Chapter 713 Take All

Chapter 712

After 2008, the domestic real estate industry has been advancing rapidly, and houses are no longer just a place to live. Many people buy houses not for living, but for asset preservation or appreciation.

Houses have gradually acquired 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 had reached a certain scale, real estate could not be regarded as the core pillar industry of the Chinese economy. At this time, the status of the manufacturing industry was still the highest.

As far as the locality is concerned, real estate investment is a one-shot exchange for another place, just like a one-shot sale. In addition to earning a financial income when selling the land, the taxes and fees related to real estate can only be collected once. .

Even if building a house can bring about some employment, it is only temporary. After the project is completed, the construction practitioners will have to have a new project to continue to be employed, otherwise they will become unemployed again. Therefore, real estate needs continuous expansion in order to have so-called employment.

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

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

A real estate investment project can bring local fiscal revenue 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 give priority to accepting investment in manufacturing industries.

The driving force of manufacturing investment to GDP is also higher than that of real estate.

One dollar of investment in fixed assets 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 manufacturing nuclear magnetic resonance, manufacturing intelligent robots, manufacturing lithography machines, and manufacturing commercial airliners, this kind of manufacturing industry with relatively high added value may not be able to estimate the impact of GDP on numbers.

In that era of GDP-only theory, when Li Weidong threw out reinvestment of profits, 50% of the amount would be invested in the manufacturing industry,

Another bait that is hard to refuse in the local area.

...

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

After exchanging pleasantries, the leader said, Chairman Li, in the first round of bidding, you once proposed that you would not take away any profit from the project, and that all of it would be invested in Shanghai City. On behalf of the municipal committee, I would like to express my gratitude to you. We very much welcome developers like you who are willing to participate in the economic development of the city to invest in our city.

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

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

Li Weidong replied: It's like this. 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, then the effect will be much smaller. .

A city cannot rely on only one industry. If only one industry dominates, it will be very detrimental to the development of the city. Especially in an international metropolis like Shanghai City, it is necessary to develop comprehensively and balancedly in various industries.

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

Of course, I also have selfish intentions. The first selfishness is of course that I hope to use this method to obtain more projects; the second is that I am very optimistic about the future economic prospects here. As a capital side, I am 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:

The second question, the second clause you proposed is that in the process of profit reinvestment, the proportion of investment in the manufacturing industry shall not be less than 50%. I know that Chairman Li has many manufacturing industries under his umbrella. I don't know what you plan to do. Which manufacturing industries are you investing in here?

I do have plans in this regard. Li Weidong paused, and continued: I plan to invest in the automobile industry and build a factory in Shanghai to produce automobiles.

Car? Excitement flashed in the leader's eyes.

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

Your chairman, are you really planning to move the Jaguar Land Rover factory to our place? The leader's face 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 can I have enough funds to build here. factory.

I understand! The leader took a deep breath, and then said, Thank you, Chairman Li, for your support of Shanghai's economic development. Regarding the project bidding, the city still needs to discuss it before making a decision.

Li Weidong said, As for the construction of the Jaguar Land Rover factory, if the city is not at ease, we can sign another supplementary agreement. If I can get all eight projects, then in the next three years, the construction of the Jaguar Land Rover factory The project will definitely be implemented.”

...

When Li Weidong took out the strategy 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.

Among the infrastructure constructions of various cities in later generations, such as road projects, bridge factories, pipeline projects, etc. in the cities, many of them were funded by real estate developers, and in exchange the developers would get some projects.

There are also renovation projects in some shantytowns. The local government does not even need to pay a penny, and all of them are handed over to the developers. What they pay is to set aside a part of the land for the developers to build commercial buildings.

There are also many examples of developers directly contributing to poverty alleviation. The top real estate giants spend several billion yuan on poverty alleviation in poor areas every year.

Of course, there is a saying that no profit can’t afford it early. If the money is spent, it will be regarded as public relations fees, and it will be much easier to use the land for projects in the future.

In order to use land for projects, real estate developers really dare to give money to poor 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 Hong Kong-funded real estate companies that only focus on short-term profits, but it will definitely not stop those who are willing to take root in China and are also optimistic about the Yangtze River Delta. Developer of economic development.

So Li Weidong took out the second trick, which is to differentiate investment.

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

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

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

The automobile industry is an important industry among the industries. 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 the low-end manufacturing industry is too low, the energy consumption of the material industry is often high, and the chemical industry will inevitably have pollution problems.

As for the manufacture of high-tech products, it is impossible to gather industrial chains, and employment is limited.

For example, the nuclear magnetic resonance machine, although it is a high-end manufacturing industry, can't produce a few sets of that thing all year round, and can't sell a few sets. Although it has high added value, it can't actually support many people.

Moreover, the high-end manufacturing industry has a low demand for the required parts. For example, for nuclear magnetic resonance machines, it is considered very good if a factory can produce a thousand units a year. When you get up, you can fit it in a courier box. How can this demand form an industrial cluster?

In the case of an automobile factory, it can easily produce hundreds of thousands or even hundreds of thousands of units a year. It is not a problem to support thousands of people by itself. Coupled with the supply of parts from the upstream, it is more than enough for an automobile factory to support a fourth-tier city.

Therefore, no matter whether it is a developed country or a developing country, no city will refuse the settlement 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 quality is there. The city introduces the production base of the luxury car brand, and it will look good when it is said, at least it will 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 cost of production in the United States is really too high, and there are auto unions who come to make troubles 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 actually no need to produce in the United States. There is 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.

When it comes to relocating an automobile production line, the best place to relocate is, of course, China.

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

The Yangtze River Delta region already has a complete supply chain system for auto parts and world-class ports, which is very suitable for the development of the auto industry. Moreover, the economy here is developed, and the demand for luxury brands is even greater. For example, the future Tesla will be located 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 UK is Jaguar Land Rover's main market, and the parent company and R\u0026D institutions are located there. It is not easy to move away.

In fact, it is not a good choice to set up a factory in the UK. It is not that the industrial capacity of the UK is insufficient, nor that British workers are too expensive, but that the UK will leave the European Union in the future, which will be 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, which has given opportunities to Germany and France, two traditional industrial powerhouses. In continental Europe, sales of both German and French cars have increased to a certain extent.

Historically, Jaguar Land Rover CEO Ralph Speth, in order to offset the impact of Brexit, adopted a strategy to build a new assembly plant in Paris, France, and sell French-made Jaguar Land Rover on the European continent.

However, as soon as the factory was built, it encountered the banner of limiting carbon emissions in Europe, intending to ban the sale of fuel vehicles and start promoting new energy vehicles. Jaguar Land Rover has no technology accumulation in this area, but it can only follow up forcefully.

Next 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 encountered the conflict between Russia and Ukraine, luxury cars still could not be sold. In short, people are unlucky enough to drink cold water and get stuck in their teeth.

But as far as the results are concerned, Jaguar Land Rover's decision to bet on the European market is obviously wrong, but they should not change it. After all, the boss behind 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 still have to show the glory of India in front of Europeans!

...

Li Weidong put forward new conditions, and the city leaders held another meeting to discuss. Li Weidong didn't know how to discuss it, but only three days later, the city leader in charge of attracting investment personally set up a dinner, invited Li Weidong, and introduced a lot of cadres in charge of attracting investment.

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

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

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

2012? That's four years. Director Chen, who was in charge of the negotiation, was lost in thought.

Li Weidong said: It also depends on the speed of building the factory. If the construction goes well, the first car will be rolled off the production line in early 2012. If you calculate it this way, it will take more than three years.

Director Chen pondered for a moment, and then said: Chairman Li, I'm afraid it will be difficult to hand over all eight projects to you. We also have to consider the reactions of other companies. What's more, if we put all eggs in the same basket, we also have to face 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, and you have also cooperated with each other. It is indeed a bit embarrassing for you to take all eight projects in one go. You really gave me all eight projects, and it’s hard for you to explain.”

Li Weidong smiled slightly, and then said: Well, for your convenience, I can make another concession. In addition to Jaguar Land Rover, I can invest in the design and manufacturing of semiconductors and integrated circuits.

Invest 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 you in Shanghai have been advocating the development of high-tech industries, and I have done investigations, and there are many small companies related to semiconductors and integrated circuits in your place.

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

Moreover, the investment in this area does not need to wait until the project is profitable, nor does it need to wait until 2011. As long as Dongshan Real Estate wins these eight projects, I can start investing immediately.

That means 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 goods. It is obviously very tempting to have an investment that can be cashed in the year, at least it can stop 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 up and down in his office, looking anxious.

His office is in a good location, with large floor-to-ceiling windows overlooking the scenery outside, but the director has no time to appreciate it at this time, 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 plan to win all three projects, but set a goal of keeping one and competing for two, as long as they win one of the projects, it will be considered a victory!

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

Did you win the bid? The director hurriedly asked, but before the assistant came home, the director had already got the answer from the assistant's disappointed expression.

Did you not hit any of them? the director asked anxiously.

The assistant nodded helplessly: Not one hit!

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

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

It's Dongshan Real Estate. The assistant replied.

Why is it still Dongshan Real Estate? The director continued with some annoyance: Didn't we also propose to reinvest with the profits from the project? Everyone's conditions are the same, and our strength is obviously superior. Why is Dongshan the winning bidder? estate!

The assistant went on to say: Not only the project we are looking at, but all eight projects, the winning bidders are Dongshan Real Estate!

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

This time, there were so many top developers participating in the bidding, including real estate companies and Hong Kong-owned giants with backgrounds in central enterprises, but in the end they were all taken over by a little-known developer. This result was indeed unacceptable to 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 would not dare to operate it in secret even if he had eighteen guts.

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

There's no need to inquire, it's already been announced in the news. The assistant sighed softly, and said, Shanghai City has signed an investment letter of intent with Li Weidong. In the future, Li Weidong will build a Jaguar Land Rover production plant in Shanghai City.

Jaguar Land Rover's factory? I remembered. I read the news not long ago, saying that Li Weidong bought Jaguar Land Rover! The director suddenly realized and nodded.

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

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

The investment has not started before the project has started? This Li Weidong has spent too much money! The director finally showed a helpless expression. He knew that he did not complain about losing this battle, and it must be another developer. There is no doubt that you will lose.

The real estate industry and the manufacturing industry compete to see which investment project is better. There is no reason why the local government should not choose the manufacturing industry, not to mention that they still make cars.

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

The director accepted the failure frankly, and when he was thinking about how to report to the headquarters, the phone on his desk rang suddenly.

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

Mr. Huang, I heard that you are bidding for a project, why are you free to call me? the director asked.

Don't mention it, I went to the bidding briefing today, and the people from the Land Bureau asked me face to face, saying how much profit from the project we plan to use for investment, and I was stunned by the question! I only found out after I inquired about it. When participating in the bidding, it was said that the profits of the project would not be taken away, and all the profits would be invested in the local area, 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 an old man in this industry, don't you know that once this hole is opened, when you get land in the future, the local government will catch up with you We want to invest!

Mr. Huang then complained: In that case, the cost for us to obtain the land will increase significantly. I said that you are too rude. You sold us all in order to obtain the land for yourself!

Mr. Huang, listen to my explanation. This time the bidding is not only done by us, but also by Yike and Biguiyuan. You can't just blame me! The director quickly explained.

Are you all crazy? Haven't you considered the consequences of doing this? How can our capital chain survive 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 thirst !” Mr. Huang said.

Mr. Huang, don't worry, the capital chain will not be broken. The director sighed lightly, and added: Because we didn't get the land at all! Eight projects, none of them!

What? I have used the profits from the project to reinvest, but I still can't get the land? Mr. Huang was completely on the spot.

Have all the real estate developers been involved in this way these days!

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