novelSusiti #527 - Reverse Tian Gang
#527 - Reverse Tian Gang
The subtle sales restrictions on Dongda's side didn't provoke any reaction from the official authorities in the Western powers. After all, these officials didn't have the time to observe such microscopic matters.
However, for the giant enterprises controlled by MBI and other financial groups, they clearly felt a strong sense of malice. Their orders for high-end chips like the 486 were now all being told that they would need to be scheduled for at least two years. The 386 chips also needed to be scheduled for more than half a year. Only the 286 chips could be supplied without limit, no matter how many they wanted.
Now, the production capacity of Dongda Dongxin Technology, the only supplier of high-end chips, was completely opaque. The MBI side's business representatives couldn't tell whether this was a genuine shortage or just an excuse. However, seeing that their competitor, Vision, hadn't received any new 486 chips either – their old orders were placed earlier than MBI's, and they had received about 10,000 units from the early orders as early prepayment old customers – Vision still had tens of thousands of high-end models. They had also pre-ordered more than 200,000 386-level chips, which meant Vision still had a share of more than 200,000 mid-range commercial machines.
Since Vision had set a high price for these models from the beginning, the price was comparable to Dongda's high-end models. Originally, some of them were difficult to sell because the price was too high, and customers had concerns and would compare them with other products.
However, as Dongda began to control the output of high-end chips, only selling expensive high-end complete machines and host products through Dongda's own computer companies, those near the water get the moon first. Only Dongda's companies could get high-end chips first. MBI and other companies felt a sense of frustration with no way to complain. This also stimulated them to invest more in chips, because the feeling of being controlled by others was really too uncomfortable.
Not only was this the case in the IT industry, but for the North American aviation giants, the past five years had also been extremely difficult.
With the successful mass production of Dongda and John Bull's new generation of aero-engines, the new four-engine intercontinental aircraft also achieved its test flight. The CAC-200/A320, an intercontinental aircraft with more than 250 seats, perfectly achieved their original design goals, achieving a range of more than 10,000 kilometers, which could support direct flight plans for most international routes.
Whether it was protests or other actions, under the current circumstances, all their actions were ineffective.
After research and promotion by the brains behind these capitals, they found a new way, which was to establish a global free trade organization to break this deadlock!
The financial groups behind these giants began to encourage congressmen to initiate a motion to establish a global trade organization, on the grounds that the trade in the Sword-World was becoming increasingly large and needed an international economic organization to regulate and constrain it.
According to the ideas of these giants, the voting rights of this World Trade Organization in the future would be defined by the scale of trade and economy of various countries, so that Rogue Eagle would obviously have an advantage in this organization.
After all, Rogue Eagle was still the well-deserved first industrial power and the first trading power. If they added their staunch allies such as Japan, South Korea, Australia, and the American countries, as well as the division and wooing of European countries, their voice in the World Trade Organization to be established in the future would be very strong.
If this organization was established, then all countries could be invited to participate, and then all commercial behaviors of all commercial organizations within the organization would have uniform commercial treatment, in other words, enterprises would have "the same national treatment" in all countries.
The will of capital was naturally the will of the Rogue Eagle country, and soon they formed a domestic action plan.
And this time, with the strong promotion of capital, Rogue Eagle promoted this matter with great intensity, and soon united more than 50 countries in the Sword-World to launch an initiative to establish the World Trade Organization.
When Ren Zhong heard this news, he never thought that this thing would be spawned in the Sword-World.
This World Island has now become somewhat unrecognizable.
Of course, at this time, Ren Zhong didn't know some of the calculations behind this World Trade Organization.
But from the content of the initiative, Ren Zhong found some very familiar parts: Rogue Eagle was now actually advocating the realization of global trade liberalization!
Calling on all countries in the world not to set artificial barriers to trade goods and technologies, and to substantially reduce the tariff levels of various countries to achieve global trade integration.
All of this gave Ren Zhong a feeling of time and space dislocation.
These were not the things that Dongda in the main world had been demanding and calling for all the time, but now it seemed to be reversed in the Sword-World.
It simply had a taste of reversing the heaven and earth.
Behind this initiative, Ren Zhong could see a little something, that was, Dongda's implicit export restrictions were now taking effect.
However, it was not yet known how long this effect could last.
For Ren Zhong, the current development had reached a new era with no historical reference.
Where to go in the future, he began to lose the direct use of the historical experience of the main world.
Since there's no readily available experience to reference, what attitude should the Bright Sword world's Dongda adopt towards this matter?
After receiving the news, Ren Zhong himself traveled back to the main world and had in-depth exchanges with some trade experts. Using simulations from the main world, he conducted a fairly comprehensive deduction of the matter. The simulation results indicated that technologically advanced countries, even if they open the doors to trade, ultimately gain far more from world trade than they lose.
Currently, Dongda, in order to achieve comprehensive development, has built a fairly complete industrial system, capable of producing almost all products in this world, and has a huge advantage in terms of production capacity increase.
The labor cost of Dongda's human resources, after so many years of development, is roughly equivalent to a quarter to a third of that of the American West, and the currency exchange rate with the US dollar is stably controlled at 1:3, with one US dollar exchanging for three yuan.
In terms of labor productivity, Dongda's factory automation level is now basically on par with the world. The machine tool industry's progress in automation benefits from the improvement of Dongda's computer development level, as well as the CNC machine tool design concepts and design indicators that Ren Zhong brought from the main world, leading to technological breakthroughs in CNC machine tools.
In terms of new production line design schemes for industrial products, Dongda's level of intelligence can far surpass other competitors.
Therefore, Ren Zhong couldn't think of anything Dongda would lose if it opened the trade restriction threshold. Dongda's products have already gained a lot of reputation for being cheap and good. If trade barriers and sales are removed, then the American and Western markets will face the baptism of Dongda's huge production capacity output.
According to the unified national treatment, Dongda enterprises are not afraid of any competition.
The newest novel is first published on Liu 9 Shu Ba!
Even if some things are lost in certain fields, such as financial services, Dongda lacks large consortia in this area, which is indeed a shortcoming. If everything is opened up, facing the attack of the world's major capital, there may indeed be some trouble.
However, Ren Zhong doesn't feel too much pressure regarding this situation, because first, Dongda's economy is not driven by industries that are extremely dependent on finance, such as real estate, but by the real world factory model. Moreover, the intellectual property rights and technology of the products are mostly independently controllable. The upstream of the industrial chain, under the connection of the Dawn Group, has already opened up the autonomy of upstream core technology!
Second, Dongda now has two financing markets. After many years of dual-line operation, Magic City and Oriental Pearl have experienced some ups and downs. Under the condition that Dongda's economic development is healthy and upward, Dongda does not have a trade deficit and has a good foreign exchange surplus every year. In addition, the leverage of short-selling financing in the Oriental Pearl financial market is limited, and the pilot program of options trading is carried out in the low-leverage era of 1:4, while options trading has not yet been opened in the mainland, and short-selling mechanism is not allowed, so international capital cannot find a place to use its leverage to pry the market.
To put it bluntly, even if a surge of large capital is introduced, Dongda's foreign exchange can be calmly exchanged, because the channels for these capital to invest after entering are very limited. Dongda welcomes investment in real industries, and in the short term, this kind of capital entering is a boost to Dongda's economic development, bringing more or less local employment.
If you want to do financial investment, there is no commercial real estate for capital to enter. All Dongda housing is now solved by two basic models of low-rent housing + guaranteed housing to meet the housing needs of the largest range of citizens, as well as the welfare fundraising housing model of large companies as an auxiliary.
Third-party funds cannot find an entry point at all.
In the securities financial market, most of the enterprise trading shares currently invested in the stock market are 20% to 30% of the market trading shares, that is, retail shares. Most of the shares are in the hands of local state-owned capital or special technology capital such as the Dawn Group. Under the condition of lacking a short-selling mechanism, the incoming capital has almost no other ideas except to raise the price.
Ren Zhong carefully reviewed the various possibilities under free trade, and then discussed and studied with relevant experts in the main world for almost two weeks—Ren Zhong regarded this as a learning topic and simulated practice. As a billionaire, learning some financial knowledge is not surprising at all in the main world.
After all, many of Ren Zhong's wealthy people have industries in different countries around the world.
For example, in the Black African market, Ren Zhong's automobile company has even entered the ranks of the top ten automobile companies in Black Africa.
After studying these materials properly, Ren Zhong found Chief of Staff Ye and expressed his suggestions and opinions. Regarding this matter, Dongda maintains a positive follow-up attitude. According to the current economic development trend of Dongda and the upstream situation of the industrial chain, if global national trade integration is achieved, Dongda's development may be faster!
Of course, in order to cope with this new economic situation, Dongda also needs to strengthen the standardization of weak links such as finance and take some preventive actions in advance, so as to avoid the huge impact on the two major financial markets of Magic City and Oriental Pearl after the globalization of the financial market in the future.
The first change is the banking industry. The threshold for the banking industry should be raised rather than lowered in the future. Banks facing urban industrial development should be strictly distinguished from credit cooperatives facing agricultural development, but in terms of regulatory system, thanks to the currently established national network, the dynamics of bank and credit cooperative funds must be supervised in real time by regulatory agencies, and random spot checks should be maintained on the actual use of funds.
Through strong supervision to ensure the capital adequacy ratio of the banking industry, thereby reducing the risk of the banking industry at the source, and also ensuring that foreign capital is treated equally in terms of supervision after entering the bank, and shackles are put on foreign banks.
In this way, for foreign capital, we confirm that you can come in and enjoy our national treatment, but unified management is essential. Only if you are willing to accept it can you land, and if you are not willing to accept it, there is no way to approve it!
With the help of this opportunity, Ren Zhong began to move many effective management models in the financial industry in the main world to the Bright Sword world.
For this Bright Sword world, this is a dimensionality reduction strike, which is more strict than the system of Western powers. After all, the current Western financial market has not experienced enough Black Monday X, and many black swan events in transactions have not been highlighted, and there are more loopholes. Ren Zhong naturally has no obligation to remind them.
Instead, he is preparing to take advantage of the upcoming wave of global economic integration in the Bright Sword world, and is preparing to use the powerful financial power of the Dawn Group to make a small attempt to eat a big piece of fat in the Western market.
It is not a fantasy for Ren Zhong to counter-cut Wall Street!
(End of this chapter)