Rebirth Strongest Tycoon

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After calming his mood, Murray MacLehose solemnly said to Xia Yu: “Mr. Xia, the plan you proposed involves too much coverage. It takes a lot of work to refine and formulate a complete implementation plan. After you go back, you have to send someone over to discuss it together.”

Xia Yu nodded said: “This is what it should be, and I hope to start it as soon as possible.”

……

After that, Murray MacLehose and Xia Yu and the others boarded their cars and left New Territories.

Xia Yu sat in the back row and opened the car window. He breathed the fresh air full of natural fragrance, with a refreshing feeling of clear brain.

Looking at the skipped fields, Xia Yu seemed to see a number of modern factories being established in this place.

At this moment, Li Qian leaned against Xia Yu, her eyebrows lightly clumped, and asked with some worry: “A’Yu, haven’t you always told me that setting up a factory in Pengcheng on the opposite mainland can greatly reduce production. Cost? And many of your companies have gone to open factories there. Why do you still want to build a science and technology industrial park in Yuen Long?”

“The straight-line distance between Yuen Long District and Pengcheng should be less than 20 kilometers, right? Can the Yuen Long Science and Technology Industrial Park be developed so close?”

Xia Yu retracted his gaze and looked towards Li Qian, who was worried about his career. He smiled softly and gently smoothed Li Qian’s frowning brows with his fingers, said in a soft voice: “Qianqian, don’t worry, what do you think of me? Did you make the wrong decision?”

“Although the Science and Technology Industrial Park is close to Pengcheng, this does not mean that development does not raise.”

Seeing Li Qian’s ignorant and cute look, but wanting to figure it out, Xia Yu carefreely smiled: “Let me talk to you.”

Li Qian is nodded like an obedient elementary school student, blinking and looking at Xia Yu with big eyes, waiting for Xia Yu’s instruction.

Xia Yu gently hugged Li Qian into his arms and spoke slowly with gentle words.

“Qianqian, the positioning of the Yuen Long Science and Technology Industrial Park is not a light industry with low technology thresholds, but heavy industries such as electronic high-tech, automobile manufacturing, petrochemical industries, etc. These industries are industries with high thresholds, high output value and high added value. The space is far beyond the low threshold of textiles, toys and other low-level ICBC industries.”

“Although Hong Kong’s labor costs far exceed mainland, but compared with developed countries such as Japan, United Kingdom and United States, it is far worse.”

“Since Japan, United Kingdom, United States and other countries have such high labor costs, companies in the electronic high-tech, automobile manufacturing, petrochemical industries and other industries can develop healthily. It is unreasonable that Hong Kong’s lower labor costs cannot do it.”

“Compared with labor costs, the technical costs of these industries account for the bulk. As long as the technical costs are properly controlled, you are not afraid of not having the strength to compete in the market.”

“Then talk about the mainland. Although the cost of the mainland is very low, it has to be able to be used. It is useless if it is low.”

“Other ordinary light industries, such as toys and textiles, have no restrictions on entering the mainland. Hong Kong companies want to set up factories in Pengcheng, but the electronic high-tech, automotive and heavy industries, petrochemical industries are different.”

“Except for the electronics field which is slightly better, now the automobile, heavy industry, petrochemical and other fields, the mainland is not open to the outside world, we want to go in and can’t go in, I don’t know how many years we have to wait.”

“Even if these industries are opened up, the mainland will set numerous restrictions. The simplest controlling interest will not be available, and the maximum profit can only be 40% 9 .”

“Considering in these sensitive industries, the tariff cost of mainland and world countries is much higher than the tariff cost between Hong Kong and world countries. Many parts have to be purchased from all around the world, and the tariff cost of entering mainland is also very high. High, this cost can offset a large part of the labor cost, or even offset the excess.”

“Unless mainland considers liberalizing restrictions one day, it will be possible to reduce tariffs. Before the liberalization, tariffs in these areas are almost impossible to reduce.”

“Of course, the combined import and export tariffs are the highest. If you set up a factory in mainland to build the entire industrial chain, you only need to purchase raw materials, and the tariffs are low, and as long as the products are not exported, they are sold directly in mainland China. Setting up a factory in mainland will have a huge cost advantage.”

“But even if we don’t export but only sell domestically, the market capacity and supporting industrial chain of mainland is a big problem, not to mention the industry entry restrictions that we don’t know when will be released.”

“So I must be prepared for two hands. I can’t do nothing and wait. It’s always right to establish a science and technology industrial park in Hong Kong first.”

As Xia Yu said.

Take a simple example.

For example, the simplest automobile industry. According to the history of previous life, even if the automobile industry is opened to foreign capital, there are many restrictions. The controlling interest still has to be held by the mainland, and the restrictions have not been completely lifted before Xia Yu crosses.

The domestic market sales are good, and they can have an advantage. Just like the price difference between a joint venture car and an imported car, the difference is more than doubled.

But in the face of overseas markets, after the profit is divided, the profit will be similar to that of the factory in Hong Kong, unless the mainland reduces the import and export tariffs of the entire industry chain to significantly reduce costs.

But for the difficulty of this point, no one knows the future situation better than Xia Yu, who was reborn from the later generation, and he doesn’t hold this hope at all.

Tariffs are a barrier to a country’s economy. He can’t touch it or touch it.

There are only two methods that can work.

One is that mainland believes that it is already competitive in all walks of life, and will take the initiative to lower it.

The second is that in order to join the WTO, previous life China was coerced by the countries of Europe and United States and had to make a series of commitments. Once time comes, they will continue to fulfill their commitments, open up industry restrictions and reduce tariffs.

So if Hong Kong builds an automobile factory now, Xia Yu can have 100% autonomy and profit, and there are fewer restrictions on entering the Europe and United States market, because it is very close to the mainland, and as long as the mainland situation changes, adjustments can be made at any time .

This is the case in the automobile manufacturing industry. As for the petrochemical ICBC industry, let alone the petrochemical industry. Some wait, Xia Yu is impossible to not enter the petrochemical industry temporarily because of this.

The future is to be embraced, but it must be based on the present, not aiming too high, it is better to build the foundation of Hong Kong first.

The only thing that can make Xia Yu give up building the Hong Kong Science and Technology Industrial Park is that mainland will immediately open all areas to him, but is this possible?

……

Xia Yu’s straightforward and easy-to-understand explanation made Li Qian suddenly realize.

“It turns out that this is so complicated, so the Yuen Long Science and Technology Industrial Park must be established as soon as possible.”

Xia Yu nodded with a smile: “Well, soon, after I go back, I will arrange for someone to go to the Government of Hong Kong to meet up. Now it involves the public housing plan and the construction plan of the new town in Tin Shui Wai. Murray MacLehose attaches more importance to it. His level of anxiety is no worse than mine.”

Li Qian tapped his head lightly, showing infatuation and admiration in his beautiful eyes, and whispered softly: “A’Yu, if your plan is successful, at least it will change the lives of several hundred thousand people, and the charity I often do. In comparison, you are the real benefit to society…”

……

After returning, Xia Yu immediately called in the brains of the three major research institutes, and also called Liu Shihao and Chen Jianping from Jiuding Real Estate Group, Zhao Bo, the General Manager of China Power Company and the others to the headquarters for a meeting.

During the meeting, Liu Shihao was appointed to lead the team to communicate with the Government of Hong Kong, and the others would cooperate and assist.

After the meeting, Liu Shihao and the others retired, but Zhao Bo, the CLP Power Company General Manager, stayed.

Zhao Bo is the Chinese executive promoted internally after Xia Yu took control of China Power Corporation. He did not disappoint Xia Yu and kept China Power Corporation in order.

“Zhao Bo, what else do you have?”

Xia Yu asked.

Zhao Bo immediately said nodded: “Yes, Board-Chairman, there are some more important things to report to you, involving the Kadoorie family.”

Xia Yu expression moved slightly and said slightly nodded: “Go to my office.”

“Ok.”

After finishing talking, Zhao Bo was one position behind Xia Yu, blindly follow suit and followed Xia Yu into the office.