Rebirth: War on the Honest

"why not?"

In the middle of the conversation between the two, Zhou Darong shook his head at Gu Yun's intention and voted against it.

"The entry threshold for the new energy vehicle industry cannot be fully relaxed, nor can it be lowered."

Facing Gu Yun's questioning, Zhou Darong pushed up the glasses on the tip of his nose and explained with a smile.

The "Guiding Opinions on Accelerating the Promotion and Application of New Energy Vehicles" clearly mentions that social capital and enterprises with technological innovation capabilities will be supported to participate in the scientific research and production of new energy vehicles.

This signal was not only used by Gu Yun, but also interpreted by some people in the industry as "a lowering of the entry threshold for new energy."

"The policy is only introduced to give more passionate and motivated companies an 'opportunity', but the premise is that these companies must have the strength and ability to do this."

"In the Chinese market, although it has been officially sold for less than half a year, the current import volume of Tesla Model S has exceeded 1,000 units, and the average monthly sales exceed that of any local pure electric product. We have this capability."

Gu Yun winked at He Xuan beside him, and the assistant immediately took out a data comparison chart and handed it to Zhou Darong.

"Of course I have heard of the famous Tesla, and I also know that you have this ability."

Zhou Darong smiled, stopped talking in official circles, took a sip of tea and continued.

"Even if you, Mr. Gu, are Tesla's major shareholder, it cannot change the fact that it is a foreign-funded enterprise. The current policy is this..."

According to China's foreign investment policy, foreign automobile manufacturers establishing factories in China need to enter into joint ventures with local Chinese companies.

In 2014, the requirement for this kind of joint venture cooperation was that the foreign party's shareholding ratio could not exceed 50%, that is, the foreign party could only hold up to half of the equity of the joint venture company.

Tesla is a purely foreign-owned enterprise, and such a joint venture partner requirement is itself an obstacle.

"In addition, we may also hope to transfer some technology through foreign-invested automobile manufacturers to promote the development of the local automobile industry."

Zhou Darong paused for a moment and continued to add.

Anyone with a discerning eye can see that Tesla's model can actually be copied.

Because compared with traditional cars, the structural modules of new energy vehicles are simpler, and major components including power systems can be purchased.

For Tesla, which has advanced electric vehicle technology, this requirement undoubtedly poses a challenge to the protection of its independent technology.

Even if this is unfair, the domestic market needs "catfish".

The new energy vehicle industry is not dynamic enough. This is indeed the current development status of domestic new energy vehicles.

The government wants to create an environment that encourages competition and uses technological competition to promote the progress of Chinese-funded enterprises.

"Must...joint venture?"

Gu Yun was stunned.

Although he has lived in two lives, he was never exposed to this level of business dialogue in his previous life.

He only knew that Musk had failed in China this year, but he did not expect that when negotiating in person, the other party would actually offer such a price.

"You are also an entrepreneur who has started a business in China. I don't need to elaborate on some things, right?"

Zhou Darong coughed twice and said nothing.

Although Gu Yun is representing Tesla on this trip, he is not a real foreign guest.

As we all know, establishing a factory in China requires going through a series of administrative approval procedures and complying with relevant regulations.

These procedures and regulations may include requirements for land use, environmental assessment, property rights registration, labor quotas, etc.

For foreign-funded enterprises like Tesla, they need to face complex administrative procedures and regulations, and conduct multiple communications and negotiations with government departments at all levels.

Although He Xuan was mentally prepared, after all, she was not a Tesla employee, nor was she Musk's personal assistant.

How could a foreign-funded enterprise handle these complicated procedures and twists and turns so easily?

If a foreign-funded company wants to gain a foothold in China, it must not regard itself as a foreign market intruder, but as an inherent member of the target market, integrating into the local culture, and emphasizing the company's adaptation to the environment to obtain greater development space.

The essence of localization is the process by which multinational companies integrate production, marketing, management, personnel, etc. into the Chinese economy.

"I know."

The leader in front of him had made it very clear, and Gu Yun nodded politely.

...

After bidding farewell to Zhou Darong and walking out of the Shanghai City Government with his assistant, Gu Yun felt for the first time that things were a little tricky.

"Minister Gu, isn't this condition too difficult?"

He Xuan clenched her hands into fists, her knuckles turning slightly white, revealing her inner excitement and dissatisfaction.

Even if the assistant doesn't understand the development and future of new energy vehicles, as someone close to the big boss, she also understands the meaning of the conditions offered by the official represented by Zhou Darong.

Not only must you give up more than 50% of your shares to the local area, but you must also share some of your advanced technologies. Who can agree to such a demanding requirement?

What's more, He Xuan, who personally flew to the United States with Gu Yun, also knows something about the technology geek Musk.

How could he agree?

Musk is a straightforward person, and he runs the company with the thinking of an engineer and product manager. This may be one of the reasons for Tesla's success in the US market.

He once took great risks and knocked on the door of the U.S. aviation market with recyclable rockets.

But this does not mean that straightforward engineering thinking can knock on the door of the Eastern market.

That's not how things work at the Oriental Market. When Hawking comes, he has to stand up and make a toast.

Musk believes that products and experience will be the determining factors in the ultimate company's success.

But as a new energy vehicle company built with Internet thinking, establishing a good ecosystem itself is a basic requirement for openness.

Musk has achieved openness and collaboration in product hardware and software, but he is obviously too dismissive of the management of the ecosystem.

The intention to bypass more interactions with the government is also one of Tesla's shortcomings.

According to the plan, Tesla will establish dealerships in 10 cities in China this year, but the Shanghai service center, which was originally planned to be completed in the first quarter of 2014, has not even signed a contract for a piece of land.

It is difficult to get a dealership, let alone a super factory that requires full support from the government to provide employment for tens of millions of people and huge taxes.

There is no other reason. I have no experience and no expert guidance.

It was not until Musk had no choice but to turn to Gu Yun, the major shareholder from China, that all aspects began to be formally advanced.

"If it were you, would you agree?"

Gu Yun shrugged and asked.

"Impossible, working for free for others, why?"

He Xuan frowned, her beautiful lips pursed tightly, revealing a firm line.

"Yeah, it's not like...there's something wrong with it and it can't be sold."

Gu Yun replied with a smile.