen is getting old, and the people below him have their own ideas. Of course, this also requires your cooperation. Give me part of the rubber and timber orders from your hometown, and I’ll use that as leverage to persuade them.”

Luo Wenhua breathed a sigh of relief. "You scared me! I thought you were going to threaten me with force!"
Wang Yaotang blinked, somewhat amused and exasperated. "Wait, are you serious about looking so relieved?"

Are you thinking about something bad?

Luo Wenhua chuckled and said, "I didn't, don't overthink it."

Wang Yaotang: "..." (End of this chapter)