America: My Time

Chapter 164 Communication
Chapter 164 Communication

At this point, John paused briefly to reorganize his thoughts before continuing, "Shanghai is similar to New York and Hong Kong in terms of development. We can learn from their experiences. They all have convenient waterways, and port construction is very important. A convenient port will attract the attention of many companies and greatly help in attracting investment. Goods exports also require convenient ports!"

Mr. Liu nodded repeatedly at John's statement. Many people could say the same thing decades later, but not everyone could articulate the same logic today. However, there was a crucial problem for Shanghai: a lack of funds. He sighed, "Mr. John, we understand the transportation problems you're talking about. They require huge sums of money, and where are we going to get the money right now? Everything needs to be rebuilt; money is needed everywhere, and everything costs money. It's tough!"

"To enhance investment attraction, infrastructure is essential. All large enterprises attach great importance to this. Without a good investment environment, funds cannot be attracted. Of course, this is just my personal opinion. In reality, there will inevitably be various problems that need to be solved step by step. It cannot be done according to your wishes."

It was 1983, and Shanghai was not yet open to the outside world. John couldn't say too much, and most importantly, there were many things he couldn't say too bluntly. However, the Shanghai government still valued the opinions of investors like John. Understanding investors' thoughts was beneficial for attracting investment, and infrastructure development was indeed an unavoidable topic.

Looking at China's development in the 1980s and 1990s, cities that relied more on foreign investment invariably developed faster, as exemplified by Shanghai and Guangzhou. As for Beijing, its main advantage lay in its status as the capital; Shanghai benefited from the Yangtze River Delta, and Guangzhou from the Pearl River Delta – these were their strengths!

Shanghai has not even opened up yet, so it can't be said to have developed much. This time, John's huge investment in the semiconductor industrial park is an opportunity for Shanghai to develop.

Before John invested in Shanghai, Shanghai had been engaged in lengthy negotiations with Volkswagen. However, these negotiations had dragged on for several years, and according to John's recollection, an agreement would not be reached until next October.

In comparison, negotiations with Bentley were much easier. John didn't care about minor details, and the Chinese side wasn't petty either. Both sides were sincere, making the process much easier. Therefore, the negotiations were completed in just a few days. As for minor issues that might arise during construction, they could be resolved through gradual negotiation. With both sides being sincere, nothing is insurmountable; a little compromise from each side is perfectly reasonable!
It would be a lie to say they weren't envious of the Bentley investment. An investment they hadn't been able to secure for years was completed in just a few days in Beijing. While Beijing made concessions, John also showed the utmost sincerity, promising not to withdraw a single penny from China for ten years—a decision Volkswagen couldn't make! Because too many things could happen in ten years, they dared not take that risk; otherwise, their negotiations with Shanghai would have been resolved long ago.

Industry may not be the most profitable sector for businesses, but it is undoubtedly the most effective driver of economic indicators and enhances a nation's fundamental industrial capabilities. Every country places immense importance on industrial development. Even after years of negotiations, Shanghai has not given up and continues to communicate with the public. The public understands this, which is why they have been holding Shanghai back!

The semiconductor industry is also very important for boosting the economy. John is now building such a large semiconductor industrial park in Shanghai, which will greatly promote the economy of Shanghai and also improve its own shortcomings. This is a win-win result.

Mr. Liu's expression gradually grew serious. He had actually researched everything John mentioned, but he had only considered it from his own perspective, not from a business standpoint. Without sufficient soft and hard advantages, how could one attract investment? Not every opportunity would fall from the sky, and a semiconductor industrial park wouldn't just fall into one's lap without effort. And not all investors were as easy to talk to as John. While John wasn't overly calculating in terms of investment, he offered a high price for factory construction, though still much cheaper than in the US!

"Thank you for your guidance, I have benefited greatly!" Mr. Liu sighed softly, looking at John with full approval. To say such a thing, one must be a person with keen insight, and also an investor who came with the intention of a win-win situation. Otherwise, he would not have said it. There are too many interests involved! However, Mr. Liu's happiness did not last long. The next moment, he smiled bitterly.

"In the end, all projects require money. Infrastructure, port repairs, all of these require money. What we lack most is money. We have everything else, but we just don't have money!" Mr. Liu sighed.

“Money problems can always be solved, but you need to do thorough research on investors. Not all investors are well-intentioned; many are scammers. There are too many business frauds and scams in this world, and joint ventures are not safe!” Compared to Mr. Liu’s lament about his lack of money, John sighed for the many scams and frauds that use investment as a pretext. China has suffered greatly from this; it’s not just one or two cases, but many. Hearing John’s words, Mr. Liu’s expression became serious. This was no small matter!
Seeing Mr. Liu's reaction, John smiled calmly and continued, "The size of the Chinese market is something that all world-class corporate giants can see. Take the cooperation between Volkswagen and Shanghai, for example; it's dragged on for years without any results. They see the immense potential of the Chinese market, but they're unwilling to pay too high a price, which is why it's been delayed. Volkswagen is still in a better position; at least they're willing to invest, but the overall economic environment prevents them from doing so in the short term. For those who see the Chinese market but don't see the expected returns after investing, a year or two might be okay, but in the long run, facing shareholder inquiries and stock price fluctuations, they will inevitably withdraw their investment under such pressure. If Volkswagen had signed the original investment agreement with Shanghai, do you think they would still have persisted?"

John's investment in the automotive industrial park is quite clear: cars will be produced, but not exported. What will be exported are not complete vehicles, but auto parts. Exporting complete vehicles is extremely difficult for China right now, while Bentley Motors, which controls the sales channels, will naturally have no problem selling parts. For ordinary people, who would buy expensive parts when there are cheap ones available?
John didn't delve deeper into this topic. It wasn't something he could get involved in; he'd given a hint, and that was enough. Saying more would be going too far. He and Mr. Liu weren't that familiar enough to talk about anything. He just needed to do his best. Mr. Liu didn't press further but continued talking to John about investing in Shanghai and introducing the environment there.

“Mr. Liu, although I also very much want to expand our investment in China, there are many things that cannot be done. It’s not a matter of funds, but of talent. We have a huge shortage of both technical and management talent. If it weren’t for your strong support this time, I don’t know how long the investment and factory construction would have been delayed. We can only make further investments once we have trained a group of qualified personnel in China. Otherwise, everything will become chaotic and disorderly, and the investment will inevitably be affected!”

John chose to place his semiconductor investments under ASUS in Taiwan for future considerations. Nvidia will inevitably go public, and listed companies face constraints. If the semiconductor investments in China don't meet expectations, it will be a major problem; those old guys will definitely cause trouble. ASUS in Taiwan won't go public, so there are no such concerns. Even if there are no immediate returns, it's not a problem. He wants long-term benefits, not short-term gains.

As for the Bentley Group, John has no intention of going public, at least not for a long time, so there shouldn't be any problems. After all, the Bentley Group is based in Britain, not the United States, which gives it more room to maneuver!

“Mr. John can choose to form a joint venture. If we build a factory together, wouldn’t that solve the problem?”

“It’s not that it’s impossible, it’s just that there aren’t any suitable projects. If there were, I wouldn’t rule out a joint venture. If there are suitable projects in Shanghai, funding won’t be a problem!” John did not rule out joint ventures in terms of investment. This needs to be clarified so that people don’t misunderstand and think that he only accepts sole proprietorships and not other options. That would be bad.

After a conversation, John and Mr. Liu became acquainted. Just as the conversation was about to end, John's secretary hurriedly came in from outside, holding a fax in his hand, and urgently handed it to John.

"Are they crazy? Have they gone mad? This is Sikorsky! Did you confirm this with Hurricane Investment?"

"The boss has done it. I've repeatedly confirmed with Hurricane Investment that the details are indeed correct. As long as you agree, Rockefeller and the others are willing to help us complete the acquisition of Sikorsky!"

"Ask Morgan what exactly happened. This can't be rushed. Calculate the repayment capacity of our aviation investment and see if we can acquire it without affecting our cash flow!"

Those old guys finally made their move, wanting to sell Sikorsky to John. On the surface, it was an attempt to ease tensions with John, but it was a poisoned morsel; one wrong move and they'd be poisoned themselves. The allure of Sikorsky was truly tempting, but the cost of acquiring it was enormous, and his current funds were insufficient. Selling the gold mine wouldn't be a problem, but it would affect the future development of Quantum Mining.

(End of this chapter)