Material Empire

Chen Hongcheng was holding a chopsticks of food to his mouth, when Qin Hai yelled, Chen Hongcheng was startled, a mouthful of chili was choking into his throat, and he was so hot that he coughed violently.

"Mr. Chen, are you alright? Do you want a drink?" Qin Hai hurried forward to wait on him and patted Chen Hongcheng on the back.

"Cough, cough, cough! I'm fine, I'm fine." Chen Hongcheng managed to catch his breath. He waved his hands and complained, "Xiao Qin, don't be so startled, okay, I almost choked to death just now."

"Sorry, Mr. Chen, I didn't notice you were eating." Qin Hai said with a smile.

Chen Hongcheng took a sip of water, took another breath, and then asked, "You just said you were confused, what did you mean to say? Seeing that you are so happy, did you think of any way to use it?"

Qin Hai shook his head and said, "I don't have any way, even if I have a way, I don't want to use it like this. I just thought, since domestic coal and iron ore are so tight, why don't we go abroad to buy them?"

"Overseas, what overseas?" Chen Hongcheng was a little confused for a moment, not understanding what Qin Hai meant.

Qin Hai gestured with his hands and said: "A foreign country is a foreign country. Mongolia has coal, Indonesia has coal and iron, and Australia, Brazil, and Bolivia are all iron ore exporters. Why can't we buy their mines? Woolen cloth?"

"Little Qin, are you okay?" Chen Hongcheng looked at Qin Hai with sympathy. In his opinion, Qin Hai must have gone crazy thinking about iron ore, and came up with such an absurd idea. Since ancient times, China's coal and iron ore have been exported. There is no reason to purchase raw materials from abroad. Do you think you are a developed country?

"Why not?" Qin Hai asked rhetorically, "As far as I know, the Pujiang Iron and Steel Plant also uses Australian coal and iron ore. I don't know how much it imports."

"That is the Pujiang Iron and Steel Plant, a national key enterprise, and foreign exchange is specially approved. Can you compare it?" Chen Hongcheng said, "Not to mention anything else, you want to import raw materials from abroad, where does the foreign exchange come from?"

Qin Hai was immediately stunned by the question. In fact, so far, he has done quite a lot of foreign trade business. The military shovel was sold to Iraq, and it is said that the military is still in contact with Iran to become the next buyer. Special steel products have been sold to Japan, and the annual sales volume is also around one million US dollars. However, all the foreign exchange obtained from foreign trade did not fall into Qin Hai's hands. The foreign trade department directly converted them into RMB at the exchange rate and paid them to Qin Hai. Qin Hai didn't even touch a dollar.

The country is seriously short of foreign exchange, so the country will take as much foreign exchange as Qin Hai can earn, and if Qin Hai wants to use foreign exchange to buy raw materials, it will be even more difficult, and the "relevant departments" will never agree. Taking Qingfeng Factory as an example, in order to import a few advanced experimental equipment from abroad, Ning Zhongying led Chai Peide to get a little foreign exchange from the provincial foreign trade.

What Qin Hai said about Pujiang Iron and Steel Plant using imported coal and iron ore is true. Pujiang Iron and Steel Works is a modern iron and steel enterprise imported from Japan at a huge cost by the state, capable of producing a large amount of high-end steel that is urgently needed by the national economy. It would be a waste to use domestic low-grade iron ore for such equipment, so the state specially approved Pujiang Iron and Steel Works to import high-grade ore from Australia, and built the largest ore wharf in China at that time.

There are only a handful of companies in China that can enjoy this kind of treatment. Beixi Iron and Steel Works in Qinhai is just a key enterprise cultivated by Anhe Province, how can it be compared with Pujiang Iron and Steel Works?

"Mr. Chen, you are familiar with the country's policies. Can you analyze it for me? How can I get foreign exchange? We now export millions of dollars of special steel a year. Can we use this to compete with the provincial government?" Talk about foreign exchange withdrawal?" Qin Hai began to humbly ask for advice. Chen Hongcheng once worked in the Material Department, and now he specializes in trade, so he should be more familiar with the policies in this area.

Chen Hongcheng frowned, thought for a while, and asked, "You said that the special steel from your Pingyuan Iron and Steel Plant can be sold to Japan. How is the market?"

"The market is very good." Qin Haidao, "Our special quality is almost the same as that of similar Japanese products, but the sales price is more than 30% lower, so the supply in the Japanese market is also in short supply. We were almost crushed."

"In that case, why don't you expand production?" Chen Hongcheng asked again.

Qin Hai complained: "Why don't I want to expand production, but we need a variety of elements to smelt special steel. We now use scrap alloy steel for back and forth smelting, and most of the scrap alloy steel in Anhe Province is purchased by us. How can we have the conditions to expand production?"

Chen Hongcheng said: "If you can get enough raw materials, can the export volume be increased by ten times, or even a hundred times?"

Qin Haidao: "I dare not say a hundred times. After all, the market capacity of special steel is limited, but I don't think it will be a problem to expand ten times. In addition to the Japanese market, the European and American markets also have demand for special steel. My products will not Worse than theirs."

"This is easy!" Chen Hongcheng clapped his fists and said happily, "Isn't it just foreign exchange? As long as you can export it, why don't you worry about not being able to get foreign exchange?"

Qin Haidao: "I really don't have this way. The export of my products is settled by the provincial foreign trade agency. They take away the foreign exchange and only pay me in RMB. Could it be that Mr. Chen has a way to get them to take out the foreign exchange Come?"

Chen Hongcheng smiled and said, "I can't help it either. Whether it's your Anhe Foreign Trade Department or our Hongyuan Foreign Trade Department, they all have the task of earning foreign exchange. The better they complete it, the greater their achievements. So the foreign exchange has entered their hands. , just don't even try to take it out again. I mean, why would we let foreign currency fall into their hands?"

"I don't understand..." Qin Hai shook his head.

Chen Hongcheng said: "You can sign a contract with foreign companies, stipulating that 50% of the special steel you sell will be settled in foreign exchange, and the other 50% will be offset by raw materials... It is equivalent to doing processing trade. In this way, you use it to buy raw materials The foreign exchange that was collected did not enter China at all, what ability does foreign trade have to withhold it?"

"You can still do this? Mr. Chen, you are so talented." Qin Hai woke up like a dream, and admired sincerely.

In China's foreign trade, there is a trade method called "processing trade", that is, raw materials are sent from abroad to China, Chinese enterprises process them, and then send them back to foreign countries for sale. Among them, Chinese companies earn processing fees, and foreign companies are responsible for the purchase of raw materials and sales of finished products.

The most typical processing trade is the garment industry. Due to the low technical level of China's textile industry, the garment fabrics cannot meet the requirements of foreign merchants, so foreign merchants directly purchase fabrics from abroad, send them to China, and use China's cheap labor to carry out the processing trade. processed and shipped abroad for sale. Although this increases the transportation cost by two trips, because the labor cost in China is much lower than that in foreign countries, foreign manufacturers are still profitable in the end.

Chen Hongcheng's idea is to let Qin Hai pretend to be a processing trade company, let foreign manufacturers help provide scrap steel, alloy materials, coal, iron ore and other materials, and then use domestically produced special steel to offset the cost of these materials. The price difference is regarded as the income of processing trade. In this way, the foreign trade department has nothing to say, because if they do not accept this foreign trade method, even the part of foreign exchange obtained from processing trade will be ruined.

"Xiao Qin, if you don't mind, I would like to join forces with you to do this business, what do you think?" Chen Hongcheng thought of the solution and saw the infinite "money scene", and immediately posted it enthusiastically.

What Chen Hongcheng thought of was far more than what he said. He thought that if Qin Hai could keep part of the foreign exchange for exporting special steel abroad, then in addition to purchasing steel raw materials, it would also be reasonable to squeeze some out to purchase foreign home appliances, right? At present, the profits of imported home appliances in the domestic market are astonishingly high. If they can have such a source of goods, it will be much more arrogant than dumping some auto parts.

"This is something I wish for. If Mr. Chen doesn't say anything, I will also beg Mr. Chen for help." Qin Hai laughed and accepted Chen Hongcheng's offer.

Chen Hongcheng's plan sounds very simple and clear, but it is not easy to implement it in practice. First of all, Qin Hai needs to understand the operating rules of the entire foreign trade system and find loopholes in it. The second is to negotiate with the foreign trade department and persuade the foreign trade department to accept such an approach. In order to open up sales, Qin Hai had to go abroad in person to find new buyers, instead of hanging himself on the tree of Fukuoka Club.

To do all of this, there must be someone who has a certain amount of energy in the system to help, and Chen Hongcheng is undoubtedly the best candidate. In this sense, Qin Hai really needs to cooperate with Chen Hongcheng, which can save him countless troubles. Qin Hai knew that he didn't have many contacts in this time and space, so he had to make full use of all available resources in order to strengthen his strength. As for the fact that this kind of cooperation will inevitably give up part of the profits to Chen Hongcheng, Qin Hai doesn't feel bad at all, he has never had the habit of eating alone.

Before Chen Hongcheng expressed his thoughts, he also fully evaluated the respective situations of himself and Qin Hai. He decided that if Qin Hai wanted to realize such a trick, his best partner was Chen Hongcheng. This was the case in the business world, and good cooperation could be formed if there was something that could be used by each other.

"So, brother Qin agreed to cooperate with me?" Chen Hongcheng asked with a smile.

"I don't dare talk too much about cooperation, I just ask Brother Chen for support." Qin Hai bowed his hands to Chen Hongcheng as a gesture of courtesy. Now that the two parties have already planned to join forces, there is no need for him to pretend to be "Mr. Chen" one by one. Just calling "Brother Chen" in Chen Hongcheng's tone can narrow the distance between the two parties.

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