"Does selling Laoshan Soda Factory to Wujiang Group mean it's no longer a Chinese company? Some state-owned enterprises in China are already implementing 'state withdrawal and private sector advancement,' so why can't we? I believe that with the support of Wujiang Group, Laoshan Soda Factory will definitely develop even better than it is now!"
These words left the opposition speechless.
Most domestic soft drink factories have low market value and low profits. Just imagine, how high can the profit be if a bottle of soft drink costs only one cent? A computer costs 20,000 RMB, so a soft drink factory would have to work hard to sell 200,000 bottles of soft drink.
Nowadays, economic development is the top priority for local governments. Which leader doesn't want a high-tech company, a highly profitable company, and a company that can also export and earn foreign exchange to emerge in their jurisdiction?
"We've arranged to meet with Wujiang Group's negotiators this afternoon. We'll see what conditions they propose then, and then we'll make a decision!" the secretary concluded, before adjourning the meeting.
...
At 3 p.m., Li Yang led the negotiation team to the Qingdao government building.
Now he's come prepared.
After the two sides met, Li Yang proposed a condition that greatly surprised the leaders.
"I'm sorry, leaders, but Wujiang Group currently doesn't have any projects in Qingdao. However, our company can help local Qingdao businesses grow and thrive! For example, Wujiang Group is willing to invest $30 million in Haier in Qingdao to introduce advanced foreign production technology and develop Haier refrigerators! At the same time, Shanghai Animation Film Studio can produce an animated film called 'Haier Brothers' to promote the Haier brand!"
After a pause, Li Yang smiled and said, "In this way, although Wujiang Group didn't have any projects set up in Qingdao, it developed local electrical appliance companies in Qingdao. Isn't that a pretty good result?"
Upon hearing this, the Qingdao leaders nodded in agreement.
The key point is that $30 million is a huge amount of foreign exchange. Even the Qingdao government may not be able to easily raise that much money. Right now, if they want to introduce advanced technology from abroad, the only options are to form joint ventures with foreign companies or to use their own foreign exchange to buy technology or production lines from abroad.
Where does Haier obtain foreign exchange?
The Qingdao government is also strapped for cash.
Therefore, Haier's refrigerator technology is still quite outdated. However, Haier refrigerators are of very good quality because it now has a brilliant person as its factory director, namely Zhang Ruimin. As early as 1985, a customer wrote to report quality problems with Haier refrigerators. Zhang Ruimin ordered his employees to personally smash 76 defective refrigerators with sledgehammers, which caused a national sensation and also awakened the employees' awareness of quality.
Later, this sledgehammer was officially collected by the National Museum of China and became a national cultural relic.
However, in its previous life, Haier only produced China's first generation of four-star refrigerators in the late 1980s by introducing the world-leading refrigerator technology from the German company Liebherr. This allowed Haier to gain a competitive edge in the domestic market due to its superior quality and technology. Furthermore, through the supply of high-quality products, Haier successfully obtained UL certification in the United States, enabling it to compete in larger markets, such as exporting to Europe and America.
The Party Secretary asked, "How many shares of Haier refrigerators does Wujiang Group want?"
Li Yang replied with a smile, "Not much, just 45% of the shares!"
Upon hearing this, the Party Secretary's eyes lit up. Wujiang Group's investment of 30 million US dollars only gave them a 45% stake, which was indeed not much. The government still held 55% of the shares, allowing it to maintain control of Haier.
...
Meanwhile, Zhao Ye, far away in Shanghai, was waiting for the outcome of the negotiations.
Wujiang Group doesn't plan to manufacture home appliances themselves; they'll just invest in them and, incidentally, help these companies rise to prominence sooner.
Of course, the fact that Wujiang Group doesn't manufacture home appliances doesn't mean that Wujiang Group won't develop anything related to home appliances.
Wujiang Group can leverage its technological advantages to learn from Bosch, the "uncrowned king" of the automotive industry, and provide chips, parts, advanced equipment, materials, and more, thus becoming an invisible giant!
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