The problem Qin Hai faced was far more complicated than what he told Leonardo. He indeed did not have enough manpower to carry out overseas procurement. Rather than sending a few novices to be tricked by the mining tycoons, it would be better to put this matter
It is also acceptable to entrust the matter to Leonardo's company for agency and pay a few percent commission for this purpose.
In addition to experience issues, the most troublesome issue is foreign exchange control. If Qin Hai sells steel to Leonardo and then uses the foreign exchange to buy coal and iron ore, he will encounter a policy obstacle.
The country's foreign exchange management department will not allow Qin Hai to use precious foreign exchange to purchase primary products overseas. They will collect all the foreign exchange and let Qin Hai find ways to obtain coal and ore on his own.
In order to circumvent the state's control, Qin Hai could only think of a stratagem, which was to treat the sales of special steel and the purchase of ore as the same business and trade with the same company. Specifically, he sold the special steel
To Leonardo, Leonardo paid him part of the foreign exchange and part of the ore, claiming to the outside world that this was a processing business. In this way, the foreign exchange for purchasing the ore did not go through the country at all, and the foreign exchange management department would
There is nothing left to say.
Qin Hai vaguely told Leonardo his thoughts, but Leonardo understood. He nodded and said: "I understand, I can help you with this. The cost of purchasing ore is included in the price."
I have to add 5% as my commission, but don’t worry, with my influence in the steel industry, I will definitely be able to keep the purchase price down for you, and you won’t suffer any loss if you pay the 5% commission.”
"This is great." Qin Hai felt a stone fall in his heart, and then raised a new question: "In addition to iron ore, we also need to purchase some nickel, tungsten, chromium, molybdenum and other alloy elements.
These alloy elements should be available in the European market, and we hope that Mr. Leonardo can purchase them on our behalf. The cost will also be deducted from the sales of special steel."
If Qin Hai wants to smelt and sell special steel on a large scale, it is impossible to rely on scrap steel smelting as it did in the past. Firstly, because the amount of scrap alloy steel they collected is limited and cannot support such a large scale of production. Secondly,
The composition of scrap alloy steel is too complex. To smelt high-quality alloy steel, simpler raw materials must be used, such as ferrochromium, ferromanganese, etc.
Domestic steel plants smelt alloy steel. This is achieved by mixing various alloy elements with steel raw materials in proportion. However, due to the scarcity of alloy elements, the material department's control of alloy elements is much stricter than the control of steel raw materials, such as
A wild enterprise like Qinhai's Pingyuan Iron and Steel Works had no chance of obtaining alloy elements. In desperation, he could only look abroad.
Leonardo was surprised when he heard Qin Hai's request. He looked at Qin Hai and asked: "Young man, how could you think of coming to the European market to purchase alloy elements? Don't you know that there are many alloy elements in the European market?
.Exactly imported from your China.”
"I know." Qin Hai smiled bitterly, "China is indeed an exporter of alloy elements, but I can't buy the alloy elements I need at home. Let's put it this way, I don't shy away from using these alloy elements exported from China.
Buy it back... In China, we have a term called 'export to domestic sales', which is roughly what it is."
China is a country with extremely rich reserves of non-ferrous metals. The reserves of some mineral resources rank first in the world, and it is an important exporter of non-ferrous metals. The nickel, tungsten, molybdenum and other alloy elements that Qin Hai hopes to purchase are in short supply in the domestic market, but
At the same time, the country is exporting a large amount of goods abroad.
The reason for this strange phenomenon is also very simple, that is, the country is seriously short of foreign exchange. Anything that can be exchanged for foreign exchange will be given priority for export. As for the country, everyone is tightening their belts. What difficulties are insurmountable?
It's not like Qin Hai never thought about using the export foreign exchange he obtained to purchase these alloy elements from those export companies. But he couldn't find a way to do this at all. The foreign exchange he earned was beyond his control, and those export companies couldn't control it either.
I wouldn't be willing to sing a double act with him or something like that.
Leonardo smiled knowingly. As a big businessman, he had some understanding of the situation in China, and his IQ was high enough. Qin Hai simply said it. He understood the mystery and at the same time
He has some sincere appreciation for Qin Hai's adaptability. He has dealt with some government officials and leaders of state-owned enterprises from China. These people always adhere to the word "principle", like Qin Hai
This was the first time he encountered a Chinese who dared to take advantage of policy loopholes.
Next, the two parties discussed some details of cooperation, including Leonardo helping Qin Hai purchase some academic materials, metallurgical equipment and experimental equipment in Europe. Leonardo also agreed to help Qin Hai establish an overseas company in Spain.
The branch is responsible for managing overseas funds. This branch is jointly owned by Qin Hai and Chen Hongcheng. Juanito helped Qin Hai find someone as an overseas shareholder, mainly to provide the company with the treatment of some European local companies.
.
The method adopted by Qin Hai and Chen Hongcheng is a means of capital flight. That is, they deliberately understate the price when exporting, keep the profits abroad, and then use these profits to carry out various overseas operations. Capital flight occurs in various
The state is a government-restricted act, but in fact no one can control it. At what price a company's products are exported, the state has no right to intervene, and the state also has no way of knowing how much profit it can make overseas.
What Qin Hai did was indeed a helpless move. As long as there was a way, he would not use such hidden methods. The country is still in the early stage of reform, and various policy restrictions are like a curse on the head of enterprises.
A company like Qin Hai with the ability to develop ahead of time is struggling in such a policy environment, and it cannot get things done without some tricks.
Chen Hongcheng didn't care at all about Qin Hai's actions. Who among them who went overseas to do business didn't make their fortune by taking advantage of policy loopholes? The brave ones will be starved to death, and the timid ones will be starved to death. This is the common creed in their circle.
Qin Hai was able to think of these methods thanks to Chen Hongcheng's tips. In his opinion, Qin Hai's steps were not big enough. He had worked so hard to get so much foreign exchange to buy coal and iron ore.
What a pity. If you buy high-end consumer goods such as refrigerators and color TVs, you can make much more profit.
No matter what Chen Hongcheng thinks, the special steel is produced by Qin Hai, and Chen Hongcheng can't intervene even if he wants to. He can only let Qin Hai operate it. Fortunately, all Qin Hai's actions so far have been beneficial to Chen Hongcheng
.His harvest from this trip abroad was much more than he expected.
The host and guest ended the meeting in a cordial and friendly atmosphere. When Qin Hai and Chen Hongcheng left, Leonardo left his big swivel chair, personally sent them out of the office, and gave each of them two boxes of exquisite Cuban food.
Cigars as gifts. Before Qin Hai got into the taxi, Leonardo held Qin Hai's hand and said in his still arrogant tone:
"Young man, I am somewhat optimistic about you now. I have a hunch that in a few years, you will indeed be qualified to be my partner."
Qin Hai responded with a smile: "Mr. Leonardo, don't worry, I will treat you as my partner no matter what."
"Haha, okay, okay! You are such an interesting young man." Leonardo was not angered by Qin Hai's arrogance at all, but laughed loudly. He believed that Qin Hai had the strength to say such things.
, Hedong in thirty years, Hexi in thirty years, who knows whether Qin Hai will really surpass him in a few years?
When Qin Hai and Chen Hongcheng returned to the hotel, they found that the corridor where the Hongyuan Province delegation lived was filled with a festive atmosphere. As soon as they came out of the elevator, they met Jiang Huanwen, who was smiling and holding his hand.
He held Qin Hai and held Chen Hongcheng with the other hand, and said loudly: "Oh, Xiao Qin, Mr. Chen, you are finally back. If you don't come back, we will ask the embassy to come out to find you."
"Uh...what happened?" Qin Hai was confused by Jiang Huanwen's attitude, "What happened? Why are you looking for us?"
Jiang Huanwen said exaggeratedly: "We at Honggang are preparing to hold a celebration banquet tonight. Director Zhu and Director Li are all going to attend. We have also invited Secretary Wang from the embassy, but the time is almost up and the biggest hero is not there."
If you show up, how can you hold a celebration banquet like this?"
After hearing what Jiang Huanwen said, Qin Hai immediately understood. He smiled and asked, "Why, is there any news from Oso?"
"There is news!" Jiang Huanwen said, "Two sets of equipment, a total of 16 million, and technical guidance is also provided. The man named Tony specifically told us that the only request from Oso is that we do not say that these two sets of equipment are
outdated technology so as not to damage their reputation in the Chinese market."
"Congratulations to Director Jiang." Qin Hai quickly offered his congratulations to Jiang Huanwen. Jiang Huanwen originally applied for 22 million U.S. dollars from the province to import one set of equipment, but now he has imported two sets for 16 million U.S. dollars. It is definitely a good thing that was unexpected.
By saving valuable foreign exchange for the country, Jiang Huanwen will definitely be commended by the province, and it will also be of great benefit to his personal career development.
Jiang Huanwen did not hide his joy, he said: "I am happy, this matter is thanks to Xiao Qin... Oh, by the way, and Mr. Chen's great assistance. I put these words here for the future.
If you want to talk to us at Red Steel about anything, feel free to ask, as long as it doesn't violate policy and is within my capabilities, I, Chiang Kai-shek, will be a bastard if I have any objections."
"Haha, Director Jiang made a strong statement. If we have anything to do in the future, we will definitely trouble Director Jiang." Qin Hai said with a smile.
"Let's go, the banquet has been arranged, let's go over now." Jiang Huanwen said. (To be continued...)