Chapter 188 What We Need Is a Chef: Find a Headhunting Firm
I'm so annoyed.
If this were a CEO romance novel, the protagonist would never tolerate such humiliation.
The domineering CEO would definitely buy it with a wave of his hand!
Then the next day (don't worry about the time required for the merger process, the key is that the CEO can't lose face), the CEO walked arrogantly up to the executive who had been grumbling and looking down on him the day before: "The company is mine now, you're fired."
Yeah, the slap-in-the-face tactic is simple, crude, and mindless, but it's really satisfying!
Unfortunately, Japanese companies have brains and won't play along with the domineering CEO's storyline.
Besides, they have a large and established business, with technology and market access, and they don't lack anything. Why would they sell off their promising business line?
Therefore, fantasy is just fantasy, and the pleasure lasts only three seconds.
To solve the problem, we need to find a solution.
After getting into the car, Zheng Gongcheng spoke in a low voice: "Actually, I don't think the Japanese company will transfer the production line. Even if they build a new production line, they won't easily transfer the old one."
Seeing everyone on the bus looking at him, the soon-to-be PhD student became a little nervous and cleared his throat to explain, "Because back in the 1970s, Japan imported technology from the United States. Sharp sold LCD technology from RCA, and Nippon Seiko bought TN-LCD technology from Ferguson, an American. By 1990, Japan accounted for 90% of the global market share in TFT LCD panels."
How could someone who successfully raids another's base possibly allow another to do so?
Secretary Fang frowned slightly, looking a bit troubled: "This is really troublesome."
She glanced at Wang Xiao instinctively.
The latter reiterated its position without hesitation: "Joint ventures are meaningless. We will lose the domestic market and will not acquire any core technologies. It's just like with color picture tubes."
Secretary Fang fell silent.
The leader didn't speak, the boss didn't say a word, and the tour bus fell into complete silence.
In the end, it was Zheng Gongcheng who broke the silence.
He hesitated for a moment: "Actually, do we really have to develop LCD panels? I think we're already behind in this area, so we might as well give it up and find a way to overtake them."
Secretary Fang leaned forward, adopting a listening posture: "What do you mean by 'overtaking on a curve'?"
"What I mean is that we shouldn't make LCD screens. Japan has already taken over the global market. Our country's technological foundation is too weak, and we don't have enough talent in related fields. It's hard for us to catch up, let alone make a breakthrough."
Wang Xiao, being impatient, urged, "Then what do you mean by overtaking on a curve?"
"Organic light-emitting diodes (OLEDs) are a new technology. Unlike LCDs, which require backlighting, this one doesn't because it emits its own light."
Zheng Gongcheng talked on and on, but hardly anyone in the car understood how this thing worked.
People only caught a few key points: this technology only appeared in the late 1970s and only showed its commercial potential in the late 1980s.
Zheng Gongcheng pursued his doctorate at the Japan Institute of Technology, where researchers created the world's first organic light-emitting diode (OLED) device in 1987. He became interested in the field after a chance encounter, believing it had great potential.
In his view, instead of following Japan's lead in chasing LCD panels, China should take a different approach and directly focus on organic light-emitting diodes.
Wang Xiao asked him to talk more about this topic.
As he listened, Mr. Wang couldn't help but blurt out, "You're not talking about OLED, are you?"
Zheng Gongcheng paused for a moment, then nodded: "OLED, the abbreviation for OLED light emitting diode."
Wang Xiao suddenly felt a strange sense of absurdity.
What is an OLED screen? Sigh, she dreams every day of having a smartphone with an OLED screen.
I never imagined this technology existed now.
She always thought that OLED wouldn't be researched until at least the year 2000.
Secretary Fang looked at Wang Xiao with a hint of curiosity: "President Wang, do you know about this technology?"
Wang Xiao had no explanation and could only make something up on the spot: "I've looked at some materials, but I don't know much."
Secretary Fang got excited: "Then do you think it's okay for us to do this directly? Everyone's starting line is not that different."
Wang Xiao thought for a moment, then nodded and then shook his head.
“It’s right to do OLED research, but we can’t abandon LCD panels either.”
Zheng Gongcheng subconsciously tried to defend his recommendation: "From a development perspective, OLED screens are very likely to replace LCD panels, just like LCD panels replaced color cathode ray tube technology."
Wang Xiao waved his hand: "The latter is a foregone conclusion, it just depends on whether the production cost of LCD panels can outpace that of color picture tubes. But the former is only a possibility, and no one can predict its next development."
"Currently, LCD screens have become very mature. The IBM-700C uses them, and the Windows 3.1 operating system also uses color displays. This is the general trend in the market. If we cannot produce LCD panels, then we can only import them. If others prevent us from importing them and completely block us, then we will not be able to enter this entire industry."
"So even if we fall behind, we still have to catch up, because we have to get in."
Zheng Gongcheng gave them a heads-up: "It's highly unlikely that any Japanese company would be willing to transfer technology and production lines. This is going to be very, very difficult."
Wang Xiao also had a headache.
Sometimes, suffering in this world stems from not having money.
But sometimes, the greater pain is having money but not being able to spend it.
It was a kind of despair where you didn't know what to do.
Seeing her frowning, Ivanov tried to lighten the mood: "Hey, let's look again. Japan doesn't only have one company producing LCD screens, or only one production line. Maybe if they don't agree, we can find another one and they'll agree."
Secretary Fang also tried to perk up and asked, "What other companies are there? Which companies are in this industry?"
"Asahi Glass and Denki Glass of Japan make the glass substrates for LCD screens."
A calm voice came from the corner; it was Wu Haoyu.
During this trip to the factory, he was unusually silent, barely speaking.
At that moment, he recited it slowly and methodically, as if reciting a text: "Nikon and Canon make scanning and step-through exposure machines, while Annamel makes dry etching equipment..."
Ivanov wanted to grind his teeth. Although he couldn't understand Chinese, he had to admit that the kid had a nice voice.
If it weren't for the money and future development considerations, Ivanov would have made a sarcastic remark.
At this moment, all he cared about was: "Who should we talk to next?"
Wu Haoyu ignored him and continued, "The newly built production lines are mostly in Japan. Japan is rapidly forming a complete upstream and downstream supporting system in the flat panel manufacturing supply chain."
Ivanov blinked and repeated the question, but Wu Haoyu still ignored him.
Wang Xiao glanced at his watch and changed the subject: "I'm too tired today. Let's eat first, and then we can think about it. My brain is a complete mess right now."
Secretary Fang had no objections.
She was equally exhausted and needed to calm down and think things through.
As the city lights began to twinkle, Secretary Fang looked out the car window at the airport and suddenly asked, "Are you not allowed to stay at Japanese airports at night?"
Her secretary quickly replied, "Yes, you can't stay after midnight. I don't think they fly planes at night."
Everyone is exhausted today, especially since arguing for so long without getting a good result is even more mentally draining.
Now the leader is taking the initiative to change the subject and shift everyone's perspective. Everyone is cooperating actively, chiming in with their own comments: "I never thought the Japanese were so afraid of dying, not even flying planes at night. They used to be so fierce."
Wu Haoyu's colleague, Chen Bin, the curly-haired guy, laughed: "No, other airports are open 24 hours a day. Narita Airport didn't reach an agreement with the local residents. They complain that the airport is affecting their normal lives and are unwilling to cooperate with the relocation. The airport can't withstand their pressure, and construction is still not finished. It's also not good to take off at night, as the surrounding residents will protest."
The civil servants from China stared wide-eyed, finding it unbelievable.
Are the Japanese really that lacking in awareness? Building an international airport is such a big project, and instead of celebrating with drums and gongs, they're not even cooperating!
Wang Xiao chuckled to himself, thinking that this was because large-scale infrastructure construction hadn't started yet; otherwise, he would have shown them what a holdout was like.
Why should the local residents of the airport cooperate? No matter how much money the airport makes, it won't go to me; on the contrary, my life will be disrupted.
Why should I have such high awareness?
The cadres who came to inspect the area with Secretary Fang sighed: "It seems that although the Japanese talk about valuing collectivism, they are still capitalists in reality and value individual interests."
He also mentioned Wang Xiao, saying, "Mr. Wang, unlike us, when we build airports, the people raise their hands in support."
Wang Xiao rolled her eyes inwardly and smiled without saying a word.
Secretary Fang spoke up for her: "That's because the commercial city has truly benefited the surrounding residents."
With this topic of conversation diverted, by the time the bus returned to the embassy, at least everyone on board had a smile on their face when they got off.
Ambassador Peng, who came out to greet us, smiled and said, "It seems that today's talks went very well."
Secretary Fang shook his head repeatedly, his words carrying a heavy burden: "Don't mention it, the talks couldn't go on. The Japanese factory only wants to establish a joint venture in China, and refuses to sell its production lines."
Ambassador Peng casually replied, "Then let's make a joint venture. It's a good opportunity to attract foreign investment."
His thinking is quite normal, because this is the mainstream direction in China right now. The country has a weak foundation and lacks funds, so making full use of foreign investment is ideal.
Japanese investment is one of the main channels for attracting investment in China.
Secretary Fang shook his head: "That won't do. They want our market, but they won't give us the core technology."
They walked inside while talking.
The embassy restaurant had prepared a reception banquet in advance, which was a combination of Chinese and Japanese cuisine.
It was too hot, and after running around outside for so long, Wang Xiao didn't have much of an appetite. He declined the eel rice and just ate the soup rice with some cold side dishes.
Although there's an old saying that one shouldn't talk while eating or sleeping, that applies to family members eating together.
As a businessman, dining with government officials in such a large group, it would be strange if you didn't speak.
So, halfway through, Wang Xiao was called upon: "What is our CEO Wang thinking about?"
Wang Xiao looked up at Wu Haoyu: "Repeat what you said on the bus about which parts each of those companies produces."
She stared straight at Wu Haoyu, whose heart skipped a beat. After a moment of panic, he repeated in a hoarse voice, as if reciting a memorized text: "Asahi Glass and Denki Glass of Japan make glass substrates for LCD screens..."
As soon as he finished the last syllable, Wang Xiao immediately abandoned him and looked intently at Zheng Gongcheng: "What did you say were the characteristics of the LCD screen industry again?"
Zheng Gongcheng was even more bewildered than Wu Haoyu, and said dryly, "There are many, it has many industry characteristics."
My throat is so dry from talking.
But capitalists don't have that much sympathy. Wang Xiao coldly made a demand: "Say it all."
From the moment she opened her mouth, the entire restaurant seemed to be put on pause, becoming so quiet you could hear a pin drop.
The air was filled with Zheng Gongcheng's dry, reciting voice: "LCD panels are highly standardized products..."
Wang Xiao listened intently, his brow furrowing slightly.
Ivanov also stopped struggling with his chopsticks and stared at her with wide eyes until Zheng Gongcheng finished reciting. Seeing that she still didn't react for a long time, he tentatively asked, "Your Majesty, what's wrong?"
A look of confusion appeared on Wang Xiao's face: "I think I had a thought just now, but I couldn't grasp it, and I don't know what it was."
Ivanov was about to say something to comfort her and tell her to relax.
Don't forget what they often say: no butcher can prevent people from eating meat.
Wang Xiao suddenly turned his gaze to the scientists, some from Russia and some from China: "Gentlemen, what do you think is the core of an LCD panel?"
Fearing she might have been too vague, she added, "For companies entering the market, what's the key to success?"
Before the scientists could even comment, Zheng Gongcheng spoke up: "As for cost, LCD panels are highly standardized products. Whether Zhang's or Li's panels are made, as long as the specifications are the same, there's basically no difference. The winner will be whoever offers the lowest price and can provide a stable supply."
What he said wasn't a secret, but an industry consensus, common sense that everyone knows.
How did Japanese companies first gain a foothold in the LCD panel market? It was simply because Sharp lowered the price of its calculators to $4.
They can monopolize the entire market in an instant.
Today, Japanese manufacturers are willing to establish joint ventures in China for two reasons: firstly, to facilitate market penetration, and secondly, to maintain large-scale production and reduce production costs.
Wang Xiao repeated two things: "cost and standardization."
Ivanov couldn't understand Chinese and had to rely on his bodyguards to translate for him.
But perhaps because the bodyguard's translation was too vague, he couldn't help but mutter, "Why does it sound like he's talking about pre-cooked dishes or a cooking robot?"
Large-scale production of pre-prepared dishes can save costs. As for standardization, the taste of a chef's dish varies every time; however, the cooking robot described by Wang follows standardized steps, so the finished product is the same every time.
What he said is completely irrelevant.
Those present who could understand Russian, including the bodyguards, wanted to facepalm.
Boss, you've jumped a bit off-topic.
However, Wang Xiao excitedly shouted, "Yes! It's stir-frying! Ivanov, you're amazing, I love you to death!"
Ivanov was completely out of sync with her train of thought and couldn't understand what was getting to her.
However, this did not stop him from immediately confessing his love with tender affection: "Of course, you are my only rose, my king, I will love you forever."
Tsk tsk, him, he has the nerve to pretend to be the Little Prince.
The bodyguards and assistants all secretly cursed the male boss.
Fortunately, their female boss didn't fall for that, otherwise everyone would really worry that the high-paying job wouldn't last.
Wang Xiao always ignored his pointless nonsense and skipped over it, excitedly stating, "Comrades, tell me, is the equipment used to produce LCD panels manufactured by the LCD panel factory itself?"
Of course not.
Even Secretary Fang could answer this question: every factory buys equipment. Whether it's a textile mill or a steel mill, the production equipment is the responsibility of the machinery factory.
"Do you produce the fabric needed for LCD panel manufacturing in-house?"
This is a question that everyone can easily answer. Not at all. Textile factories don't grow their own cotton, and garment factories don't weave their own cloth; each has its own specific function.
Wang Xiao, barely able to contain his excitement, asked, "So tell me now, if all of these are supplied externally, who decides the production status of the LCD panels?"
This time, the answer came from Sakharov, a scientist from St. Petersburg: "An engineer."
He explained, "The workshop is almost fully automated, and the role of workers is extremely limited. The key is still the engineers."
This time, Chen Bin spoke up: "Technological progress relies on engineers and workers."
Ah, he remembered it clearly. It was a Chinese restaurant. As Mr. Wang said, scientific development may rely on scientists, but technological progress is definitely the credit of engineers and workers.
Wang Xiao pressed on, asking, "Although Samsung of South Korea has been consistently losing money, how did they get into the LCD screen market?"
Ivanov knew the answer; the king had mentioned it before.
However, a sad thing happened: Ivanov needed a translator to answer.
This time difference allowed someone else to get there first.
Wu Haoyu said in a deep voice, "Samsung has established research institutions in Japan and hired many unemployed Japanese engineers."
At this point in the discussion, everyone knows the answer.
What kind of production line are we introducing?
People, especially engineers, are the key.
Because while the carriers of technology may seem to be production equipment and various blueprints and documents, in reality, the most core carrier of technology is always people!
Wang Xiao began to analyze the situation from a business perspective.
It is known that the equipment suppliers and material suppliers are relatively fixed, and both are available for purchase and for sale.
The technology of LCD panels is not about making materials and equipment, but about combining these devices to efficiently and cost-effectively turn materials into LCD panel products that the market needs.
Ivanov wasn't wrong about stir-frying, because this was a standard kitchen. The pots, pans, and all kinds of vegetables and seasonings were bought, but whether the food tasted good or not depended on the chef's skill.
Assistants can earn high salaries because they are very perceptive and know how to meet the boss's needs at any time.
While everyone else was watching Wang Xiao meditate (daydreaming), his assistant had already brought him paper and pen for his convenience.
Wang Xiao picked up a pen and drew a diagram: "The equipment and materials are all purchased from outside. The construction of the factory, product development, mass production and quality control are all handled by hiring engineers."
She looked up and gestured for Ivanov to look: "Is it alright?"
With a business mindset and without the mystique surrounding technology, Ivanov felt there was no problem: "OK, let's do it this way."
He didn't expect to make money directly from this; he accepted Wang Xiao's logic of pledging allegiance.
Just like how he built farm after farm in Russia, he never thought of getting rich through agriculture.
However, he doesn't accept wasting money. Every penny invested must have a return, whether it's economic, political, or social goodwill; in short, having a lot of money never means being stupid.
The big spender has the most say; if the big spender says OK, even Secretary Fang has no objection.
Although she also doubted whether she could really acquire the complete technology for LCD screens by recruiting engineers.
But firstly, the government couldn't afford the money, and secondly, the Japanese refused to sell the production line; they couldn't just hold a gun to their heads and force them to sell. So, this was the only option for now.
Experts at the Changchun Institute were quite optimistic: "Since South Korea also entered the field by recruiting Japanese engineers, then we can too. The fact that the Japanese can oppose the construction of an airport shows that they are not a monolithic group either."
That's a bit of a convoluted statement.
To put it bluntly, Japanese LCD screen manufacturers are unwilling to sell their technology; however, having the technology doesn't mean that the engineers will always be aligned with the company.
People strive for higher positions, just as water flows downhill; who wouldn't want to improve their life through their skills?
The researchers at the Changchun Institute were quite optimistic because they had read in the news that Japan had suffered economic blows in recent years, especially with a sharp drop in stocks, which had caused many tragedies.
In this context, everyone is definitely more eager to make money, even if it means going overseas.
Unfortunately, the ambassador dealt him a blow, shaking his head and saying, "The impact isn't that significant. The vast majority of Japanese stocks are held by insurance companies, retirement pension funds, banks, and treasuries. Individuals hold less than 25% of the total, and over 91% of residents don't invest in stocks. Besides, people don't rely on high-interest loans to sell stocks; they bear their own profits and losses, and they can accept losses."
The researcher was quite disappointed: "I see."
That's really troublesome.
If they don't face so many difficulties, why would they want to go to China?
Even though they were in the same country, those educated youth who went to the border regions back then clearly had decent salaries in the border areas, and many of them were even promoted to cadres; but as soon as the policy of sending educated youth back to the cities was implemented, everyone collectively abandoned everything and were determined to return to the big cities even if it meant death.
What about China and Japan now?
How developed is Japan now? The whole world is learning Japanese. It represents the future.
Its rapid development has plunged established developed countries in Europe and America into deep fear.
Everyone wants to come to Japan, so who would want to leave?
The embassy staff were even less optimistic, as they were all too aware of the development gap between the two countries. In fact, just this May, they handled a ridiculous case where the Xi'an Economic Commission helped human traffickers fabricate documents, using the guise of an overseas inspection trip to smuggle people into the country. (Note ①)
Wang Xiao thought it wasn't a big deal, at least not the boss's problem.
For recruiting engineers overseas, it's best to leave it to international headhunting firms.
Her words stunned half the restaurant.
The officials from China were all completely bewildered. What's a headhunting firm? Is it a hunting operation?
Of all those present, Chen Bin was the youngest and the least able to handle things.
When the leader asked that question, he actually burst out laughing.
Seeing everyone's gaze suddenly fall on his face, he hurriedly tried to cover it up: "Well, you could say that. But the target of the hunt is people."
Seeing that his explanation was getting more and more off track, his colleague Wu Haoyu stepped in to save him, saying, "A headhunting firm is like an intermediary company that helps individuals find better and more suitable jobs."
Oh, now this leader from China understands: "Oh, it's a job placement agency, right?"
Chen Bin subconsciously said, "No, it's not the same thing. It's... oh dear..."
His gaze turned pleadingly to Wu Haoyu again. The latter, for a moment, didn't know how to describe the difference between a headhunting firm and a job placement agency.
Finally, Wang Xiao chimed in, saying, "Headhunting firms primarily serve companies that hire. Employment agencies serve people who can't find jobs, while headhunting firms target people who have no trouble finding work. Or, to put it simply, they are the people who help an individual find a job while they are looking for one."
“Oh dear—” one of the bureau chiefs who came with Secretary Fang on the inspection blurted out, “Isn’t this just like eating what’s in one’s bowl while eyeing what’s in the pot?”
Tsk, whether it's "eating what's in your bowl while eyeing what's in the pot" or "riding a donkey while looking for a horse," neither of these are compliments.
In 1993, the mainstream thinking in China was still that one's workplace was one's home, and one would stay in one place for life without ever moving.
Secretary Fang laughed and said, "It's normal for people to strive for better opportunities. If you don't look for a horse or keep an eye on the pot, how can talent circulate? Running water doesn't stagnate, and a door hinge doesn't rust. Only when talent circulates can progress be made."
Two proverbs gave her a lot of confidence.
Yes, people naturally want to move.
Although China's economic development cannot compare with Japan's, it has its own advantages; otherwise, Japanese capital would not be interested in investing in China.
Others echoed this sentiment; indeed, there would always be someone who wanted to go.
Unfortunately, people within the system are quick to judge others by their appearance, while scientists are often stubborn and inflexible.
One of the physicists Ivanov brought along abruptly asked, "What if none of them want to go to China?"
This is very likely to happen.
Who would get used to the bustling and developed urban life in Japan and then go to China, where development is not even as good as in Russia?
These Russian scientists had no other choice but to seek alternative solutions.
If it weren't for the incredibly low pay offered by the Americans, God, those despicable Americans only intended to pay the equivalent of the annual salary of seven senior American researchers for the best institute in the Russian Academy of Sciences to collectively do a year's worth of work!
They couldn't accept it, which is why they were willing to follow Ivanov to Tokyo and then go to work in China.
Otherwise, No!
The truth hurts the most.
The Chinese officials, who had been all smiles, became instantly embarrassed after hearing the translator's account.
Even Ivanov, a foreigner, wanted to cover up the mouths of his compatriots.
God, lips exist so that you know when to speak and when not to speak.
But this is also his concern: what if he can't recruit engineers?
Wang Xiao smiled slightly: "This is the headhunting company's mission. Their value lies in making people who don't want to change jobs willingly change jobs."
Otherwise, would the big spenders be so bored as to easily open their wallets?
Headhunting firms typically charge 20%-40% of the "target's" annual salary, and their annual salaries are generally over $300,000.
Tens of thousands of US dollars? That's not something you can earn so easily.
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The case of the Xi'an Economic Commission mentioned in the article is referenced from the article "Behind the Massive 'Smuggling'—A True Account of the Xi'an Economic Commission's Falsified Group Trips Abroad" published in the February 1994 issue of "China Supervision".
Absurd! The official smuggling case of 23 people to Japan—a true account of the Xi'an Municipal Economic Commission's fraudulent group trip abroad case, by Li Huachang. This case also reflects the chaotic domestic business environment in the 1990s; when judges were busy making money themselves, it's no wonder things were chaotic.
Urgent telegram from Japan
Urgent! Urgent! On May 20, 1993, the Embassy of the People's Republic of China in Japan sent an urgent telegram to the Ministry of Foreign Affairs, reporting to the domestic authorities that 23 of the 25 members of the Xi'an Garment Industry Delegation to Japan had collectively absconded, leaving only Chen XX, a translator from the Xi'an Foreign Affairs Office, and Zhou XX, the wife of the general manager of Asia Garment Co., Ltd., who had "hitchhiked" the trip.
The group of illegal immigrants reported by our embassy in Japan were actually people leaving the country with genuine passports but false identities. At this time, the 23 illegal immigrants were wandering in Japan, congratulating themselves on their investment and the realization of their dream.
Xi'an, China. The tour group members were like ants on a hot plate, panicked and at a loss, but no one could turn the tide, and they were so anxious that their mouths were dry...
Beijing, China. Authorities were shocked and issued an order to "investigate and punish this seriously." The Central Commission for Discipline Inspection and the Ministry of Supervision immediately organized a team to go to Xi'an. With the cooperation of various parties, after a series of investigations...
The investigation has finally exposed this farce of a mass smuggling operation.
"Transaction" initial
Zhang Chaoqun, a human smuggler from Fujian, ran a woodworking factory in Xi'an. Through an introduction, he met Zhao Jingzhang, the director of the Xi'an Municipal Economic Commission. In mid-February 1993, Zhang met with Zhao Jingzhang.
"Director Zhao," Zhang offered a cigarette, lit it with his lighter, and then said, "A group of people from township enterprises in Fujian want to go abroad for inspection. Could you help organize the group?" Seeing Zhao hesitate slightly, Zhang immediately added, "Helping to organize the group and charging a fee is a common way for many organizations to generate revenue."
March 2nd, in the small conference room of the Municipal Economic Commission. Zhao Jingzhang gave a concluding speech, making the final decision: Everyone's points are valid, but excessive caution is also conservatism. We'll "trial" it for one phase first, and to generate revenue for the agency, we can charge a fee. That's settled.
It turned out this was a Party committee meeting of the Economic Commission, discussing the issue of organizing a tour group for people from Fujian. The attendees unanimously agreed that organizing a group without understanding the situation of the Fujianese was risky. However, Zhao Jingzhang, as the Party Secretary, insisted on a "trial run" under the guise of generating revenue for the agency. What could anyone say?
After the meeting, Zhao Jingzhang called Liang Hong, deputy director of the Enterprise Management Department, and said: "The Party Committee has approved the group formation. You are responsible for handling the specific details."
Transactions involving power and money
Once power is in hand, orders are issued arbitrarily. Ten days after receiving the order, Liang Hong, in her personal capacity representing the Municipal Economic Commission, signed a group contract with the human traffickers. Let's take a look at the contents of the contract, and it will become clear at a glance.
contract
Party A: Xi'an Municipal Economic Commission Representative: Liang Hong
Party B: Fujian Changle Jinfeng; Representatives: Chen Xuefang, Gao Xianguan
For the purpose of a business trip to Japan, Party B entrusts Party A to handle the relevant application procedures. After sincere consultation between both parties, the following agreement is hereby established:
I. Party A shall handle the procedures for Party B to go to Japan for inspection, and shall charge each person a fee and deposit of RMB 61,700.
2. When Party B registers with Party A, Party B shall prepay RMB 50,000, and deposit an additional RMB 250,000 into a local bank in Xi'an City in the names of both parties.
IV. Within 25 days from March 20, 1993, after Party A completes the passport and visa procedures for all personnel of Party B, Party B shall bring back the original passports and visas or photocopies, and deposit the remaining fees and deposit (totaling RMB 995,700) into the Xi'an Local Bank three days later.
V. ...After the delegation from Party A to Country R, led by the head of Party A's delegation, Party B's inspection personnel boarded the plane and successfully entered Japan, Party B will formally transfer all funds to Party A's bank account 3-5 days later.
It's truly astounding what you don't know until you see it; once you do, the truth is self-evident—this is a classic case of power-for-money exchange. Zhao Jingzhang of the Municipal Economic Commission probably thinks he's profited handsomely. In fact, after Liang Hong, acting on behalf of both the Xi'an Municipal Economic Commission and the Xi'an Entrepreneurs Association, issued letters to human traffickers authorizing them to arrange study tours to Japan, the traffickers recruited 23 people—farmers, workers, teachers, and those on leave without pay—in Changle County and other areas, charging each person between 40,000 and 140,000 yuan, totaling over 2 million yuan. The money given to the Municipal Economic Commission was only a portion of this.
Forgery for money
Based on that contract, Liang Hong began to complete the formalities.
When Liang Hong assigned a colleague to draft a "Request for Instructions on Sending a Delegation to Japan for Study and Inspection," she personally instructed the 23 Fujianese people on the attached list to "write them as management and technical personnel of Xi'an Asia Garment Co., Ltd." Thus, a false report using false names and identities was formed.
Dong Zhi, the deputy director of the Municipal Foreign Affairs Office who was in charge of operations from home, approved the request the very next day. It turned out that Liang Hong had already contacted Dong beforehand, explaining that the Municipal Economic Commission would pay the Foreign Affairs Office for the "fees" for the delegation. Dong Zhi then personally instructed the manager of the Foreign Affairs Service Center under the Foreign Affairs Office to handle the arrangements for contacting Japan for invitations and guarantees.
Everything proceeded smoothly, even exhibiting a rare level of efficiency. Dai, a consular staff member of the Foreign Affairs Division of the Municipal Foreign Affairs Office, and others, rushed to produce passports with a "handle urgent cases with urgency" spirit, despite the lack of essential documents such as the "Approval Document for Overseas Mission," "Administrative Approval Document," and "Safety Education Document." Dai unilaterally designated the passports as "official passports." Dong Zhi, who was aware of this, then generously signed his name on these passports.
When Deng Youmin, director of the Municipal Foreign Affairs Office, returned from his overseas trip, he heard that the delegation from the Municipal Economic Commission had a mixed bag of members. This charade could have been foiled, and the mistake could have been corrected, but what actually happened?
Deng sent someone to investigate. The written report to him stated: "According to Liang Hong, 16 people in the group are Fujianese who have worked in Xi'an for more than two years, and six of them are in Fujian..." According to regulations, delegations of six or more people traveling abroad require approval from the municipal government, and their political background checks must be filed with the organization department. Even without these formalities, Deng Youmin still wrote on the report: "The 16 Fujianese who run factories in Xi'an can go; the other six, given they belong to the same unit, must undergo strict political background checks. Organize the entire delegation's trip well." He also instructed Dai: "Passports can be issued; the political background check records can be completed later."
Some people upheld principles. However, principles became meaningless in the face of power. During the political vetting process by the Economic Commission, Liang Hong requested the Political Work Department to fill out political vetting forms and issue approval documents for the group members. The Political Work Department found this to be against regulations and refused Liang's request. Liang Hong did not give up. She found Yang XX, a staff member on loan from the department, and gave him instructions. Another set of false materials was created: Yang, Zhang Chaoqun, and another person from Fujian filled out political vetting forms for 23 people in the group, fabricated resumes and political performance records for the 23 people, and even went to great lengths to fabricate their place of origin as Shaanxi, Xi'an, Henan, etc. Zhao Jingzhang picked up the political vetting materials, signed his name, instructed the Political Work Department to affix its official seal, and issued the political vetting documents.
On May 8, the members of the "inspection team" successfully received their passports, thus completing the transaction of power and money.
Stubborn to the end
The "inspection team" arrived in Japan at 5 p.m. on May 9.
At 11 p.m. that night, in Xi'an, the phone rang, breaking the silence of Liang Hong's home. Liang Hong, who was about to go to bed, casually picked up the receiver. The voice of Chen Xuefang, the representative of the second party, came from the other end: "Director Liang, some members of the inspection team are unwilling to participate in the activities scheduled for tomorrow. Could you please talk to Chen XX?" As the phone rang and the call ended, Liang Hong's heart suddenly raced. She sensed something was amiss.
A short while later, Chen Xuefang, Gao Xianguan, and two others arrived at Liang Hong's house from the Taiwan Hotel. Chen Xuefang instructed the other three to wait outside while she went in alone. Chen said that the children might not be coming back. Liang Hong was indeed anxious. She insisted that Chen not leave and asked her husband to tell the three people waiting outside to go back to the hotel and bring their ID cards. However, the three never showed up again.
On the evening of May 10th, Liang Hong personally saw Chen Xuefang off on the train leaving Xi'an. Before leaving, Chen Xuefang left a gold necklace for Liang's daughter as collateral for the 1,000 yuan travel expenses Liang Hong had lent her. Why was Chen Xuefang detained first, and then personally sent away? According to Liang Hong, Chen "had a heart attack."
On the afternoon of May 11, in Zhao Jingzhang's office, the atmosphere was somber and filled with smoke. The manager of the Foreign Affairs Service Center relayed to Zhao Jingzhang, Liang Hong, and Dong Zhi the contents of a phone call from Chen XX from Japan: on the morning of the 10th, 23 members of the delegation from Fujian collectively "asked for leave" to go out to "visit relatives and friends," leaving only Chen XX and Zhou XX.
What to do? Zhao Jingzhang, who was buried in the sofa, shifted slightly and slowly said: Let's wait and see.
Regarding the Municipal Foreign Affairs Office, Deng Youmin, who was hospitalized at the time, remained calm and composed after learning of the "inspection team's" departure. He gave the following instructions: While the situation was unclear, focus on the work, avoid escalating the conflict, do not report to the Chinese Embassy in Japan or the Japanese police, and be mindful of safety.
After the Chinese Embassy in Japan reported to the domestic authorities on May 20, Deng Youmin and Zhao Jingzhang reported to the city leaders on May 21 and May 25, respectively.
However, by then the opportunity to take remedial measures had already been lost!
For whom is this "revenue generation" being generated?
Zhao Jingzhang colluded with the human smugglers, using the guise of generating revenue for the government, but who were they actually generating revenue for?
On the evening of May 7th, Zhang Chaoqun and Chen Xuefang knocked on Liang Hong's door and handed over the deposit for the people going abroad. According to the contract, the deposit was 25,000 yuan per person, but for some unknown reason, it was reduced to 20,000 yuan. The smugglers, in return, immediately handed Liang Hong 154,400 yuan in cash and a 320,000 yuan bank draft: "Director Liang, besides the deposit, there's 35,000 yuan as a personal bonus for your hard work. Please accept it with a smile." Liang Hong accepted it.
Next, Zhang Chaoqun went to Zhao Jingzhang's house.
Before he could even settle in, he pulled 50,000 yuan in cash from his bag. When the investigation team asked Zhao Jingzhang to verify this, Zhao said, "This money was for the processing fees Zhang Chaoqun entrusted me to handle for his trips to Canada and the United States." "I urged Zhang Chaoqun many times to take the money back, but he never came to collect it. So I had my wife and daughter deposit the money in the bank."
On May 14, a human smuggler named Chen Shouping sent a registered letter from Fujian to Liang Hong's husband containing a money order for 100,000 yuan, and called Liang Hong beforehand to express his gratitude. After the incident, Liang Hong handed the registered letter (containing the money order) to the investigation team on the 27th.
Zhao Jingzhang and Liang Hong were expelled from the Party and removed from their administrative posts;
Deng Youmin received a severe warning within the Party and was demoted in his administrative position; Dong Zhi was removed from all Party and government posts.
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