Chapter 760: Making Money and Getting Tangled

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Relying on the Phoenix Technology Company, my country has become the world's largest software industry country, and it is also the world's largest Internet industry country.

Except for Danque Financial Services Company, which is developing, and Hummingbird Life Service Company, which has just been established, all the remaining subsidiaries are based on revenue, and they all belong to the super giant level.

The reason why it has developed so fast is that it has caught up with the trend of the times. The world is in a period of industrial transformation, and a new industrial system represented by information technology, the Internet, and semiconductors is under construction.

The second is that they have absolute advantages in technology. Not only do they occupy a leading position in the field of conventional software, but they are even more powerful with the blessing of artificial intelligence. It can be described as "Gods block and kill gods, Buddhas block and kill Buddhas".

It's not that no country wants to protect its own software industry, but the gap is too large. Even if it is protected, it may not be able to develop in a short period of time.

If it is protected all the time, it means that it will be out of touch with the world's mainstream technology for a long time, and such consequences are even more difficult for them to bear.

The backwardness of information technology and software technology is very implicated, which will cause other aspects to gradually fall behind. For the sake of the overall interests, they cannot be banned.

Of course, there is also their self-confidence at work. As far as education level is concerned, they are still in a relatively advanced state, and they think that their current lag is only temporary.

With the support of this self-confidence, I feel that it is even more necessary to introduce competitors to stimulate domestic capital and technical personnel to catch up desperately, so as to exert greater momentum.

Only Ye Zishu knows if he can do it. If he doesn't want the opponent to take the lead, even if the opponent tries his best to catch up, it will still be useless. He still has this confidence.

There is another interesting thing, that is, in order to attract Phoenix Technology's companies to settle in the local area, many local governments have given tax incentives.

But I didn't expect that the various companies under Phoenix Technology Company are so vigorous, and their operating income continues to hit new highs. If they continue to implement the original preferential policies, they will lose huge tax revenue.

It's just that they didn't dare to overthrow their previous promises casually, so they discussed with these companies to see if they could restore taxation and adopted a negotiation method.

At the beginning, these companies disagreed. After all, the two parties signed the agreement, and they should not break the contract halfway because of too much interest. This will cause a serious crisis of trust.

And this opening cannot be opened casually. Once the agreement is not followed, there will be no integrity at all in many things in the future, so I sternly refused at the beginning.

Later, he changed his mind to gradually unraveling the situation, and at the same time gave other compensations. The compensation that these governments can give is not much.

The only thing that is more attractive is land compensation.

However, Phoenix Technology Company is not a real estate company, and it does not engage in specific production business. It is useless to ask for so much land. Such compensation does not have a great effect on them.

But Ye Zishu knew what these governments meant. The compensation was not so much for Phoenix Technology, but rather for Wancheng Jiye. The purpose was to attract his attention.

After all, no matter how powerful Phoenix Technology Company is, he is still the boss behind it. As long as he feels that the benefits can be exchanged, there will be no obstacles.

Don't think that the land compensation given by these governments is a huge loss. In fact, there are also their small calculations, and there are at least two benefits.

The first one is that these lands are sold, but they are sold in the form of taxes, not free supply, and the government's fiscal revenue will increase rapidly.

The second is that these lands must be developed after all, and the development must continue to invest funds, which will also bring economic prosperity to the local area and increase the number of employees at the same time. It can be said to kill two birds with one stone.

Although Ye Zishu knew their small calculations, he still chose to follow this plan. After all, the increase in government revenue is also beneficial to the local people's livelihood and welfare.

If the local government is more motivated and uses these funds to develop other industries, it will bring more industries to the local area, which is generally beneficial to the overall economic development.

What's more, Baihe Software Company is engaged in government information business. If the government has no money, he can't do this business, and businesses related to government finance can't be carried out.

Moreover, the cities where these companies are located will not have poor future development potential. Wancheng Foundation acquired these lands at a relatively low price, and the future development prospects are still good.

Therefore, this plan is not a one-sided benefit plan, but a win-win plan. As the boss of many groups, he has no reason not to accept this plan.

The tax incentives here only refer to the part of the local government. It is impossible for the national tax department to enjoy the preferential treatment. You can pay as much as you need, unless the country wants to support a certain industry.

In fact, the country really wanted to support the development of the software industry at that time. After the Phoenix Software Company's operating system came out, it was discussing the support plan.

But I didn't expect Phoenix Technology to develop so fast. Their plan has not been formulated yet, and they have already grown up. Seeing this situation, they don't need support at all, and then they give up.

Therefore, the tax incentives these companies enjoy are not as many as imagined, but after the tax reform, the fiscal revenue of local governments has been reduced by more than half, and they are generally tense.

Therefore, it is very important for them to restore these taxes, especially for cities like Harbin, this tax is of great significance to them.

Later, he felt that such a plan was very good, and it could be promoted and carried out between other companies and local governments, which would be beneficial to both parties.

So now all the subsidiaries have resumed their normal tax payment status, and Wancheng Jiye now has more land in its hands.

This is also the main reason for the decline in Phoenix Technology's overall net profit margin, otherwise their net profit margin would have further increased rather than decreased.

In fact, the proportion of my country's tax revenue to GDP is not high. It was generally around 10% in the 1990s. In order to support industrial development, the government introduced many support policies, and tax incentives are a common phenomenon.

It's just that he didn't expect the freak Ye Zishu to appear. His industries seem to be born to grow and grow, and oil can leak out of just digging a well.

It would be unreasonable to support a highly competitive industry like his. The government is willing to spend huge sums of money to support it, not to cultivate a competitive industry so as to obtain more tax sources.

Generally speaking, if the income obtained from abroad has been taxed abroad, it is only necessary to make up the difference at home. This is to avoid repeated taxation and reduce the market competitiveness of enterprises.

From this point of view, most of Phoenix Technology's income comes from overseas, and these incomes are not practical to pay taxes when brought back to China, or the tax payment is relatively limited.

These governments still don't collect much tax, and it can only be said that it is better than nothing. Ye Zishu is also aware of this problem, so he proposed a supplementary plan.

That is, more taxes can be paid here to make up for the lack of local finances. The compensation is still land, which is equivalent to using Phoenix Technology's money to support the development of Wancheng Foundation.

The condition is that the price of the land to be compensated should not be too high, it must be discounted from the market price, otherwise why bother, it is better to give the money to Wancheng Jiye and let them buy it.

These local governments are not at a disadvantage. If the money is given to Wancheng Jiye, it may not necessarily be invested in these cities, or the amount of funds invested may not necessarily be so much.

If it's just a discount, Wancheng Foundation can invest more funds in them, and the benefits will be very obvious, at least the business will be more prosperous.

At present, most local governments have not considered the issue of land finance, and still want to increase fiscal revenue through industrial development, but it is difficult to sell land at a high price now.

Ye Zishu also intentionally controlled the amount of investment in large cities when planning its industrial layout. The purpose was to prevent the creation of too large cities, which would cause rich cities to become rich and poor cities to find it difficult to maintain administrative operations.

Under such circumstances, Phoenix Technology can still achieve such a high net profit margin, so what is he not satisfied with? The actual net profit margin is even higher than that of Taiji Group.

It's just that in this good situation, he also has some worries. If international trade wants to continue to develop, it still needs to pay attention to trade balance. Only when everyone comes and goes can the business continue.

The huge trade deficit will definitely cause dissatisfaction in many countries. It may not be a big problem for a year or two. After a long time, even the old m can't bear to print money.

This is also why he started to increase the import of mineral resources last year. Even if it is not used up, he must save it. In addition to the reasons explained before, there is also the purpose of reducing the trade deficit.

Energy is considered the best commodity to narrow the trade deficit, but Kirin Energy Industry Group intends to get involved in the energy industry, which will basically be self-sufficient in the future, and even part of it can be exported.

Compared with refined fuel oil, industrially synthesized fuel oil is of higher quality, more environmentally friendly and burn-resistant, and is actually very competitive internationally.

It’s just to exchange so many tickets, if you can’t buy equivalent goods, the tickets will lose their meaning, so exporting depends on the situation, not just exporting to make money.

Under the current circumstances, only mineral resources are needed by our country. As for industrial products, as my country's industrial system gradually improves and strengthens, the demand for imports in this area will only decrease.

Thinking of this, Ye Zishu also felt a bit of a headache, earning too much money from abroad has such side effects, if it were a few years ago, he would never have such thoughts.

As for the transfer of low-end industries like other developed countries, it is not in line with our national conditions for the time being. Our country has a large population, and these low-end industries must be retained for employment.

If it is really because of the high labor cost that the low-end industry is really not competitive, fully automatic equipment or industrial robots can be launched.

This kind of high-end equipment seems to be a huge investment, but it actually depends entirely on his mood. If he wants it to be expensive, it is naturally very expensive, and if he wants it to be cheap, it can be very cheap. The technology is in his hands.

These ideas are the result of rational thinking, but due to the instinct of capital, it is impossible for him to stop these commercial activities, and he will even continue to increase his efforts in order to make more money.

This is where he struggles. If he were a small businessman, he would not have this trouble. Such high-end issues have nothing to do with them. They just need to focus on making money, and run wherever there is money.

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