Chapter 773: It’s time to expand the consumer market

,!

After reading Wancheng Jiye's annual report, Ye Zishu calculated that within the entire system, the amount of funds that can be temporarily provided to them is 15 trillion yuan.

The main funds come from Taiji Group, Phoenix Technology Company, Qinglong Technology Company, and Xuanwu Technology Company, especially Taiji Group and Phoenix Technology Company, which have the most net profits and the most funds that can be used.

It is not a big problem for Qinglong Technology Company to take out the funds. After all, they mainly use scientific research project funds, supplemented by operating funds. They have few people to support and do not need too much reserve funds.

So leaving 1 trillion yuan in reserve funds for Qinglong Technology Company is actually a bit too much. Their scientific researchers really can't spend that much money, but he can't take too much, so he has to leave more for them.

Xuanwu Technology has only left 2.1 trillion yuan in capital reserves, which is actually relatively small. It will cost a lot to maintain their huge system.

Fortunately, their main business market is very stable and has an absolute competitive advantage. The market will not shrink in a short period of time. This reserve fund is mainly for expansion.

In fact, they were also expanding rapidly last year. Otherwise, why did they directly increase their turnover from 3.2 trillion yuan to 17 trillion yuan. To produce so many things requires the construction of a large number of factories.

Judging from their crazy expansion last year and their revenue in all aspects last year, if there are no new products, the market growth will not be as crazy as last year.

Last year, the industries under his umbrella, except for "China Small Master", Baihu Technology Company, and Tidal Investment Company, other enterprises together created a revenue of 74.55 trillion yuan.

The net profit has reached 30.6 trillion yuan, the number of people in the entire system has reached 110 million, and it has a complete advanced industrial system, cultural industry system, and service management system.

The influence of the industry is not only huge in China, but also well-known in the world. Many industries are in the leading position in the global industry, and many businesses have reached a monopoly state.

Of course, 74.55 trillion yuan is revenue, not the created gross domestic product (GDP). GDP is definitely not that high, and is generally much lower than operating income.

The reason why the net profit is so high is that many industries are in internal circulation, and the cost spent by one company becomes the revenue and profit of another company.

This has led to very high overall profits of their industrial enterprises, and they have too many high-profit industries, and the scale of output value is not small, which has increased the overall net profit margin.

For example, Taiji Group and Phoenix Software are companies with extremely high profit margins, and the profits of other companies are not low, basically maintaining more than 20%, which has created a foundation for high profits.

despite this,

The overall net profit margin reached 41%, which still makes Yeshu feel that it is too high. It is impossible to reduce the price of the product. This is a market behavior. Selling so high shows that the market accepts it.

How to reduce the overall profit is to increase the salary of the employees. Before that, he planned to raise the overall monthly salary to 4,000 yuan, but now it seems a bit conservative.

According to his opinion, the overall monthly salary can be increased to 8,000 yuan, but this plan may not be passed, because the increase is too fast, and it is difficult for society to adapt.

It is not to say that the higher the wages of employees, the better. If the increase is too high at once, it may lead to inflation. If the prices of various consumer goods rise sharply, it will cause economic disorder.

From 2,000 yuan to 8,000 yuan, the salary has increased by 4 times, and the society can't adapt to it. He planned to increase it by 2,000 yuan per year, which is a very stable approach.

But now he has to consider some issues, that is, such a high revenue and profit, a considerable part of it is earned from overseas.

It stands to reason that promoting the increase of global trade is a good thing, but only you earn other people's money, while others earn less money from you, which will lead to trade imbalance.

Although in order to cope with the price problems brought about by the rapid economic growth, a large amount of goods were also imported from overseas last year, but overall, my country's trade surplus is still very large.

This kind of trade is difficult to last, and it will cause a big rebound in a short time. He is not worried that his industries will be hit hard, because many of his commodities are the necessities of many countries.

Although there will definitely be losses, the damage should be the lowest. On the contrary, the domestic low-end manufacturing industry may suffer a devastating blow and cannot develop steadily as before.

There are basically no low-end manufacturing industries for export under his banner, and all of his exports are high-value-added technological products. If he insists, furniture should be the largest.

It's just that the furniture industry under him does not seem to be of high value, but based on the application of advanced technology, the cost is very low. Even if tariffs are raised, it still has strong competitiveness.

Unless you are completely shameless and directly increase the tariff to several hundred percent, it means that the other party does not want to do business with you at all. As long as you have this heart, there are ways.

It's just that the price of doing so is that there will definitely be problems in bilateral trade. Now that our country occupies a very important position in the field of international trade, the consequences of doing so will not be easy for everyone.

He has too many high-quality products and services, which are already part of the global economic development, and even the driving force of the global economic development, which is an indispensable existence.

For example, the products of Taiji Group, Qinglong Technology Company, and Phoenix Technology Company are either used to save lives, or they are productivity tools, or they can improve the economic development of other countries.

Moreover, our country has successfully joined the World Trade Organization established last year, which is much smoother than in previous lives. The reason is also very simple, because our country is already an indispensable part of global trade.

If a world trade organization does not have the participation of the world's largest trading country, such an organization does not have much authority and does not have much influence on global trade.

In terms of our country's global trade volume, if we want to leave this organization aside and sign bilateral and multilateral agreements, we are fully capable of replacing it, and it will not affect our international trade much.

The reason why it was so difficult to restore the status of the GATT contracting party in the past was that my country's economy and trade accounted for too little in the world, and it did not have much say. In addition, other factors dominated, resulting in many difficulties.

It's just that I didn't expect our country to be stronger than before last year, not to mention them, even Ye Zishu didn't expect it. He thought it would be good to have a 50% growth rate last year compared to the year before.

After all, there was a round of sharp growth the year before last, and it turned out to be even more fierce last year. The operating income was 3.8 times that of the previous year, and the growth in international trade volume was even more exaggerated than this figure.

As the saying goes, without long-term considerations, there must be short-term worries. The rapid growth of our export business is a good thing. No one dislikes making a lot of money. The only thing that should be considered is whether this situation can last.

This also proves from another aspect that my country's trade dependence on foreign countries is too high, and the proportion is too large. This is not a normal economic development pattern.

To avoid trade imbalances and increase in trade frictions, we can only increase the size of the domestic demand market. On the one hand, it is to reduce the proportion of the export economy and increase the ability to resist risks.

On the other hand, expanding the local market is also to allow others to sell us more things, increase our import capacity, and thus make international trade more balanced.

And all of this requires the people to have money in their hands. If the people do not have money in their hands, it would be ridiculous to talk about the expansion of the domestic demand market.

Of course, to expand the scale of imports, we can start not only from the consumption side, but also from the production side, that is, to import various industrial equipment from others.

This model has been used in previous lives. We produce front-end consumer goods for export, and then import industrial machinery and equipment. In the case of insufficient technical strength, we can only use this model.

But the result of this model is that people in our country need to work overtime all day long, but they don't earn much money, because we are at the low end of the industrial chain and earn the lowest profit.

Moreover, our country does not need to import other people's industrial equipment at all. His industrial system and industrial equipment cover everything from high-end to low-end, and are fully capable of meeting domestic demand.

If he had a choice, he would rather give up the interests of the front-end low-end consumer field than give up the interests of this high value-added industry, not to mention that this is the core interest of his industry, and it is impossible to give up.

It can only increase the import of low-end consumer products, which requires domestic people to have money in their pockets, so distributing money has become the top priority.

How to distribute money is also particular. In addition to the direct salary increase model like his, it is to create more jobs and allow more people to join in the money-making process.

Taking into account the pockets of the people and the low-end industries in China that have not yet fully transformed, he decided to set the minimum monthly salary of his employees at 5,000 yuan, and the average monthly salary is between 6,000 and 7,000 yuan.

The average monthly salary is no longer fixed, leaving room for the company to adjust. It will take a year to gradually adjust, and the final monthly salary will be adjusted to 7,000 yuan. If you can afford it, it is also possible to reach 8,000 yuan.

I just don't know if the domestic low-end industry can afford it, because there are too many employees under his banner, and such a high increase means that social labor costs will rise rapidly.

The low-end manufacturing industry strives for low labor costs. If the labor cost rises rapidly, it will be difficult for them to adjust, and it is very likely that they will close their doors. He doesn't know if this is a good thing or a bad thing.

In order to cope with unpredictable risks, he believes that it is necessary to continue to accelerate the development of the service industry and promote more people to develop towards the service industry, so as to reduce the large number of unemployment problems caused by the impact of low-end manufacturing.

The current state of the country is a super industrial base. The proportion of industrial employees is very high, while the proportion of service industry employees is relatively low. This is not a normal phenomenon.

The reasons for this phenomenon are naturally caused by the structural problems of the rapid economic development in recent years. First, the export-oriented economy has developed very rapidly, and the feedback on the development of the domestic service industry is very limited.

A large amount of money earned is used to expand the manufacturing industry, and relatively little money flows to the consumer side, which cannot promote the prosperity of consumption and naturally cannot promote the development of the service industry.

The second is that the infrastructure is not perfect. Even if the service industry wants to develop, it must have a business site. Compared with the construction speed of industrial plants, the construction speed of urban buildings is much slower.

This is also an important reason why he spared no effort to support the development of Wancheng Foundation. You can't build a shed to start the service industry. There must be enough urban buildings to support the development of the service industry.

After two years of frenzied construction, Wancheng Foundation has laid the foundation for the development of the urban service industry. Talking about the high-quality urban service industry, it also has a foundation, at least much stronger than it is now.

He is not worried about promoting the development of the domestic service industry, but he is only worried that more people will flood into the city, which will still make the city appear very congested. This problem will always exist in a short time.

The solution is to let the houses built by Wancheng Jiye be rented out in the form of joint renting, so that the housing area they built and the original urban housing can barely accommodate the urban population of about 500 million.

－－－－－Off Topic－－－－－

Please subscribe!