Chapter 186 Heavy Hearts and the Auto Industry (1/4)

On October 15th, the Canton Fair was held as scheduled, and Ye Zishu followed Wu Chaoqiang to the exhibition to see if there were any exhibits he was interested in.

After parting from Wu Chaoqiang at the exhibition center, Wu Chaoqiang went to inspect the company's booth, while he wandered around without any specific purpose.

The purpose of the establishment of the Canton Fair is to promote the export of domestic commodities. The first session was held in 1957, and it played a very important role in the development of my country's export industry.

Therefore, the current booths at the Canton Fair are basically all from China. He also took a look. Among the people who came to visit, there were also many foreign businessmen.

With the continuous development of our country's economy, we no longer blindly emphasize the export of commodities, but also strengthen the import of commodities. Later, the Canton Fair was renamed China Import and Export Fair.

It's just that my country's economic volume is not so large at present, and the external demand is much greater than the external demand for the internal. In order to exchange for more foreign exchange, the country encourages exports.

In the previous life, many export companies had negative profits, even relying on state export subsidies to barely make a meager profit, and he was not good at evaluating whether such companies need to exist.

But what is certain is that in this process, we pay far more than we gain, but there is no way. If the developing countries want to get up, the price they pay must be huge.

It's just that he hopes that his existence can make this time period pass as soon as possible, so that the country can get rid of the dilemma of relying on rough processing to make money, and can rely on technology to make money standing up.

However, the booths he visited now made him feel more urgent, because there are really not many technical things displayed here.

He took a look around and found that home appliances are considered high-end here, but it is extremely difficult to export domestic home appliances. The technology is all from others, and the independent technology is too low, so it is too difficult to export in reverse.

What's more, the homogenization is so serious that even if they want to make a deal, they still rely on price wars, hoping to export their products to third world countries.

More are ordinary products, such as porcelain, furniture, holiday items, toys, etc. These products account for a large proportion.

Although the technical content of these products is not high, it does not mean that the profit is low, but if you want to create higher profits, you must have your own brand, and you also need to have a certain brand awareness abroad.

It's a pity that all of our goods are in bulk, which has nothing to do with the brand, not to mention that the brand is well-known abroad, and it is not even well-known in China.

Combined with serious homogeneity, it is basically impossible to sell at a good price. He even saw some exhibitors temporarily lowering prices in order to get more orders than others.

In addition, the number of private enterprises participating in the exhibition has increased significantly this year, but few private enterprises are engaged in brand operation and technology research and development, and some products are even produced by small workshops.

However, private enterprises use more advantageous costs to further lower the prices of commodities, which leads to even more unoptimistic transaction results for state-owned enterprises with greater burdens.

He took a quick look around the exhibition area. The only thing that interested him was motorcycles. Many motorcycle brands were established this year, such as Haojue and Wuyang Honda.

There is also the construction of Yamaha, which has been approved to be established but has not yet been put into production. It is just that these motorcycle brands have less independent technology, and they must either introduce foreign technology or simply have a joint venture.

This made him think about whether he should start to lay out the transportation industry. He didn't plan to make motorcycles at first. According to his idea, at least he would go directly to the automobile industry.

Now his concept has changed. Although motorcycles seem ordinary to him, at this stage, or for a long time, they are the most suitable means of domestic transportation.

People in China want to be able to buy a car for every family. Not to mention the situation in the previous life, even with him now, he can't guarantee that this goal can be achieved in the short term.

Moreover, there is still a certain difficulty in the management ability of his subsidiaries to complete the entire industrial chain of the automobile industry as soon as he comes up, mainly because there are no talents available.

It is relatively simple to start the motorcycle industry. The industrial chain is not long and the investment scale is not large. It is very suitable for accumulating experience and training skilled industrial workers.

As for the automobile industry, it can also be advanced appropriately. First, it will take longer to establish and produce earlier. Second, he hopes to increase the proportion of domestic high-value products through the export of the automobile industry.

Moreover, the industrial processing capabilities derived from the automobile industry are of great benefit to the development of other industries, not just the automobile industry itself.

As for whether to use the existing domestic auto industry supply chain, he thinks it is better to build it independently. First, whether it can be used by him is still unknown, and there is still a certain gap between state-owned enterprises and private enterprises.

The second is that the automobile industry chain he wants to build must be much more advanced than foreign ones. Otherwise, how to export and compete with international automobile giants, so there are not many domestic automobile supply chains that meet his requirements.

What's more, he never puts his lifeblood in the hands of others, because he plans to launch low-priced automobile products for the domestic market.

Compared with the current joint venture, where a Santana sells for more than 200,000 yuan, this is a serious conflict of interest. When the time comes, people will get stuck and it will be too late to regret.

He is going to carry out self-reliance to the end, and relying on his strong financial and technical capabilities, he wants to rebuild his commercial and industrial empire abruptly.

It's just that domestic private enterprises need approval from the central government if they want to manufacture cars, and he doesn't know whether his application will be approved.

Therefore, he does not know whether it is good or bad for private enterprises to grow in such an environment. If the development of private enterprises is completely liberalized, the economy may be more prosperous, but there may also be more "comprador" enterprises.

Because the strength of private capital at this time is not strong, it is difficult to develop large-scale industries independently, and the biggest possibility is to introduce foreign capital or cooperate with foreign capital.

The final result may be to overwhelm the existing important domestic economic industries dominated by state-owned enterprises, and the consequence may be that the industrial foundation accumulated with great difficulty in our country will be impacted to pieces.

Of course, it is also possible that a large number of outstanding private enterprises will be born more easily, making our country's economic size and activity more prosperous than when it was under control.

Not to mention people from this era, even someone who has been there, sometimes it is difficult to judge whether a certain policy has a good or bad effect. After all, everything has two sides, and no one knows which side has a greater probability.

However, although approval is required, he thinks that the probability of passing the approval is still very high, nothing else, mainly because he can achieve technological autonomy.

He has the confidence to build the entire industrial chain of electronic manufacturing by Xuanwu Technology Company and the full set of Internet communication technology and equipment of Lingtong Technology Company.

Although the state is definitely worried that it will impact the state-owned automobile manufacturers that have finally improved, they are more eager for a complete set of technological autonomy, because as long as the technology is independent, it will not only benefit a certain enterprise, but the entire country.

Moreover, entering the automotive field is also conducive to the development of the basic industrial chain he is currently building, such as industrial CNC machine tools, which can obtain more orders.

There are also many processing equipment and parts in the electronics industry chain, which can actually be used in automobile manufacturing, and can also allow these basic companies to expand their business scope and improve their revenue capabilities.

Moreover, with more and more industries in the future, it will bring more benefits to the development of basic industries, and gradually our country can fully improve its weak foundations.

The development of any industry is not linear, but the more it extends from the product terminal, the more it is intertwined into a network, and the more complex the underlying industrial ecology is, the more it shows that the industrial foundation is solid and stable.

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