Returning wealthy individuals develop their hometowns and become rich in the 1980s

Beijing Machinery Industry Department

A document broke the solemn atmosphere within the Ministry of Industry. The document, "Discussion on Foreign Investment in Vehicle Manufacturing Qualification and Supporting Facilities in the Tuocheng Special Economic Zone," was placed on Huang Bin's desk. As the Minister of Machinery, Huang Bin looked at the official document delivered by his secretary with surprise.

Turning to the last page of the document, he saw that it was personally signed by the old man. His surprised face furrowed, and Huang Bin carefully examined the document. He didn't know when a foreign company had suddenly appeared in Tuocheng that wanted to develop all types of complete vehicles.

Huang Bin was busy reorganizing China Automobile Industry Company, a task that required his oversight in many aspects. He was caught off guard by this unexpected document.

"Tuocheng, they want to establish a wholly-owned subsidiary, and they want to cover all types of vehicles, including passenger cars, buses, and even light and heavy trucks," Huang Bin sighed, shaking his head. "That place doesn't even have a decent industrial foundation!"

"Do you know this Chen Zaidong?" Huang Bin asked the secretary who came in with the documents.

The secretary knew a little about it and casually said, "A Chinese man who grew up in America, entered the country in May 80, saying he came to Nanshan County, Tuocheng, to find relatives. He then invested 5 million US dollars in Nanshan County to build power plants, roads, and a fruit processing plant!"

"I heard from people at the State Planning Commission that this fruit processing plant in Tuocheng never sells domestically; it only exports to America to earn foreign exchange. In 81, its annual output value exceeded ten million US dollars!"

"His cousins ​​also opened the first hypermarket in Nanshan County, Tuocheng. Business was booming, and it even made the front page of the Nanyue Morning Post. I remember I still have that newspaper. Do you want me to find it for you?"

Huang Bin waved his hand, indicating that he would forget about the newspapers and such. Since they could directly throw away 100 million US dollars in foreign exchange, it was only natural that they would make such a big fuss now.

"Notify the secretaries of the three car factories to come to the ministry as soon as possible," Huang Bin said in a deep voice. "Also, draft a new meeting agenda and have your subordinates conduct a feasibility assessment of opening a car factory in Tuocheng!"

"OK!"

Because it was something the old man had instructed them to do, it had to be handled specially and couldn't be taken lightly. In less than five days, even Bai Jianbo, the secretary of the farthest-away Shanghai Automobile Factory, rushed to Beijing by train.

The conference room was filled with smoke. Five or six heavy smokers were puffing away at the printed meeting documents in front of them, heads bowed and brows furrowed in silence.

The first to break the ice was Ji Shuzhi, the secretary of the Second Automobile Works. He tapped his cigarette ash and looked at Huang Bin, who was sitting at the head of the table, "Old Huang, you're talking about this Xiaochi Automobile, which is going to be a wholly-owned subsidiary. How exactly does that work?"

"Although foreign-owned enterprises are permitted according to policy, the '84 Document clearly states that complete vehicles are one of the fourteen commodities subject to import control by the state, and even the assembly of parts requires approval. Where would a new factory built from scratch get a production catalog?"

"That's why we brought the three of you here to discuss this!" Huang Bin put down his teacup and looked at Ji Shuzhi.

"This isn't a matter of discussion; it can't be approved!" Chen Laisheng, the Party Secretary of FAW, shouted, banging on the table.

"I agree. The qualification for manufacturing complete automobiles should not be approved for foreign investment," Bai Jianbo, secretary of the Shanghai Automobile Group, chimed in.

"It's not a question of whether it will be approved or not," Huang Bin said, gesturing to calm the somewhat agitated group. "Listen to me first. When Xiaochi Motors submitted its application for the catalog, the comrades at the Tuocheng Planning Commission held it back, refusing to approve it, on the grounds that it must be a joint venture with a domestic car manufacturer for it to pass the review!"

"That's right, the planning commission comrades in Tuocheng are doing the right thing. Then why did you make us hold this meeting? Just let Xiaochi Motors form a joint venture with our three major manufacturers, and that will solve the problem!"

"Old Ji, they bypassed the local planning commission comrades in Tuocheng and called Elder Yan in the Equipment Department directly. The old man has already given his approval and had the State Council issue an official document to our Ministry of Industry!"

Upon hearing Huang Bin say that the old man had given his approval, the people in the meeting room who were about to argue about it immediately calmed down.

Chen Laisheng lowered his voice and asked, "Did the old man nod?"

"Yes," Huang Bin said expressionlessly, "It was Elder Yan who personally reported to the old man. After listening to Elder Yan's report, the old man was very certain of what Comrade Chen Zaidong said."

"A stagnant pool without competition cannot produce an excellent automotive industry!"

As soon as Huang Bin said this, everyone in the conference room fell silent, except for the rustling of cigarettes and the ticking of the second hand on the clock on the wall.

After a long silence, Bai Jianbo from Shanghai Automotive Industry Corporation (SAIC) spoke again, "Our negotiations with Volkswagen have entered a critical stage. If we approve a wholly foreign-owned project without shareholding restrictions at this point, will Volkswagen reassess the terms of cooperation?"

Ji Shuzhi chimed in, "Old Huang, when you were reorganizing the automotive industry company, you made it clear to me that FAW would 'go down' to passenger cars, while our Second Automobile Works would 'go up' to heavy-duty trucks. We each have our own division of labor."

"Now, the Tuocheng project doesn't rely on FAW or our Second Automobile Works; it's foreign-invested and doesn't cooperate with Shanghai Automobile. Which market does it plan to squeeze into?"

"Yeah, Lao Huang, we're having such a tough time negotiating with Volkswagen right now, and they just suddenly barged in, putting us in a really passive position!"

Chen Laisheng remained silent and did not offer any further opinions, but his silence spoke volumes.

Huang Bin lit another cigarette and said loudly, "I know and understand your difficulties, but comrades, there is no explicit provision in our country's current policies that stipulates that foreign investment in establishing automobile companies in China must be a joint venture!"

The three men looked at Huang Bin, who continued speaking, and none of them responded or refuted him. What Huang Bin said was true; there was indeed no provision in the current policy that required foreign companies to form joint ventures with state-owned automobile factories to enter the automotive industry.

However, the absence of regulations does not mean that they cannot be implemented. Foreign businesses are not like the three major state-owned factories, which are large and require care from all sides. If they cause too much impact, the resulting situation will put them in a very passive position.

The three exchanged glances and quickly came up with an answer: either a joint venture or restrictions on Xiaochi Motors, since the Guangdong Provincial Government's Document No. 297 clearly stipulated that no entity in the special economic zone may dump imported consumer goods outside the special economic zone!

At this point, they need to redefine the investor status of Xiaochi Motors. Huasheng Company is America's company, so does the car they invested in and manufactured fall under the category of import?

If so, then the sale of Snapdragon cars must be restricted, allowing them to be sold only to foreign entities, and dumping outside the special economic zone must be strictly prohibited!