Chapter 35: The Benefits of Pricing Power

When Iwasaki Jun withdrew from the Dagukou Fort, his face was basically green.

The conditions that Fan Wubing gave him were really unacceptable. The Chinese rare earth market can be said to have been reshuffled. Now Fan Wubing dominates and holds the dominant position. As for other small-scale production enterprises, they The quality and quantity of the products cannot meet Iwasaki Jun's requirements, and the export power is also an obstacle.

The Chinese government has issued very few export licenses to rare earth production companies. There are only a dozen companies with export rights. These companies have all stopped production for rectification and have been gradually integrated under Fan Wubing's three major rare earth production companies. Wubing has completely grasped the right to speak and price the export of rare earths.

Next year, if we want to obtain the same share of rare earth mineral resources, we will have to pay a higher price. Jun Iwasaki's gait was a little staggering, and the road was difficult, so he almost tripped, and the staff next to him hurriedly supported him.

Iwasaki Jun was probably unhappy in his heart, waved away the staff who wanted to help him, and strode outside by himself.

"Yanqi-jun, welcome to come back next year!" Fan Wubing shouted loudly from behind.

Yan Qijun turned his head to look at Fan Wubing, who had bright eyes, and the suffocation in his chest finally burst out. A mouthful of blood sprayed out spots all over the front of his clothes. It looked particularly scary, but after such a mouthful of blood was sprayed out, his chest Finally feel a lot easier.

Yan Qijun's subordinates glared at Fan Wubing, thinking that Fan Wubing was deliberately humiliating Yan Qijun, but Fan Wubing then said, "Just spit it out, otherwise if you go back to Japan like this, you must It will become stagnant and sick, and taking medicine will not work.”

Touching his chest, Yan Qijun really felt that he felt a lot lighter after the spurt of blood, and then thought of Fan Wubing's title of genius doctor. Then he understood that although Fan Wubing made him vomit blood, what he said was true, if he really went back like this, he would inevitably be seriously ill.

So Yan Qijun turned around and bowed to Fan Wubing, then said, "Thank you! See you next year!"

Fan Wubing nodded. Watching them off to the convoy gradually leave.

"Mr. Fan. Is this Japanese stupid because of anger? He vomited blood because of anger. I want to say thank you—" a staff member who followed Fan Wubing asked curiously.

Fan Wubing said with a smile. "You guys are blaming me wrong. If Yan Qijun didn't spit out the blood, he would at least have a serious illness. I just wanted to do business with them, so I helped him. But this person can be regarded as somewhat capable. He knows that what I say is true. He is much better than ordinary people."

"Are you going to negotiate prices with him next year?" Someone asked.

"That's for sure." Fan Wubing replied with a nod. "Talk once a year. We can determine the annual sales price of rare earth minerals. This is very beneficial to us. As a major exporter of rare earth resources, we can control the pricing power and decide our own profit target. This is what we thought before. I can't even think about it."

For Yan Qijun. He is also willing to continue negotiating with Fan Wubing. At least Fan Wubing still gave him some leeway. He did not set the price completely according to the international market price. Believe in next year. It is also impossible for Fan Wubing to match the price of rare earths with the international market price level. There is always a profit margin for Yan Qijun.

It's not that Fan Wubing flirted with the Japanese to betray national interests. For some important rare metals and rare earth elements. He doesn't budge. And for common rare earth resources. Slightly lower than the international market price. It is easier to maintain the existing rare earth consumption market. Maintain your own market share and not be eaten by others. Further form a substantial monopoly on the rare earth market.

With the current level of domestic technology, it is necessary to fully utilize the effects of many rare earth elements. It is unrealistic, and the main direction of rare earth application in the international market is the arms industry, which is a highly profitable industry, so they can afford the sky-high price of rare earth raw materials, this is Fan Wubing's way of making money.

As far as China is concerned, there is no future for engaging in an arms race, and it does not have the financial resources, so it indirectly uses rare earth resources to make some windfalls to make up for its financial distress. This is the imperative. As for the future development, when these resources are needed. A large-scale strategic reserve has been formed in the country, so there is no need to worry about all the good things being sold.

Domestic rare earth production has been suspended for a month, and it is gradually recovering. Fan Wubing has invested a lot of money in the transformation of enterprises. Now all major enterprises have opened 50% of their production capacity, and the rest The labor force is getting familiar with new equipment and new technology. After about two months, a new production process will be formed and replaced, so that the extensive mineral management will be transformed into a fine mineral management direction. As for those small enterprises, it will be through mergers and acquisitions. Realize the integration of resources to avoid waste of resources caused by over-exploitation.

As for the pollution problem, at this time, the shutdown and rectification have achieved initial results. At least the water quality in the river has improved a lot, and the one-month production shutdown has had a significant effect. This also provides everyone with confidence in the effectiveness of environmental pollution control. Therefore, Everyone is very interested in technological transformation.

In the past, there was no money to do these things, but now that someone pays for technological transformation, everyone still prefers to see the beautiful scenery of their hometown instead of being poisoned everywhere and causing endless harm.

The media also cooperated very well. The journalists proved this point to the world with indisputable facts through their open and unannounced visits to the rare earth producing areas. The government’s decision to shut down the rare earth production enterprises is extremely correct and effective, and it is for the people. Responsible for life safety.

For the health of the common people, the government shut down the rare earth production enterprises and suffered great losses, and the enterprises made great sacrifices, but it was all worth it, and we finally saw green mountains and clear waters again.

At this time, Yan Qijun has started to pay Fan Wubing successively, and handed over his current list of mineral resources to Fan Wubing to purchase the corresponding mineral resources.

For the resources exported, Fan Wubing’s standard is to sort and select them, but without refining them, the purpose is to reduce the pollution problem in the country. For the things foreigners want to use, you can go back and refine them yourself. We cannot sacrifice ourselves. Environment, do these simple tasks for you.

In fact, Yan Qijun hopes to go back to extract these minerals by himself. After all, their separation technology and refining technology have been mature for a long time, and many technologies obtained from the Rare Earth Research Institute have been maturely put into the application level. If it is separated and refined, it can at least increase some income and increase the utilization rate by more than 20%, which is equivalent to reducing the cost by more than 20%.

After Fan Wubing waited for more than a month, it was almost June, and he had to go back to school anyway, otherwise, wouldn't it be too much if he didn't even take the exam? Although the principals of Fudan University are now astonished by themselves, they dare not neglect them, but the four words of respecting teachers and respecting teachers must be worked hard, after all, it is a Chinese tradition.

Before returning to Shanghai, Fan Wubing went to see Boss Zhu.

"Your rare earth project is in full swing!" Boss Zhu is still very busy, but he must spare time to meet Fan Wubing.

Among other things, Fan Wubing has increased the country's tax revenue by hundreds of times just for the export of rare earths. What kind of concept is this? This alone has increased China's income by more than 10 billion yuan a year. You must know that the annual tax revenue in China is only more than 300 million yuan. A project that was originally inconspicuous has set such a high record. The profits made the eyes of all the members of the Standing Committee of the Politburo fall out of shock.

What's even more rare is that the total export volume has dropped by one-third compared to the original one. This part is the same as the remaining part of production and has entered the newly built national strategic resource reserve. This part of the reserve is Fan Wu Bing promised to leave the country's strategic reserves free of charge. If Fan Wubing needed to use this part of the resources, he would also need government authorization and purchase them at market prices.

The value of this part of the national strategic reserve is no less than the total value of the rare earth resources purchased by the Mitsubishi chaebol every year.

"This year is a period of transformation, and everything needs to be invested. It is estimated that next year will be much better." Fan Wubing said to Boss Zhu, "By next year, I believe that the environment in the mining area will not be inferior to the living environment in ordinary cities, and the government's fiscal revenue It will continue to increase, hoping to provide more than 15 billion in national tax revenue next year."

Boss Zhu looked at Fan Wubing and said, "You are a miraculous hand. After your guidance, the rare earth industry has undergone earth-shaking changes. The country, localities, and enterprises have all gained huge benefits. This is really impressive. Feeling. If it were not like this, the tax revenue for rare earths this year would only be more than 200 million, and no one would believe that there would be tens of billions in tax revenue!"

Regarding this point, Fan Wubing said, "In some respects, private enterprises are more dynamic than state-owned enterprises. If we simply emphasize the importance of rare earths, state-owned enterprises are required to pay attention to the production of rare earths, and be cautious about the export of rare earths. If environmental protection issues are cautious, the effect will be minimal. The key to benefiting the three parties now is that I can have the right to speak in the rare earth industry and the pricing power of rare earth export sales. This is the key to success."

"Regarding this point, do you have any experience that you can pass on?" Boss Zhu listened very seriously, and then took out his small notebook, writing and drawing on it seriously.

"For certain industries with special characteristics, an industry alliance with foreign trade decision-making power should be established." Fan Wubing replied.