Chapter 968 The Matter of China Electric Power

After calming himself down, MacLehose solemnly said to Xia Yu: "Mr. Xia, the plan you proposed is too broad, and it takes a lot of work to refine and formulate a complete implementation plan. After you go back, you have to send someone over to discuss it together."

Xia Yu nodded and said, "This is what it should be, and I hope it can be started as soon as possible."

...

After that, MacLehose, Xia Yu and others got into the car and left the New Territories.

Xia Yu sat in the back row and opened the car window. He breathed in the fresh air full of natural fragrance, and had a refreshing feeling of clear mind.

Looking at the fields he passed by, Xia Yu seemed to see modern factories being built in this place.

At this moment, Li Qian leaned beside Xia Yu, raised her eyebrows lightly, and asked worriedly, "A Yu, didn't you always tell me that setting up a factory in Pengcheng on the opposite mainland can greatly reduce production costs. Also, many of your companies have set up factories there, why do you still want to build a science and technology industrial park in Yuen Long District?"

"The straight-line distance between Yuen Long District and Pengcheng should be less than 20 kilometers. With such a close distance, can the Yuen Long Science and Technology Industrial Park be developed?"

Xia Yu looked back and looked at Li Qian, who was worried about his career, he smiled softly, his fingers gently smoothed Li Qian's frown, and said softly: "Xianxi, don't worry, when will you see me? Made the wrong decision?"

"Although the Science and Technology Industrial Park is close to Pengcheng, it does not mean that it cannot develop."

Seeing Li Qian's cute expression of being ignorant, yet trying to figure it out, Xia Yu smiled casually: "I'll talk to you about it."

Li Qian nodded like an obedient elementary school student, blinking her eyes at Xia Yu, waiting for Xia Yu's teaching.

Xia Yu gently embraced Li Qian in his arms, and spoke slowly in soft words.

"Qianqian, the positioning of the Yuen Long Science and Technology Industrial Park is not a light industry with a low technical threshold, but heavy industries such as electronic high-tech, automobile manufacturing, petrochemical industries, etc. These industries are industries with high threshold, high output value and high added value. The profit margin far exceeds that of low-threshold light industries such as textiles and toys."

"Although the labor cost of Xiangjiang is far higher than that of the mainland, it is still far worse than developed countries such as island countries, the United Kingdom and the United States."

"Since island countries, the United Kingdom, the United States and other countries have such high labor costs that companies in industries such as electronic high-tech, automobile manufacturing, and petrochemicals can develop healthily, it makes no sense that Xiangjiang's lower labor costs can't do it."

"Compared with labor costs, the technology costs of these industries account for the bulk. As long as the technology costs are properly controlled, there is no fear of lack of strength to compete in the market."

"And then let's talk about the mainland. Although the labor cost in the mainland is very low, it has to be able to be used. It's useless if you can't use it."

"Other ordinary light industries such as toys, textiles, etc., have no entry restrictions in the mainland. Hong Kong companies can set up factories if they want to go to Pengcheng, but electronic high-tech, automotive and heavy industry, petrochemical and other industries are different."

"Except for the electronics field, which is slightly better, the mainland is not open to the outside world in the fields of automobiles, heavy industry, and petrochemicals. We can't get in if we want to. I don't know how many years we will have to wait."

"Even if these industries are opened up, the mainland will set a lot of restrictions. The simplest control rights will not be available, and the profit earned can only get 49% at most."

"Considering that in these sensitive industries, the tariff costs between the mainland and other countries in the world are much higher than those between Hong Kong and other countries in the world. Many parts and components have to be purchased from all over the world, and the tariff costs entering the mainland are also very high. The cost can offset a large part of the labor cost, or even more than offset.”

"Unless one day the mainland considers loosening the restrictions, it will be possible to reduce the tariff amount.

Tariffs in these areas are almost impossible to drop before liberalization. "

"Of course, the combination of import and export tariffs is the highest. If you directly set up factories in the mainland to build the entire industrial chain, you only need to purchase raw materials, and the tariffs will be low, and as long as the products produced are not exported and sold directly in the mainland, then Setting up a factory in the mainland will have a huge cost advantage.”

"But even if there is no export and only domestic sales, the market capacity and supporting industrial chain in the mainland are now a big problem, not to mention the entry restrictions for industries that do not know when they will be lifted."

"So I have to prepare both hands. I can't do nothing and wait. It's always right to build a science and technology industrial park in Xiangjiang first."

As Xia Yu said.

Take a simple example.

For example, in the simplest automobile industry, according to the history of the previous life, even if the automobile industry was opened to foreign investment, there were still many restrictions, and the controlling rights still had to be held by the mainland.

The sales in the domestic market are good, and they can have advantages. Just like the price difference between joint venture cars and imported cars, the difference is more than double.

However, in the face of overseas markets, after the profit is thinned out, the profit will be similar to that of setting up a factory in Hong Kong, unless the mainland lowers the import and export tariffs of the entire industry chain to greatly reduce the cost.

But for the difficulty of this point, no one knows the future situation better than Xia Yu, who was reborn from the future, and he doesn't have this hope at all.

Tariffs are barriers to a country's economy that he can't touch or touch.

There are only two ways that can work.

One is that the mainland believes that it has enough competitiveness in all walks of life, and will take the initiative to downgrade.

The second is that in order to join the WTO, Huaxia was coerced by European and American countries and had to make a series of commitments. When the time came, the commitments were fulfilled one after another, opening up industries to restrict and reduce tariffs.

Therefore, if Xiangjiang now establishes a car factory, Xia Yu can have 100% autonomy and profits, and there will be fewer constraints to enter the European and American markets. Because it is very close to the mainland, as long as the situation in the mainland changes, adjustments can be made at any time.

This is the case in the automobile manufacturing industry. As for the petrochemical industry, let alone the petrochemical industry. Some, etc., it is impossible for Xia Yu to temporarily not get involved in the petrochemical field because of this consideration.

The future is to be embraced, but it must be based on the present, not too lofty, or to build the foundation of Xiangjiang first.

The only possibility for Xia Yu to give up the construction of the Hong Kong Science and Technology Industrial Park is that the mainland will immediately open up all fields to him, but is this possible?

...

Xia Yu's straightforward and easy-to-understand explanation made Li Qian suddenly realize.

"It turns out that this place is so complicated. In this case, the Yuen Long Science and Technology Industrial Park must be established as soon as possible."

Xia Yu smiled and nodded: "Well, soon, after I go back, I will arrange for someone to go to the Hong Kong government to connect, and now it involves the public housing plan and the construction plan of the Tin Shui Wai new town, MacLehose attaches more importance to his No less anxious than me."

Li Qian lightly raised her head, her beautiful eyes showed fascination and admiration, and whispered softly, "A Yu, if your plan is successful, it will at least change the lives of hundreds of thousands of people, which is similar to the charity I often do. Than, you are truly benefiting the society..."

...

After returning, Xia Yu immediately called for the think tanks of the three major research institutes. At the same time, he also called Liu Shihao and Chen Jianping from Jiuding Real Estate Group, Zhao Bo, general manager of China Electric Power Company, and others to the headquarters for a meeting.

In the meeting, Liu Shihao was appointed to lead the team to communicate with the Hong Kong government, and others to cooperate and assist.

After the meeting, Liu Shihao and others resigned one after another, but Zhao Bo, the general manager of China Electric Power Company, stayed behind.

Zhao Bo was a Chinese executive who was promoted from within after Xia Yu took control of Chunghwa Electric Power Company. He did not disappoint Xia Yu and managed Chunghwa Electric Power Company in an orderly manner.

"Zhao Bo, is there anything else you can do?"

Xia Yu asked.

Zhao Bo nodded immediately and said, "Yes, Chairman, there are some more important things to report to you, involving the Kadoorie family."

Xia Yu's expression moved slightly, he nodded slightly and said, "Go to my office."

"OK."

After speaking, Zhao Bo was one position behind Xia Yu, and followed Xia Yu into the office step by step.