America: My Time

Chapter 513 Testing
Chapter 513 Testing

Quantum Mining is not yet in full-scale mining of its iron ore mines in Australia, nor can it. The market is limited, and John cannot guarantee that the Japanese and other countries will not reduce their iron ore purchases from Quantum Mining in a few years. Under such circumstances, it is natural not to engage in full-scale mining, but to mine in an orderly manner to avoid investing a lot of money and wasting it.

Compared to iron ore, John placed greater emphasis on copper and gold mining, increasing the gold reserves of Standard Chartered Bank, Sinochem Bank, and East West Bank. Although Quantum Mining has invested heavily in copper, gold, and silver mines and has reaped considerable profits each year, it has not caused any turmoil in the gold and silver market, which has all been converted into the banks' gold reserves!

"John, could you get Quantum Mining to supply more iron ore to Japan, or could your Australian shipping company supply more steel? To be honest, the value of steel in Japan is rising right now because the demand is so strong!" Japan's demand for steel is huge these days, not only for industry but also for construction, which is even more staggering. Under John's guidance, Japan's construction industry is changing every day, and real estate prices in major cities like Tokyo are soaring.

Even now, John is shocked by the housing prices and land prices in Tokyo. The crazy real estate market makes John sigh. The crazier it is now, the worse it will be in the future. It's hard to say how many of those who have invested so frantically in the real estate industry will be able to get out.

Upon hearing Akio Morita's words, John said doubtfully, "Mr. Morita, major Japanese corporations have already invested in many mines in South America. You should have enough influence over those mines. You can definitely seek help from them. After all, they are mature mines, not Quantum Mining, which is only in the initial stages of mining!"

John was not affected by Akio Morita's words. He was fully aware of Japan's plans in South America. After all, Quantum Mining also had a significant presence in South America, so he was very familiar with the methods of these Japanese companies. Japan's current demand for steel was astonishing, driven by shipbuilding and real estate. Not only did he have large orders from major shipyards in Japan, but with the recovery of shipping, many people were also ordering new ships, requiring an astonishing amount of steel!

Akio Morita sighed and said, "John, the situation over there is complicated. It's not something we can just increase simply because we want to, especially since the transportation costs there are much higher than in Australia!"

In fact, John understood that Akio Morita hadn't told them all the problems. Not only were transportation costs high, but if they wanted to increase their iron ore volume, those guys in South America would be tempted and would rip them off on iron ore prices. Those guys weren't exactly good people either.

Of course, John wasn't a good person either, and he certainly wouldn't give Japan cheap iron ore. If the Toshiba incident hadn't happened, these Japanese guys might have been able to try and make deals with the Russians. But now, even if they had ten times the courage, they wouldn't dare to do that; it would only provoke endless anger from the Americans.

"Regarding iron ore, I will talk to Quantum Mining and try to supply you with more. But you understand that this isn't something you can just get whenever you want. Those guys in Australia aren't as hardworking as those in South America, so I can only do my best. As for the outcome, I can't guarantee anything. After all, Quantum Mining has contracts with Taiwan and South Korea and needs to guarantee their iron ore supply. As for the steel from Russia, I can only try to give them a portion. That steel has already been pre-ordered by others, so there's nothing I can do. You can only blame those guys for being too stupid and arrogant. It was clearly a win-win situation, but they had to cause trouble!"

When he heard John bring up New Prince Paper again, Akio Morita couldn't help but sigh. Mitsui had done something unethical, and they hadn't expected the retribution to come so quickly. The Toshiba incident had put them in a very difficult situation, but all of this had almost no impact on shipbuilding and construction, and even the impact on automobile manufacturing wasn't too great. After all, no matter how crazy the Americans were, they still needed cheap cars.

The US economy isn't doing so well right now. Don't be fooled by those guys putting on a show, smashing and destroying Japanese products. It's just a performance. Most Americans don't have that kind of power; they wouldn't risk smashing their own Japanese cars or appliances. These repeated incidents are actually having a significant impact on Americans themselves, and some are even tired of it and unwilling to deal with it anymore. That's why the White House so 'easily' let these Japanese guys off the hook, and let Toshiba go.

“John, some people always want more benefits, so this isn’t surprising. However, their ignorance is affecting others, which isn’t good either. If you have the ability, please give us more help!” Akio Morita sighed. As the world’s second-largest economy, Japan can’t afford to be controlled by resources. Although major Japanese companies have been trying to control resource sources, they haven’t had enough time to do so effectively. Now, unless they accept more expensive iron ore, or even other resources, they have no choice but to cooperate with John and Quantum Mining. With Quantum Mining controlling its own steel mills, it has had a certain impact on Japan. The iron ore Japan can obtain from Quantum Mining is decreasing. This event, seemingly an entertainment industry party, actually had other motives: to have the old man Akio Morita discuss resources with John.

If the Japanese had known about the current situation, they wouldn't have offered such a small share when negotiating with John. Now, even if they wanted to expand, it's impossible because Quantum Mining's iron ore production capacity in Australia is insufficient. Of course, they could purchase from other mines, but that would come at a higher cost. Currently, Japan's exports are affected by the appreciation of the yen, so they will try every means to reduce production costs and won't accept excessively high iron ore prices.

Russia is currently the world's largest steel producer, and John's trade with Russia remains unaffected. John accepts all trade with Russia, taking on any steel that comes his way. It can be said that a large portion of Russia's steel trade is handled by John. Australia's largest shipping trade is no longer timber, but steel. Compared to timber, steel is easier to preserve. Moreover, John has its own steel mill, automobile manufacturing plant, and parts production facilities in China, so it naturally has a demand for steel.

Such a deal won't last long. Once the Russians fall, it won't be easy to get such a huge steel deal from them again. Even if it happens, the cost of the deal will increase. So, they will do everything they can to get as much benefit as possible from the Russians.

John didn't want to continue discussing the mining issue, so he changed the subject, saying, "Mr. Morita, isn't it terrifying how crazy the real estate market in Japan is? To be honest, I couldn't believe it when I heard the current prices. How long has it been? The Japanese real estate market has reached this level. To be honest, I don't even dare to let the company make any acquisitions. I originally wanted to acquire some real estate for Phoenix Records, but now I have to give up. The rise in Tokyo real estate prices is too fast. Haven't you considered controlling it? If this continues, I'm afraid it will get out of control."

Seeing John's concern, Akio Morita smiled calmly and said, "John, this is not something anyone can control. Moreover, Japan is different from the United States. You can't look at Japan with an American perspective. Although real estate prices are high now, they will be even higher in the future. Tokyo is only so big, so land and real estate prices will only rise, not fall!"

John didn't believe the claim that prices would only rise and never fall. He thought that in a few years, when the neon bubble burst, the real estate industry would plummet and banks would suffer a terrible blow. He wondered how many people had taken out loans to buy houses, and if they couldn't get out in time, they would face annihilation.

"That's true, but I'm still a little uneasy. If prices continue to rise so wildly, I'm afraid I won't dare to continue. To be honest, there's no such situation in the United States. If prices continue to rise so wildly, I'll have to consider recovering some of the costs and repaying some of the loans. This is too crazy. I can't risk the development of the company."

At this point, John had already begun to express his concerns about the rampant real estate speculation in Japan to Akio Morita, and he was already showing signs of backing down. Although all of this had not yet begun, this was a small warning to Akio Morita and even those guys in Japan, so that when he made his move, these guys wouldn't have so much land and wouldn't have any objections to his departure.

“John, you’re being too cautious. If you’re interested in selling, especially those shopping malls, Sony is willing to take them on!”

Upon hearing Akio Morita's words, John nodded and said, "Okay, if the Mandarin Oriental Group is ready to sell, we will definitely inform you immediately. To be honest, with such a crazy price increase, the Mandarin Oriental Group has reported to me more than once that they want to exit the market. Now the Mandarin Oriental Group is worried about its own loan issues. After all, they are also carrying a considerable amount of debt, and even the slightest mistake could result in staggering losses. The Mandarin Oriental Group cannot afford such an impact and loss. The shopping center will be our first target for sale."

(End of this chapter)