Material Empire

The problem Qin Hai faced was far more complicated than what he told Leonardo. He really doesn't have enough manpower to make overseas purchases. Instead of sending a few novices to be fooled by the mining tycoons, he might as well entrust this matter to Leonardo's company and pay a few percent commission for it. , is also acceptable.

In addition to the problem of experience, the most troublesome thing is the problem of foreign exchange control. If Qin Hai sells steel to Leonardo, and then uses the foreign exchange obtained to buy coal and iron ore, he will encounter a policy obstacle. The country's foreign exchange management department will not allow Qin Hai to use precious foreign exchange to purchase primary products overseas. They will take away all the foreign exchange and let Qin Hai find a way to get coal and ore by himself.

In order to circumvent the state's control, Qin Hai could only think of a trick, which was to treat the sale of special steel and the purchase of ore as the same business and trade with the same company. Specifically, he sold the special steel to Leonardo, and Leonardo paid him part of the foreign exchange and part of the ore, and claimed to the outside world that this was a processing business with supplied materials. In this way, the foreign exchange for purchasing ore does not pass through the country at all, and the foreign exchange management department has nothing to say.

Qin Hai explained his thoughts to Leonardo vaguely, but Leonardo understood, he nodded and said, "I understand, I can help you with this matter. The cost of purchasing ore I need to add 5% as my commission, but don't worry, with my influence in the steel industry, I will definitely be able to lower the purchase price for you, and you won't suffer a loss if you pay a 5% commission."

"This is great." Qin Hai's heart sank, and he asked a new question: "In addition to iron ore, we also need to purchase some alloy elements such as nickel, tungsten, chromium, and molybdenum. These alloying elements should be available in the European market, and we hope that Mr. Leonardo can purchase them on our behalf, and the cost will also be deducted from the sales price of special steel."

It is impossible for Qin Hai to smelt and sell special steel on a large scale and rely on scrap steel smelting as in the past. One reason is that the amount of scrap alloy steel they collect is limited and cannot support such a large scale of production. The second reason is that the composition of scrap alloy steel is too complex. To smelt high-quality alloy steel, simpler raw materials must be used, such as ferrochrome and ferromanganese.

The smelting of alloy steel in domestic steel mills is achieved by mixing various alloying elements and steel raw materials in proportion. However, due to the scarcity of alloying elements, the control of alloying elements by the material department is much stricter than the control over steel raw materials. A wild subsidiary such as Qinhai's Pingyuan Iron and Steel Works cannot even try to obtain alloying elements. In desperation, he could only look abroad.

Hearing Qin Hai's request, Leonardo was very surprised. He looked at Qin Hai and asked, "Young man, how could you come to the European market to purchase alloying elements? Don't you know that many alloying elements in the European market , precisely imported from your China."

"I know." Qin Hai smiled wryly, "China is indeed an exporter of alloying elements, but I can't buy the alloying elements I need in China. Let's put it this way, I don't shy away from repurposing these alloying elements exported from China. Buy it back... In China, there is a term called 'export to domestic sales', which is roughly what it is."

China is a country with extremely rich reserves of non-ferrous metals. The reserves of some mineral resources rank first in the world, and China is an important exporter of non-ferrous metals. The alloy elements such as nickel, tungsten, and molybdenum that Qin Hai hopes to purchase are very scarce in the domestic market, but at the same time, the country is exporting a large amount.

The reason for this strange phenomenon is also very simple, that is, the country is seriously short of foreign exchange, and anything that can be exchanged for foreign exchange will be used for export first. As for the country, if everyone tightens their belts, what difficulties are insurmountable?

It's not that Qin Hai didn't think about using the export foreign exchange he obtained to buy these alloy elements from those export companies, but he couldn't find a way to do this at all. The foreign exchange he earned is beyond his control, and those export companies will not be willing to sing oboe with him.

Leonardo smiled knowingly. As a big businessman, he has some understanding of the situation in China, and his IQ is high enough. After Qin Hai simply said it, he realized the mystery of it, and at the same time, he also developed some sincere appreciation for Qin Hai's flexibility. He has dealt with some government officials and leaders of state-owned enterprises from China. These people never let go of the word "principle". superior.

Next, the two sides discussed some cooperation details, including Leonardo helping Qin Hai purchase some academic materials, metallurgical equipment and experimental equipment in Europe. Leonardo also agreed to help Qin Hai set up an overseas branch in Spain to be responsible for managing overseas funds. This branch is jointly owned by Qin Hai and Chen Hongcheng, and Juanito helped Qin Hai find someone as an overseas shareholder, mainly for the purpose of obtaining the treatment of some European local enterprises for the company.

The method adopted by Qin Hai and Chen Hongcheng is a means of capital flight. That is to say, when exporting, the price is deliberately low, and the profits are kept abroad, and then these profits are used for various overseas operations. Capital flight is an act restricted by the government in every country, but in fact no one can control it. The state has no right to intervene in the price at which a company's products are exported, and the state also has no way of knowing how much profit it can make overseas.

It was indeed a helpless move for Qin Hai to do so. As long as there is a way, he will not use this invisible method. The country is still in the early stages of reform, and various policy restrictions are like a curse on the head of the enterprise. An enterprise with advanced development capabilities like Qin Hai's is struggling in such a policy environment. Can't get things done.

Chen Hongcheng didn't care much about Qin Hai's actions. Who of them started their business by taking advantage of policy loopholes? Support the bold and starve the timid, this is the common creed in their circle. Qin Hai was able to think of these methods, in fact, thanks to Chen Hongcheng's reminder. In his opinion, Qin Hai's strides are still not big enough. It is a pity that he has worked so hard to get so much foreign exchange to buy coal and iron ore. If he buys high-end consumer goods such as refrigerators and color TVs The profit obtained is much higher.

No matter what Chen Hongcheng thought, the special steel was produced by Qin Hai, and Chen Hongcheng couldn't intervene if he wanted to, so Qin Hai could only operate it. Fortunately, everything Qin Hai has done so far is beneficial to Chen Hongcheng. His trip abroad has gained much more than expected.

Both the host and the guest ended their talks in a cordial and friendly atmosphere. When Qin Hai and Chen Hongcheng left, Leonardo left his big swivel chair, sent them out of the office in person, and gave each of them two boxes of exquisite Cuban Cigars as gifts. Before Qin Hai got into the taxi, Leonardo held Qin Hai's hand and said in a still arrogant tone:

"Young man, I am a little optimistic about you now. I have a hunch that after a few years, you are indeed qualified to be my partner."

Qin Hai responded with a smile: "Mr. Leonardo, don't worry, I will regard you as my partner no matter what time it is."

"Haha, good, good! You are such an interesting young man." Leonardo was not at all irritated by Qin Hai's arrogance, but laughed out loud. He believes that Qin Hai has the strength to say such things. Thirty years in Hedong and thirty years in Hexi, who knows whether Qin Hai will really surpass him in a few years?

When Qin Hai and Chen Hongcheng returned to the hotel, they found that the corridor where the delegation of Hongyuan Province lived was filled with a festive atmosphere. As soon as the two came out of the elevator, they ran into Jiang Huanwen who was full of smiles. He held Qin Hai with one hand and Chen Hongcheng with the other, and said loudly, "Oh, Xiao Qin, Mr. Chen, you are finally I’m back, if you don’t come back, we’re going to ask the embassy to look for you.”

"Uh... what happened?" Qin Hai was confused by Jiang Huanwen's attitude, "What happened, why are you looking for both of us?"

Jiang Huanwen exaggeratedly said: "Our Honggang is going to hold a celebration banquet tonight. I wish the Director and Director Li to attend. We have also invited Secretary Wang from the embassy, ​​but the time is almost up, but the biggest hero is not here. Show up, how can such a celebration party be held?"

Hearing what Jiang Huanwen said, Qin Hai immediately understood, and asked with a smile, "Why, is there any news from Aosuo?"

"There is news!" Jiang Huanwen said, "two sets of equipment, a total of 16 million, also provide technical guidance. The guy named Tony told us that the only request from Ossur is that we should not say that these two sets of equipment are Outdated technology so as not to damage their reputation in the Chinese market.”

"Congratulations to Director Jiang." Qin Hai hurriedly bowed his hands to congratulate Jiang Huanwen. Jiang Huanwen originally applied for 22 million US dollars from the province to import one set of equipment, but now he has imported two sets with 16 million US dollars. Being able to save precious foreign exchange for the country, Jiang Huanwen will definitely be commended by the province, and it will also be of great benefit to his personal career development.

Jiang Huanwen did not hide his joy. He said: "We are happy together, thanks to Xiao Qin... Oh, yes, and Mr. Chen's great assistance. I put this here, and the two of you will have more cooperation in the future." If you want to come to Honggang for anything, feel free to ask, as long as it does not violate the policy and is within my ability, if I, Lao Jiang, have anything to say, I will be a bastard."

"Haha, Director Jiang is serious. We will definitely trouble Director Jiang if we have anything to do in the future." Qin Hai said with a smile.

"Let's go, the banquet has been arranged, let's go there now." Jiang Huanwen said.