Chapter 696 New Cooperation with the Mainland

"Mr. Yang and Mr. Guo mean to grow sugarcane exclusively in Malaysia? And then sell it to us in China?" Zhang Guangdou asked.

Guo Henian said quickly: "Yes, in this way, the mainland will also have a stable supply of sugar, but this kind of investment is large in scale, and Mr. Yang and I also need to get accurate responses and order confirmations from the mainland before we dare to invest."

Zhang Guangdou thought for a moment and said, "Your proposal sounds good, but this kind of thing is not something I can decide. In fact, China Resources purchased sugar this time because it was commissioned by a domestic department. Under normal circumstances, sugar is not our responsibility."

Yang Wendong said, "Mr. Zhang, this matter may not be under the jurisdiction of China Resources, but as far as I know, China is ready to develop its economy in a comprehensive manner with the West. Once the economy picks up, the people's demand for sugar will naturally increase. This is one of the essential materials for survival, so it will inevitably be imported in the future. China Resources is naturally the company that is best at handling the import and export of civilian materials."

In the past, a cup of milk tea might contain dozens or even hundreds of grams (the size of a small fist) of sugar. Countless people developed diabetes, insulin problems and other diseases due to excessive absorption of sugar in milk tea and beverages. That was an era when sugar supplies were too abundant.

But in this era, it is completely the opposite. Yang Wendong is not sure about the situation in China in the 70s, but he knows that in the early days of reform and opening up in the 80s, it was very difficult for ordinary people to buy pure sugar. Sugar was a commodity that was more strictly controlled than grain.

Guo Henian added fuel to the fire and said with a smile: "Mr. Yang, this sugar is not just a civilian material. It has too many uses. Mr. Zhang should know this too."

Yang Wendong also understood immediately. He was only thinking about the civilian market. This reminder reminded him of the information about sugar he had read on the Internet in his previous life. This thing was also the uncrowned king as a military material.
First, it can quickly replenish the physical strength of soldiers. When they are tired and hungry, they can quickly recover their physical strength by eating a little bit. The speed is much faster than other normal food. This is very important for the battlefield where time is precious. Second, sugar can also be used as a temporary medicine to disinfect wounds and stop bleeding. Third, many gunpowders can be replaced by sugar.
In the future, because people in mainland China live in a safe environment for a long time, the strategic material role of sugar is almost forgotten. But in this era, it is completely different. No one knows whether World War III will break out suddenly, and any country must make full preparations, including personnel and various materials.

"I know." Zhang Guangdou nodded and said, "But there is one thing you two may not know. China is already preparing to introduce fertilizer production lines from overseas. Then we may be able to produce sugarcane domestically in the future, so I can't guarantee anything."

"Mr. Zhang, the country is so large, how can one production line possibly meet the demand?" Yang Wendong shook his head and said, "Moreover, for the country, sugar is important, but the more important thing is the normal staple food. Sugarcane should not be used as fertilizer in the early stage."

China will soon take advantage of the collapse of the foreign industrial market due to the oil crisis to purchase equipment on a large scale. However, this plan has actually been in place for a long time. It can only be said that the oil crisis is God's help to China. On the one hand, the overseas industrial market is sluggish, and China can lower prices. On the other hand, China is currently an oil exporter, and the oil crisis has also benefited China.

However, a few production lines are just a drop in the bucket for the vast farmland in China. The same is true for other production lines such as chemical fiber, three acids and two alkalis, and steel. Another purpose of importing is to understand the development of modern technology and then try to imitate it in China. Even if it cannot be imitated, if it can reach 30% of the level and then mass produce, it will solve many problems.
However, this will take a long time. If the staple food problem has not been solved, other crops will naturally be moved back appropriately, even sugars.

Guo Henian said: "Mr. Zhang, even if China has fertilizers, the climate is still not as good as Malaysia. There are very few places in China to grow sugarcane, and the production capacity is far less than that of Malaysia.
It would be better to produce sugarcane in Malaysia, and focus on staple food in China. Wouldn't that be more appropriate? As for the price, as long as the orders are stable, Mr. Yang and I can guarantee that it will not be higher than the international price. "

The most troublesome thing about grain crop production is the order. So when futures first appeared, it was to solve this problem, so that growers could plant crops with confidence. Even countries would sign agreements in advance to lock in production capacity.

Once an order is placed in advance and the scale is large, it will naturally be very cheap, which is a win-win for both parties, similar to advance reservations with an airline.

Yang Wendong also nodded;

In terms of food crops, Southeast Asia is truly a place of choice. With its tropical climate, ample land, and sparse population, it is a place where all kinds of food are produced in abundance.

In ancient times, due to serious miasma and other reasons, these places, including the place where the Vietnamese monkeys live, were called wild lands. But now with the development of technology and the solution of disease problems, these places have become golden agricultural lands. There are too many trees, and they can be cut down to produce wood, and the remaining land can be used to grow food crops.

"Well, you two, I will report this matter to the relevant departments. This involves external cooperation, which is not China Resources' business, and I don't have the authority to decide this matter." Zhang Guangdou seemed to understand that this cooperation sounded good;
In the future, the mainland's demand for white sugar will continue. It is not the case that so much is needed this year and then suddenly no longer needed next year. In addition, economic development will become the main goal in the future, so the demand will become even greater.

However, regarding this kind of matter, not to mention him, even the boss of China Resources probably cannot make the decision alone and can only report back to his superiors.

"Okay, then thank you, Mr. Zhang." Guo Henian said with a smile.

Zhang Guangdou smiled and said, "Mr. Guo, you are too polite. If we still need external purchases in the future, we will definitely give priority to Mr. Guo."

The mainland does not know how much Guo Henian spent on the acquisition this time, but the price he sold it to them was the normal international futures price;

If you think about it, even if Guo Henian used some tricks to conceal this matter, the procurement cost would definitely not be comparable to normal, and the cost of mobilizing so many containers and ships is not low;
However, the mainland is short of foreign exchange now, so Guo Henian can only appreciate his kindness, because he really can't come up with more funds. Guo Henian said: "You're welcome, let's go and take a look at the quality of this batch of sugar."

"Okay, please." Zhang Guangdou said immediately.

The group checked the sugar in several containers at random. The quality was not bad. Yang Wendong even picked up some and tasted it. It was very sweet.
However, for him, this sweetness is very common, but for the mainland, the long-term shortage of sugar will make these sugars the most sought-after substances in people's minds.

After checking, there was no problem, so Zhang Guangdou suddenly said, "Mr. Yang, I want to visit you at your company tomorrow. There is something I may need to discuss with you."

"Okay." Yang Wendong nodded and agreed;

Now that the mainland has become friendly with the West, many trading companies in Hong Kong have gradually begun to receive many orders for materials from the mainland;
As the largest financial group in Hong Kong today, Changxing Group also has a trading company and a large number of manufacturing industries. It has had cooperative relations with the mainland for a long time. It is normal to discuss some business at this time.

The next day, Zhang Guangdou came to Kangle Building. After his assistant took him into the office, he gave him a cup of tea and left.

Zhang Guangdou first said, "Mr. Yang, your previous acquisition of Wharf Holdings can be said to have boosted the morale of the Chinese in Hong Kong and destroyed the prestige of the British. Many people in the mainland are also very optimistic about you."

"Haha, this is also because of the mainland's deterrence against the British Hong Kong regime, otherwise I would not have succeeded so easily." Yang Wendong said with a smile.

It was precisely because of the intimidation of Western countries by the mainland over the years that the British Hong Kong government had to treat the Chinese seriously and well that Chinese capital had the opportunity to rise;

Otherwise, even if Yang Wendong earned enough capital through various small creative ideas, he could only "join" British capital, and even part of the core business might need to be divided out, or at least enough benefits had to be given to some powerful people, just like doing business during the Republic of China period.

Zhang Guangdou smiled and said, "This is our common expectation."

Yang Wendong smiled and then got to the point: "Okay, I wonder what brings Mr. Zhang here?"

Zhang Guangdou nodded and said, "Yes, I recently received a task from the Ministry of Health to import a large amount of medical equipment from overseas. Some aspects of this require the assistance of traders in Hong Kong, and some aspects also require the help of Mr. Yang."

"Medical equipment? My trading company is not good at this." Yang Wendong shook his head.

Changxing Trading was established from the beginning to meet the supply chain needs of Carrefour's civilian industrial products and several other subsidiaries. It was not involved in other businesses.

It’s not that other businesses can’t make money, but there are too many that can make money, and it is impossible to participate in all of them. Without special advantages, he basically does not enter these markets.

Zhang Guangdou said: "Yes, I know that too, but there is one thing that the country hopes Changxing Group can produce on its behalf to avoid the expensive purchase cost."

"What do I produce here? Masks or gauze?" Yang Wendong asked back.

As for the entire Changxing Group, in fact, there is only a small factory under Watsons that makes masks and gauze. Yang Wendong has recently learned that this company is not small in Hong Kong and has thousands of employees, but compared with Changxing Group, it is just a small business. The competition in this traditional industry is fierce, so it has always maintained this scale;
Judging from the current light industry in the country and its own cotton production, these two things should not be necessary.

Zhang Guangdou shook his head and said, "No, it's syringes. Because the domestic oil industry chain, transparent plastic production technology, and medical standards are not very good, domestic hospitals are in urgent need of enough syringes and can only purchase them from abroad. But I think Changxing Industrial's plastics industry is also top-notch in Asia, so it should be possible."

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(End of this chapter)

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