The golden age began in 1977

Chapter 256 A resounding success, appreciated by the leadership

The boomerang came very quickly.

Smith picked up his teacup and took a sip of his cold drink.

His opponent's words were impeccable, and his counterattack left him speechless for a moment.

Qian Jin knew when to stop:

"What we need is basic, clear technical transparency to complete our normal procurement decision-making process and align with our technical planning."

"This is entirely in line with business rules and international market practices, and it is the cornerstone for establishing long-term and stable cooperation. Mr. Smith, what do you think?"

Su Ya provided real-time translation, emphasizing the words "long-term cooperation" based on Qian Jin's tone of voice.

Smith fell into a brief silence.

The only sounds in the meeting room were the rustling of papers and the faint noise of the city outside the window.

He clearly underestimated the depth of information gathering and precision strike capabilities of this Chinese chief negotiator.

Smith said he would consult with his colleagues, and he and Johnson went out for a brief discussion, resolving their technical differences.

The two sides then discussed the cooperation methods for each stage of transportation, assembly, and trial operation, which had been agreed upon in advance and were based on a set of established international standards.

Therefore, the talks were very friendly and progressed rapidly.

The negotiations eventually shifted to the most crucial and sensitive issue – price.

Smith pushed a beautifully printed revised quote to the center of the table, his smile radiating an undeniable business confidence.

"Mr. Qian, after careful internal consideration and in light of our sincere desire to enter the promising Chinese market, we have made a significant adjustment to our initial offer."

He pointed to several key numbers with his hand:

"This is the best price we can offer. Wodes' quality and technology are unmatched. I think you can see this in South America, Western Europe and even East Asia if you can."

"This price is a testament to its unparalleled value."

Qian Jin listened quietly to the translation without responding immediately.

He whispered a few more words to Li Xiang, who then handed her the "Detailed Comparative Analysis Report on FOB Prices of Wodes Equipment and CIF Prices of Similar Mitsubishi Equipment from Fusang" that she had prepared for them.

He didn't look at Smith, but instead turned his gaze to the financial advisor, Brown:
“Mr. Smith, we fully understand your company’s confidence in its technology and brand, but,”

“The rationality of a price cannot be determined solely by ‘confidence’; it must be based on a clear, transparent, and well-considered cost structure and equivalent market comparisons.”

He opened the report booklet and pushed it to the center of the conference table.

"Please allow me to show you the detailed analysis we have conducted." He pointed to the first part of the report.

“Taking the ‘high-speed automatic winding machine’ among the core equipment as an example, your company’s FOB Detroit price is US$37.5 per unit.”

"Meanwhile, the equipment provided by Mitsubishi Heavy Industries, which reaches the same level in terms of key parameters, automation, and energy consumption, has seen its latest transaction price at the Port of Malacca..."

He paused for a moment, then clearly stated the figure, "It's $21.8 per unit."

“The CIF price includes insurance and ocean shipping costs, and it can be used immediately upon arrival. However, with your company’s FOB Detroit price, we need to pay additional international ocean freight, insurance, Chinese port handling fees, and substantial import duties.”

"A simple estimate suggests that the additional cost from FOB to CIF for the journey from Detroit to the seaside port is at least $10 per unit!"

This scene had already been repeated during the negotiation rehearsals.

Zhang Yuanchao immediately typed a number into the calculator and handed it to Qian Jin. Qian Jin glanced at it and nodded in confirmation.

"In other words, the total cost we actually pay for this one piece of equipment, up to the point where it's finally usable, will exceed $40. That's a full 40.8% higher than Mitsubishi's landed price!"

Brown's expression changed immediately upon seeing the English version of the analysis report.

He said to Smith, "Man, we underestimated them. Their contingency plans are very thorough!"

Qian Jin turned to another page of the report, which was marked with numerous arrows and annotations in red and blue ink:

"Let's take a look at the core equipment in the fine spinning process, the 'high-speed spinning machine unit'."

"Your offer is $20 per unit FOB Detroit. However, after verification by multiple parties, we found that the same type of equipment sold by Schneider Electric to a new factory in Istanbul, Turkey last year was only 55 marks FOB Hamburg per unit, which is approximately $11 at the current exchange rate. Moreover, after evaluation by our technical experts, we believe that the technological advancement of its electronic control system is no less than that of Wodes."

"Taking into account the same shipping, insurance and tariffs, the total cost of your equipment will reach a staggering $134 million or more, which is 23.5% higher than the FOB portion of the German quote. Considering Schneider Electric's brand power, this price difference is even more worth considering."

He looked up, his gaze sweeping over Smith, whose face was growing increasingly grim; Brown, the frowning financial advisor; and Johnson, the somewhat uncomfortable technical advisor:
"Mr. Smith, if you say that Wards' technology is 'unrivaled,' then where do these significant cost differences lie?"

Is your company's production efficiency far lower than that of its competitors? Are your material costs unusually high? Or is your company setting a special premium for entering the Chinese market due to some market strategy?

"As a professional purchaser, we urge you to provide a convincing explanation and a detailed breakdown of costs for the aforementioned significant price difference. After all, our budget is not inexhaustible, and we must be fully accountable to the country and our workers."

This logically rigorous and data-driven analysis, like peeling an onion, reveals the hidden costs beneath the glamorous packaging of Wodes' pricing.

Smith's confidence vanished completely, replaced by annoyance and pressure at being seen through. He unconsciously began adjusting his tie.

Seeing this, the leaders of the organizing committee decided to walk out of the meeting and gave Smith an office with the ability to make overseas calls as a lounge, the purpose of which was naturally to let him contact the head office.

There is naturally room for price reduction.

Qian Jin had already obtained the price that the two sides had negotiated through multiple rounds of talks in the previous life.

But this price is still not enough.

He wants to push the price down from this level.

But you can't rush things.

He was so well prepared, while Smith was basically unprepared, so in the negotiations, Qian Jin unilaterally put him on the defensive.

This has infuriated the arrogant Americans.

This time, Smith changed his previous arrogance and became polite but firm, almost stubborn.

They are uncompromising on key price ranges, payment methods, and the supply period for core components.

The two sides were locked in a suffocating stalemate.

Every round of bidding and counter-bidding was incredibly difficult.

Qian Jin had already secured an acceptable offer from his side, so he decided to take a step back and deliver his concluding remarks:

"Dear Mr. Smith, Mr. Brown, and Mr. Johnson, there is no doubt that both sides have made tremendous efforts on this path of negotiation."

"I believe that everyone wants to see a win-win outcome, rather than a zero-sum game where both sides lose."

Suya translated his words.

Upon hearing the concepts of 'win-win' and 'zero-sum game', Smith blinked and couldn't help but nod: "Yes, that's right."

Qian Jin met his gaze and continued calmly, "I think we need to move beyond the immediate price details and return to a broader, more fundamental perspective to look at our potential cooperation."

He then asked Li Xiang for two newspapers, one was the People's Daily and the other was the New York Times:
"Mr. Smith, I wonder if you have noticed an important background? Just recently, on July 1st, right here in our capital, the government of the People's Republic of China and the government of the United States of America officially signed the three-year 'Sino-US Trade Relations Agreement'."

"One of the core provisions of this agreement, and a key provision that has garnered significant attention from the global trade community—"

He paused deliberately to make sure everyone heard the key phrase, "It's about granting each other most-favored-nation status!"

Smith looked at the New York Times in front of him and subconsciously shook his head.

It’s not unfair to lose.

He had investigated China, and it was impossible to find a copy of The New York Times in that country.

But they were already prepared.

All of this is under their control!
Qian Jin continued, "This is not an abstract clause, Mr. Smith. It signifies the official opening of an unprecedented, stable, and advantageous era for American imperial corporations to enter the Chinese market!"

"As Americans, you know better than I, a Chinese, that the American market has entered a terrible period of stagflation, and the economy is experiencing deflation that is more frightening than inflation."

He abruptly changed the subject, his voice rising a few decibels, and pointed to the vast city outside the window:
"And here, at the No. 6 State-owned Cotton Mill, this production line that we are trying to finalize is very likely to become the first major project to be implemented in the field of textile machinery after the signing of this historic trade agreement between China and the United States!"

"I hope you can foresee that you are opening up a market of one billion people!"

He flipped his hands over to show them, his words becoming even more scathing: "A huge market is right in front of you. If you don't enter, someone else will."

"You must already be aware of the monotony of our people's clothing made of cloth, so you should be able to foresee what a huge clothing market is waiting to be developed, right?"

Smith was speechless, and said frankly, "Yes, but politics..."

Qian Jin immediately interrupted him, dispelling his hesitation: "No buts, what's appearing before you is a huge opportunity!" "This opportunity is our No. 6 State-owned Cotton Mill. We have the capability and the obligation to cooperate with you and do our utmost to make this production line a model!"

"A true benchmark showcasing Wodes' cutting-edge technological strength, and a benchmark for mutually beneficial business cooperation between China and the United States!"

His gaze was intense and full of conviction: "We will work with you to ensure that the equipment operates at its best and produces the highest quality textiles."

"It will not only serve the Sixth State-owned Cotton Mill, but will also become a showcase, a living advertisement, reaching out to the whole of China and even the entire East Asian market,"

He paused for a moment, then offered the most tempting prize:
"Silent yet most powerful proof—choosing Wodes Technology means choosing advanced productivity! It means choosing a reliable return on investment! It means choosing a successful future!"

Brown was moved and nodded repeatedly.

Qian Jin leaned forward slightly, looked directly at Smith, and said, "I've heard of your company's business philosophy—Being the FIRST, becoming the first."

"Mr. Smith, now is the time for your business philosophy to come: become the first group to bring large-scale textile machinery to the Chinese market!"

"The market expansion value and brand demonstration effect behind this, the potential and value contained therein, cannot be fully covered by the price of this contract."

"Especially against the backdrop of such a historic agreement, the long-term benefits that our cooperation can bring are absolutely worthwhile for us to demonstrate a more forward-looking attitude and more constructive flexibility at this starting point of cooperation."

After Qian Jin finished speaking, the conference room fell into an even more complete silence than before.

Smith's breathing became noticeably heavier. He leaned back in his chair, his fingers unconsciously tracing patterns on the smooth tabletop, and remained silent for a long time.

Johnson and Brown exchanged glances, both clearly feeling the impact of those words.

That wasn't just simple haggling; it was a highly enticing grand blueprint for a huge future market share and brand strategic value!

It accurately hit the deep-seated desire of Wodes Corporation to seize the commanding heights of the Chinese and even East Asian markets under the new policy environment.

This stalemate was broken by this powerful injection!
Smith finally sighed: "You can keep 10% of the warranty deposit, and we promise to train your after-sales workers, but the prepayment must be 14%."

"In addition, it should be stipulated in the contract that if the cooperation project is shelved due to your country's policies, the advance payment will not be refunded."

Qian Jin was overjoyed.

A big win!

He extended his hand, and this time Smith's gaze was no longer scrutinizing:
"Mr. Qian, you are very capable. I wish us a pleasant cooperation!"

The introduction of a production line is naturally not something that can be resolved in a single negotiation.

However, the first negotiation led by Qian Jin resolved the three most important issues: technology, after-sales service, and price, so it was a very successful negotiation.

A more detailed negotiation took place in August, but the differences had already been resolved in the first negotiation. The second negotiation was mainly consultation, and the two sides drafted a more detailed contract.

The final signing ceremony was scheduled for early autumn of 1979.

The location was chosen in a high-standard multi-functional hall in the Seaside City Hall.

The fluorescent lights on the ceiling of the hall emitted a soft, bright light, illuminating the dust particles floating in the air.

The large stage was covered with a brand-new red velvet cloth, and a huge red banner read in both Chinese and English: "Signing Ceremony for the Project of Introducing Complete Sets of Cotton Textile Equipment from Wodes General Fiber Technology Company of the United States to the No. 6 State-owned Cotton Mill in Haibin City, China."

The audience consisted of city leaders, heads of relevant departments, factory leaders, and worker representatives who had come upon hearing the news; the atmosphere was solemn and expectant.

The heavy original contract text, which embodies countless days and nights of hard work, and dozens of attachments, are placed like weighty monuments on both sides of the long signing table.

Qian Jin looked at these documents with mixed feelings.

He didn't actually have anything to do today; it was the leaders who went on stage to sign documents. He was a negotiation expert, and his task was completed after the negotiation was over.

In the future, his role in this project will not be as significant as Wang Dong's.

Wang Dong was wearing a brand-new gray Zhongshan suit today, with a Hero gold pen tucked into his breast pocket.

He sat in the chief seat, his expression both excited and solemn.

The signing ceremony officially began, and Wodes Company also sent their top leaders, including their CEO.

The CEO's name was Thomas Smith, and he was also tall, burly, and hairy.

Yes, he is Aaron Smith's brother.

This signing ceremony is a case of brothers fighting tigers together, and fathers and sons going into battle together.

Both of them changed into formal dark suits, and Thomas solemnly signed his name when it was time to sign.

This contract is of great significance to him and his company.

They hope to use this opportunity to tap into a vast market in the Third World.

The venue was extremely quiet when Thomas signed the document, with only occasional flashes of light from the cameras.

Smith paused for a moment after putting down his pen.

He followed the usual procedure and handed the document to Wang Dong, the Chinese signatory, then whispered a few words to Wang Dong.

Wang Dong turned his head, his gaze passing over the table and looking directly at Qian Jin, who was sitting in the second row.

Then, under the watchful eyes of everyone present, to everyone's surprise, Thomas Smith actually took the initiative to step forward and shake hands with Qian Jin.

This unexpected action caused a subtle ripple in the atmosphere.

Qian Jin paused for a moment.

He was lost in thought. While everyone else was looking at the podium, he was looking through the window at the few large chimneys of the No. 6 State-owned Cotton Mill that were faintly visible in the distance.

A few wisps of pale white smoke drifted and spread peacefully upwards against the backdrop of the clear, azure autumn sky.

That smoke is the lifeblood of the old factory area operating day and night, a silent testament to the hard work of thousands of workers, and also carries the simple yet resilient life expectations of countless families.

According to the "Haibin City Industrial Chronicle" he bought, the No. 6 State-owned Cotton Mill went bankrupt and was restructured in the 1990s.

At that moment, he wondered if his arrival could change the future fate of this large state-owned enterprise.

As he was lost in thought, Zhang Yuanchao, who was standing next to him, quickly tugged at his sleeve: "Director Qian, Director Qian, Mr. Smith is coming for you..."

Qian Jin suddenly came to his senses and saw the CEO walking towards him so solemnly and extending his hand. Without any other reaction, he subconsciously stood up to greet him.

Their hands were clasped tightly together under the bright lights.

“Mr. Qian? It’s a pleasure to meet you.” The CEO was very polite. “Our chief negotiator got the short end of the stick with you. He reported the situation to me right after your negotiations in July ended.”

“He said you are an awe-inspiring negotiating opponent, perhaps even the most awe-inspiring negotiating opponent he has encountered in his thirty-year global business career.”

He repeated and emphasized the word "formidable," which in the English context represents a very high, even challenging, level of respect.

Those who understand English, including Qian Jin, were quite surprised by his praise.

Several leaders did not understand what the CEO was saying, but the translator beside them quickly translated it in a low voice.

Qian Jin responded in English: "Mr. Smith's performance shocked and impressed me just as much. His kindness to the working people in a foreign land is enough for anyone to tip their hat to him."

"At the same time, his professionalism is worth learning from. His judgment of our country's market and his attitude towards the cooperation between our two companies made me understand why he could become a senior executive of a large company like Wodes. I am very fortunate to be able to deal with such a friendly and professional gentleman."

He assumed the CEO was just there for mutual flattery, so when the CEO offered praise, he showered him with compliments without restraint.

It turns out the CEO was quite straightforward.

He shook his head and said, "He told me that he needs to learn from you, to learn your ability to handle technical details, your mastery of data, and your precise strategies and tactics."

"After he returned to our Detroit headquarters, he told my colleagues about your negotiation process. Everyone was amazed by the execution you demonstrated in leading your team during the negotiations. Believe me, my colleagues in Detroit are still talking about it to this day."

“From the perspective of cooperation terms alone, I think this contract is a bit harsh for us at Wards, but Aaron convinced me that he believes that with talent like you and such a professional team, the No. 6 State-owned Cotton Mill will develop very well.”

"Now I look forward to working with you to create that 'benchmark' in the seaside city."

The two exchanged a few brief words before letting go of each other's hands.

The leaders present took the initiative to lead the applause.

The audience immediately erupted in enthusiastic applause.

The CEO spoke very seriously, which pleased the leaders greatly when they heard him praise Qian Jin and the Sixth State-Owned Cotton Mill.

Now that reform and opening up have just begun, everyone from leading cadres to ordinary people is eagerly looking forward to receiving praise and compliments from foreigners.

In the eyes of city leaders, Qian Jin's gaining the admiration and praise of the partner's top leader was a way of protecting the reputation of Haibin City.

This is even more important than introducing a production line to the No. 6 State-owned Cotton Mill!
With the reform and opening up, and the need to integrate with the international community, the nation's image became extremely important to them!
(End of this chapter)