Extraordinary Genius

Chapter 841 – Sudden invitation

“Answer my question!” Director Fang shouted.

Zhu Shuangyin was shaking and could not say a word. Director Fang waved his hand impatiently. The government has lots of civil servants and black sheep exist among them.

“Go back and wait for our punishment!”

This was Zhu Shuangyin’s verdict, and Zhu Shuangyin quickly leaves the room. He had to cut all ties with those two companies and erase evidence that he had received bribes from them.

“Director Fang, there is one more important matter I think I should discuss with you.” Feng Yu knew Zhu Shuangyin is finished. That old man should not be clean, and lots of dirt will be dug up. He wonders who the next Association’s Chairman will be.

“What is it?” Director Fang heard Feng Yu’s tone and felt it must be something important.

“Currently, our country has a trend of thinking that imported products are superior products and domestically produced products are inferior. Such a mindset is very dangerous, and we must encourage our people to support Chinese products. The quality of many domestically produced products is on the international level and those imported goods are ridiculously expensive.”

“You are telling me our manufacturing standards had caught up with international standards?”

“For certain products, we had caught up and even exceeded international standards. However, some products are below average. But if we continue to let overseas products enter China in large volumes, our manufacturing sector will be affected. These factories will not sell their products and how can they increase their technology and invent new products?” Feng Yu said.

Director Fang frowned and replied worryingly. “You want to have a close-door policy? We will be shut off from the rest of the world!”

“No, I am not saying we should cut off ties with the rest of the world. This is a form of protectionist policy. Trading must still continue, but we must encourage people to support local products and increase spending. This way, our local companies can have enough funds to grow.” Feng Yu said.

“You are asking me to protect your companies?” Director Fang looked at Feng Yu with suspicion.

Feng Yu laughed and shook his head. He replied proudly. “Director Fang, all my companies are exporting their products overseas. Do you think I need protectionism policies from the government?”

Even Feng Yu’s weakest products, beverages, were exported overseas now, let alone his other products. His humidifiers, bladeless fans, VCD players, were holding the biggest market share in the world!

Director Fang still does not believe Feng Yu was doing this for other companies. Although Feng Yu had been donating money, that’s because he made lots of money and the donations will not affect his companies’ growth and his life. If his profits were not that high, will he still donate so much money?

Also, Feng Yu’s companies were doing very well in China. His companies might not monopolize the market, but they were the best in their respective industries. What was most surprising was Feng Yu’s investments were well diversified. Director Fang wonders if Feng Yu had invested in some new industry and needed some help from the government.

“Manager Feng, did you invest in a new company? A kind-hearted entrepreneur like you should be taken care of by the government.”

Feng Yu: “……” You think I am asking the government for some favors?

Fine. Protectionism policies will help Feng Yu’s companies to develop faster. For example, his cordless phones and handphones will grow faster, and currently, these two products are still not the most advanced in the world.

Protectionism policies will benefit the country and its people. In Feng Yu’s previous life, China had implemented these policies, but the results were not good. For example, the automobile manufacturing industry had been taken over by foreign brands, and the electronics, apparels, etc. sectors were also lagging behind overseas brands.

“Director Fang, you misunderstood my words. I know our country had been deprived by the developed countries of the latest technologies and we want to catch up with them badly. Therefore, to gain some technology from those countries, we had given up lots of profits. But have you ever thought that giving up most of the profits to those foreign companies, the gap between China and those countries will widen further? Now, the whole world knows that Asia is the upcoming market and China is one of the major markets in the world. Almost every country in the world is eyeing the Chinese market. They treat us like a piece of meat, and everyone wants a bite of us. Why don’t we make use of this against them?”

“Make use of this against them? What do you mean?”

“For example, Japan. Their economy is in recession, and if they did not sign the trade agreement with us, their economy would be worse. The last time when the Japanese companies polluted our country, we got lots of benefits from the Japanese government, right? They were forced to give in to us because they cannot afford to lose us. That’s why we should start selecting the companies entering our country and implement protectionist policies, like increasing importation taxes, and removing tax subsidies for foreign companies, in selected industries.

Feng Yu had been opposing foreign investors’ tax subsidies. Why do foreign companies get to enjoy 3 years of tax exemption and 2 years of tax subsidies? Even joint ventures have subsidies. But why Chinese companies don’t get to enjoy these benefits?

That’s right. Attracting foreign direct investments might be necessary, but there should be a limit. China should not be the world’s factory, as it will suppress Chinese salaries, and most of the profits were taken away by foreign companies. At the same time, it will restrict the development of their domestic companies.

“It will be starting a trade war if we increase the importation taxes.” Director Fang was worried that once a trade war is started, the losses will be significant, and China is still developing. They cannot afford such wars.

“We can just target some countries and help some countries. Anyway, our country is not exporting lots of products. In a trade war, the other country will have more to lose compared to us. We must protect our core industries, leading industries, and young industries. The steel, automobile manufacturing, electronics, agriculture, culture and communications, tourism, etc. industries must be protected. The importation tax must be increased for products from these industries and some products must even be restricted. At the same time, we got to promote to our people that many of our products are already the best in the world. If even our own people doubt our domestic products’ quality, how are we going to compete internationally?”

What Feng Yu said was the same as what the government is discussing now. Some people feel China should join the WTO as soon as possible as this will break the western countries’ monopoly of the major trade. However, some people think that China should continue its protectionist policies of their trade. Once China enters the WTO, many domestic products will face stiff competition from overseas brands.

But without protectionist measures, can China still enter the WTO? In fact, after implementing more protectionist policies, it will be easier for China to join WTO as other countries will give in to gain access to the Chinese market. China and many countries want China to enter the WTO for lower importation taxes.

Director Fang thought for a while. “We are also discussing this. What is said is interesting, and during our next meeting, you will represent the business sector to participate. For discussion on such topics, we will invite people from various industries to participate. Are you interested in becoming a member of the National Committee of CPPCC?”