The golden age began in 1977

Chapter 255 Director Qian Takes Command, Negotiations Begin
In July, the sea breeze already carried a hint of summer heat, but for the State-owned No. 6 Cotton Textile Factory, the real "heat wave" was just beginning.

This surge of energy didn't come from the sky, but from an approval document that embodied the hopes of thousands of workers in the entire factory:

After Wang Dong's tireless efforts and appeals, the higher authorities and the Haibin Municipal Government finally officially approved the import of a set of American cotton textile equipment with internationally advanced standards in late July.

After receiving the document bearing the bright red official seal, Wang Dong immediately went to find Qian Jin.

The process of introducing the production line has only just officially begun.

The previous dialectical discussions and various investigations and research work within the factory were all stepping stones. Although they consumed a lot of energy from the relevant personnel, there was no loss in terms of material resources, especially in terms of the country's foreign exchange reserves.

Now that we're actually going to introduce this production line, it means we're really going to start spending money.

Wang Dong had been fantasizing about this day for more than half a year, but now that the approval document was actually in his hands, he had mixed feelings.

There was excitement, but also an indescribable tension and pressure.

Huge foreign exchange expenditures!
Cutting-edge technological barriers!
The slightest mishap could not only cause the project to fail, but also jeopardize the factory's future, the workers' future, and even the country's interests.

So he personally went to Qian Jin's office, and once inside, he grabbed his hand and wouldn't let go:

"Director Qian, the battle is about to begin. You are the chief of staff, and I will listen to you in everything. You have to make good arrangements for me."

Qian Jin checked the approval document, and he felt a little nervous.

Although the All-China Federation of Supply and Marketing Cooperatives has imported many goods from abroad, they are all small retail items.

Nowadays, it involves introducing a production line, which is much larger in scale and has a much more complex process.

The introduction of advanced production lines by the No. 6 State-owned Cotton Mill is an important task for the municipal government this year.

The coastal city government wanted to take this opportunity to thoroughly examine the situation and set an example for other enterprises, organizations, and factories in their foreign trade work.

Therefore, at the same time the approval was issued, the municipal government also quickly organized a "Project Task Force for the Introduction of No. 6 State-owned Cotton Mill".

Several leaders from relevant commissions and bureaus were nominally appointed as group leaders and deputy group leaders, while Wang Dong was in charge of the actual operation.

Wang Dong knew he didn't have the ability, so he came to Qian Jin for help.

Qian Jin saw his boss's signature on the approval document.

He was seconded to the task force, where Wang Dong was the deputy leader, chief negotiation expert, and technical review expert.

In other words, the leaders in this task force were only nominal; the people actually in charge were Wang Dong and Qian Jin.

Wang Dong was very self-aware and did not act rashly or greedily. He frankly told Qian Jin:

"I'm holding this title of deputy team leader to assist you, to help you with some personnel matters. The specifics of how to introduce this production line, and how to negotiate the price and terms, are all up to you!"

At this point, the pawn has crossed the river and can only advance, not retreat.

Qian Jin patted Wang Dong's arm, trying to appear calm and collected: "Director Wang, we are going to fight a long-planned ambush, not a skirmish."

"So don't worry, all the preparations we made beforehand will definitely come in handy later, and things will go smoothly."

"If anything goes wrong, I, Comrade Xiao Qian, will risk my life to bring this machine back to you!"

The work of the Foreign Investment Office was handed over to Cheng Xia and Sun Jian, and Qian Jin moved to the Municipal Government Building to work.

The city government also attaches great importance to the introduction of advanced foreign production lines, so it specially vacated an unused archive room on the top floor of the west side to use as an office.

A red paper sign reading "Project Leading Group" was solemnly affixed to the entrance.

This once quiet room was instantly injected with high-voltage current, running day and night, and completely transformed into a "combat command center".

The task force is quite large, with over a dozen people, but excluding the leaders, only a handful are truly capable of getting things done.

Qian Jin was undoubtedly the core member. He brought three capable assistants from his own department: Li Xiang, Zheng Jianjun, and Chi Dabao. In addition, Wang Dong used his connections to temporarily transfer a key business person, Feng Jian, from the Foreign Trade Bureau.

The International Business Department of the Bank of China's Haibin Branch sent a young man named Zhang Yuanchao. The municipal government also arranged for Su Ya, a teacher in the Foreign Languages ​​Department of Haibin University, to be sent as a translator. In addition, there was a technical team personally led by Wang Dong.

The technical team includes three senior engineers, all of whom are leading experts in the field of cotton spinning machinery in the province.

When everyone met, Qian Jin first treated them to a meal at the state-run No. 2 Restaurant.

This meal was how everyone got to know each other.

Then, let's get started!
For the next few days, Qian Jin's figure almost blended into the large desk piled with documents.

The telephones, temporarily installed by the post office, began dialing and connecting incessantly.
"Hello, is this the Foreign Trade Bureau? This is Qian Jin from the import team. Regarding the technical parameters appendix submitted by Wodes Company, please contact the Intellectual Property Office to verify the patent status of item three concerning the 'intelligent detection module.' It needs to be done quickly! This may be the basis for negotiating patent licensing fees..."

"Xiao Zhang, did you get the approval number for your international business department's foreign exchange quota? That's great!"

"At the same time, could you please help me calculate the interest costs and foreign exchange risk exposure under our previous payment options, taking into account the current official exchange rate of USD to RMB and the floating range allowed by the State Administration of Foreign Exchange..."

Just as I finished looking at the contract after hanging up the phone, Li Xiang knocked on the door again:

"Director Qian, I just received news that we will have a preliminary meeting with the technical representatives of Wodes Company next Monday. Their accompanying translator requires two assistants."

Qian Jin waved his hand without even looking up: "No, this does not comply with our reception regulations and budget."

“We communicated with their chief representative, Mr. Smith, and told him our principle: we would only guarantee one chief translator and one technical assistant throughout the trip. We also told them that China has experienced professional translators.”

Wang Dong hesitated: "Director Qian, is it really necessary to be so strict? We can still accommodate them if they bring two more people."

Qian Jin said, "This is how the bottom line is tested. Tell them that principles are principles, and there is no room for compromise."

This matter touched upon an area where Wang Dong was unfamiliar with the subject, leaving the usually authoritative and decisive factory manager in a dilemma.

Seeing this, Qian Jin smiled and comforted him: "Don't worry, the other party won't give up the sales and trade of the production line just because we insist on not arranging two more people to entertain them."

“You need to change your mindset now. We are the buyers, the client, and they are the sellers, the service providers. They are the ones who need to follow our rules.”

"Furthermore, even if we can't buy Wardes' production line, we have other companies and even other countries' advanced production lines that we can purchase. In short, don't worry, things will get done."

Li Xiang is leaving.

Qian Jin waved him back:

"Principles are principles. We cannot break our own principles, but we must operate meticulously within the scope of principles."

"You and Feng Jian must confirm the dietary habits of Smith and his group, whether they have any special taboos, and what their needs are in terms of clothing, food, accommodation, and transportation. We need to be well prepared to provide services."

Li Xiang jotted down the work arrangements in her notebook and quickly walked out.

Cross-border trade is a very complex undertaking, even in the 21st century, let alone now, in this era of reform and opening up.

Foreign exchange, policy, technology, and logistical support.

Every aspect must be considered comprehensively.

Qian Jin now understands why leaders like to smoke.

Thinking too much and feeling too much pressure every day can help relieve stress by having a cigarette in your mouth.

However, not wanting to become addicted to cigarettes, he switched to chewing gum.

A piece of chewing gum can often take a long time to chew, going from soft and chewy to hard and chewy.

There are many things to do, and they are all professional tasks.

Qian Jin and the technical team experts have carefully reviewed and calculated the technology used in the production line, and there are no problems.

The problem now is the price.

Feng Jian used his connections to help Qian Jin find quotes for production lines of the same standard in several countries around the world.

This was very important, and as soon as Qian Jin got his hands on it, he immediately asked Zhang Yuanchao to calculate and compare it.

Zhang Yuanchao was also a professional in this area; he delivered a handmade report to Qian Jin in the time it takes to eat a meal.

Qian Jin glanced at the data and asked, "Xiao Zhang, have you checked the exchange rate for this 'Comparison Table of Standard FOB Prices for Wodes Equipment and CIF Prices for Similar Mitsubishi Equipment from Fuso'?"

Zhang Yuanchao patted the thick stack of exchange rate records in front of him: "I've checked it twice. Mitsubishi CIF had a transaction record in May 1975. I calculated it using both the exchange rate at that time and the current exchange rate."

Wang Dong humbly asked, "Director Qian, is there a problem?"

Qian Jin pointed to the back of the table:
"The FOB Detroit price quoted by Wodes for this high-speed drawwall is US$48. If we convert it to Japanese yen based on last year's average exchange rate, it is 18% more expensive than the CIF Tokyo price of the same model of equipment from Mitsubishi. And that doesn't even include our marine insurance."

Wang Dong blinked blankly and asked, "What do you mean?"

Qian Jin said, "Wardes' letter of intent to us included a guarantee that their production line would be the lowest priced among international competitors. That guarantee is nonsense."

"These American imperialists still think we're like the closed-off late Qing Dynasty, and they want to take advantage of us!"

"It's not just the exchange rate, but also the differences in equipment configuration," senior engineer Li Pengpai interjected.

He adjusted his reading glasses and drew a circle on a parameter in another document with a pencil:
"Director Qian, take a look at this. In the initial draft of the technical specifications from the US side, the description of the 'lifetime maintenance-free bearing' of the core spinning spindle is vague. They say that they can make a commitment to guarantee it because they have exclusive advanced technology."

“But I asked someone to find the International Yearbook of Cotton Spinning Machine Bearing Technology Development, which contains the patent specification for Wodes’ technology. It’s not entirely using its own ‘exclusive’ technology; it actually references and improves upon several West German patents.” Qian Jin understood: “In other words, they can take responsibility for problems involving their patented technology, but if the bearing problem lies with other improved patents, they might not care?”

Li Pengpai nodded: "Yes, so I think we must require them to provide operational life and maintenance-free test reports for these key components issued by internationally authoritative laboratories before formal negotiations."

Qian Jin gestured for Li Xiang to write down the question:

"Don't worry about that, Mr. Li. The list of key component test reports has been included in our official document requirements. As for the bearing test reports, we need more detailed information."

Wang Dong didn't rest either.

He is responsible for approving foreign exchange quota applications.

Qian Jin helped him consider different payment methods, as the requirements for foreign exchange quotas varied.

The current payment model offered by the Sixth State-owned Cotton Mill is 10% prepayment, 30% payment upon delivery, 50% payment upon acceptance, and 10% quality guarantee deposit.

沃德斯方则要求15%-60%-25%的付款模式，也就是说15%的预付款、60%的发货款，剩下25%尾款在验收合格后一次结清。

The payment method that Wang Dong and the city leaders want most is naturally the first one: the American company is willing to accept a minimum 10% prepayment, and the No. 6 State-owned Cotton Mill, with its brand-new production line, will have the ability to export fabrics and earn foreign exchange.

By combining the factory's projected export earnings over the next three years with potential government subsidies, the financial pressure will be relatively small, allowing the No. 6 State-owned Cotton Mill to operate efficiently.

If the U.S. requires an advance payment of no less than 15%, then Qianjin will have to figure out how to handle the final payment.

He has to leave a quality assurance deposit.

The country had little foreign exchange reserves when it first started reforming and opening up, but it could buy time. If it could delay the final payment for three years, the foreign exchange earnings of the No. 6 State-owned Cotton Mill alone would be enough to cover the cost.

He still needs to personally review the specific terms and conditions of the negotiation.

He specifically instructed Su Ya, who was in charge of the translation, to say:
“Professor Su, we must have a localized alternative for technical training. We must use experts or skilled workers from our domestic universities to partially replace American engineers. We cannot rely on them entirely.”

"However, the wording of this clause must be precise. It must accurately express our demands—reducing dependence, lowering costs, and promoting the assimilation of technology—while not appearing as a blunt refusal to cooperate, so as not to make the other party feel that we do not trust their technology or want to steal it."

Su Ya twirled the pencil in her hand quickly, her pretty face showing a helpless expression: "Okay, Director Qian, you've really found me a good job."

Qian Jin said, "Consider it a personal favor I owe you. If you ever have any conflicts with that old bastard Xu Weidong, just tell me. I'll side with my own people, regardless of right or wrong, and I'll definitely teach him a lesson for you."

Su Min was delighted: "That's a good idea. I'll have to keep working overtime to work on the wording of the terms."

In addition to advancing all aspects of the work simultaneously, Qian Jin also introduced the concept of negotiation rehearsal.

He served as Aaron Jr. Smith, the chief negotiator for Wodes General Fiber Technologies, and conducted negotiation drills with a team including Li Xiang.

The following days consisted of these work projects.

A constant stream of complex and varied signals from the outside world flooded into his office via telephone lines and fax paper.

The latest price quote from Wodes Corporation was strongly worded, and the response was full of technical barriers.

Feedback from various domestic collaborating departments regarding updates to policy guidelines, foreign exchange quotas, and technical assessments.

Bank's daily briefing on exchange rate fluctuations...

Qian Jin handled these kinds of messages one by one. By the end of July, when it was the hottest time in Haibin City, the negotiations between the two parties officially began.

But the contest had already begun at the very beginning of the contact.

Qian Jin arranged for Wang Dong to pick them up from the airport. The group stayed at the Silver Beach Guesthouse. Considering that Smith was tall and big and afraid of dampness and heat, Qian Jin specially arranged a room with the best ventilation for him.

In addition, he made a special arrangement with the guesthouse kitchen to prepare iced Americano for Smith, ready to serve whenever he wanted.

The three meals consist of traditional Western-style dishes.

He had read in the book "Thirty Years of Blood and Fire in Foreign Trade" that Smith had a very sensitive stomach.

When he went to Shanghai for negotiations, the negotiation team prepared all local Shanghai cuisine for them in order to show their enthusiasm.

But Smith couldn't get used to it, which really backfired.

The formal negotiations were held in a medium-sized conference room in the Haibin City Foreign Affairs Office, which is specifically used for important receptions.

A dark green carpet covered the floor, and slightly worn dark red velvet curtains partially obscured the tall windows.

The long conference table was covered with a snow-white tablecloth, on which were placed brand-new microphones, and in front of each seat was an enamel teacup printed with the words "China Coast".

But no steam was visible.

Qian Jin didn't ask for hot tea, but instead used chilled fruit juice.

Soon, Wodes' negotiating team entered. The chief representative, Aaron Jr. Smith, was indeed tall, burly, and strong. He looked to be in his fifties, very muscular, and more like an athlete than a lawyer.

In addition, there is a technical advisor, Johnson, a financial advisor, Brown, and a translator.

The city leader in charge of the project introduction introduced the two parties, and Qian Jin shook hands with Smith.

Smith's eyes were bright, and his face habitually wore a condescending, scrutinizing expression.

Qian Jin was about 20 centimeters shorter than him, which definitely made a difference in their imposing presence.

Smith looked down at him as if he were assessing a student, not a negotiating opponent.

But students' hands won't be that hard or that strong!
The two shook hands firmly before parting, and Qian Jin greeted Smith fluently in English, which surprised him.

This negotiating opponent speaks pretty good English.

The real translator was Suya, who introduced the situation in both languages. After a brief exchange of polite greetings, the negotiations immediately moved into the core technical phase.

Smith opened a thick technical specification sheet in front of him, tapping the cover lightly with his fingers: "Mr. Qian, we have reviewed your list of technical clarification requirements..."

He paused deliberately, his voice carrying a businesslike, cold hardness, to demonstrate his side's toughness:
"Frankly, some of these requirements, particularly the need for in-depth verification reports on proprietary components and cross-reference information on patents, are unprecedented and raise questions about the mutual trust required for this collaboration."

Qian Jin met his gaze without flinching, his face bearing the same gentle smile as when they shook hands.

He tilted his head slightly, and Su Ya immediately translated the words accurately.

Qian Jin spoke slowly, giving Su Ya time to translate: "Mr. Smith, the foundation of mutual trust is honesty and facts."

“We respect Wardes’ technological capabilities. But respecting technology does not mean blindly following it. You say our demands are unprecedented?”

He whispered a couple of words to Li Xiang.

Li Xiang immediately found a report from a stack of documents and handed it to him.

He obtained the report, showed it to Smith, and then handed it over to him.

"To our knowledge, the equipment your company delivered to Busan, South Korea last October, has a contract with Annex (C), Clause 12, which clearly states in black and white that the seller should provide compliance certificates for key components issued by UL or an equivalent international laboratory..."

Johnson was taken aback when he received the report.

Smith looked at him, and he shrugged.

Qian Jin then continued:

"What? When Wodes equipment is sold to China, the compliance certification of core components suddenly becomes unnecessary? Or is the Chinese market less worthy of your company to provide the same level of assurance than the South Korean market? This seems hard to explain."

The opening move was a powerful punch.

Smith really hadn't expected his opponent to be so well-prepared.

He had seen the contents of the documents faxed to them by the No. 6 State-owned Cotton Mill in Haibin City a few days ago. At the time, he felt that his opponent was very meticulous and cautious, but was a novice in international trade.

In hindsight, he probably miscalculated.

The details of the South Korean contract were pointed out directly, catching him off guard.

He subconsciously glanced at Johnson beside him again, hoping the other would offer some support.

As a result, Johnson could only shrug repeatedly on this matter.

Smith muttered "sunny beach" under his breath, then quickly adjusted his expression and softened his tone:

"Mr. Qian, I need to explain that the background of the South Korean project is unique..."

He tried to explain, but Qian Jin didn't give him time.

"Uniqueness lies in market objectives, not in the requirements for basic equipment performance."

"I believe that a world-class company like Wodes must be full of confidence in its core technologies."

"In that case, providing technical evidence that conforms to international business practices should be no difficulty for your company, and it would be a sign of confidence."

Qian Jin pressed his advantage, cleverly reattaching the "trust crisis" label back to Qian Jin.

(End of this chapter)