After dinner, we returned to the hotel, and Secretary Chen called me to his room. He asked me: "It seems that you and Governor Huang have a good communication, but I still feel uneasy. What if our judgment
What if we made a mistake? What if Japan’s bottom line is different from what we expected?”
I said: "Secretary Chen, it is impossible for a negotiation like this to be successful without two or three rounds, so we should be mentally prepared for this. Then we will adjust our thinking according to the situation. But our concessions
There should be a limit. For such a big project, if we gain a little more rights now, we will gain huge gains in the future. So I think we must persist until the end."
He asked me again: "So, if we want to make concessions, what is the maximum position we can give in to you?"
I smiled bitterly and said, "Secretary Chen, I don't want to talk too much about such things."
He suddenly said displeasedly: "It's just the two of us now, we are talking in private. What's not good to say? You talk about your personal thoughts. I have to discuss with Governor Huang on what to do then."
.For a large-scale project like this, which is related to the future of our industry in Jiangnan Province, the final decision-making power lies with Secretary Fang of the Provincial Party Committee.”
In fact, I have also thought about this issue. We need to prepare for the worst at any time for anything, so that we will not be at a loss when the time comes.
I said: "I think that even if Japan insists on holding a controlling stake, we must maintain our dominant position as a state-owned enterprise."
He looked at me, "How is this possible?"
I said: "I have this idea. Our company can produce vans, pickup trucks, or small trucks, and we will definitely hold the controlling stake. They can also hold the controlling stake in the car project with Japan. In this case, our state-owned enterprise's dominant position will be
It can still be maintained. But we must hold at least 49% of the shares."
He patted the sofa gently, "Your idea is very good. Yes, this is our final bottom line. Well, I will think about it again, and then I will discuss it with Governor Huang. Mayor Feng, let's go together tomorrow
Let’s have breakfast with Governor Huang, and report this idea to Governor Huang by the way.”
I hurriedly said: "You can just go. My work is only responsible to Mayor Liu and you. After all, I am a deputy."
He immediately laughed and said, "Why are you so cautious? Forget it, I'll go. You should rest early, you have worked too hard these past two days."
I hurriedly said: "You work harder than me. You should also rest earlier."
He laughed again, "You..."
I went to bed early, and now I don't feel any nervousness at all, because the specific details of the subsequent negotiations are not something I can lead. I am just a participant.
At nine o'clock in the morning the next day, our negotiation with the Japanese side was held in the business conference room of this five-star hotel.
The conference room was simply and elegantly decorated, with nothing else inside except a few pots of green plants. The furniture in a five-star hotel is inherently beautiful, and they are a good decoration in themselves.
Secretary Chen agrees with me. We are here to negotiate, not to hold a celebration party. There is no need to make the negotiation area fancy. And that is not good in the first place, and it is likely to divert the attention of both parties.
.It will also make the other party think that we are extravagant, thus causing the other party to have a bad impression of us.
There was a large lineup of Japanese participants, more than a dozen of them, and all the heads of the Japanese Chinese companies were present. Our team was led by Governor Huang, the leaders of the Provincial Development and Reform Commission, the Commercial Committee, Secretary Chen of Shangjiang City, Liu
The mayor and I, there are also more than ten people on our side.
At the beginning, the two parties introduced each other, and then sat down according to the seats that had been arranged.
At the beginning of the negotiation, the two sides introduced their respective situations to each other, and then we asked the Japanese side to put forward the conditions for their cooperation.
The conditions proposed by the other party are quite harsh, not only requiring a controlling stake, but also requiring us to provide more relaxed tax policies on the original tax policy. According to the regulations of our Shangjiang City investment promotion, for the internships of our investment companies, "two exemptions and three deductions"
The tax policy is "half-five-full", that is to say, the tax is full in the first two years, the tax is reduced by half in the third year, and the tax is full from the fifth year.
In addition, Japan has also requested that key technologies in automobile manufacturing be kept confidential, which means that key technologies in automobile manufacturing can only be mastered by Japan. In addition, automobile engines and other important components can only be imported from Japan.
After hearing this, I couldn't help but secretly frown: These conditions from the Japanese side were simply too much, and it sounded like there was no sincerity in cooperation at all. But then I thought that negotiations might be like this: asking for prices in the sky, and paying back the money on the ground.
Then the director of our Provincial Commercial Committee put forward our own conditions: we must hold the controlling stake and keep the original tax policy unchanged. The director of the Provincial Commercial Committee also made a special explanation, "This tax policy is our Jiangnan
It is a unified provincial policy, and we implement this policy for large-scale projects. If we are treated specially because of this project, it will cause chaos in the province's policies."
In addition, we also request the establishment of an automotive research institute, and both parties will dispatch personnel to conduct research and development of future new vehicles. This actually talks about the core technology part.
However, we agree to import engines and key components from Japan. This is actually easy to understand, because Japan’s automobile engine technology is indeed very good. From the perspective of performance and fuel economy, Japan’s automobile engine technology ranks first in the world.
The world is relatively advanced. Second is Japan’s automotive sealing technology.
It is said that the Japanese have spent tens of millions of dollars on developing car seals, and car sealing technology is very important. This is an important guarantee of car quality. The technical problems of our domestic cars are mainly engine and sealing issues.
And I once heard a friend say that the quality of our domestically produced steel is not up to standard, and the cast parts cannot meet the requirements of high-end cars. These problems have caused minor problems in domestically produced cars after two years of driving.
Keep waiting for questions.
Subsequently, we also explained the composition of the joint-stock structure. For example, we will provide factories, skilled workers, and the proportion of investment. Japan will provide technology and the approximate amount of investment required based on the proportion.
The Japanese representative immediately said: "These conditions are unacceptable to us. First, Japan must hold a controlling stake, because we have rich and very advanced experience in the management of the automobile manufacturing industry, and you still have no experience in this aspect."
It is almost blank. Secondly, regarding automobile research and development, our company has a dedicated institution in Japan, and we invest a lot of money in this work every year. So we do not want to make repeated investments. Thirdly,
Regarding tax issues, we can respect the relevant policies of Jiangnan Province. In fact, we have reached a consensus on this during our initial contacts..."
Next, Governor Huang began to speak, and he said with a smile: "There are actually two main problems between us. One is the issue of who holds the controlling stake. The other is the issue of core technology. Here I would like to explain that our side
The state-owned enterprises that cooperate with you, according to relevant national regulations, when our state-owned enterprises carry out joint-stock cooperation with foreign capital and private enterprises, our state-owned enterprises must hold the controlling share. I think, if we cannot reach a consensus on one point
If so, then there will be problems when we apply to the National Development and Reform Commission for automobile manufacturing access. Second, regarding the issue of core technology. Since we are in a cooperative relationship, it seems that you have no technical barriers to us.
Sincerity. The sincerity of both of us is the basis of cooperation, so I sincerely ask you to consider this issue more. Also, our cooperation should be based on the principles of equality and mutual benefit. You have the most advanced automobile manufacturing company in the world.
technology, and strong financial support. We have very favorable investment policies, a huge car consumer market in the future, and cheap labor costs. In addition, our Jiangnan Province is located in the most important transportation hub in our inland areas.
Hubs, highways and railways extend in all directions, and we also have a golden waterway. These are of great significance to your company's layout of branches across the country. As for the issue you mentioned about advanced management levels, I think
, since we are a joint-stock cooperation, you will participate in the management, and we will learn from you humbly and accept your various opinions humbly. This is not a problem. "
At this time, Tanaka Kazuo suddenly said: "Mr. Governor, what you just said has changed the concept. I have carefully studied your country's relevant documents on joint-stock cooperation between state-owned enterprises. The original words in the document are that state-owned enterprises should be controlled as much as possible.
It is not necessary. But Governor Huang, you are right. Your advantage lies in the huge future car sales market and cheap labor costs. This is actually the basis of our cooperation. But Governor Huang just mentioned the geography of Jiangnan
Regarding the importance of location, I think the geographical importance of Jiangnan Province is not unique. For example, your neighboring province Jiangbei Province has a similar situation to yours. Also, since we have advanced management experience
, and strong financial support, then our holding issue is completely justified. You can learn from our advanced management experience in the process of cooperating with us. In addition, I also want to explain that
, Regarding the issue of core technology. According to international practice, core technology is a commercial secret, and we have every reason to put forward such a condition."
I have to admit how powerful this Tanaka Kazuo is. What’s great about him is that he has actually studied the relevant policies of our country.
Governor Huang smiled slightly and said: "Although Mr. Tanaka is familiar with our situation in China, he still does not have a deep understanding of the meaning of our Chinese characters. Since the word 'try your best' is clearly written in the national documents, that means
, Unless there are special, special circumstances, under normal circumstances, the cooperation between state-owned enterprises and other capitals is not allowed to be controlled by other capitals. At present, German automobile companies also cooperate with many of our provinces, such as Shanghai Volkswagen, which is also controlled by state-owned enterprises.
.So, there is nothing special about the project your company is cooperating with us, and the National Development and Reform Commission will not change the relevant policies because of this. In the final analysis, the issue of holding is not something we have the final say on, but the relevant rules, regulations and laws of our country.
Document restrictions. Mr. Tanaka, following our country's laws and relevant regulations is also one of the foundations of our cooperation, right? Here, I need to remind you again that our cooperation is mutually beneficial and reciprocal.
A win-win situation. Of course, we will also fully consider your interests, but I also hope that you will fully consider our interests."
Tanaka immediately said: "Governor Huang, what you said makes sense. I know the situation of Shanghai Volkswagen. This company was established relatively early, so there is the issue of your country's state-owned enterprise holding shares. But according to me
As we all know, your country's Liaoning Province is the largest heavy industry base in the country. In their current state-owned enterprise reform, they have formulated relevant policies to allow foreign capital to control large state-owned enterprises. Therefore, we cannot look at the present situation in terms of the situation many years ago.
The pace of reform in your country is getting bigger and bigger now. Only in this way can China's economy develop rapidly and maintain a stable economic upward trend every year. Jiangnan Province is located inland. Although it has a very important geographical location, it is
It is also an indisputable fact that our concepts are relatively backward. Mr. Governor, in addition to scientific management, what our future company needs is forward-looking awareness and concepts. Otherwise, even if we manufacture cars in the future,
, if your concept is still outdated, there will definitely be problems with future sales.”
Judging from the current situation, we still seem to be too impatient, because the other party's chairman has not spoken, and our team leader, Governor Huang, has already begun to argue with one of the other party's deputy.
Maybe Governor Huang suddenly realized this problem, and he immediately said directly to the other party's chairman: "Chairman Watanabe, let's let go of other things for the time being. First of all, both of us have sincerity to cooperate. That's it.
Bar?"
Watanabe nodded and said: "That's for sure, otherwise, what would we be sitting here talking about?"
Governor Huang nodded and continued: "Second, we have reached a consensus on the general direction of cooperation and the main issues. Do you think this is the case?"
Watanabe shook his head, "No, the issue of who controls the two parties is the most important issue in our cooperation. We can make concessions on other issues besides this."
Governor Huang said: "What Chairman Watanabe means is that so far, except for the issue of shareholding, you basically agree with all the other conditions we have proposed. Is that right?"
Watanabe was still shaking his head, "Governor Huang, your understanding is different from mine. What I mean is that the issue of holding is the foundation. Only under the condition of our holding, other issues can continue.
Let’s talk.”
Governor Huang said: "That means that in the current cooperation between you and us, the most important thing we need to negotiate is the issue of shareholding, right? In other words, as long as one party makes concessions on the issue of shareholding, then the other party will
We should make corresponding concessions on other issues. Is that right?"
Watanabe smiled slightly and said: "Governor Huang, that's not what I meant. What I mean is that the company we jointly establish in the future can only be controlled by our side. At this point, we have no room for negotiation. Only on our side
On the basis of holding a controlling stake, it is necessary for us to continue discussing the remaining issues."
Governor Huang said: "Chairman Watanabe, why do I feel that today we are not negotiating? Instead, we are asking for our approval under the conditions set by you? I think, since this is the case, since the most critical principle between us is
If we can't reach a consensus on the sexual issue, let's temporarily stop today's talks. After we come down, we will communicate with each other and then determine the time for the next negotiation. Chairman Watanabe, do you think this is okay?"
Watanabe hesitated for a moment. Yes, I saw that he did hesitate for a moment, because at this time he looked at Tanaka, and Tanaka nodded slightly. Watanabe then said: "That's okay. I hope
Our negotiations can be smoother next time."
The Japanese did not accept our invitation to stay here for lunch. When leaving, Chairman Watanabe held Governor Huang's hand and said: "Governor Huang, I'm sorry, I still have very important things to deal with today. If
If you have time tonight, I hope you can accept my invitation and we can have dinner together."
Governor Huang smiled and said: "It's a great honor." (To be continued)