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"Destroy Japan's Raw Silk Industry"

This sentence only shocked Mu and Fang Zhiyu. They looked at the chairman in surprise. At this time, he lit a cigarette and flicked the ash into the ashtray as if nothing had happened.

"Since the raw silk industry is the lifeline of Japan's economy, it would be really sorry for our conscience if we don't cut down on the bottom line."

"Chairman, this... I'm afraid it won't be easy."

In order to protect the chairman's face, Mu Zai glanced at the chairman while speaking. Is it possible to destroy Japan's raw silk industry based on Liuhe Company's own capabilities alone?

Two hundred thousand dans of raw silk, the profit is indeed huge, but the involved is far more complicated than the chairman imagined. Whether it is setting up a silk reeling factory or purchasing silkworms, a large amount of funds is required, even if the export market is not considered.

The factor is just this capital...

"not easy?"

While asking the question, Li Zicheng laughed.

"Ouchu, since I returned to China until now, have you ever done anything easy?"

Standing up with a cigarette in his mouth, Li Zicheng said solemnly.

"Japan is our competitor when it comes to raw silk, and it can be said that Japan is also our competitor in all other aspects. As long as we can defeat Japan's raw silk industry, then Japan's dependence on the raw silk industry will be equivalent to

Other industries beat Japan, even..."

Silent, Li Zicheng couldn't help but think about it. If there were not enough funds to support, would it be possible for Japan to realize its industrialization? A Japan that has not completed industrialization, facing a China that has achieved preliminary industrialization, might they dare to

Challenge and invade China?

"Moreover, we use rayon to replace the domestic raw silk market, which has many benefits. Rayon products are quite cheap, which allows silkworm farmers to spend more money on purchasing other industrial products. Market demand will naturally promote the development of domestic industry.

Development, and as the industry develops, the demand for machinery will naturally increase, and the sales of the machinery and equipment produced by the company will also increase, which will create a virtuous market cycle..."

After crushing the cigarette in the ashtray, Li Zicheng raised the corners of his lips slightly.

"In fact, this is just a simple mathematical problem. 120,000 dans of raw silk will generate a domestic market of 100 million taels. If these 120,000 dans of raw silk are invested in foreign markets, 100 million taels of silver will flow into China from abroad.

, and the silkworm farmers who get this money will still spend most of it except for storing part of it. Originally, domestic sales can only generate 100 million taels of raw silk, but after switching to export, it can generate 156 million taels.

The market for two…”

While calculating this simple math, Li Zicheng began to mentally calculate how to maximize the remaining profits. After all, for a company, the most important thing is profit.

"Chairman, to set up a silk reeling factory with an output of 1,000 tons requires an investment of 200,000 yuan, and rural sericulture in our country covers almost all provinces in the country. If the company sets up a silk reeling factory, it will involve investment and production in different places.

Transportation issues must be taken into consideration. Take Wuxi in Jiangsu as an example. Thirty years before Guangxu in the Qing Dynasty, Wuxi had very few mulberry homes. However, since the Shanghai-Nanjing Railway was built in 1904, due to the convenience of transportation, Wuxi area

The silk reeling industry gradually developed in China, and mulberry planting only became fashionable."

When Fang Zhiyu raised the issues that the company needed to face in developing the raw silk industry, Mu, who had originally intended to object, was unexpectedly silent. Now he had been completely convinced by the chairman. When Fang Zhiyu raised those issues, he had already raised them in his mind.

Thinking about countermeasures.

“Funding is not an issue”

"oh?"

"Chairman, in fact, what needs to be solved most is not funds, but sales. There should be no problem with the silk reeling machinery. The company can introduce technology to produce it on its own, and then imitate the way of selling cotton spinning equipment and supply high-quality and low-cost equipment to domestic silk merchants.

, the most important thing is the market”

Mu's words made Fang Zhiyu fall silent for a moment.

"Chairman, China's raw silk exports are completely blocked by foreign companies. Although those companies have formed some support organizations, such as the "United Sericulture Improvement Association", "Shanghai Wanguo Raw Silk Inspection Institute" and "Guangdong Wanguo Silk Industry Improvement Association", but

Naturally, they are not trying to help us. All they need is the supply of raw silk raw materials, and it is a cheap supply of raw silk. The pricing power of raw silk in our country is completely controlled by British, French, German and American companies. The quality of Chinese silk is better than Japanese silk.

, it is known to the whole world, but the price of Chinese silk is only 80%, or at most 90%, of Japanese silk. After foreign companies purchase raw silk, they ship it to Europe and the United States. With this interest rate difference, they can make huge profits..."

"Then we will take back the pricing power."

After finishing the tea in the cup in one gulp, Li Zicheng spoke decisively.

“In fact, it doesn’t have to be taken away.”

Speaking of pricing power, Fang Zhiyu said, remembering an old style in the raw silk industry.

"Does the chairman know Hu Xueyan?"

"Hu Xueyan?"

“Back then, in order to obtain cheap raw materials from China, foreign merchants monopolized the silk export market and tried their best to lower the price of raw silk in order to make huge profits. However, within 15 years, foreign merchants had lowered the price of raw silk by 60%, which can be said to be the most exploitative of Chinese raw silk.

After witnessing this scene, Hu Xueyan believed that business opportunities had emerged. The silk reeling industry was booming, but the price of raw silk as a raw material was declining. This was an extremely abnormal phenomenon. According to his observation, the main reason was that the Chinese businessmen were fighting on their own and were being

The foreigners controlled the price. Therefore, he decided to rely on his own financial resources to compete with them. In addition, there is information that in the past two years, European agriculture has suffered from drought and the raw silk harvest has been reduced.

It was based on these judgments that Hu Xueyan decided to take action and become a banker in a high profile. In order to prevent the price of cocoons from being controlled by foreigners, he almost single-handedly started a cocoon war with foreign businessmen..."

Listening to Fang Zhiyu slowly describing the cocoon battle between Hu Xueyan and foreign businessmen, although he had never witnessed it, Li Zicheng could imagine the thrilling scene at that time, and he could not help but admire Hu Xueyan.

While Mu listened to Fang Zhiyu's words, he fell into silence. Hu Xueyan's failure was simply a lesson learned from the past. If... But, Mu who knew Li Zicheng knew that if Hu Xueyan's failure had not happened, he might have been persuaded to give up this plan.

, but now with Hu Xueyan's failure, he will only...

"...Every time I think about it, it's really a pity. If it weren't for...hey..."

When Fang Zhiyu let out a long sigh, Li Zicheng puffed up his chest and said resolutely.

"Hu Xueyan lost, so the bargaining power of Chinese raw silk is still in the hands of foreign merchants, so we have to compete, and we must win, and we can only win, otherwise..."

Slapping the table hard, Li Zicheng's expression became extremely serious.

"No, otherwise we will definitely win."

"But... Chairman, it should be the government's responsibility to protect the country's industries. If one businessman can only turn the tide and fight against all foreign businessmen, the risk is huge. No one has dared to try again since Hu Gong. Although Hu Gong is tragic, but

…”

"I dare"

Li Zicheng's persistence was expected by Mu. He dared to do things that no one in the world dared to do. This was his temper. The more he said this, the more he insisted on his decision. Fang Zhiyu's dissuasion was simply counterproductive. Now

The most important question is.

"Zhiyuan"

Suddenly changing the title, Mu would be giving advice as a friend.

"Since you have decided, and this is a good thing that benefits the country and the people, we will naturally do it."

Mu continued to speak while squinting at Fang Zhiyu without hesitation.

"But the question is how?"

Without waiting for Li Zicheng's answer, Mu took his question.

"It's definitely not possible to directly purchase silk like Hu Xueyan did. It's gambling, it's competition, it's luck, it's money. It's too much of a gamble, and it's not what Zhiyuan likes. So I think, let's start,

Just like you said before, we need to control the price of silk.”

When making suggestions, Mu slowly outlined his ideas in his mind according to the path Li Zicheng pointed out earlier.

"We need to unite with silk reeling factories owned by merchants to form a supply alliance so that they will only provide raw silk to our company to cut off foreign merchants from collecting silk."

"But why did they agree to us?"

Fang Zhiyu asked in a slightly weaker tone, it was precisely because Chinese businessmen were fighting on their own that foreign businessmen easily won the pricing power of Chinese raw silk.

"Machinery, the most powerful card of our company is machinery. We provide machinery and equipment to those silk reeling factories, use loans and installments, and draw them into our camp first..."

Mu paused for a moment, then added after a moment of silence.

"If we can help domestic silk merchants open overseas sales, we can use unified shipping methods to enable silk mills to skip foreign merchants' agents, so that foreigners' money can be used to crack down on foreign merchants,"

"Well, this is a way to switch from agency foreign trade to direct foreign trade."

Nodding in agreement, Li Zicheng understood the difference. Chinese goods have always been purchased by foreign merchants who do not understand international trade. They are purchased and re-exported through foreign banks in China. The foreign banks that do agent trade naturally have to take a commission, and this "

The source of "commission" is to rely on them to lower the purchase price. In the end, it is the national business that suffers.

"This method is good. Japan exports directly through the big association. One link is missing, and the cost of one link is naturally reduced."

"However, there are several issues to consider."

As soon as Fang Zhiyu agreed, Mu asked another question.

"Foreign companies represent Chinese goods. They have several advantages. First, they have a business network in Europe and the United States. Of course, they can send people to develop this. After all, it is all about business. As long as it is a legitimate business matter, there is nothing difficult. Then there is their

There is transportation convenience. Raw silk is a seasonal small-scale high-value product, so it is transported by cargo. China's external shipping is completely blocked by other countries' shipping companies. If they are stuck in this aspect, if there is no shipping

company……"

"There is no shipping company to transport goods for us?"

First he sneered, and then Li Zicheng said slowly.

"Don't mention it, I'm really not afraid. After all, haven't we already built Shanglun School? It's not bad to practice your skills with raw silk or something like that."...
Chapter completed!