Chapter Eighty: Bai Jianjun

"I knew things wouldn't be as simple as they seemed! Come in, let's talk," Wei Hua said, opening the large gate and allowing Director Sun and the others into the villa's courtyard. He led them to the shaded area beside the pool and invited them to sit. Then, he went into the living room, retrieved several cold drinks from the refrigerator, and returned to the poolside. Handing the drinks to his guests, Wei Hua said, "It's pretty hot today. These are fresh from the fridge—have a drink to cool off! It's much nicer by the pool; even though there's air conditioning inside, it's not as comfortable as out here. Director Sun, now that we're all settled, could you tell me what exactly is going on?"

Director Sun took a long drink before speaking. "Now that we've found you, there's no rush. Let me introduce everyone first. This is my secretary, Xiao Li, and this is Comrade Bai Jianjun, the Deputy Director of the Xinhua News Agency's Hong Kong branch. You'll likely be working with him quite a bit in the future. I'm not very familiar with Hong Kong, so Director Bai kindly offered to bring us over today and take the opportunity to meet you."

As soon as Director Sun finished, the man in his mid-thirties extended his hand to Wei Hua. "Mr. Wei, I've heard of you for quite some time, but we've never had the chance to meet. Now that you've returned to live in Hong Kong, we'll have plenty of opportunities in the future. If you ever need my assistance, please don't hesitate to ask."

Wei Hua took Bai Jianjun's strong hand and replied, "Hello, Mr. Bai, it's a pleasure to meet you." Observing Bai Jianjun's robust physique, Wei Hua recognized that this so-called Hong Kong branch of the Xinhua News Agency was in fact the Mainland's official intelligence presence in Hong Kong. If his connections with the Mainland continued, he would inevitably have much to do with Deputy Director Bai. "Better to befriend the local official than the distant magistrate," he thought, and so he made sure to show the man proper respect.

"Well then, let's set aside the pleasantries and discuss this cooperation plan," Director Sun began. "The authorities do not agree to exclude your company's products from the national resource allocation plan. Furthermore, all foreign exchange your company earns from exports must be managed by the State Administration of Foreign Exchange. In other words, you will only receive renminbi, not foreign currency. The land you require can be allocated to you, but you'll need to pay an annual usage fee, which can be deducted from the funds you lend to the industrial district. As for your production workshops and buildings, the industrial district can construct them for you, but you'll be responsible for the labor costs. You may also build them yourself if you wish—it's up to you. The industrial district will handle the infrastructure: electricity, water, and roads. Since your company's products will be included in the resource allocation plan, there's no need for you to set up your own sales network in major cities."

Director Sun laid out these terms in one breath.

"My company's products cannot be included in the national resource allocation plan," Wei Hua replied. "If we agree to that, it means we must follow the government's directives completely, and our profits will be at the government's mercy. In that case, I'd be spending money just to work for you—for nothing. Do you think I'm a fool? Who would invest in a business with no profit? I have no need for political capital. As for foreign exchange being managed by the State Administration, we can accept that, but some of our raw materials must be imported. The Administration must guarantee that the foreign currency required for our import plans is provided in full and on time—no delays, no excuses. Otherwise, we cannot agree to this condition. Director Sun, you should know that most of our products are for export. The amount of foreign exchange we bring in will be substantial, so the Administration must meet our requirements, or the deal is off.

"In recent years, domestic consumption hasn't been high, so our sales within the country will be limited. Even so, we insist on building our own sales network because, eventually, our domestic sales will grow, and it is inevitable that we establish our own channels. It's better to do it now, especially since we have the necessary funds. Regarding industrial land, we're willing to pay rent as long as the price is reasonable—no objections there. As for the construction of factories, you may build them for us, but they must be built according to our specifications."

Secretary Li interjected, "Mr. Wei, why are you so insistent that your products stay out of the allocation plan? According to this cooperation proposal, your company produces TVs, refrigerators, air conditioners, and other appliances. Few domestic manufacturers make these, so if your products are included in the allocation plan, you needn't worry about sales. That would reduce your expenses and increase your profits."

"You're right," Wei Hua responded, "there are few domestic manufacturers of these products, which means our goods will sell regardless, so why would we want to be included in the allocation plan? If we are, our profits will be strictly capped by the authorities—that's simply unacceptable. Moreover, I don't have faith in your efficiency. I may not have visited the Mainland, but I'm well aware of the situation: bloated institutions, low efficiency, abysmal service in state-owned stores. If your allocation plan can sell a hundred units, my own sales network could sell two hundred. With such a difference, why would I choose the allocation plan? Business is all about circulation—the faster the flow, the more we earn. Why shouldn't I maximize my profits? Setting up my own sales network will cost more, but the extra sales revenue each year will more than make up for it, and the network will serve us for years to come. Spread over time, it's a wise investment."

Secretary Li pressed on, "But have you considered how you'll transport your products nationwide if you're not in the allocation plan? You must know that all domestic transport, especially rail, is planned. Without inclusion in the allocation plan, it will be nearly impossible to ship your goods by rail. Are you planning to set up your own fleet of transport vehicles?"

"I'll handle transportation myself," Wei Hua replied calmly. "Besides rail, there's air and road transport. If necessary, I can establish my own fleet. I understand the situation here: many people are unemployed, so staffing won't be an issue. In fact, doing so would help solve the employment problem for some citizens, wouldn't it? Don't forget, the government will soon issue new policies—those sent-down youths will be returning to the cities. Does the state have the capacity to find jobs for all of them?"

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