Inside the teahouse private room, when Lin Huowang solemnly announced that he had something more important to discuss, both Liao Gong and Huo Yingdong immediately became serious.
After all, in their view, what could be more important than this $2.5 billion silver gamble?
If this futures bet goes wrong, the losses will be incalculable.
To put it simply, it's a painful loss of 2.5 billion yuan.
On a larger scale, however, the country's foreign exchange reserves have been severely damaged. How much grain, oil, rare earth and other resources would have to be sold to earn back that much money?
Huo Yingdong did the same; he staked almost all the liquid funds the Huo family could draw upon, plus some mortgage loans, on silver futures, hoping to make a fortune with Lin Huowang.
Now, Lin Huowang says there are even bigger and more important things to do. How could they not be careful and surprised?
Lin Huowang didn't keep them in suspense any longer and said directly, "Lord Liao, Mr. Huo, the current world order is polarized, with the confrontation between the Soviet Union and the United States and the escalation of the Cold War, which can be described as increasingly tense. Especially after our falling out with the Soviet Union, the Western world is both trying to win us over and wary of us."
This presents a tremendous opportunity for our country. If I'm not mistaken, our relationship with the United States will gradually improve, which will bring our country decades of development opportunities.
We must seize this time window to quickly upgrade our nation's industry. Therefore, what I've brought you two here to discuss today is my plan to establish an automotive industry presence in Hong Kong Island and Guangdong!
Wow!
Lin Huowang's remarks, ranging from the international landscape to future trends, and finally focusing on the automotive industry, greatly surprised both Liao Gong and Huo Yingdong.
"Comrade Lin Huowang, introducing the automobile industry is indeed a major undertaking, and it reflects the nation's firm resolve. Domestic efforts are underway, and its importance is self-evident. However… our progress so far is far from optimistic!"
Just as you just said, although our international environment has become much more relaxed, we are still... looked down upon!
The comrades from the Ministry of Heavy Industry traveled all over Wolfsburg, Germany; Toyota City, Japan; and Detroit, USA, practically wearing their lips out trying to persuade them. It was tough! Volkswagen, Toyota, Ford—these giants have very high and mighty attitudes.”
After learning of Lin Huowang's intentions, Liao Gong sighed slightly, his voice filled with helplessness as he said, "The iron curtain of technological blockade is thicker than we imagined."
What they are willing to talk about are either the "three major components"—engines, transmissions, and chassis—that are 20 or 30 years out of date, or production lines that are about to be phased out.
As for the price? They're asking for an exorbitant amount, often demanding hundreds of millions or even billions of US dollars in foreign exchange!
The country's economic foundation is weak, and every penny of foreign exchange is precious; how can it withstand such depletion? After repeated deliberations, the higher authorities currently favor joint ventures, exchanging market access for technology. However, even with joint ventures, the technology transfer terms from the other party are extremely restrictive, and negotiations are progressing very slowly.
It has to be said that China in the 1970s and 80s was truly a very frustrating time.
After being abandoned by our Soviet big brother, we lost external assistance for various technological upgrades and could only seek cooperation from Western countries.
However, the collaborations that came our way were not taken seriously at all, especially since the domestic economy at that time was still a planned economy and the people's economic living standards were very low. Even our own business negotiators did not dare to promise that every household would be able to afford a car in the future.
Therefore, in the eyes of automakers in these developed countries, China is just like India and Africa—a very poor and backward country. What's the point of building a car production line in such a country? How big is China's domestic market? Although the population is large, they all have low purchasing power. A car is probably unaffordable for an average worker even with a lifetime's wages.
Huo Yingdong nodded heavily, then took over the conversation, saying calmly and pragmatically, "What Liao Gong said is true. But it is precisely because it is difficult that it is all the more important! The automobile industry can be called the crown jewel of the modern industrial system."
Its long industrial chain, the number of upstream and downstream industries it drives, and its strong driving force for technological upgrading are unmatched by other industries.
Once a complete vehicle factory is established, it can support hundreds of supporting factories! Steel, rubber, glass, electronics, chemicals... the entire industrial system will be stimulated by it.
It boasts high output value, advanced technology, and the ability to employ a large number of industrial workers. If we can truly overcome this challenge, the boost to the national economy will be revolutionary!
This is a long-term benefit that cannot be measured in hundreds of millions of dollars in foreign exchange. His eyes were bright and full of anticipation for this grand undertaking.
Liao nodded and added, “That’s right, that’s exactly where the central government’s determination lies. But difficulties are right in front of us: technical barriers, funding gaps, international constraints… every step is like walking on thin ice.”
The two men explained their current situation and predicament in detail, their eyes fixed on Lin Huowang, awaiting his insights. A heavy sense of anticipation filled the air.
Lin Huowang leaned forward slightly and immediately presented his groundbreaking plan, saying, "Master Liao, Mr. Huo, since the conventional path is blocked, we have to find another way and break out of the box they've drawn! Let's change our target and find car manufacturers in the UK!"
"Britain?" Liao Gong and Huo Yingdong were both taken aback upon hearing this.
"Yes, Britain! Not to buy technology, nor to discuss joint ventures. What we want to do is acquire them outright! Buy the entire British car factory, including the technology, production lines, and even the brand! Then, gradually transfer them back to Hong Kong and the mainland!"
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