Return to Hong Kong Island for a Century

Chapter 420 Third in the World (First Update)
“No problem, exports are number one, exports are number one.” Ma Shengli understood after hearing that.

Due to production capacity limitations, passenger cars in China are currently mainly used by government departments, i.e., through government procurement.

Government departments are scrambling to get their hands on the goods. Although there's a significant reduction in supply, higher-level departments are only happy because this is a move to seize the London market.

"Yeah." Li Song nodded.

"In addition, I also want to set up a yacht manufacturing plant. It looks like I can make a fortune from the crowdfunding club."

"We need the coordination of higher-level departments to assist some companies, or we can contribute our technology as equity, or we can simply place an order." Li Song's real intention with the yacht business is to make a profit.

The yacht industry is actually quite profitable, but it pales in comparison to the semiconductor and internet industries.

The key issue is that once Fat Bear splits up, orders could drop overnight.

So Li Song's plan was to make a quick profit and run, since he would profit while others would lose, perhaps like Fiji the panda.

This has brought propeller aircraft manufacturers to the brink of bankruptcy. Of course, these companies have another option: contract manufacturing, but this is just wishful thinking on their part.

However, those capitalists didn't have much of a choice. Even if they found small countries like Japan or South Korea to manufacture the products, it wouldn't work because Li Song had driven the prices down low enough.

In fact, once a product forms an industrial chain, even if the end product is sold at a loss, it will not actually lose money.

Because the entire industry chain is revitalized, and there is an advantage to losing money: it can also damage the competitor's similar products and industry chain.

A good example is that later on, the price of our exported refined oil was very low.

Many people feel it's unfair; why are the export prices so low?

It mainly involves the industrial chain, including oil imports, transportation, oil refineries, refined oil exports, and so on.

Most importantly, what China needs most are the byproducts left over from refining oil products, which are then used to make various raw materials.

How many jobs are involved, and how many factories can be supplied with the associated chemical products, various plastics, and clothing raw materials?

In addition, low-priced oil has squeezed out the products of foreign counterparts.

Another example is iron ore. The reason why China's crude steel exports have become so large decades later is because the industrial chain has eliminated other competitors, so there is little competition and the company has a say in both buying and selling.

Ma Shengli nodded. He figured he'd make as much money as he could, and as for what his superiors decided, that was their business.

There wasn't much else to do, so Ma Shengli reported the relevant matters.

Li Song looked around and saw that the BMW motorcycle factory's various production lines were bustling with activity, with transport vehicles coming and going.

All the motorcycles here are exported, going directly to Huangpu Port on a ferry to Hong Kong Island, or disembarking, or going through a different procedure before reaching their destination.

Because the laws of the destinations are different, for example, you can go directly to friendly countries, but for some unfriendly ones, you have to go through a different procedure, such as going to Hong Kong.

When they return, most of these ships will carry goods from local distributors, including various raw materials, ores, rubber, or other items.

Li Song's model of charging for raw materials can expand the market, which is similar to doing business in the 1980s, especially when many businessmen who went to the countryside used grain to barter for goods.

On the other hand, it can also mitigate risks, because using the local currency carries considerable risk.

The third is the industrial chain.

For example, the continuous expansion of rubber plantations in Southeast Asia is due to the fact that rubber can be exchanged for motorcycles.

Mineral mining in Africa is also intensifying.

These increased production capacities will all be inseparable from this industrial chain in the future.

Motorcycles are just the beginning; these things can be exchanged for cars, sports cars, cell phones, computers, and even airplanes, etc.

In a few years, these industries will be impossible to leave. Anyone who tries to prevent their goods from entering will first face the mining companies and people in the rubber industry chain.

The first problem is internal conflict.

Of course, this is business. The other aspect is force. In some high-risk areas, Li Song has also made preparations. The first step is Anjie Security. Right now, it is not convenient for Anjie Security to be armed with too powerful weapons. Once the satellite is launched, Li Song will not be afraid.

Because advanced satellite and weapon technologies that require massive research and development costs for others can be easily obtained by Li Song, and he can sell them everywhere at bargain prices.

For example, the US sells many weapons to its allies, allowing it to sell similar weapons at a lower price.

Or why give away the technology at a bargain price?
The goal is to focus on the research, investment, and output of Ami.

This prevented Aramco's military industrial enterprises from recovering their losses.

So what will be the long-term outcome for Amei?
The same applies to civilian technology. Is Aramco, a high-tech company, trying to make money off others?

Come on, come on, let's dump chips at rock-bottom prices.

Operating systems are free and open source.

Satellite positioning fees are drastically reduced.

Various internet profit models!
Of course, Li Song needs a powerful backer to do this, otherwise, Amei will teach him a lesson in the rules in no time!
The motorcycle factory is now focusing on research and development. Although Li Song has second-hand platforms, he prefers the company to be self-sufficient and train its own researchers.

Then Li Song went to the outboard motor factory. They weren't expanding production capacity there either; most of their exports were OEM products manufactured by other companies. Their focus was also on training technical personnel and developing R&D talent. He then strolled around the BMW factory, looking at everything.

The next day, Li Song flew directly to Shanghai. On the plane, Section Chief Zhou said, "Yesterday, the House of Representatives of America passed a new aircraft safety bill, requiring that after October 1, the core components of aircraft flying in America must be manufactured in America, otherwise they will not be allowed to fly in America's airspace."

"Tsk tsk." Li Song clicked his tongue upon hearing this, wondering how much money Boeing had spent.

At that time, Boeing was not yet the powerful military-industrial complex it would become later.

At this time, America had McDonnell Douglas (F-4, F-15, F-18), Lockheed Martin (C-130, U-2, SR-17, and later F-117, F-22), and Grumman (F-14, B-2 (Boeing was involved; actually, the B-2 had another competitor, Lockheed Martin's proposal, but the president chose the B-2; what kind of exchange of interests was involved is unknown)).
The core engine is General Motors and Pratt & Whitney.

That's why Boeing is facing this kind of trouble now. In the past, some whistleblowers were killed in the past.

Back then, Boeing was nothing like it is now, where the media dared not report certain things, or they would be doomed.

"The higher authorities are also formulating aviation safety standards for our country, just waiting for the US to make its move. Once the US implements this proposal, we will follow suit," Section Chief Zhou continued.

"Thank you." Li Song knew that this was something his superiors had instructed Section Chief Zhou to say to him.

"Actually, we're waiting!"

“Once Fat Bear finishes his performance, many possibilities will arise.” Li Song had other ideas as well.

Isn't Boeing going to acquire McDonnell Douglas?

So they decided against it; they could manufacture for McDonnell Douglas and also sell designs, specifically the design of an airplane.

In any case, Li Song will not easily let Boeing acquire McDonnell Douglas. At that time, Boeing, McDonnell Douglas, Airbus, and Changan will fight each other in the civil aviation passenger aircraft circle.

Boeing and McDonnell Douglas are both Aramco companies, so who knows, the two might start fighting each other first.

Of course, these are all things we'll see as we go.

They could even place orders with McDonnell Douglas themselves, such as by establishing airlines and handling logistics in other countries.

The DC10 freighter is known in the industry as the "Mad Dog" because it flies very fast.

The DC10 is inexpensive now, and with the establishment of international air logistics, it's impossible to just buy our own aircraft.

Small business owners believe in reciprocity; trying to keep everything to yourself will only lead to a narrower and narrower business path.

Moreover, the production capacity of Chang'an Aircraft Manufacturing Company cannot be increased in a short period of time.

Of course, we'll wait and see, let McDonnell Douglas suffer a little longer.

After the US military exercises, when relations between the mainland and the US improve, we should also show goodwill by buying McDonnell Douglas aircraft for cargo flights, which will shut some people in the US up.

This achieves three goals at once: first, it shows goodwill; second, it allows them to gain an advantage; and third, it creates trouble for Boeing.

Of course, there are other related factors, such as the possibility of cars entering the Aramco market, and later computers, mobile phones, and so on.

Li Song is not taking these uncertain gains into account for the time being.

To cooperate with capitalists, you must show them the potential profits.

It's that simple!
When Section Chief Zhou heard this, he didn't ask any questions, because Li Song hadn't said anything about the possibility, so he didn't ask.

However, Section Chief Zhou believed that Li Song could handle things well, after all, Li Song and his people had too much influence in Aramco, and maybe all of this was calculated to set Boeing up.

After the plane landed in Shanghai, Li Song and Section Chief Zhou drove directly to Wuxi.

Wuxi has a military airport, but Li Song didn't want the hassle, and he didn't come here very often, so he landed in Shanghai instead.

After all, it's quite conspicuous for a private plane, especially one owned by a foreign company, to land at a military airfield.

Huazhong Semiconductor Technology Co., Ltd., formerly known as Factory 742, also introduced technology from Japan. In 88, it introduced technology from Bell Labs and produced the first 4-inch wafer, and also tested and manufactured the first 256KDMA chip.

Historically, the three-inch [type of equipment] was introduced in the 80s.
This time, Li Song invested and acquired a 49% stake, contributing new technologies and going straight to 4-inch wafers.

It is the world's third 4-inch wafer manufacturer. The first is Intel, which was established in 75, the second is United Microelectronics Corporation (UMC), which was established in 80, and the third is Huazhong Semiconductor.

In 75, Wahaha had a three-inch wafer production line, and South Korea started producing three-inch wafers in 79.

It is seven years earlier than in history, and the technology is more mature, possessing its own fully patented technology.

Historically, they had wanted to introduce 3-inch wafer production technology from Aramco for 73 years, but it wasn't until 1980 that it was finally introduced.

Therefore, the 4-inch wafer production technology that Li Song presented was highly valued by higher authorities and the local government as well. Experts from all over the country were mobilized for technical support, and Li Song also invested funds in it.

If it involves using state funds, it might just be another muddled affair.

We have plenty of money, technology, and manpower. Plus, we're a foreign-invested enterprise, so salaries and benefits are tied to performance, which keeps everyone united.

Of course, Li Song was also very satisfied. After the technology here matures, several more wafer fabs will be built in China.

(End of this chapter)