The so-called seller's credit is the credit provided by the banks of the exporting country to the country's exporters. It is used to support exporters to sell goods to importers on credit. This is a means of promoting exports. For example, Qin Hai requires Japanese companies to provide seller's credit to domestic exporters.
China's export of steel is equivalent to China borrowing a loan from the Bank of Japan and using the money to purchase steel from Japanese companies. The difference from a general loan is that this loan is applied for by the Japanese steel company from the bank.
It is equivalent to a special fund and can only be used to purchase products from these companies.
Qin Hai promised Wang Hongsheng that in addition to the original 5 million tons of steel, he could provide an additional 10 million tons of steel to trap domestic and international speculators. Of course, these 10 million tons of steel cannot be obtained from the sky out of thin air.
Part of what falls out can be produced by tapping the potential of several steel plants affiliated to the Daqin Group, while the other part can only be relied on to be imported.
Of course, the State Planning Commission can also import steel, but due to restrictions on foreign exchange funds, the amount of imports is very limited. In such a large country, there are many places where foreign exchange is needed, and it is impossible to use all the foreign exchange on steel imports. Qin Hai
The idea is to use one's own connections and various resources at hand to exchange steel products with foreign manufacturers, including through seller's credit, to make up for the shortage of foreign exchange.
Chunshan Company is not the only foreign aid that Qin Hai can seize, but since Chunshan Company wants Qin Hai for help at this time, Qin Hai will not give up this opportunity. He knows that although Chunshan Company is not very large in scale, in Japan
There are quite a lot of connections in the domestic business and political circles, so there should be no problem in entrusting Chunshan Company to help contact the seller for credit.
Japan is a country that attaches great importance to foreign trade and has always been extremely enthusiastic about things that can increase its exports. The current domestic steel price in Japan averages US$300 per ton. Qin Hai requires the import of 5 million tons of steel, which is 1.5 billion.
It’s about US dollars. This amount of money is a huge amount compared to China’s foreign exchange reserves, but it’s nothing to Japan’s banks.
Nagatomo Nagaji also understands the mystery of this. At the same time, he also knows that with the operational capabilities of Chunshan Club, it will not be difficult to facilitate this matter. However, he is very clear about the principle of asking for high prices and sitting back to pay back the money. At this time, he does not agree with Qin
If Hai talks about the price, he can’t claim to be a market veteran.
"Chairman Qin, I'm afraid this matter is a bit difficult." Nagatomo Nagaji pretended to be embarrassed and said in a long voice.
"Mr. Nagatomo, please speak." Now it is Qin Hai's turn to keep a low profile, and there is nothing he can do about it. Who asked him to ask Nagatomo Nagato to do something? However, he only kept a low profile verbally, but in his heart, he had
Fully assured. He prepared quite tempting conditions for Chunshan Club, and he didn't believe Nagatomo Yongji would not take the bait.
Nagatomo Nagaji didn't know Qin Hai's inner plan. He said: "As far as I know, Japan's domestic steel market was indeed oversupplied in the past few years, and various steel companies have limited production. The situation is relatively difficult. But in the past two years, because
An agreement reached between Japan and the United States. Japan promised to increase 43 trillion yen per year in the 1990s.
That is, about 290 billion US dollars will be used for public investment, which will greatly stimulate public infrastructure construction, resulting in a substantial increase in demand for steel and other raw materials, so the steel supply and demand situation in the market will be reversed. In this case, towards
China exports 5 million tons of steel. I’m afraid it will be difficult.”
"If it wasn't difficult, I wouldn't ask Spring Mountain Club to help." Qin Hai said with a smile, "Things that may be difficult for others are just a piece of cake for Spring Mountain Club. Your president, Mr. Miyagawa, and
The president of Nippon Steel is a close friend. It shouldn't be difficult to persuade Nippon Steel to increase its steel production by 1 million tons, right? What's more, I think Nippon Steel also hopes that it can make greater achievements in the Chinese market.
"
"However, you still need to apply for seller's credit. This is not an ordinary buying and selling issue. With all due respect, your country still has a large deficit in the current account of foreign trade. I'm afraid it will be difficult to repay more foreign debts, right?"
Tomoyongji said.
"This is very simple, we can provide a mortgage." Qin Hai replied without thinking.
"Mortgage? What is the mortgage?" Nagatomo Nagaji asked.
"Rare earth." Qin Hai showed an amiable smile.
"..."
Nagatomo Nagaji was defeated. After detouring for a long time, the other party actually came back to rare earths. He had just beaten him on the price, and now he wanted to use rare earths as a weight in exchange for steel. This Qin Hai was really a complete and utter fool.
What a profiteer.
However, Nagatomo Nagaji had to admit that Qin Hai's plan was attractive to him. Rare earths were the lifeblood of Spring Mountain Company. If steel could be exchanged for Qin Hai's commitment on the rare earth issue, this exchange would
It's still worth it. In fact, whether it's Nippon Steel or Kawasaki Steel, isn't it just for selling steel? Without losing a penny, and in exchange for some profits from rare earths, this business is completely
Can be done.
"Chairman Qin, how do you plan to use rare earths as collateral?" Nagatomo Nagatsuki asked.
Qin Haidao: "I have just said that the mining of rare earths requires authorization from the National Rare Earth Office of China. If Chunshan Company can help us solve the steel import and seller's credit issues, then in return, we can ask the National Rare Earth Office to ask Chunshan
The company has specially approved a quota to ensure the future production of rare earth alloy products of Chunshan Company.
If we want to be more specific, we can sign a longer-term supply contract with Spring Mountain Company, guaranteeing to provide Spring Mountain Company with no less than 200 tons of dysprosium oxide and 50 tons of terbium oxide every year, plus other rare earth oxides that Spring Mountain Company needs.
If we are unable to repay the seller's credit on the steel at that time, then we will use these rare earths as collateral. What does Mr. Nagatomo think?"
"Aren't 200 tons of dysprosium oxide and 50 tons of terbium oxide something we have already agreed on in advance? How can it be used as a new condition?" Nagatomo Nagaji argued.
Qin Haidao: "We have only talked about this year's supply before, and we can't confirm it yet. If the steel matter can be settled, then we can not only guarantee the supply this year, but also the supply in the next five years. This is very important for Chunshan Company.
, isn’t it a better condition?”
"I hope it's not five years, but ten years." Nagatomo Nagaji said.
"Ten years..." Qin Hai frowned, then nodded and said: "I promise you verbally first, because it involves national policies, and I need to apply to the Rare Earth Office before I can give you a formal reply."
"I think the Rare Earth Office will agree." Nagatomo Nagatsuki said, "China has always been a major exporter of rare earths. Now it is just making a clearer commitment. It will not cause any substantial damage to China's interests."
Qin Haidao: "Okay, I think I will persuade the Rare Earth Office, so can Chunshan Company also promise to solve the steel problem for us?"
"If you can promise to guarantee our supply of rare earths in the next ten years, then we will try to solve the steel problem." Nagatomo Nagatsuki replied.
"Wait a minute." Sadao Hirano, who was listening to the negotiation between the two, suddenly interrupted. He turned to Nagatomo Nagaji and said: "Nagatomo-kun, Chairman Qin only promised the quantity of rare earths, but did not promise anything about the price. This
It is risky for us. Since we have to sign an agreement, price is undoubtedly an important factor."
"That's right, that's right." Nagatomo Nagaji repeatedly agreed. Logically speaking, he would not make such a low-level mistake. In fact, he was so confused by Qin Hai just now that such an important question was not raised.
Regardless of the supply price, all sales promises are empty. At that time, Qin Hai only needs to shout the price to the sky to achieve the purpose of breaking the contract. Based on Nagatomo Nagatsuki's estimate of Qin Hai's integrity, he felt that Qin Hai
The sea is capable of such things.
Qin Hai chuckled: "Mr. Hirano, Mr. Nagatomo, do you think I am a person who does not keep his word? There is no need to be so strict about such a question, right?"
You look too much like a person who breaks your promise! Hirano Sadao and Nagatomo Nagaji both commented viciously in their hearts.
"Chairman Qin, it is better to discuss some things in advance to avoid unclear things in the future." Nagatomo Nagatsuki said, "You just said that you can guarantee to provide enough rare earth products to Chunshan Company. In terms of price, shouldn't there be some changes as well?
ensure?"
"This is simple, just determine it according to the international market price at the time of transaction." Qin Hai said very generously.
"I'm afraid this is inappropriate, isn't it?" Nagatomo Nagatsuki scolded. Transactions based on international market prices may sound fair, but when it comes to the issue of rare earths, this is not the case at all. Since the United States, Turkey
After the rare earth mines in China have been closed down, more than 90% of the world's rare earths are provided by China. The so-called international market is actually the Chinese market, and the Chinese market is not all a matter of Qin Hai's words?
"We hope that the future rare earth transaction price will not be higher than the current price. This is our bottom line." Nagatomo Nagatsuki said.
"But the price of resource products will definitely rise. What we signed is a ten-year supply intention. If the price is restricted and cannot rise, the risk will be too great for us." Qin Hai complained bitterly.
"Yes, global inflation is so severe now, and the U.S. dollar has been depreciating. If the current price is maintained, we will be in a huge loss in ten years." Su Yabo was also beating the drum. He had to cooperate with Qin
The sea remains consistent.
Nagatomo Nagaji said firmly: "Chairman Qin just said that these rare earths are used as collateral for steel, so they can only be calculated based on the current transaction price. We help you contact the seller of steel for credit.
For the sake of friendly cooperation between the two parties, you should also show some sincerity." (To be continued...)
ps: I have just started working and I am overwhelmed with things. I need a few days to adjust. I will maintain one update for now and will resume two updates as soon as possible. Please wait patiently.