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Chapter 122 Jiang Feng's Abacus

When Yusuke Iwaki heard this, his face turned green. Although Jiang Feng received a 20% discount on the international market price, the price has increased by hundreds of times compared to the previous price. In other words, when he bought a ton of rare earths, he could only buy one or two kilograms at this time. What is this concept?!

As for the price of indium metal, the price has increased by thousands of times. Although the demand for this thing is not very large, it is impossible to do without it in the key areas! This is even more deadly than the rare earth!

However, because many companies of Mitsubishi Group were waiting for the rice to be cooked, Yusuke Iwaki could only accept it with his nose. Jiangshi Group and Mitsubishi Group finally reached a rare earth export agreement of up to 20 billion US dollars.

Therefore, Premier Wen’s previous feelings were revealed.

Not to mention anything else, Jiang Feng has increased the tax profit by hundreds of times for the country just for rare earth exports. What is this concept? This item alone has increased China's annual revenue by more than 10 billion yuan. You should know that the annual tax revenue in China is only more than 250 billion yuan. An inconspicuous project that actually created such a high profit has shocked all the Standing Committee members in the Politburo to the point of falling out.

What is even more rare is that compared with the original total export volume, this part of the remaining part has entered the newly built national strategic resource reserve library. This part of the reserve is a strategic reserve that Jiang Feng promised to leave to the country free of charge. If Jiang Feng needs to use this part of the resources, it also needs government authorization and acquisition at market prices.

The value of this part of the national strategic reserve is no less than the total value of the part of the rare earth resources purchased by the Mitsubishi chaebol every year.

"This year is a period of transformation, everything needs investment, and it is estimated that next year will be much better." Jiang Feng told Premier Wen, "Next year, I believe that the environment of the mining area will be no less than the living environment of ordinary cities, and the government's fiscal revenue will continue to increase. I hope that next year, it can provide more than 15 billion in revenue for national tax revenue."

Premier Wen looked at Jiang Feng and said, "You are a miracle hand. After your guidance, the rare earth industry has undergone earth-shaking changes. The country, local, and enterprises have all achieved huge returns. This is really touching. If this is not the case, the tax revenue of rare earths this year is only more than 200 million, and no one can believe that there will be tens of billions of tax revenue!"

Jiang Feng said in response to this point: "In some aspects, private enterprises should have more business vitality than state-owned enterprises. If we simply emphasize the importance of rare earths and require major state-owned enterprises to pay attention to rare earth production, be cautious in rare earth exports, and be cautious in environmental protection issues, the effect will be minimal. The key to benefiting from the three parties now is that I can have the right to speak in the rare earth industry and the pricing power for rare earth exports. This is the key to winning."

"Do you have any experience to teach this?" Premier Wen listened very seriously, and took out his small notebook and wrote and painted it carefully.

"For certain industries with special characteristics, industry alliances with foreign trade decision-making power should be established." Jiang Feng replied.

The special industries in Jiangfengkou naturally do not refer to the service industry with rich and rich lights, nor do they refer to the unexpected service industry that can be drawn out to illustrate at any time. It refers to key industries related to the national economy and people's livelihood, and industries that need to conduct bulk foreign trade transactions with foreigners, such as the steel industry.

"The domestic demand for iron ore is increasing day by day. It is estimated that about 200 million tons will be imported from overseas in a year, right?" Jiang Feng asked.

Premier Wen remembers this issue clearly.

"In 2002, iron ore imports exceeded 100 million tons. In 2003, the import volume exceeded Japan for the first time, becoming the world's largest iron ore importer. This year, the import volume will exceed 200 million tons. Domestic construction is being carried out, and demand has increased rapidly. However, what do you mean when you mention this?"

Jiang Feng said: "Does the domestic iron ore import issue be negotiated with overseas suppliers themselves?"

"Of course it's like this." Premier Wen nodded, "It's the era of market economy, so we naturally have to handle it according to market laws. Moreover, the negotiations of companies are more flexible and more convenient than the government."

This is also well-founded. The main reason is that senior executives have been considering the status of private enterprises recently. In many fields, private enterprises have shown far exceeding that of state-owned enterprises. This has forced the leadership to seriously consider a question: whether private capital should be widely introduced and the proportion of private enterprises in the national economy should be continued to increase.

Especially the demonstration role of various physical enterprises founded by Jiang Feng in various industries has made senior executives feel that the advantages of private enterprises are still very obvious. Policies can be very flexible and adaptable to social development. It is very necessary to add fresh blood to the current state-owned economy. At least it can play a promoting role and drive the entire national economy to develop in a healthy way.

The importance of steel enterprises in the national economy is self-evident. Senior executives are also considering whether private capital should be introduced appropriately in steel enterprises to increase vitality?

Therefore, the senior management is now consciously relaxing the policy restrictions on steel enterprises to cultivate their adaptability in the market economy. This iron ore purchasing right is one of the decentralized powers, and the purpose is to cultivate the autonomy and competitiveness of enterprises in economic activities.

Jiang Feng raised objections to this, and he said to Prime Minister Wen without hesitation: "This decision is extremely wrong!"

Premier Wen's face turned green when he heard this. Such an important decision was at the Standing Committee, but why did it become an extremely wrong when it came to Jiang Feng's mouth?

"Grandpa Wen, don't be dissatisfied. Let me explain it to you little by little!" Jiang Feng found a chair and sat down, then held the back of the chair with one hand, and told Premier Wen, "All policies have their applicability. For complex enterprises and industries that cannot form economies of scale, relaxing policy restrictions is obviously conducive to enhancing competitiveness. However, for steel enterprises, foreign trade activities that are single and large in scale, it is obviously not suitable for each to fight."

"Why?" Prime Minister Wen asked.

"From the market law, the greater the demand for customers, the stronger the bargaining power with suppliers. However, this law seems not to be reflected in the Chinese steel industry market. On the contrary, this advantage becomes the biggest disadvantage." Jiang Feng said, "China's steel companies have different interests and have their own thoughts and fight each other, and it is easy to be disintegrated and disintegrated by overseas iron ore suppliers. For their own interests, some steel company executives can even reveal the secrets of the entire steel industry to suppliers. Internal disunity, coupled with the suppliers who have mastered the negotiation trump card of steel companies, it is impossible for Chinese steel companies to compete with overseas iron ore suppliers through free negotiations."

"What do you mean is that iron ore needs centralized procurement?" Premier Wen asked with a frown.

Jiang Feng nodded and said, "Not only does centralized procurement need to be taken care of, but special institutions must also be responsible for this matter. Steel companies are only responsible for providing demand, and special institutions negotiate with overseas suppliers based on the total amount. This is what the Japanese do, so their expenses are more than 20% lower than our overall cost. If Chinese steel companies do not change their current procurement methods, they will only be further and further away from overseas steel companies in terms of competitiveness."

Jiang Feng added: "In fact, the way Jiang Group operates rare earth resources is similar to this one. However, what Jiang Group relies on is to master monopoly supply resources. If domestic steel companies purchase jointly, what they own is monopoly market resources, because they occupy more than 40% of the world's iron ore purchasing power. Both can ensure that their interests are not damaged."

"I need to study this matter carefully." Premier Wen rubbed his forehead and said in pain, "As soon as you come, it's a big deal, and nothing has ever been worry-free."

"It's worry-free, it's not money!" Jiang Feng replied.

Speaking of which, Jiangshi Group, a subsidiary of Jiangshi Group, is now a very famous mining company in the world, especially in the two fields of iron ore and copper ore, which accounts for a large share in the international market. It can be said to be the fourth largest giant tied with the three major mining giants such as Vale.

There is a reason why Jiang's Mining has risen so rapidly. Because the African countries controlled by Lingxi 4 have explored large iron and copper veins in the past two years, this has allowed Jiang's Mining to rise to become a super mining company in the world's mining giants such as Vale, Rio Tinto and BHP in the shortest time.

Since as an ore supplier, I should have been happy to see a sharp increase in iron ore prices, which will help him make money.

However, Jiang Feng still has a little patriotic heart. The country has suffered too much losses in the import of iron ore, which is not in line with Jiang Feng's patriotism.

Of course, another very important reason is that only a small part of the iron ore imported by the country is purchased from its Jiang Mining, while most of it is imported from Australia and Brazil. This has a lot to do with geographical factors. After all, it is much more convenient to import iron ore from Australia than from Africa.

Therefore, most of the money spent by the country fell into the pockets of foreigners. Jiang Feng was naturally unhappy, so he decided to advise Premier Wen, hoping to rectify the domestic iron ore import order.

In this way, it is possible not only to reduce losses for the country, but it may even generate income for his Jiang Mining.

If the country imports iron ore uniformly, it will inevitably confront the other three iron ore giants, and the three iron ore giants will inevitably not submit easily. Who is used to making money and doesn’t want to reduce prices, right?

This gave Jiang Feng the opportunity to open the door to the domestic iron ore import market.

This is a win-win situation for the country and Jiang's Group, and Jiang Feng naturally has to do his best to promote it. (To be continued. Please search for Astronomy for Bing, novels are better, updated and faster!)
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