Chapter 131 Need a Loan?: Second Update
Wang Xiao earnestly explains science to people.
Although China has shed its label as an oil-poor country since the discovery of the Karamay and Daqing oil fields.
But that was only because China's industry was underdeveloped at the time, and the amount of oil needed was small.
If you replace bicycles on the street with cars, do you think there will be enough oil?
Look again, how many more factories were built in 1988 and 1992, and how much energy each factory needed to operate.
Simply putting these two factors together, we can draw a simple conclusion: China needs to import a large amount of energy.
Once a billion people unleash their consumption demand, the energy they consume will shock the entire world.
Deputy Secretary Cao would never say anything like, "Why should every household have a car?"
Because she saw that in other countries, even with such well-built subways and advanced public transportation, every household still owns a car.
All she could ask was, "How much did you invest in buying the oil field?"
Wang Xiao didn't mince words, adopting a straightforward and honest approach: "The total investment for this project is 15 billion US dollars, mainly invested by American and Japanese companies."
She gave two names: one was a well-known American oil company primarily responsible for the mining operations, and the other was a large, also famous conglomerate comprised of several Japanese companies.
"We're just following along and getting a piece of the pie, accounting for 10%, out of a total investment of $1.5 billion."
This is all information that can be found in the announcements, so it's not exactly a secret.
Wang Xiao began to complain: "In order to raise this money, we will have to tighten our belts for the next few years and dare not spend a single penny recklessly."
She was about to change the subject, saying, "But we have to do the development of Jinning, even if it means selling everything we own. So I came back this time to sell the steel I have and raise money to develop the land."
Before she could even say anything, Deputy Secretary Cao spoke up first: "Is that so? Don't worry about the money. We'll find a bank to develop it with you."
So Wang Xiao swallowed the words that were on the tip of his tongue.
Honestly, a year ago, if the bank had offered her a loan, she wouldn't have even bothered to look at it.
Because her cash flow is very stable, she doesn't lack money, so why would she need to borrow money from the bank?
Well, except for Russian banks, because they know the ruble can't hold up. Even if the loan interest is high, it's still worthwhile when you repay it.
But now, with the development of oil and gas fields, she suddenly feels that cash is king.
Regardless of whether the loan has interest or not, I'll just get the money first.
She immediately smiled broadly: "Actually, we've already finalized the design plan. The reason I came back to Jinning is to start construction."
She then extended an olive branch, saying, "Secretary Cao, if you see any suitable construction companies, please recommend them to me directly. If you're going to do it, then let's hurry up; we can't be slower than the ones in Xiaozhou."
Deputy Secretary Cao thought to himself, "We're already too late. Their office buildings are already full of companies."
But it's because their land was approved later than theirs.
Wang Xiao once again painted a grand picture: "I want to build a large shopping mall complex here, and introduce world-renowned brands to do department stores. In addition, I want to open a chain of hotels. There are still too few business hotels in Jinning, which cannot meet the needs of the rapidly developing economy."
She wasn't just all talk; she actually produced the design drafts and pointed them out to Deputy Secretary Cao, one by one.
Deputy Secretary Cao was speechless, and subconsciously retorted, "When will construction start this time? It's not going to have to wait until next spring again, is it?"
"How could that be? This isn't some frozen land; we can't start work until the ground thaws."
Wang Xiao was very certain, "Construction will start this month, right now, immediately. As soon as the construction company arrives, construction will begin. Um, Secretary Cao, you absolutely must attend the groundbreaking ceremony."
She's foolish; she'll wait until next spring.
What if Hainan's real estate market collapses next spring, and the government's macro-control measures tighten monetary policy, causing banks to stop issuing loans?
We must take advantage of the current loose lending practices of banks and the availability of loans, and get the loan approved as soon as possible.
Her positive attitude finally brought Deputy Secretary Cao some comfort.
After all, in December 1992, when the whole country was gearing up for large-scale construction projects, who could have imagined that a crisis would soon be looming?
Deputy Secretary Cao readily agreed: "Okay, we'll go to the bank later and finalize this."
Wang Xiao got up, preparing to follow the leader out of the provincial government gate and head towards the bank.
However, Deputy Secretary Cao glanced at his watch and said, "Wait, let's go to a meeting first."
What kind of meeting is it? A Q&A session on investment promotion.
Foreign investment attraction is in full swing in Xiaozhou, and investment promotion in Jinning is also progressing well.
Although it is not a first-tier city like Beijing, Shanghai, or Guangzhou, as one of the representatives of second-tier cities, it has the halo of the Zhimen International Trade City and has also attracted a large number of foreign investments.
Moscow is now a hot investment destination attracting worldwide attention.
A single route to Moscow truly outperforms the combined total of all other routes.
Wang Xiao followed Deputy Secretary Cao to the conference room and then found an empty seat to sit down.
Before all the leaders on the stage were seated, familiar foreign businessmen greeted Wang Xiao, saying, "Oh, Mr. Wang, when did you come back? You finally decided to come back!"
Look at the life they live! They're surrounded by bodyguards as soon as they walk in.
Wang Xiao recognized the person speaking to him as Mr. Ye, a Chinese businessman from Indonesia, and immediately smiled and nodded to him: "Of course, I'm from Jinning, so I definitely have to support the development of my hometown."
Mr. Ye laughed and said, "What new way have you found to make money? Share some soup with us!"
Wang Xiao said earnestly, "I actually have a business opportunity I'd like to do with you."
Mr. Ye became interested: "What kind of business?"
Last time, this Mr. Wang made a trip to the Jinning Grand Hotel, saying he was going to Romania to work on color TVs.
As a result, the local Longhua TV factory actually went to Bucharest.
Good heavens, in less than half a year, they have taken over the entire color TV market in Romania.
Now, the products manufactured in Longhua's local factory have not only spread to Eastern European countries, but have also begun to be shipped to Western Europe.
Which manufacturer wouldn't envy this speed, efficiency, and results?
Who wouldn't want to be the next Longhua?
"motorcycle."
Mr. Ye was immediately disappointed: "I can't ride a motorcycle."
He runs a catering business back home, and now he's crossing over into riding a motorcycle? Haha, if he dares to do it, would anyone dare to ride it?
“It’s not about manufacturing motorcycles, it’s about selling them,” Wang Xiao explained. “I’ll get the motorcycles from Russia, and you’ll get them to Indonesia and sell them throughout Southeast Asia. I think there should be a pretty good market for motorcycles where you are.”
Southeast Asia has a hot climate, so riding a motorcycle is just as cool in winter.
Before transmigrating into the book, Wang Xiao traveled to various places and felt that motorcycles were everywhere, whether in Indonesia, Vietnam, or Thailand. Basically, everyone she saw was using a motorcycle as their mode of transportation.
Mr. Ye became interested and pressed her for an answer: "Then what price will you give me?"
"Two thousand yuan a car."
Mr. Ye was immediately disappointed.
Yes, this price isn't expensive. In Indonesia, a Japanese-made motorcycle costs almost two thousand US dollars.
Compared to Japanese goods, even with high tariffs, he could still make a considerable profit on a motorcycle costing 2,000 Chinese yuan when it was shipped back to China.
The problem is that he has been in Jinning for quite some time and knows that the motorcycles on the street, which are also from Russia, are priced at around two thousand yuan.
Since we're all going to ask him to be our agent, shouldn't we offer him an even better price? We should cut it in half!
Otherwise, why didn't he just go to Russia to source the goods from manufacturers?
Wang Xiao smiled, shook his head, and remained silent.
Mr. Zhou, who came from Macau, couldn't help but chime in: "Go ahead and get it. Russian goods aren't so easy to get. If they were, everyone would be taking them."
Others familiar with the situation shook their heads in agreement: "Oh dear, money in Russia isn't easy to earn. They require full payment before they can buy materials and then start production."
Those who get paid to do the work are considered lucky.
The worst part is that they took the full payment, but in the end, they gave you nothing.
You can't reason with him at all; he won't even see you.
Wang Xiao did say something in defense of the Russians: "Their prices have risen too sharply. Factory pricing is chaotic and lacks effective regulation. They can raise prices whenever they want."
They had just agreed on a price with us when, as soon as they turned around and went to buy materials, the price of the materials had already gone up.
If they make good products, they will definitely lose money if they don't raise prices accordingly.
So their lives were also difficult, and they didn't know what to do.
You all say I'm rich? I watch the ruble and leu depreciate every day; it's giving me a heart attack.
Zhou Sheng shook his head vigorously: "They are chaotic, and the police are just thugs who only care about extortion."
He said this because his cousin had gotten into serious trouble in Russia.
Their family manufactures cotton-padded clothing, and the clothes they sell in Russia are made to export standards for Europe and America. They are of high quality, stylish, and very popular in the market. They have opened stores in several major cities.
As a result, when the Russian policemen came to the door posing as customers, they said they didn't have any rubles on them and paid directly in US dollars.
The shop assistant didn't think much of it and accepted it immediately.
Because in Russia, people trust the US dollar more than the ruble.
Many factories even only accept US dollars when selling goods, refusing rubles.
As soon as the clerk received the US dollars, the police turned hostile, claiming that the Australian businessman had violated Russia's foreign exchange control laws, and directly shut down the store.
Millions of dollars worth of goods have simply vanished.
His cousin is frantic and is searching all over the world in Russia for connections, hoping to salvage the situation once again.
After all, their family had put in a lot of effort to open up the Russian market, spending a lot of money to make billboards and hiring designers to produce cotton-padded clothes specifically for Russians.
After finally seeing returns on your investment, it all ends in failure. Who would be happy about that?
Immediately, someone offered Zhou Sheng a suggestion: "Hey, perfect timing! Ask Boss Wang to help you pull some strings. She knows a lot of people."
Seeing that Zhou Sheng was clearly taken aback, Wang Xiao immediately declined, saying, "I can't. I don't have a good relationship with the Russian police. I even had a lawsuit with them."
Is she stupid? Does she have nothing better to do than meddle in other people's family affairs?
It was clear that Zhou Sheng didn't feel much about what his cousin had gone through.
In general, the people who are most hated are always one's lover, family, and friends.
Who would hate a stranger who is no relation to them?
Those who were good at reading people immediately realized what was going on and just jokingly said to Wang Xiao, "You're really something else. Even if you offend the Russian police, it doesn't stop you from making money off them."
Wang Xiao immediately clasped his hands in a gesture of respect, and said with a wry smile, "Oh dear, you have no idea how much I've suffered. It's impossible to even mention it."
She then turned to look at Mr. Ye, "We also had to pay the motorcycle factory upfront before they would start production. You can imagine how risky that is."
Actually, she was being very conservative in her assessment.
To be more precise, in this process, they actually played the role of state administrative allocation.
They provide the raw materials.
They will find a way to buy the energy needed for production.
The factory workers received all the necessities and wages they needed for their daily lives directly from the workers.
That's right, it was in person.
Because some factory leaders do indeed resell supplies that should have been distributed to workers, making it impossible for workers to survive, leading them to strike and refuse to produce.
Honestly, they put in so much effort to keep their business afloat, even more so than raising a child.
They work so hard partly to earn money and partly to gain favor with the public and local government, especially the factories.
Although everyone says that reform is needed.
But in reality, as long as they can survive, most people don't want their lives to undergo drastic changes.
Because more changes mean unknown risks.
They replaced administrative allocations, maintained factory production, and were the factory's saviors.
Why is it not enough for Wang Xiao to sell Russian goods in China, but he also wants to expand into the Southeast Asian motorcycle market?
China has a large population; the entire population of Southeast Asia combined does not equal the population of China.
That's because if you do that—
Firstly, it can further gain favor with the Russian side.
Look, we genuinely want to help you through this difficult time; we've been trying every possible way to find you clients.
Southeast Asia has a hot climate, fertile land, and abundant produce, with crops that can be harvested three times a year, not to mention a large amount of fruit resources.
If the cooperation goes well in the future, it will be convenient to exchange grains and fruits.
It can better meet the Russians' food needs.
They need to make money as quickly as possible and acquire a large amount of capital.
This statement has two layers of meaning.
First, the investment in oil and gas fields has put them under heavy financial pressure, forcing them to find ways to make more money.
Secondly, Moscow is in a state of continuous collapse.
Even if they try their best to maintain the production lines of the goods they need and try every means to find raw materials and energy, they can only maintain it in the short term.
A production cluster requires so many elements that it either relies on national administrative power to maintain or on commercial production development to allow each element to take its place.
Apart from these two, no one else has the ability to build a stable cluster.
In other words, once the existing means of production are exhausted, both car factories and motorcycle factories will perish.
Even with a steady stream of orders, the problem cannot be fundamentally solved.
Because those who control resources not only don't think about how to maintain industrial production, they don't even have the patience to wait for the chicken to lay eggs, but they can't wait to kill the chicken and take the eggs.
This is an inevitable trend, a trend that no individual can resist.
Since violent revolution and rebellion are not feasible, individuals under the prevailing trend should naturally try to make as much money as possible before things completely collapse.
So, we can even get raw materials, so let's quickly expand production and produce as many goods as possible.
Furthermore, having access to the Southeast Asian market can alleviate sales pressure in the domestic Chinese market.
It is safer to put your eggs in two baskets than in one.
Mr. Ye believed that there was indeed a market for motorcycles in Indonesia.
He gets his hands on them, pays the customs tax, and then sells them for double the price. Russian motorcycles are still much cheaper than Japanese ones.
With this confidence, even though he had never sold motorcycles before, he still dared to take this step.
However, Wang Xiao gave him a heads-up beforehand: "The prices of Russian goods change too quickly. The actual price will only be determined when the goods arrive."
I won't hide it from you; everyone knows the truth: doing business in Russia requires far more time, energy, and money to cultivate relationships and make connections than actually conducting business.
Everyone laughed.
There's nothing we can do about it.
Actually, where doesn't this kind of thing happen? It's just a matter of degree and whether the method is more subtle or not.
"They're here, they're here."
The top official of the provincial government was present, and the consultation meeting officially began.
People around kept raising their hands to ask questions, and different supervisors in charge answered them one after another.
Some issues are not clearly defined and are decided on the spot by the top leader. Since the regulations do not say it is not allowed, then it is allowed.
After listening for nearly three hours, Wang Xiao felt completely exhausted while eating lunch in the cafeteria.
Deputy Secretary Cao beckoned her over, using her as an example: "The land that Comrade Xiao Wang acquired has completed the preliminary assessment work, and the construction company has been found. Construction will begin this week."
Wang Xiao then suddenly realized what was going on.
No wonder the leader is so enthusiastic; she's a typical example.
She immediately nodded and smiled, cooperating enthusiastically: "It's all thanks to the leadership's care. No matter what difficulties we encounter, no matter when, Secretary Cao always takes time out of his busy schedule to solve our problems. Our Jiangdong Provincial Government is a service-oriented government."
This is very important.
In contemporary China, the actual operation of governance prioritizes rule by man over rule of law.
On the one hand, it's because in an era where politics took precedence, the dignity of the law was severely trampled upon. People didn't even bother to talk about the law.
On the other hand, the pace of legislation cannot keep up with the pace of social development, and old laws may not be able to adapt to new developments.
As a result, even with legal provisions in hand, it's not always possible to find sufficient guidelines for how things function in real-world work.
In this context, a leader's attitude can determine more than 90% of things.
A leader with a positive attitude who is willing to help investors solve problems can save you more than 99% of your troubles.
The reason why Deputy Secretary Cao emphasized this point is that Jinning had already released a housing system reform plan in June of this year.
Through a conversion mechanism, the system of distributing benefits in kind can be gradually transformed into a system of distributing wages in monetary form.
Simply put, Jiangdong is also following the national development trend and encouraging foreign investment in real estate.
As a second-tier city, Jinning is certainly not as attractive to foreign investment as Beijing, Shanghai, and Guangzhou.
That's why the provincial government wants to make the most of the International Trade City brand.
Look, Wang Xiao, who made a fortune through foreign trade, has also invested in real estate in Jinning.
What signal does this send? It means there's great potential for development and construction in Jinning.
Wang Xiao was fully aware of this and could only chuckle.
She should be grateful for her benchmark status.
This means that even if it's just for show, the Jiangdong Provincial Government will allocate as many resources as possible to her to help her complete her real estate development plan as soon as possible.
After a lively lunch, Wang Xiao called on the company's finance and legal departments, and the group headed to the bank.
These days, banks also operate under government orders.
The provincial government said it would provide a loan to the International Trade City, and the bank readily transferred 30 million yuan, also expressing its intention to jointly develop new land with the Trade City.
Wang Xiao instinctively wanted to refuse; why should she share a piece of the pie with others?
But then her eyes lit up and she quickly came up with a solution: she agreed.
Why?
If she doesn't agree now, she'll actually be offending the provincial leaders.
You say you're short of money? We'll not only get you a loan from the bank, we'll also get the bank to invest with you. And now you're complaining?
Are you rich or poor? What's the point of playing cat and mouse with the government like this?
Moreover, Wang Xiao was not particularly worried about losing control of the project.
She studied financial history in college and knew that China experienced three major deficit crises in 1993: fiscal deficit, financial deficit, and foreign exchange deficit.
At that time, banks will collectively withdraw from real estate development, only wanting to recover loans as quickly as possible to clear bad debts.
Therefore, she doesn't need to offend her superiors now; she can just stall for time.
She smiled and said, "Great! I've also raised some money. Once the loan and the money I raised are used up, I guess I'll have to rely on your bank."
The bank didn't object.
Because the real estate market is booming everywhere, there are quite a few places they want to invest in.
It was actually a good thing for them that Wang Xiao didn't take all the money at once.
With the loan agreement finalized, Wang Xiao immediately got to work.
She once again brought out her large inflatable tent to hold the groundbreaking ceremony for the new building.
Foreign businessmen who saw her booked with her were eager to make reservations, and they planned to rent tents for their own ceremonies later.
Wang Xiao did some mental calculations and figured that if things continued this way and she worked hard, she could recoup the cost of buying the tent through the rental income.
While construction is in full swing at this site, the Love Power factory is also keeping busy.
They not only worked overtime to produce the dolls, but also secured another order for Wang Xiao.
The owner of a chain of mood hotels in Japan went to the Love Power factory for inspection and, while placing an order, saw the new generation of sex dolls and was immediately amazed.
She also wanted to buy these three dolls to place in a love hotel, so that customers could experience new thrills.
Wang Xiao's response was: When it comes to having fun, the Japanese really know how to have fun.
What kind of excitement do you add to couples by placing dolls in love hotels? Three-horsepower dolls or mirror-enhancing dolls?
Okay, okay, do whatever you want.
200,000 yuan per doll, high-tech doll, no bargaining.
The hotel owner had just agreed and was about to come over to sign the contract.
When they actually met, the elegantly dressed female boss apologized, saying that someone wanted to sell them the same doll at a cheaper price.
Everyone in the office was stunned by what the translator said.
Sister Miao blurted out, "Impossible, no one but us can make these kinds of dolls."
It has the sensitivity of a war robot.
————————
Um, the government's initiative to suggest finding banks to help real estate developers wasn't Ah Jin giving the female lead a cheat code.
In 1992, this kind of thing was not unusual.
In an interview with The New York Times, Wang Heng of Golden Eagle International said that he acquired land in Xinjiekou, Nanjing, but lacked the funds for development. The local government proactively sought out banks to develop the land with him. However, due to later policy changes, he had to find his own ways to raise funds.
Many of the actions taken back then seem completely unbelievable now, utterly illogical. But at the time, they were all standard procedures. Thank you to all the little angels who voted for me or watered my plants between 2024-01-28 07:12:15 and 2024-01-28 17:03:10!
Thank you to the little angels who watered the nutrient solution: Huali (39 bottles); Caitou (10 bottles); Affirmation (5 bottles); Karen Xingwei, Qiaoqiao Shi Xinbian de Xiaoxiao, and my dear Guihuafu (1 bottle);
Thank you so much for your support! I will continue to work hard!
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