Video Game Empire

"Mr. Li, you may have misunderstood us! Before, the domestic reform and opening up had just begun, and our cooperation with foreign parties was also crossing the river by feeling the stones, and bumps were inevitable! But with the deepening of domestic and international exchanges, this This state is changing!

For example, a few months ago, our Huhai Instrument Corporation reached a 20-year joint venture agreement with Foxboro Corporation of the United States, with a total investment of 17.5 million US dollars! "A man with a thin face and a very wide forehead said with a smile. . . . ≦ small,

When we introduced each other just now before entering the meeting, Li Xuan knew that his name was Hu Kang, the director of the Shanghai Instrument and Telecommunications Industry Bureau. The Instrument and Telecommunications Industry Bureau is responsible for the management of all instrument and electronic enterprises in Shanghai, and has jurisdiction over hundreds of state-owned and collective enterprises of varying sizes. Shanghai is one of the most developed areas of light industry in the country. The electronics industry not only has a complete range of categories, but also has one of the largest scales in the country.

This Director Hu had an old face, his hair was slightly gray, and he looked like he should be sixty years old. In fact, apart from Li Xuan and Lizhi, the rest of the people at the table were over fifty years old. 1982 was the most serious age of domestic cadres, which was described by foreign media as old-man politics. But it was these old people who changed the country's sullen state and launched an economic reform that shocked the world.

Hu Kang's Mandarin has a strong Sichuan flavor, which is not as good as Li Xuan's standard. He continued with a smile and said, "The central government promulgated the "Sino-Foreign Joint Venture Law" as early as 1979, which provides legal protection for foreign investors to start business in China, and at the same time, joint ventures can enjoy the most favorable tax relief.

China is a big country with a population of 10, and the future market prospects here are extremely broad. And it is still a piece of uncultivated virgin land for foreign companies! I believe that a visionary person like Mr. Li will definitely not ignore such a very potential market! "

Tax incentives, market for technology. These are some of China's tried and tested strategies for attracting foreign investment, but Li Xuan shook his head with a smile.

"Foxboro is a company that produces automatic instrumentation and automatic control equipment. Their products can help domestic enterprises to improve efficiency, so they have huge market demand in the mainland. But Dongfang Electronics under my name is different. We produce It’s consumer electronics, and personal computers and game consoles are mostly sold to ordinary consumers.”

Foxboro is a leader in the field of automation and control in the United States, and its main competitor (General Electric). Unexpectedly, its action is very fast, and it has already entered the domestic market first. He explained with a smile, "Director Hu, do you know the number of imported computers in China last year? The total number is less than 1,000, except for dozens of small computers. Most of them are ab series personal computers produced by Aikang. As well as Apple's app computer in the United States! But in the first half of this year, the monthly sales of Aikang's ab series computers have approached 100,000 units.

In the US, European and Japanese markets, the main uses of ab computers are computer teaching in primary and secondary schools, home computers, and business offices. But in China, the personal computer is still a luxury scientific research instrument, which greatly limits its market. As for our other flagship product game console, even the lowest price a handheld console is as high as 40 yuan in RMB. This price is already equivalent to a month's salary of an ordinary worker. It is impossible for a domestic family to buy such an expensive toy for their children!

therefore. If Dongfang Electronics Co., Ltd. builds a joint venture with a domestic enterprise, the final product will still be sold abroad. Then the mainland market is not so attractive to us! "

Li Xuan's meaning is obvious. It is useless for him to change the technology in the market. There is not much market for Dongfang Electronics' products in China.

Hu Kang still smiled and said: "Mr. Li. The mainland has abundant labor force. The labor price is lower than that of Hong Kong, and the tax incentives are also greater. Building a factory in the mainland can greatly reduce the production cost of your company!"

"But these are not the advantages of the Shanghai market. The deep-sea special zone is only separated from Hong Kong by a river. And the city of Guangdong, which is a little further away, also has the same conditions. In this case. Why should I go to the Shanghai market? What about investment?" Li Xuan asked rhetorically.

Hu Kang was unable to answer. The others at the table listened to their conversation and fell silent. In addition to the large-scale Sino-foreign cooperation projects arranged at the national level, other regions including Shanghai and Shanghai are far less attractive to foreign investment than the southern Guangdong province.

The main reason for this is that, in the early 1980s, foreign investment in the mainland was mainly from Hong Kong, and most Hong Kong business owners would naturally prefer to invest in eastern Guangdong province, which is adjacent to Hong Kong.

"Benevolence and righteousness cannot be achieved in buying and selling. Even if the conditions are not yet mature, I believe that after the domestic economic level improves, we still have the opportunity to cooperate with Mr. Li!" Zhao Xiulin said to his subordinates.

"Secretary Zhao, we actually have another way of cooperation!" Li Xuan said with a smile.

"Oh? I'd like to hear the details!" Zhao Xiulin didn't expect that there would be a chance to turn around.

"Actually, as early as last year, through the matchmaking of Director Peng Fei of the Hong Kong Xinhua Branch, we launched a series of cooperation with mainland electronics companies! Our Eastern Commercial Company holds multiple rounds of procurement bidding meetings every year. Last year, the Ministry of Electronics Industry-Ministry and Guangdong East The provincial government has organized a group of enterprises to participate in the competition!

Huhai City has a complete range of electronic industries~www.wuxiaspot.com~ I believe that there are always several companies whose products can meet our technical standards! Director Hu can organize relevant companies to bid. If we can win the bid, our purchase volume will be very large, which can completely contribute to the export of foreign exchange in Shanghai! "Li Xuan explained.

"Is there such a thing? The Ministry did something inappropriate this time, and didn't notify the relevant situation at all!" Hu Kang was obviously straight-minded and complained directly, "Mr. Li, are there any specific requirements for participating in the bidding?"

"My assistant will arrive in Shanghai in the afternoon, and he will bring the relevant details!" Li Xuan said.

As early as yesterday evening after getting the invitation, Li Xuan was thinking about today's luncheon, and he already had a detailed plan in his heart. The reason why he was so aggressive just now and made a look of refusal was to suppress the other party's momentum. Only by letting the other party understand that they use them less, can Dongfang Electronics be in a favorable position in the next cooperation.

Although Dongfang Group's main products, game consoles and personal computers, will not be able to make much profit from the mainland market for a long time to come. But Li Xuan is ready to start adjusting his previous strategy and will enter the mainland market with a more active attitude. With the thawing of U.S.-China relations, previously feared political risks are rapidly dissolving. (To be continued..)