1991 Starting from the core

Special Zone, Hongyan Hotel.

That night, Zhang Jianjun, who was famous for his pirated VCDs, came over from Dongguan. Together with Chen Daohua, the five of them just had a light meal and then moved to the teahouse box on the top floor to continue chatting.

"With regard to economic development, the demands of the upper class and the local government are inconsistent. The local government hopes that its own soil can give birth to a company that monopolizes the world."

Su Yuanshan is good at drinking now, but it is still not as good as the one in his previous life. Moreover, the evening was of a party nature, and I had to meet with the SAR leaders tomorrow, so I just had a simple drink.

After taking a sip of tea, Su Yuanshan continued: "But from a higher-level perspective, if a company of this size, let alone a private company, even a state-owned company, once it gets big, you will be hacked twice."

Everyone present had interacted with Su Yuanshan several times, but each time they mostly talked about technology and prospects. Today was the first time that Su Yuanshan talked about the relationship between the government and enterprises, and it was a bit strange.

Especially Zhang Jianjun, he asked curiously: "Why are they inconsistent?"

"Local protectionism." Chen Daohua answered for Su Yuanshan, using a word that has not yet been circulated.

Su Yuanshan looked at Chen Daohua in surprise.

Chen Daohua smiled and said: "Before entering the mainland market, Xiaojing and I talked about this topic. She said that some scholars in the west have studied the domestic market and the results are that in the process of mainland China's transformation from a planned economy to a market economy, there will be Local protectionism is inevitably born. Therefore, to enter the mainland market, finding a good location is key."

Su Yuanshan thought that when he first met Chen Jing, she was as quiet and pure as a female college student... unexpectedly, this girl knew everything about the mainland.

However, he also recognized Chen Daohua's statement and nodded: "That's right. The establishment of a large enterprise can meet all the demands of a local government. Taxation, employment, peripheral industry promotion, and financial circulation, and all of this will eventually lead to prosperity. Degree, that is, political performance—otherwise, why would the local government have to attract investment even if it makes no headway?”

"In the past, there were too many examples of a large state-owned enterprise supporting a city. If such a giant enterprise is not protected by the local government, who else will be protected?" Su Yuanshan said with a smile.

Several people were thoughtful, and Chaoxin mused: "But from a higher-level perspective, this kind of enterprise is not conducive to market-oriented construction."

Su Yuanshan smiled and nodded: "So the country is very entangled. Reform and opening up have given local governments a lot of autonomy, and local governments have actively introduced enterprises for protection... but they have to introduce them. What should we do? Of course, create more opponents and achieve comprehensive It’s marketized.”

"If you understand this, you can understand why the Post and Telecommunications Bureau, after choosing Yuanxin's mobile base station, has given the green light to foreign products in terms of mobile communication equipment and welcomed them into the country in an open manner."

"In general, the higher authorities are still using the knife of Yuanxin to consider the overall interests of the country and let the giants come in to compete with us. If the giants cannot compete, they must increase domestic investment to drive more growth. More industrial upgrades.”

Jiang Qingchuan looked at a few people. Among these people, he was the only one who knew nothing about the economy. He finally asked: "What about the country's attitude towards our Yuanxin?"

Su Yuanshan thought for a while: "Limited indulgence."

*Note: There are extensive notes here, see what the author says.

*

Next, everyone talked about the mobile phone response plan on this topic.

Since mobile companies treat all mobile phone brands equally, Yuanxin just follows the trend.

After sorting out the various advantages of Yuanxin, Yuanxin decided to directly bring mobile phones to the market - first handing over the operators to the likes of Motorola and Siemens.

The reason for this is that Su Yuanshan has already learned the contract conditions from the operator - if you want to sign an exclusive contract, that is, if a certain operator only cooperates in launching your mobile phone, then the price will be very low. If exclusive contracts are not made, operators can accept contracts from multiple brands at the same time and provide more brands for users to choose from.

After all, China Mobile is currently the number one channel, and it is still relatively poor, so it needs to attract some blood.

And Su Yuanshan believes that no matter how powerful the giants are, they will still come in to sell products. It is not here to alleviate poverty and help promote the development of the domestic mobile communications market.

We will definitely choose to have limited cooperation with operators when the market channels are not as good as Yuanxin.

In this way, Yuanxin can first seize the market pricing power, and then wait for Zhongxin's mid-to-low-end products to come online and sign mobile contracts.

At that time, foreign brands that associate with mid- to low-end products will naturally have their brand value tarnished.

This is a clay doll holding hands with a porcelain doll, asking you if you are afraid.

And Yuanxin's goals don't stop there. In order to open up the market, Wan Yongliang has now gone to Thailand, and Sun Xihui will come to the Special Administrative Region from Xiangjiang tomorrow to meet with Su Yuanshan and his party.

In short, Yuanxin's first mobile phone, even if it cannot be sold, must be held tight!

What's more, how could it not be sold...

In order to gain confidence for agents in various places, Wang Rui conducted a large number of blind tests with different user groups in different regions in the past month, mainly mobile phones and paging groups.

——The so-called blind test is to remove the logos of Yuanxin mobile phones and peer mobile phones, and then switch them to English at the same time, allowing different users to rate based on appearance and usage habits.

The feedback was great.

Satisfaction scores were highest for Yuanxin phones—albeit only by a slight margin.

This at least shows that Yuanxin’s mobile phones can compete with the products of giants without adding brand effect.

Therefore, the hardware cost of this mobile phone is close to 3,000, and it is officially named YX1201. It will officially appear in major shopping malls in a week.

The national uniform price is 5888.

The implication is, I am sending my hair away.

…

The next day, Su Yuanshan and Chaoxin visited the SAR government.

The meeting between the two parties naturally started with a rainbow fart.

After shooting the rainbow fart, the mayor was impatient and went straight to the point, saying that he welcomed Yuanxin to invest. It’s okay to bite the bullet on these three thousand acres of land, but I hope to build a wafer fab.

"We don't need to have high requirements now. We don't even need you to buy MOS lines. We only need bipolar lines!"

The mayor looked at Su Yuanshan with burning eyes.

Su Yuanshan and Wang Chaoxin looked at each other, and both of them smiled bitterly at the same time.

Bipolar line, the full name is bipolar transistor production line - commonly known as semiconductor triode.

This shows how big the domestic independent demand for this basic component is.

After pondering for a moment, Su Yuanshan said: "Mayor, the special zone does need a wafer factory. But this factory should not be built by Yuanxin now."

"Huh? Why?"

"Yuanxin's industrial plan is very clear. We will take advantage of the geographical and personnel advantages of the special zone to start with the integration of related electronics factories and gradually transform into a professional 3C electronic product foundry."

"To put it bluntly, it will definitely separate from Yuanxin in the future, and will definitely work towards becoming the world's largest foundry."

"Yuanxin will build a wafer factory in the future, which will trouble the government again..."

Su Yuanshan looked at the mayor and said sincerely.

Note 1: The more than 2,000 words related to local protectionism (written for a long time) have been deleted here. The original intention of writing is to explain the relevant policy background and some phenomena. But... I am not an economics major, and economics papers seem very tiring. It may not be of interest to anyone, so I deleted it.

Note 2: Regarding local protectionism, in fact, China had already proposed it in the 1990s. But my understanding is that when the country faces "development" and "local protectionism," it tends to adopt a policy of "limited connivance."

Note 3: Local protectionism taken to the extreme is national protectionism.

Note 4: For small places, letting the chaebols go is just drinking poison to quench their thirst (HK, stick)

Note 5: The above is just a superficial view, so I won’t go into depth... to avoid making mistakes.

Note 6: The reason why I say this is because private enterprises were born in the local area and are closely connected with the local area.