Chapter seven hundred and thirteenth take all

The latest website: After 2008, the domestic real estate industry has made rapid progress. The house is no longer just a place to live. Many people buy houses not for living, but for asset preservation or appreciation.

Houses gradually have the characteristics of wealth management products, and will inevitably develop in the direction of monetization. With the expansion of the real estate market, the Chinese economy is increasingly dependent on real estate.

Before 2008, although the domestic real estate market already had a certain scale, real estate could not be regarded as the core pillar industry of China's economy. At this time, the status of the manufacturing industry was still the highest.

For localities, real estate investment is a one-shot change of place, like a one-shot deal. In addition to earning a financial income when selling land, taxes and fees related to real estate can only be charged once. .

Even if building a house can create some employment, it is only temporary. After the completion of the project, construction practitioners will be able to continue their employment with new projects, otherwise they will become unemployed again. Therefore, real estate needs continuous expansion in order to have so-called employment.

Investment in manufacturing is different. Manufacturing is continuous. No matter what product is produced, it is impossible to close the factory after only one batch is produced. As long as the factory continues to produce, it can bring continuous tax revenue, and it can also bring continuous employment.

It is not uncommon for foreign manufacturing enterprises that have been rooted in a place for hundreds of years. Even in China, there are many manufacturing enterprises that are almost the same age as the Republic, and they have been driving the economy of a place for decades.

A real estate investment project can bring a local financial income in a short period of time, while a manufacturing investment project can bring prosperity to a city for decades.

Therefore, for the same amount of investment, one is investment in real estate projects and the other is investment in manufacturing projects. Local governments will definitely choose to accept manufacturing investment.

Manufacturing investment drives GDP more than real estate.

One dollar of fixed asset investment can drive three dollars of GDP growth, and if it is invested in manufacturing, one dollar invested in ordinary machinery manufacturing can drive ten dollars of GDP growth.

If it rises to some high-end manufacturing industries, such as making nuclear magnetic resonance, making intelligent robots, making lithography machines, and making commercial airliners, this kind of manufacturing industry with relatively high added output value will probably not be able to use figures to estimate the driving force of GDP.

In the era of GDP-only theory, when Li Weidong reinvested profits and 50% of the amount would be invested in manufacturing, it was another bait that was difficult for local governments to refuse.

...

That afternoon, Li Weidong was invited to the city to be interviewed by city leaders.

After a little chat, the leader said: Chairman Li, in the first round of bidding, you once proposed that you would not take any profit from the project, and all the investment was in Shanghai City. On behalf of the Municipal Party Committee, I would like to express my thanks to you. We very much welcome developers like you who are willing to participate in the city's economic development to invest in our city.

I should thank Shanghai City and all the leaders for giving me an opportunity to participate in the development and construction of the city! Li Weidong said with a smile.

The leader continued to ask: Chairman Li, this second round of bidding, Dongshan Real Estate's bidding document, I have read it myself, and you have added two more clauses, one of which is the reinvestment of the project's profits, and will not invest in real estate. , can you tell me what you think?

Li Weidong replied: That's right, reinvesting the profits of the projects will indeed play a positive role in promoting the development of the city. But if the profits of these projects are used for real estate investment, the effect will be much smaller. .

A city cannot rely on only one industry, but if only one industry dominates, it is also very unfavorable for the development of the city. In particular, an international metropolis like Shanghai needs to develop in a comprehensive and balanced manner in various industries.

That's why I put forward that when the project profits are reinvested, I will not invest in real estate projects. I invest the profits from real estate projects into other industries and drive other industries, which is beneficial to the balanced development of the entire city.

Of course, I am also selfish. The first selfishness is of course that I hope to obtain more projects in this way; the second is that I am very optimistic about the future economic prospects here. As a capitalist, I am very willing to take root and operate here. .

I didn't expect Chairman Li to be so frank. But your plan is indeed mutually beneficial for both of us. The leader nodded, and then said:

Second question, the second clause you put forward is that in the process of reinvestment of profits, the investment ratio of manufacturing industry shall not be less than 50%. I know that Chairman Li has many manufacturing industries, but I don't know what you plan to do. Which manufacturing industries are we investing in here?

I do have plans in this regard. Li Weidong paused, then said, I plan to invest in the auto industry and build a car factory in Shanghai.

Car? The excitement in the leader's eyes flashed.

Li Weidong went on to say: Not long ago, I acquired Jaguar Land Rover from the Ford Group, and I plan to move the production line of Jaguar Land Rover to China. I think Shanghai City is a good choice, where SAIC Motor already exists. It also has a relatively complete supply chain of auto parts and components, coupled with the advantages of ports, it is very suitable for the development of the auto industry.

Your chairman, do you really plan to move Jaguar Land Rover's factory to us? The leader was already full of joy.

The premise is that I can get enough projects in this bidding. Li Weidong smiled slightly, and then said: I reinvest with the profits of the projects. Only with enough profits, I will have sufficient funds to build here. factory.

I understand! The leader took a deep breath and then said, Thanks to Chairman Li for his support for Shanghai's economic development. Regarding the project bidding, the city still needs to discuss and make a decision.

Li Weidong said: As for the construction of the Jaguar Land Rover factory, if the city is worried, we can sign a supplementary agreement. If I can get all eight projects, then in the next three years, Jaguar Land Rover will build a factory. The project will definitely be implemented.”

...

When Li Weidong took out the trick of reinvesting project profits, he already thought that other developers would follow suit.

Although real estate developers do not do charity, they will definitely do charity in order to get more projects.

In the infrastructure construction of various cities in later generations, such as road projects, bridge factories, pipeline projects, etc. in the city, many are funded by real estate developers, and developers will get some projects in exchange.

There is also the renovation of some shanty towns, where not even a penny is required to be paid locally, and all are handed over to the developer to complete, and all that is paid is to set aside a part of the land for the developer to build commercial buildings.

There are also many cases of developers directly investing in poverty alleviation. The top real estate giants spend hundreds of millions each year for poverty alleviation in poor areas.

Of course, there is a saying that if there is no profit, it is too early. If this money is spent, it will be regarded as a public relations fee, and it will be much easier to use land to do projects in the future.

In order to take land for projects, real estate developers really dare to give money to impoverished areas, so how can developers be reluctant to invest in the Yangtze River Delta region, one of the two major engines of China's economy!

Therefore, the reinvestment of project profits may stop some real estate companies with tight capital chains, as well as real estate companies that only focus on short-term profits like Hong Kong capital, but it will definitely not stop those who are willing to take root in China and are also optimistic about the Yangtze River Delta. Developers of economic development.

So Li Weidong came up with the second trick, that is, differentiated investment.

Other real estate companies, if they reinvest their project profits, will definitely invest in real estate and let them invest in other industries, but they don’t know how to do it.

And Li Weidong started in the manufacturing industry, so he can use the profits of the project to invest in the manufacturing industry. This is Li Weidong's biggest advantage over other real estate companies.

More importantly, Li Weidong now owns Jaguar Land Rover, a luxury car brand. Although Jaguar Land Rover has been losing money year after year, it is a full fragrant bun for the city.

The automobile industry is the main industry in the industry. The automobile industry has high added value, can absorb a large number of jobs, and can drive more industrial chains. The energy consumption is not high, and the pollution is not serious.

In contrast, the added value of low-end manufacturing is too low, the energy consumption of the material industry is often high, and the chemical industry is inevitably polluted.

As for the manufacture of high-end and sophisticated products, the industry chain cannot be gathered, and employment is limited.

For example, nuclear magnetic resonance machines, although it is a high-end manufacturing industry, can't produce a few units a year, and can't sell a few units. Although the added value is high, it can't actually support many people.

Moreover, the high-end manufacturing industry also has a low demand for the required components, such as nuclear magnetic resonance machines. A factory can produce 1,000 units a year, even if it is very good, some small components used in it, 1,000 pieces plus It can fit in a courier box. How can this demand form an industrial cluster?

For an auto factory, it can easily produce hundreds of thousands of units a year, or even hundreds of thousands of units. It is not a problem to feed thousands of people. Coupled with the supply of upstream parts, an auto factory is more than enough to support a fourth-tier city.

Therefore, no matter whether it is a developed country or a developing country, no city will refuse the establishment of an automobile company. Not to mention a luxury car brand like Jaguar Land Rover.

Luxury car brands, no matter how good the word of mouth is, the force is there. The city introduces the production base of luxury car brands, and it seems to have a face to speak out, at least it can make it look taller.

When Li Weidong was still negotiating with Ford, he was already thinking about moving Jaguar Land Rover's production line from the United States.

The production cost in the United States is really too high, and there are auto unions who come to do things from time to time. If it is not for the American market, there is really no need to produce in the United States.

Even if you have to stick to the American market, there is no need to produce in the United States. There is a Mexico next to the United States. Although the law and order in Mexico is worse and the efficiency of workers is average, it is much cheaper than the United States.

If the car production line is transferred, the best place to relocate is of course China.

China has a complete supply chain system, infrastructure to meet any industrial production, a convenient logistics system, and cheap labor. More importantly, in the future, China will be the largest auto market in the world. Even if you simply want to sell more cars, you should move factories to China.

The Yangtze River Delta region has a complete supply chain system for auto parts and a world-class port, which is very suitable for the development of the auto industry. Moreover, the economy is developed here, and the demand for luxury brands is also greater. For example, the future Tesla will be settled in the Yangtze River Delta region.

As for Jaguar Land Rover's production line in Europe, Li Weidong has no plans to relocate. Jaguar Land Rover's European factory is located in Liverpool. After all, the United Kingdom is the main market of Jaguar Land Rover, and the parent company and R\u0026D institutions are there. It is not easy to move out.

In fact, it is not a good choice to set up factories in the UK. It is not that the industrial capacity of the UK is insufficient, nor that the British workers are too expensive, but that the UK will leave the EU in the future, which is a serious blow to British manufacturing.

After Brexit, it has become much more difficult for British-made industrial products to be sold to the European continent, thus giving opportunities to Germany and France, two traditional industrial powerhouses. In continental Europe, sales of German and French cars both increased to a certain extent.

Historically, Jaguar Land Rover CEO Ralph Speth has used a strategy to offset the impact of Brexit by building a new assembly plant in Paris, France, to sell French-made Jaguar Land Rovers on the European continent.

However, as soon as the factory was built, it encountered the banner of carbon emission restrictions in Europe, which planned to ban the sale of fuel vehicles and began to promote new energy vehicles. Jaguar Land Rover has no technology accumulation in this regard, but it can only follow up.

Then came the outbreak of the epidemic, and the market demand for luxury cars dropped sharply. Two years later, Europe chose to lie flat in the face of the epidemic. Seeing that the market was about to recover, and the conflict between Russia and Ukraine was encountered, luxury cars still could not sell. In short, people are unlucky to drink cold water and stuff their teeth.

But in terms of results, Jaguar Land Rover's decision to bet on the European market is obviously wrong, but they should not change it, after all, the owner of Jaguar Land Rover is India's Tata Group.

The confident Indians have been colonized by Europeans for too long. Even if they lose billions of dollars every year, they must show the majesty of India in front of Europeans!

...

Li Weidong proposed new conditions, and the city leaders met again to discuss. Li Weidong didn't know exactly how the discussion was conducted, but after only three days, the city leaders in charge of attracting investment set up a dinner party, invited Li Weidong, and by the way introduced a lot of cadres in charge of attracting investment.

Next, the cadres responsible for attracting investment began to talk to Li Weidong about the introduction of the Jaguar Land Rover factory.

At the negotiating table, Li Weidong said bluntly: Director Chen, of course I know that you hope that I can build a Jaguar Land Rover production plant in Shanghai as soon as possible, but the time to build the Jaguar Land Rover factory depends on how much money I have. .

If you hand over all the eight projects to me this time, then I can make profits faster, accumulate funds faster, and shorten the time to build a factory. If the land approval for building the factory goes well, I expect construction to start before 2011 and the new factory to be put into use in 2012.

2012? That's four years. Director Chen, who was in charge of the negotiation, fell into thinking.

Li Weidong said: It also depends on the speed of the construction of the factory. If the construction is successful, the first car will be seen rolling off the assembly line in early 2012. If you count it, it will take more than three years.

Director Chen pondered for a moment, then said: Chairman Li, I am afraid it will be difficult to hand over the eight projects to you. We also have to consider the reactions of other companies. What's more, if the eggs are placed in the same basket, we have to face the challenges here. It's a lot of pressure. So I'll give you six projects at most.

I can understand, after all, many companies participating in the bidding this time have had projects in Shanghai City, and you have also cooperated with each other. It is indeed a bit embarrassing for you to eat all eight projects in one go. I really gave me all eight projects, and you are not easy to explain.

Li Weidong smiled slightly, and then said, Well, for the sake of your explanation, I can make more concessions. In addition to Jaguar Land Rover, I can reinvest in the design and manufacturing of semiconductors and integrated circuits.

Investing in semiconductors and integrated circuits? Director Chen was stunned. From automobiles to semiconductors, the span is a bit large, and he really didn't realize it for a while.

Li Weidong went on to say: I know that your Shanghai city has been advocating the development of high-tech industries, and I have also conducted investigations. There are many small companies related to semiconductors and integrated circuits here.

I can invest in these companies, and also integrate the industries in this area, so that they can scale and industrialize their itineraries as soon as possible, which is very helpful for the development of the entire high-tech industry in Shanghai and the rapid formation of competitiveness. of.

Moreover, in this aspect of investment, I don't need to wait until the project is profitable, and I don't need to wait until 2011. As long as Dongshan Real Estate wins these eight projects, I can start investing immediately.

So you can invest this year? Director Chen asked immediately.

Yes, this year! Li Weidong nodded solemnly.

There is still a big difference between futures and spot. It is obviously very tempting to have an investment that can be cashed in that year, at least it can block the mouths of other developers.

Thinking of this, Director Chen said: Okay, I will report to the leader immediately!

...

Hengtai Real Estate, the project director walked around in his office, looking anxious.

The location of his office is very good, and the large floor-to-ceiling windows overlook the outside scenery, but the director has no time to appreciate it because today is the day when the bidding results are announced.

Hengtai Real Estate has three projects shortlisted for the second round, but they did not intend to win all three projects, but set a goal of protecting one and fighting for two, as long as they win one of the projects, it is a victory!

There was a knock on the door, the director said please come in, and the assistant hurried in.

Have you won the bid? the director asked hurriedly, but before the assistant came home, the director had already gotten the answer from the assistant's lost expression.

Did you miss any of them? the director asked anxiously.

The assistant nodded helplessly: None!

Why! The director blurted out instinctively, but he also knew that the assistant could not give the answer to this question.

Who won the bid for the project we were looking at? the director asked again.

It's Dongshan Real Estate, the assistant replied.

Why is it still Dongshan Real Estate? The director continued angrily: Didn't we also propose that we use the project profits to reinvest? Everyone's conditions are the same, and our strength is obviously better. Why is Dongshan still winning the bid? estate!

The assistant went on to say: Not only the project we were interested in, but all the eight projects that won the bid are Dongshan Real Estate!

What? Dongshan Real Estate has won all eight projects! The director showed a shocked expression.

This time, there were so many top developers participating in the bidding, including many housing companies and Hong Kong-funded giants with the background of state-owned enterprises, but they were eventually taken all over by a little-known developer. This result was indeed unacceptable for the director.

Operation in the dark! These four words came out of the director's mind, but they were instantly rejected by him.

With so many people staring at such a big project, he wouldn't dare to operate in the dark even with 18 courage.

It must be Dongshan Real Estate who has given better conditions! Thinking of this, the director immediately asked: Go and find out, what are the bidding conditions that Dongshan Real Estate finally gave?

Don't ask, the news has already been announced. The assistant sighed and said, Hucheng has signed a letter of intent for investment with Li Weidong. In the future, Li Weidong will build a Jaguar Land Rover production plant in Hucheng.

Jaguar Land Rover's factory? I remembered it. Not long ago, I read the news that Li Weidong acquired Jaguar Land Rover! The director nodded suddenly.

Although he is not engaged in manufacturing, he also knows that a car factory is a delicious fruit that cannot be rejected for any city.

The assistant continued: In addition, there is news that the reinvestment of project profits promised by Li Weidong will be partially implemented this year.

The project has not yet started, and the investment has begun? This Li Weidong is too much! The director finally showed a helpless expression. He knew that he did not complain that he lost this battle. If it was replaced by other developers, it must be There is no doubt about losing.

The real estate industry competes with the manufacturing industry for better investment projects. There is no reason not to choose the manufacturing industry in the local area, not to mention that people still build cars.

However, for this result, the director is also very calm. When the real estate industry takes a project, it is full of various interest exchanges, and it is common to lose in the interest exchange, especially when the conditions given by others are better than yours. A crime of war.

The director accepted the failure calmly and began to ponder how to report to the headquarters when the phone on his desk suddenly rang.

The director picked up the phone, and it was the person in charge of the Beijing project of Hengtai Real Estate.

Mr. Huang, I heard that you are bidding on a project, why do you have time to call me? the director asked.

Don't mention it, I went to the bidding briefing today, and someone from the Land Bureau asked me face-to-face, saying how much of the project's profit we plan to use for investment, so I was stunned! Later, I found out after inquiring about your side. When I participated in the bidding, I said that I didn't take any profit from the project, and all the investment was locally invested, is there such a thing? Mr. Huang asked.

There is such a thing. The director said helplessly.

How can you make such a condition! Isn't this breaking the rules! You are also an old man in this industry, don't you know that once this opening is opened, when the land is acquired in the future, the local people will rush to follow. We need to invest!

Mr. Huang then complained: In that case, the cost of acquiring the land will increase significantly. I said that you are too inauthentic. In order to get the land yourself, you sold us all!

Mr. Huang, listen to my explanation, this time the bidding, not only we did this, like Yike and Biguiyuan did it, you can't blame me alone! The director quickly explained.

Are you all crazy? Haven't you considered the consequences of doing this? How can our capital chain endure such a toss! If the capital chain breaks, we will go bankrupt even if we have land in our hands! This is simply drinking poison to quench our thirst. ! Mr. Huang said.

Mr. Huang, don't worry, the capital chain will not be broken. The director sighed and added: Because we didn't get the land at all! We didn't get any of the eight projects!

What? We've used the project profits to reinvest, but we still can't get the land? Mr. Huang stayed on the spot completely.

Are all real estate people involved like this these days?