Chapter 3182 Control and Transfer

After the meeting, Zhou Buqi left.

Because the secretary told him that there was news from Estar, the latest news.

The New Delhi court had just reviewed and approved some mobile phones equipped with Qualcomm chips to obtain temporary entry permits. As for the three low-end phones equipped with MediaTek chips and self-developed chips, they cannot enter the Indian market.

This is exactly as expected.

Very efficient.

Qualcomm's move is not small.

Zhou Buqi left in a hurry, and as for the matter of "League of Legends" to shoot a drama, it was handed over to Lao Zhang to deal with.

Lao Zhang was so angry that he scolded him when he saw him running away.

Changyou has two multiplayer competitive games "League of Legends" and "DOTA2". Now it is going to shoot a drama for "League of Legends", but ignoring "DOTA2". This unfair resource tilt will obviously cause dissatisfaction among many people inside.

You know, in the European and American markets, "DOTA2" is much more popular than "League of Legends"!

In the field of film and television dramas, Europe and the United States are the main markets!

Zhou Buqi didn't care about those things and ran away.

Not long after setting off, Zhou Shaoning called.

Zhou Buqi answered the phone and said with a smile: "I know, India has approved the temporary permit, and I'm on my way there."

Zhou Shaoning said: "Samsung's people contacted me."

"Samsung? What's wrong?"

Zhou Buqi didn't care at first, after all, Estar and Samsung have a lot of business cooperation.

Zhou Shaoning said: "Samsung's mobile phones have also been stopped by India."

"Ahem..."

Zhou Buqi was stunned at first, and then laughed.

Zhou Shaoning laughed and said, "In fact, it's not just Samsung. Xiaomi has also been targeted. Xiaomi also has two mobile phones equipped with MediaTek, which have also entered the Indian market and have also been stopped. Now, except for Qualcomm's mobile phones, all other irrelevant ones have been stopped. They all infringed Ericsson's patents."

"That's good, it's fair." Zhou Buqi's mood was much smoother now, "Who will come from Samsung?"

"Originally, it was the vice president in charge of the mobile phone business." Zhou Shaoning knew what position Boss Zhou held, "But I told him that you were also here, and Samsung might change someone."

"Who will be replaced?"

"Li Zairong, no one else can do it."

"When will he come?"

"Maybe in the afternoon, anyway, it's not far, only one or two hours of flight."

Zhou Shaoning arranged this very well.

If Boss Zhou is not here, it would not be too much for Samsung Electronics to send a senior vice president in charge of the mobile phone business. But now Boss Zhou is here, and Samsung only sent a vice president, which is a bit unequal.

Even Li Zairong is a bit too high, it's better for his father to come forward.

However, Zhou Buqi prefers dealing with Li Zairong. His father is too old-fashioned and not in good health. He speaks English with difficulty and it is too difficult to communicate.

Sure enough, after this call ended, a new call came in.

It was Li Zairong.

He said that he had already booked a flight at noon and would arrive in the afternoon.

Zhou Buqi smiled and asked, "What's the matter? Why are you in such a hurry?"

Li Zairong said, "Something happened in the Indian market!"

Zhou Buqi said, "Oh," and "I heard something. What? Is it serious?"

Li Zairong complained, "Qualcomm may have made a promise to India, and Ericsson may have also made a promise to invest in India's semiconductor industry. Otherwise, the Indian authorities would not have cooperated with them so much. Even if they did, the efficiency would not be so high."

"Indian semiconductors?" Zhou Buqi frowned slightly, "Can they do it?"

Li Zairong smiled and said, "The strength in the IT field is still very strong. It may not be enough in manufacturing, and there is a lack of skilled and efficient excellent workers. But in design and R\u0026D, it has always been very strong."

India's IT strength is of course very strong, and the first-class ones go to the United States.

The second-rate ones stay in India.

It is similar to the situation in China.

Although it is not as strong as the United States, it is also enough to be considered a top industry in the world.

Zhou Buqi thought for a moment and said, "I seem to have heard something. India will focus on developing the IT industry in the next few years."

"Yes, it is actually a very powerful scientific research force." Li Zairong talked about another thing, "India has very strict foreign exchange controls, you know?"

Zhou Buqi couldn't help laughing, "How could I not know? This is a joke in the industry. India makes money and spends it in India, and I want to take it home once I part."

Li Zairong had no way to deal with this, and said, "Yes, that's it, no one can avoid it. Samsung also has a lot of business in India, with at least several billion dollars in revenue each year, but it lacks effective means to transfer it out."

Zhou Buqi asked for advice, "How can it be solved?"

Li Zairong said, "It can't be solved!"

"Ah?" Zhou Buqi didn't believe that he could just sit back and watch, "Samsung has been developing in India for at least a dozen years, right? Not a penny has been transferred out?"

Li Zairong hesitated and said, "Samsung will not learn from Apple. We don't have the energy to do those financial and technical things. Our business strategy will be more pragmatic. We don't need to transfer assets from India."

"What about the money?"

"It's mainly used in two parts."

"Yeah."

"The first part is scientific research." Li Zaiyong smiled, "India has strong scientific research strength in the IT field. Whether it is semiconductors, hardware development or software development, it can be said to be the best in the world. Invest the money you earn in India In terms of research and development, the results of research and development naturally transcend national borders.”

Zhou Buqi nodded, "That makes sense."

If you make money in India, you will definitely not be able to transfer the money back.

However, if Samsung's Indian team has developed a scientific research result, this result belongs to Samsung and can naturally be applied all over the world. Anyway, Samsung needs to invest heavily in scientific research. By making full use of the money earned in the Indian market, it can circumvent regulatory restrictions. Lee Jae-yong continued: "The other part is to further invest in building factories. Samsung has two manufacturing plants in India, with a total investment of more than US$350 million. This strategy is not as good as investing in scientific research, but it is still a good choice."

India's IT scientific research strength is very strong because India's elites are very strong; India's IT manufacturing industry is not so good, because the front-line business of manufacturing is not done by elites but relies on ordinary workers. India is weak in this regard. A bit of a hip stretch.

"What kind of business?"

Zhou Buqi immediately realized the difference between Samsung Electronics and Asda.

Lee Jae-yong said: “One factory produces consumer electronics, and the other mainly manufactures mobile phones.”

Zhou Buqi could only sigh secretly.

It is really incomparable with Samsung. They have big business and they have many ways to deal with it.

The so-called consumer electronics products are mainly televisions and walkmans. Products that are too difficult to manufacture are definitely not good. Indian workers are not that capable. But it’s not that difficult to make a TV, monitor, headphones, speakers, or even assemble a laptop.

The so-called mobile phone manufacturer must be a feature phone factory.

After the factory is built, the products are exported.

Money cannot go out, but products can.

Products are exported and money is spent overseas, which is equivalent to Samsung transferring money from India to overseas.

Later, many mobile phone manufacturers, including Apple, Samsung, Xiaomi, OV, etc., went to India to establish mobile phone manufacturing plants. In fact, this was also the reason. If the money cannot come out, then find another way to transfer the profits.

Such a strategy is not unusual.

Many foreign companies also use this strategy to deal with domestic foreign exchange controls.

For example, if Apple makes so much money in China, there are huge restrictions on how to transfer it out. If domestic enterprises want to transfer some wealth, it will be even more difficult. Foreign exchange exchange is very difficult.

Converting money into products, and then converting products into money, is a legitimate, legal and socially beneficial method.

Just like iPhone.

Apple has made a lot of money in the country, but it cannot transfer it illegally. This requires iPhone to move its production lines to China. To produce and process iPhones domestically, Apple needs to spend domestic money to purchase goods from more than 200 suppliers around the world, and then assemble and process them.

After processing the finished iPhone, export is completed.

iPhones are sold overseas and they make money.

The money will not be transferred to China, but will be transferred directly to tax havens by Apple. In this way, Apple not only solves the foreign exchange control restrictions of the producing country, but also avoids the high taxes of the selling country.

If domestic iPhone sales plummet, causing Apple's domestic revenue to plummet, the situation will be different.

This means Apple has less wealth to transfer.

Less money needs to be converted into products.

This means that Apple no longer needs to produce so many iPhones domestically, and can appropriately transfer domestic production lines to other countries with currency controls, such as India, Vietnam, and Indonesia, to convert the money of those countries into products. The export and sales of products are converted into money, thus completing the cross-border transfer of funds.

This is a legal means.

This is also the way all countries like it.

Many countries have set up foreign exchange control regulations. In fact, they hope that companies and wealthy people will transfer wealth through manufacturing and production. This process can create a large number of jobs and tax revenue, rather than a simple transfer of funds.

This is a good thing.

However, there are also loopholes here, which some people will seize and exploit.

Zhou Buqi smiled and said: "Someone has mentioned this strategy to me. However, it is not to use the manufacturing industry. After all, when it comes to manufacturing capabilities, India is still far behind! If you have a choice, turn the manufacturing factory into Isn’t it ten or a hundred times better to open in our country than in India?”

"Oh?" Li Zaiyong was also curious about this, "In what way?"

Zhou Buqi smiled and said: "It's a work of art!"

"Artwork? What?"

Li Zairong is a professional "entrepreneur", which is completely different from Zhou Buqi's style. He has almost no personal hobbies, and he doesn't have too many tricks. His life is basically filled with business.

Zhou Buqi simply described, "For example, if you make $100 million in India, you can't transfer it out. You can buy an Indian antique in the UK for $10,000 and then put it up for auction. India will come forward and offer a price of $1 After buying this antique for US$100 million, the US$100 million was transferred from India to the UK. The sentiment of justice is so strong, and there is public opinion about bringing back the antiques stolen by the foreign powers. This is a legitimate act that is in line with the main theme of India and public opinion. Not only will people not scold you. After the transfer of wealth, I will praise you for your love for India! You are a conscientious and responsible businessman!”

"Oh, this..." Li Zaiyong just remembered and couldn't help laughing, "Oh, I know, there is indeed a consultant who has proposed a similar plan. But I don't think it is necessary, at least now Samsung doesn't need to do this. Why? ?You want to go this way?"

"No, it's not needed for the time being." Zhou Buqi didn't hide it, "But this is a good way out. You see, the art market has skyrocketed in recent years, and the big buyers are all from countries with foreign exchange controls."

Li Zaiyong smiled and said: "No way? I heard that you are the largest buyer in the global art market! I heard that you bought up all the collections of old European nobles? Is this true? "Fake?"

Zhou Buqi said: "I am a big buyer, but I only use U.S. dollars for transactions. I don't do that kind of gray business. I don't need it."

Li Zaiyong laughed and complimented: "I believe that with your financial resources, spending billions of dollars to buy some art is as simple as ordinary people going out to buy groceries."

Zhou Buqi sighed, "I don't want that. I'm a big buyer, and I'm really interested in some art and antiques. But what the market is doing now... it's really hard to explain. If the whole world stopped it, Money laundering, and foreign exchange controls have been relaxed, and the prices in the art and antique markets are guaranteed to plummet. I don’t have to spend such a high price to collect.”

"You like art..." Li Zaiyong has been trying to have a good relationship with him. "By the way, I have several oil paintings by Kim Huanki. He is the most successful contemporary painter in Korea. Do you like his works?"

"good."

Zhou Buqi has never heard of this person at all, but since he is the most famous contemporary Korean painter, his works must be of high value.

Don't want it for nothing.

Take it and use it as a toy for Senior Wu and Yameng.

Li Zairong smiled and said: "That's just right. I'll go over in a while and give you a painting. These paintings of mine were also given to me by him. I don't understand art and don't appreciate art, so there's no use keeping them."

Zhou Buqi expressed his gratitude to him, and then talked about India, "Is the court in New Delhi so violent this time?"

Lee Jae-yong said: "There must be environmental factors. India has now launched a 'Made in India' national policy, which is somewhat resistant to electronic products imported from overseas, and has also raised tariffs to 20%."

Zhou Buqi snorted: "Dare you attack all mobile phone manufacturers?"

Li Zaiyong was silent for a moment, "It seems not."

"Huh?" Zhou Buqi paused, "All mobile phones that do not use Qualcomm chips are banned, right? Who can negotiate with Ericsson alone and pay excessive patent fees?"

Li Zairong said: "There are exceptions!"

"who?"

"Apple has not paid patent fees to Ericsson, but Apple's mobile phones are not restricted in India."