My 1979

Chapter 370 Cabbage Price

"The transformation of the economy of the special zone from an inward-oriented economy to an export-oriented economy has just begun. The policy of the special zone is to focus on industry and export. If the products are not exported in large quantities, how can it become an open base? What industrial products can be exported? It is nothing more than Some products are processed with supplied materials, and we can only make these products in the initial stage. We would like to do it in high-tech manufacturing, precision instruments, precision machinery, and advanced materials industry, but do we have the technology? Do we have the funds? From low-end to We always have to go through a process at the high end.”

Yu Dehua said, "I understand this. Not only the Special Economic Zone, but also the Pearl River Delta and Yangtze River Delta regions are full of clothing, textile and hardware workshops. It's very easy to start. I also gave them some orders in accordance with your request."

"But these low-end products are easy to produce, so how can we have a place in the world?"

Yu Dehua said, "Our labor is cheap and the price is cheap, so we are naturally competitive."

"Yes, the price is cheap. But we not only want the lowest price, but also the cheapest price! We make it at a cabbage price! The highest level is to achieve the cheapest price of the same quality! To break the international monopoly, first of all They will force them to go bankrupt. To force their opponents to go bankrupt, it is useless to rely on one or two domestic companies. They need to rely on the chemical fiber, textile, and clothing industries to work together, and upstream and downstream enterprises to cooperate. This is what I asked you to set up a clothing industry before. The purpose of the Textile Federation is that as long as we unite, we are not afraid of competing for prices internationally." Li He still followed the old routine of China's manufacturing industry. Many things that the Chinese would not do were previously priced at high prices. Once the Chinese have mastered the core Technology is all at a cabbage price.

My price is low, you bite me!

Your quality is high, my price is low!

Your workmanship is good, my price is low!

You are durable, my price is low!

Your technology content is high, my price is low!

Your style is good, my price is low!

Anyway, when it comes to price, either you die or I live!

I can talk about innovation and development, but it can’t be done in a day or two. I’m almost full, so who has the time to talk to you about craftsmanship! Don't think about how talented you are. The key is that you can't do the things you are talented at!

If light industrial products are not priced at cabbage prices, it would be a shame to God!

"Our opponents are mainly Japanese and Korean companies, both of which are large textile factories with tens of thousands of people. Can we bankrupt them?" Yu Dehua really doesn't believe this. He has also visited large foreign factories, so don't talk about technology. The level, the management level alone is several times higher than that in China.

It is currently incomparable with the clothing industry in Southeast Asia.

"Yes, it must be possible. Not only the clothing industry, but also the light industry, we can bankrupt it. Glasses, arts and crafts, plastic products, hardware products, household appliances, down and their products, we will take our time one by one. , there will always come a day." Li He couldn't help but yearn for it. He thought that even if it could advance the progress of domestic light industry a few years, it would be good.

"Then the purpose of forming this light industry federation is to fight a price war?"

Li He said with a smile, "Then what do you think? We just want to join forces to fight price wars internationally. There are no more hard-working and hard-working workers than China. If you can't fight with labor force, how can China's manufacturing industry have a future?" ".

It is incorrect to simply attribute the development of China's manufacturing industry to the abundant labor force. India and Southeast Asia have abundant labor forces, and even Africa has no shortage of people. However, only China's manufacturing industry has risen.

The credit goes to the Chinese people for their hard work and hard work.

Although there is a sense of déjà vu in a sweatshop, to put aside productivity and talk about treatment is to act like a hooligan and have a sense of superiority that "you can't eat minced meat". The division of labor is originally a reflection of the progress of the world. The pain point for the Chinese people at this time is how to solve the problem of clothing and food, rather than suffering and tiredness.

Workers work hard overtime in exchange for very little wages. The reason for all this is very simple: the country is poor.

Everything depends on productivity.

"Many of our foundries adopt piece-based performance pay in accordance with our requirements. Many workers can't wait to stay on the production line 24 hours a day. They are really hard-working." Yu Dehua couldn't help but sigh that the workers were struggling to make more money every month. He was moved and admired by the hard work he put in for a few dollars of overtime wages.

"Yes, this is where my confidence lies. It is unreasonable to work hard and not develop. So the manufacturing industry of a country is like this, from scratch, from existence to excellence, from excellence to strength, from qualitative change When it comes to quantitative changes, there will be a process, don’t ignore this process.”

Yu Dehua took a sip of tea and couldn't help but feel happy, "Listening to what you said, it seems that what we have done is as if the work we have done lasts for a long time. It seems so amazing."

"I don't dare to say that your merits will last forever. At least you are contributing to society. Besides, it is also beneficial to the country and yourself. Don't you think that if you accomplish this, you will one day be on the Forbes wealth list?"

Yu Dehua chuckled and said, "It's really possible."

As long as the Light Industry Federation is established, how many foundries will he have in hand, how many products he can export, and how much money he can make! He couldn't even imagine it himself!

"Also, the technical transformation of the foundries will continue, and we will continue to lend them money." Li He asked Yu Dehua to provide foreign exchange loans to some companies with poor technical equipment last year. The amount was not large, only a few hundred thousand. US dollars are used to import equipment from abroad, and most of them are old equipment and obsolete equipment, but they have improved the quality of the factory's products by several levels.

"We lost more than 6 million yuan in foreign exchange rates alone," Yu Dehua said a little distressed. According to his idea, providing loans is enough to support many factories. The key is to return fixed exchange rates. , that is, what is the exchange rate when borrowing money, and what is the exchange rate when repaying. These factories are extremely lenient. There is a difference of 6 yuan between the official exchange rate and the market exchange rate. A loan of 1 million US dollars a year is The difference is 6 million yuan. Strictly speaking, Yu Dehua will earn 6 million yuan less a year.

"If they are allowed to use floating exchange rates, not many of these factories can survive." Li He has no choice. For long-term development, these must be done. Some factories took out foreign exchange loans for technological transformation and upgraded their equipment, earning back foreign exchange. However, the foreign exchange did not fall into the pockets of the factories and eventually had to be converted into RMB according to the official exchange rate. As a result, the final repayment was If you buy foreign exchange from the market at a high price, you will lose money every time.

"Then I'll listen to you." Yu Dehua just complained. He still enjoyed the feeling of being provided by the manufacturer. He has heard more good things in the past few years than he has heard in his whole life. Wherever he goes, now They are all cheering each other up, and they dare to say that wherever they go, they have many friends because they have a large presence.

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