Chapter 396: Step 1 of Political Investment

Chapter 396: Step 1 of Political Investment

Chapter 396 The First Step in Political Investment

After hearing this, Trench smiled and said, "The Hong Kong government also has this plan, but we are now facing the same problem as the UK. There are tens of thousands of people working at the three major docks. I also need to be well prepared before I can consider this matter.

London has also been preparing for several years before starting to plan, but it is still not going well. We can only hope that when Hong Kong reaches that time, things will be better. Maybe we will need Mr. Yang’s help.”

"No problem, I will try my best to help more people find jobs." Yang Wendong said with a smile.

Historically, the construction of Kwai Chung Container Terminal in Hong Kong began in 1970, but in fact preparations had been made long before, including finding a suitable location, layout planning, etc., but none of these were as important as how to solve the problem of tens of thousands of unemployed dock workers.

This is also a problem in other parts of the world. London has actually failed in history because it has never been successful no matter what. The port workers have united to hinder all actions. It is estimated that London's desire to invite more manufacturing factories to invest will not work in the end. It is estimated that this life will be the same.

Hong Kong's success is special because in the 13s and s, Hong Kong itself was developing at an annual GDP growth rate of more than %, with more and more factories, and only then did it successfully transform. London could not have such a development speed.
"Thank you very much." Trench seemed to understand what Yang Wendong meant and said, "If we build a container terminal in the future, what do you think, Mr. Yang?"

Yang Wendong smiled and said: "As a Hong Kong businessman, I naturally hope to contribute to the economic development of Hong Kong."

"Haha, I understand." Trench nodded and said, "I can't make a decision on this matter now. I can only wait and see. But I will ensure that everything will be a fair competition."

"Okay, thank you, Governor of Hong Kong." Yang Wendong said with a smile.

Being fair is actually a great help to Chinese capital. This is not because the Hong Kong government is really "fair", but because the situation is like this. The British Empire can only win over the local forces in various colonies. Otherwise, they will only lose these places one by one, such as Malaysia, Singapore, etc.
After leaving the Governor's House, Yang Wendong did not go directly back to his own building, but asked the convoy to pass through Victoria Harbour and arrive in Kwun Tong.

When the convoy arrived at Changxing Industrial Park, Wei Zetao also got the news and hurried to the door to greet him: "Mr. Yang, why are you here?"

"I just came out of the Governor's Mansion and came here directly." Yang Wendong smiled and said, "Let's go upstairs. We have some business to attend to."

"Okay." Wei Zetao also saw it, and then immediately took his boss to an office belonging to Yang Wendong on the top floor of the administrative building.

Although Yang Wendong seldom comes here, this place is still cleaned very cleanly every day.

After the two sat down, Yang Wendong said, "Today I went to the Hong Kong government, and the Governor told me something about the British side."

Wei Zetao also listened carefully to the boss's description, and after listening, he said: "The main purpose of investing and building a factory in the UK is also for the European or American market. If everything goes well, the cost may really be lower than producing and transporting in Hong Kong.

This has been considered before, but not in the UK, but in the eastern United States. However, after investigation, it is still not feasible. European and American workers are too troublesome, and the unions are difficult to deal with. Once such heavy assets are invested, it is difficult to recover them. "

"I know this too." Yang Wendong nodded and said, "What Dai Linzhi said is right. Our group has been making money in Europe and the United States in recent years. With this, we have created jobs for tens of thousands of people in Hong Kong.

Although these are all new products, no direct competitors in Europe and the United States have gone bankrupt because of us, but if our scale continues to grow like this, there will be a risk of being targeted sooner or later, and this factor must be taken into consideration. "

If it is American capital, Yang Wendong will not worry at all. I will produce it in the United States and sell it to the world.

But we are Hong Kong capital. Although it is affiliated with Britain, Hong Kong has been financially independent as early as the 50s. Britain does not interfere too much in many matters.

Wei Zetao thought for a while and said, "Mr. Yang's consideration is indeed correct. We do need to consider political factors. Putting part of the production capacity in the UK and then exporting to Europe and the United States can also win over the UK."

"Well, don't build a large one. Let's build a smaller one first to ensure employment for a few hundred people." Yang Wendong added, "Then what products do you think are suitable for production there?"

Wei Zetao said: "Trolley cases are fine, and rotary mops are also quite suitable. Among our current products, this one has the highest transportation cost and its value is not high. Therefore, it is a loss to produce it in Hong Kong and then send it to Europe and the United States. Our production capacity in Hong Kong is not large either.

So if we move production to the UK, at least it won’t affect Hong Kong. If we produce in the UK, there may be a certain chance that we can really develop.”

"Well, that's possible." Yang Wendong nodded and said, "Okay, let's decide for now. We will go to the UK to produce spin mops and a small number of trolley cases. We will first build an assembly plant. As for the small items that can be shipped from Hong Kong at a reasonable price, we will ship them there. For large and irregular items, we will look for suppliers in the UK. They should have a plastic parts factory there as well."

Although the volume of a spin mop is not as large as a suitcase, it is irregular and the handle is long. Before containers became popular in Hong Kong, this type of transportation was definitely not cost-effective, and its value was far lower than that of a suitcase. Therefore, over the years, the development of suitcases has not been smooth within Changxing Industrial, and the company later adopted the method of licensing its production to other companies.

If history remains unchanged, Hong Kong will only start building container terminals in 1970, and the operation will not start until 1972. Then, if I go to the UK to invest and operate for ten years, I can accept it. Even if I can participate in the terminal, it is almost impossible to influence the time, because the Hong Kong government will not have the energy to prepare the terminal during the economic crisis of 66-67.
"Okay." Wei Zetao added: "Even if there is no local product, we can directly make plastic parts, which can also increase employment." "Okay, it doesn't matter, but it's best to travel light." Yang Wendong nodded and said.

Asset-lightness was the goal of many large companies in the past, and this was also because their short scale and high management costs would lead to serious internal friction;
Even if you can recruit unlimited people, the management energy of a company is limited and it is impossible to expand indefinitely.
As for the influence on employment, small companies look at direct numbers, but for large companies, the employment brought to the local area by their orders is also their influence, and the characteristic of this is that they can change the production location at will, thus causing a greater impact. After all, if a factory is built in a place, it can't leave even if it wants to. If the local government is a little bit ruthless, this can be a big cash cow.
Wei Zetao paused and said, "There is just one more problem. The British side probably wants us to invest near London, which is not in our interest."

"This matter is quite complicated. We have to wait until the British officials come to discuss it." Yang Wendong said, "Also, we want to invest in spin mops, but the British side may not agree. I guess they will definitely want us to move several major products over there. Let's talk about it later."

This time, it is actually seeking political protection. This is something that large conglomerates must consider. Without someone behind them, it will be difficult to truly grow big.

Our products are mainly exported to Europe and the United States. There are so many countries in Europe and the United States, so we must find a team. Today's situation may be better. If we wait for the electronics industry to explode in a dozen years, and we make achievements in the electronics industry without a backstage, we will definitely be severely suppressed.
Western free trade is nothing but a joke. When I am awesome, then I allow free trade. When I am not awesome, then I am endangering national security.
If you use the name of the United Kingdom, then the American government will have to think twice before entering the American market. After all, the United Kingdom still has its influence. Even if it is not as good as the United States, it is not easy to go too far. If you want the United Kingdom to stand behind you, you must pay something on your side. The most basic thing is to provide enough jobs.
Of course, the special feature of the electronics industry is that it can really threaten national security, so even with the UK behind it, it cannot really touch some special areas, and all of this must be controlled.

5 days later on the 21st:
George, the assistant to the Governor's Office, came to the Changxing Industrial Park in Kwun Tong with two British foreigners.

Wei Zetao and Yang Wendong also received them personally. The first thing they did was to take them around the entire industrial park and check out the production of sticky hooks, trolley cases, rotary mops, various plastic toys, plastic bags, snakeskin bags, etc.
When watching the large number of products being packaged and transported to the trucks, British official Sean said with emotion: "I never thought that there is such a large factory in Hong Kong. It's incredible."

George smiled and explained, "Mr. Sean, the industrial park we are in now is the largest factory in Hong Kong, with an annual production capacity of more than 3.6 million Hong Kong dollars, and a total of nearly 2.1 people working here."

Changxing Industrial Park not only has workers from Changxing Industry, but also other factories, including some suppliers, and even other independent plastic factories and a large number of management. In the era before computers, the number of office clerks was very large.

The reason why so many people can gather here is that the entire industrial chain is together. Even the plastic raw materials are brought directly from Taiwan. The internal transportation is convenient and there are many talents. Anything related to plastics can be produced. It is so convenient.

Therefore, the scale here is even larger than when it was originally designed. Especially with the development of Hong Kong's industry, the plastics industry has also grown rapidly, and it seems that there may not be enough space.
However, whether it is expansion or construction in other places, this matter can only be handled by Changxing Industry. Only Changxing Industry has the ability to successfully carry out such a project.

"Oh, my God, this is incredible," Sean continued, "I just recently learned that trolley cases, sticky notes and hooks are all made in Hong Kong."

George smiled and said, "All this was invented by Eric."

Sean also looked at Yang Wendong and said, "Eric, I read your information before coming here. I have to say that I really admire you. Your entrepreneurial story shocked everyone."

"Thank you." Yang Wendong smiled and said, "Then let's discuss the business, shall we?"

"OK." Sean nodded.

Yang Wendong said: "Let's go to the meeting room in front. Tea and coffee are ready there."

Everyone came to the office in the administrative building. After some greetings, only four people were left in the meeting room, namely two officials from the UK, Yang Wendong and Wei Zetao.

Everyone else left, including George, the secretary of the Governor of Hong Kong. Obviously, the Governor of Hong Kong was unwilling to get involved in this matter. He wanted to protect himself. After all, this was to transfer jobs in his territory to the UK. If the Hong Kong government got too involved, it would cause negative news. It was just because it was a request from the UK, so he only introduced it from the middle.
After the four of them chatted for a while, Sean said, “Eric, you know the purpose of our cooperation this time. We can promise that your company’s business will circulate normally in the Commonwealth market;
Outside the Commonwealth, if someone is treated unfairly, the British government will step in to help.”

"Those within the Commonwealth are easy to deal with." Yang Wendong paused and asked, "For those outside the Commonwealth, how can you guarantee it? I'm not worried about your ability, but if you guarantee that you will really show up? Can you make this promise in writing?"

If the UK really intervenes, then even the US will have to give it some face, but the question is whether they will intervene, after all, they are not local companies.
"It can't be written. This is not an actual transaction and cannot be described in writing. Even British companies will not have such a written commitment." Sean shook his head and said, "We can certainly guarantee this. The British government will make similar promises to Commonwealth companies that have invested heavily in the country, not just to you."

"Multiple parties? We'll discuss this matter later." Yang Wendong did not follow up with another question. It would probably be difficult to get the British government to sign a paper agreement on such a matter. However, if multiple parties made commitments, the consequences would be serious if they breached the contract.

At least in the 60s, the British government still had to save face and tried its best to maintain its status as a "great power". If it really broke its promise to any top local financial group in the colonies, even just one, there would be many consequences.

Wei Zetao asked: "Mr. Sean, you also said that a large investment is needed. I wonder how large this investment is?"

Sean said: "It's hard to say the scale of investment, depending on the industry. Our requirement is that it should be no less than 200 million pounds and the number of jobs it can create should be no less than 1000."

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(End of this chapter)