Chapter 153: The Chinese should be self-reliant

Although Yang Shaozong was extremely reluctant to cooperate with *** Automobile Company, he must admit that the *** economic bubble had caused a huge impact on the *** economic industry. Nissan Motor Co., Ltd.'s situation at this stage was very difficult, and Mazda's situation was not much better.

Nissan has given a great sincerity in negotiations at this stage and can even cooperate through technology transfer. There are more than Nissan, one of the only auto companies that are willing to cooperate through technology transfer.

In August 1992, as the domestic market was also brewing huge changes, Yang Shaozong had to return to the country to take charge of the overall situation. Huakangsheng and Xu Jianyi Vehicle Chief Engineer hired by Zhongqi Asset Management Company from FAW continued to negotiate with Nissan. Since the agreement involved Yuhua Automobile, Yuhua Automobile also sent people to participate in the negotiations and continued to contact General Motors in the United States.

...

1992 was the most troublesome and lively year in China's market economy. During this year, a large number of people went into the market and they were called the "92 faction". In this year, a 44-year-old Indonesian businessman Huang Hongnian returned to the domestic market that he had been away from for a long time.

This person is the second son of Huang Yicong, the second largest consortium in Indonesia. However, he grew up in China and once joined the team in Shanxi. With his familiarity with the domestic market, he acquired a listed company in Hong Kong and changed his name to "Zhongce", which means he should make suggestions for China's reform.

In addition to Huang Hongnian, Zhongce Company is an important shareholder of Li Ka-shing’s Hutchison Whampoa, Jinguang Group and Morgan Stanley, and Huang Hongnian is undoubtedly the most important soul figure.

Back at home, Huang Hongnian focused on state-owned enterprises with good assets and quickly acquired Taiyuan Rubber Factory. At that time, Zhongqi had already discussed this matter with the Shanxi Provincial Party Committee for a while, but gave up because he later ate another rubber factory.

It took Zhongqi half a month to get in touch with the negotiations, but it took a month to actually conduct an investigation, and finally it took a little half a year to discuss the specific price terms. It was delayed and discussed that Huang Hongnian’s Zhongce Company is worthy of being a Hong Kong-funded enterprise, with a bold style and it was settled in one month.

He felt it was easy to make money, so he bought state-owned enterprises in China and even carried out large-scale package acquisitions in Hangzhou and Quanzhou. The efficiency and scale were so high that it was surprising that his chin could not be closed.

The Zhongce effect was quickly captured by the media. Compared with the low-key style, he basically did not accept media interviews during the acquisition and merger process. During the negotiation process, Zhongce Company often adopted a tug-of-war strategy with the municipal party committee. Zhongce Company is obviously more sensational. The most important point is that Zhongqi Asset Management Company is a township enterprise, while Zhongce is a foreign capital.

This is very important, and it is also the reason why Zhongce can almost win state-owned large factories at a lower price, or even 40% or 50% lower than Zhongqi Company.

At the beginning, the Jiangxi Provincial Party Committee gave Zhongqi a price of more than 20 million yuan at the Taiyuan Rubber Factory, but only 10 million yuan was given to Zhongce. The reason was very simple. They blindly believed in foreign capital and thought that foreign capital represented advanced.

From April to August, Zhongce Company acquired more than 100 state-owned enterprises in China in one go, half of which were once the target of Zhongqi Asset Management Company, which annoyed Guan Jinsheng and Hua Kangsheng, who were still dreaming of continuing to bargain.

The most annoying thing is that Zhongqi Asset Management Company has always been very responsible, and basically has three guarantees - one guarantee will not be laid off, two guarantees will turn losses into profits, and three guarantees will continue to invest. Zhongce Company has no promise, and the price of winning these state-owned enterprises is still very cheap.

The three-guarantee Zhongqi Asset Management Company will invest 20 million, while Zhongce only needs 10 million. This is where Guan Jinsheng scolds her.

In this particularly dangerous situation, Yang Shaozong gave up all his negotiations with Hong Kong and flew back to the country without stopping. At that time, the Songzhou Municipal Party Committee and the Shenzhou Municipal Party Committee were looking for Yang Shaozong, and their general meaning was similar - please trouble Zhongqi Asset Management Company to rescue the market. Since May, Songqun has plummeted, from 1,429 points to 386 points. Since the Shenzhen storm on August 10, even if Zhongqi supports the development of large-cap stocks, ShenVanke and Shenzhou stock markets have continued to fall sharply.

Yang Shaozong couldn't control these things, and his own nest was raided. How could he not be in a hurry?

Zhongce is like having eyes, and the projects they have won are subsequent acquisition projects that Zhongqi has reserved in advance. What makes Yang Shaozong most angry is like Guan Jinsheng - Zhongce's price is too low, which is so low that it makes people outrageous.

On August 27, 1992, on the day Zhongce took over the Hangzhou Brewery, Yang Shaozong flew back to Songzhou as fast as possible, turned directly to Ningzhou, and arrived in Qishan in the afternoon.

At this time, Yang Shaozong sincerely hoped that Qishan would have its own airport.

...

After three months of separation, Qishan was still so full of vitality at this time. The whole town was developing rapidly. When he returned to Qishan, Yang Shaozong didn't even have time to go back to the town to hold a work meeting, so he went directly to Zhongqi Building.

Everyone was waiting in Zhongqi Building, and everyone was very anxious. Even Li Zhaotang was urgently invited to Zhongqi Company.

In the office of the general manager of Zhongqi Company, Guan Jinsheng, Hu Zuming, and Li Zhaotang are all there, Hua Kangsheng is in Tokyo, and he can't come back now, Yang Jianlin, Xiao Aihua, Zheng Shutong and others are also there, and Xiao Wei is back with Yang Shaozong.

Back to his position, Yang Shaozong sat down and said to Guan Jinsheng: "Mr. Guan, show me the list of Zhongce's acquisitions to see how much they spent!"

Guan Jinsheng was searching in the pile of documentary books on Yang Shaozong's desk that had been left uninquired for a long time, and said while searching: "I asked someone to prepare a copy here a few days ago... I found it."

As he said that, he took out a thick stack of information and handed it to Yang Shaozong, and said: "Zhongce is simply a bag company, and there is no basic merger or audit department. He simply saw the low-priced acquisition. After the acquisition, he transferred to the bag company registered overseas and injected it into their listed companies in New York, USA. Their operation model is suspicious and he does not intend to hold it for a long time. He just sells hot spots and then transfers to other professional companies abroad to take over. The most annoying thing is that their acquisition strategy is similar to ours. He has focused on companies that are easy to revitalize, such as cement, beer, cables, and tires, and there are also a lot of economic experts who applaud later."

Only then did Li Zhaotang suddenly speak: "I gave the money and invited me to dinner. I came to see me some time ago. I always felt that there was a problem here, so I politely declined!"

Yang Shaozong probably was about the same, so he sat down and looked through the information provided by Guan Jinsheng.

The situation is still amazing. Some of Huang Hongnian's acquisitions basically belong to key national backbone enterprises. Even Zhongqi Company was not qualified to interfere in the first place, especially Chongqing Rubber Tire Factory and Dalian Rubber Factory. These two key backbone enterprises of the National Seventh Five-Year Plan. Zhongqi Company wanted it at the time, but the other party refused.

In fact, the municipal party committee agreed. The key is that the enterprise and the competent departments disagree, and they also have to report to the central government, for fear that the Zhongqi Company would not continue to operate.

As a result, all so-called foreign-funded enterprises are cheaper.

This surprised Yang Shaozong. It was all Mayor's projects, and the companies were also very excited. It seemed that it would be a great thing to become a foreign-funded enterprise. In fact, they all brought wolves into the house and were sold to count money for others.

While Huang Hongnian was traveling to the south, several tire companies he acquired had been packaged and included in the name of the Chinese tire holding company registered in the Bermuda Islands, and then listed in New York.

As for the domestic theoretical and media circles' appreciation of this acquisition, it is a bit exaggerated, and it is called "the product of the era of deepening China's economic system reform." Seeing all this, Yang Shaozong felt a little uncomfortable.

After a while of silence, he finally made a decision and said to Li Zhaotang: "Director Li, at a critical moment, I would like to ask you to write an economic report in a realistic way and then find a way to publish it in the newspapers in our province. I want to... go to the capital as soon as possible to report the situation with Vice Premier Rong."

Li Zhaotang nodded in agreement and said, "This situation cannot continue like this. The key to our state-owned enterprise reform is to focus on the big and let go of the small. If even such backbone enterprises have to be sold to foreign countries, is it necessary for us to implement the state-owned enterprise reform? Is it the easiest thing to sell them all?"

Yang Shaozong agreed: "This is the problem!"

Zhongce's threat to Zhongqi Asset Management Company is very direct. If Zhongce is involved in other industries, that would be fine. However, the integration goals of the two are completely consistent, and we both find several industries that are most likely to reverse the situation.

What is depressed is that the opponent is foreign capital. Although it is a foreign capital that traffics children, Zhongqi Asset Management Company is definitely not its opponent.

As soon as Yang Shaozong came back, everyone had a backbone. The key is that Yang Shaozong established a basic countermeasure - direct attack. Originally, Guan Jinsheng's idea was to register a bag company in Hong Kong and use the same trick to fight Zhongce Company.

This is not in line with the long-term interests of Zhongqi Company.

Yang Shaozong did not plan to do this. He wanted to directly fight with Zhongce Company head-on, and he wanted to fight a big battle.

In the business world, there is nothing to be done to offend your opponent.

That night, Yang Shaozong called Cheng Yutong from Hong Kong New World Group, and asked him to tell Li Chaoren that Zhongce's business is harmful to the national and national industries and must be stopped. If Li Chaoren is unwilling to intervene in such a troublesome thing, it is best to get out as soon as possible.

Just the day after he called, Yang Shaozong had arrived in Changjiang City and reported to Zhou Changan, deputy secretary of the Provincial Party Committee, and then, under the contact of Zhou Changan, he quickly took a plane to Shenzhou because Vice Premier Rong was inspecting the stock market in Shenzhou.

Vice Premier Rong was very cruel. When he arrived in Shenzhou, the Shenzhou Municipal Party Committee was forced to resign due to the 8-10 storm. In such matters, he has always been really ruthless.

When he arrived in Shenzhou, Yang Shaozong and Vice Premier Rong reported on this matter and handed over all the information submitted by Guan Jinsheng to the State Council.

The situation is very obvious. Zhongce Company is simply a bag company and has no ability to operate these industries for a long time. The only ability will allow these companies to separate from the original system and enter the tide of the market economy. In the end, the giant foreign companies will be those who pay the bill.

If it is a joint venture with foreign industry giants, then there is no problem, and there is no problem selling it to the other party. It is a problem to sell it at such a low price.

Yang Shaozong did not hesitate to offend the provincial party committee of a certain province and directly named something. The Taiyuan Rubber Factory quoted them more than 20 million yuan, and he had to promise three guarantees. It was just that it would reduce the price by half after changing to a foreign-funded shell. He didn't have to cover anything, and even employees did not.

Is this a big problem?

If Zhongqi International Investment Company also returns to the mainland to do this, how many assets will the country lose?

Compared with Zhongce, Zhongqi International Investment Company is at least a professional investment bank with great strength in Hong Kong and is seeking to acquire Hong Kong-funded banks from Mitsubishi Bank to achieve a transition to Morgan Stanley.

All reports were conducted in the car. Yang Shaozong got on the car urgently with Deputy Zhou Changan, and the next stop the car was Nanning, Guangxi.

Deputy Rong’s goal this time is not only to check the 8-10 Shenzhen Stock Market Storm, but more importantly, to persuad each province to persuade the provincial party committees to agree to adopt the tax sharing system he proposed. If he does not agree, the central government will go bankrupt, and this outcome is definitely not something that everyone dares to face.

The car is still the same - the Iveco 11-seater commercial vehicle imported from Italy.

Deputy Rong's trip to the south was initially taking two minibuses from the Jinlong Bus Factory. Later, when he recalled the Ivecos from Zhongqi Company in Changjiang City, he asked Zhou Changan to replace them, which was borrowed by the central government and the province.

The car is still driving on the road.

It’s always rainy in the south, and it’s raining lightly outside.

Yang Shaozong said a lot in one breath and provided a comprehensive information. Deputy Rong frowned without saying a word. He really didn't know about such a situation. Over the past few months, he had been inspecting and rushing around in various provinces across the country, working hard to convince everyone to accept the tax sharing system.

Deputy Rong thought for a long time, but did not immediately mention the matter of Zhongce Company. Instead, he asked Yang Shaozong: "Is this Zhongqi International Investment Company you opened in Hong Kong developing very quickly?"

Yang Shaozong thought carefully and said, "Actually it's not fast. It was founded in 1990. At that time, it invested 40 million US dollars. Later, he asked Comrade Guan Jinsheng, general manager of Songzhou Wanguo Securities, to take over. He is a very powerful person. He saw that oil futures would soar in 1991. He bought it in advance, which made us a net profit of 140 million US dollars. Comrade Guan Jinsheng was unwilling to work in Hong Kong for a long time. Now he returned to Zhongqi Company as the vice president and was in charge of Zhongqi Wantong Securities Company's business. We also hired a local Hong Kong person to serve as the general manager. This person is Qian Jiawei, who graduated from St. George's University in the United States and has been in Morgan after graduation.

Stanley works in Hong Kong branch and serves as the head of the M&A consulting department. He is a Hong Kong native and is familiar with the real estate and financial industry. After taking office, he has bought Hong Kong properties and some stocks in succession. The Hong Kong real estate and securities boom in 1992 has made us make some money. Making money is secondly. The key is that we have a firm goal. Through the development in recent years, we have consolidated a very good team and can be regarded as a relatively famous securities and investment company in Hong Kong. Our direction is to approach Morgan Stanley. Therefore, we are recently negotiating with Mitsubishi Bank to merge with the favorable banks that Mitsubishi Bank had previously acquired in Hong Kong."

Deputy Rong nodded silently and praised: "The characteristic of your Qishan people in this regard is that they dare to think and do it. Many of our large state-owned enterprises dare not do it, and many leaders of the municipal party committee and provincial party committee dare not do it. You have done it all, and they are doing it very beautifully. This shows that the central government's decision to give you a car license some time ago is correct. I am still very concerned about this matter. You have been talking abroad for so long. Have you made progress in this regard?"

Yang Shaozong said: "We have already done reports on the automobile industry in Europe, the United States and China. Judging from the report, there is a bad phenomenon in our domestic automobiles, that is, most of the automobile parts are produced by themselves, and a large number of small factories must be opened under a general automobile factory, and the management and efficiency are not concentrated. Considering this issue, we have reached an agreement with Taiwan Yuhua Automobile Company, first establishing an automobile parts company in China, and then jointly seeking foreign investment cooperation to introduce better technologies and models. I have already talked with Renault. Their intention to cooperate is not high, but overall, the conditions are relatively high, and I am afraid that we cannot follow the central government's expectations. The main negotiation direction is the *** Nissan Motor and General Motors Group of the United States. There are other comrades in further negotiations. I will wait for a while to make an appointment in Hong Kong to continue in-depth discussions, and finally choose one of these two companies."

Deputy Rong nodded and said, "It doesn't matter whether you can cooperate with Renault. The key is to cooperate with the best automobile companies in the world, introduce production lines, technology and other people's management experience, learn these, and slowly build our own automobile work with the support of national policies! To be honest, I am very comfortable to sit in the two business cars introduced by you Zhongqi. It is more convenient for other comrades, but I feel uncomfortable and don't admit defeat. I don't think that we Chinese cannot build such cars. We can even build rocket missiles and atomic bombs. What's the difficulty?"

Yang Shaozong said: "It is certainly possible to build it. The key is to learn it well in the fastest time with the best method. We have now registered a Shenzhou Automobile Company to operate a car license given to us by the central government, and then use this automobile company and other companies to operate joint ventures. While operating foreign brands and products, we plan to merge Haima Motorcycles and set up an automotive industry research institute to invest long-term funds for independent research and development. Some technologies are purchased and introduced patents, and move forward step by step, starting with small cars that others do not make, and also making passenger cars, business cars, vans, and slowly becoming independent brands of cars."

Deputy Rong *** praised: "Your idea is right and it is in line with the central government's long-term plan for the automobile industry, which is very good."

Speaking of this, he paused again, suddenly dragged the topic back and said, "I think I should observe the matter of Zhongce Company for a while. Of course, some methods are definitely wrong, and this must be corrected first. In addition, I agree that your Zhongqi International Investment Company will also return to the mainland, use Hong Kong's capital and window advantages to introduce good international companies into the country, so that they can bring new ideas and mechanisms into the country and fully introduce competition mechanisms. From this perspective, some things about Zhongce Company have not been wrong. The key is as you said, the local government is too hasty in these matters, a little blind, and even helps others count money when they are abducted and trafficked."

...

There is no doubt that Yang Shaozong did not get the answer he wanted from Deputy Regent Rong, but he also had some understanding of Deputy Regent Rong. He knew that Deputy Regent Rong would not sit idly by. The question was what method to take.

A few days later, Li Zhaotang published his article in the Economic Daily through some relationships, and contacted some experts nationwide. Everyone took turns to express their opinions, began to question Zhongce Company's motivation, and began to question whether local governments were suspected of being cheap and had assets?

Hu Zuming personally took the initiative and wrote an article titled "Chinese people should be self-reliant and should not blindly worship fake foreign capital!" as a Ph.D. in economics at Harvard University and a former World Bank analyst.

It can be said that Zhongqi Company has begun to declare war on Zhongce Company.

For Yang Shaozong, Hu Zuming, Guan Jinsheng, they may not be considering the state's assets entirely. To be honest, they are just fighting for one breath. Why do they need 20 million to buy things, and others only need 10 million, and they also have to have various additional terms.

What is the difference between this and "Chinese and dogs are not allowed to enter".

Everyone wants to fight for this breath.

This sudden media storm shocked Zhongce Company. Almost at the same time, after knowing that Yang Shaozong began to deal with Zhongce, Li Chaoren also transferred the equity held by Changjiang Industrial to Jinguang Group with decent respect, and reminded Huang Hongnian that there was no need to be so sharp.

At that time, Huang Hongnian actually had a plagiarism of Russia and privatization in Eastern Europe. He bought state-owned enterprises at a low price and sold them to foreigners at a high price. He did not expect that he would suddenly encounter such great resistance in China.

For Li Chaoren, he didn't know what level Yang Shaozong was in China at the beginning. He asked some people who were familiar with the mainland administrative system. Those people said they were deputy director-level and very low, but now they finally know.

The mainland is very complicated and cannot be easily played by Huang Hongnian. Even Li Chaoren does not have that much space in the mainland.

The mainland market is not their territory after all.

This incident happened very quickly. Not long after, relevant leaders of the State Council secretly greeted local officials who were in the negotiations and temporarily stopped the transaction with Zhongce Company. Wait for a while. No matter what Zhongce wants to do, it is definitely not a good thing to acquire a company so crazy and the price is so low.

In fact, Huang Hongnian and Zhongce were expelled from the mainland market and they could never come back.

After Hong Kong media reported this incident, Cheng Yu-tung revealed a piece of news with disrespect that they were stupid and couldn't get along with Zhongqi, which made people lose their lives.
To be continued...