v3 Chapter 968： CLP Power (1/2)
After calming his mind, MacLehose solemnly said to Xia Yu: ”Mr. Xia, the plan you proposed involves too many areas. It takes a lot of work to refine and formulate a complete implementation plan. You have to send someone over to discuss it together after you go back.”
Xia Yu nodded and said: ”This is what it should be, and I also hope to start it as soon as possible.”
……
After , MacLehose, Xia Yu and others boarded their cars and left the New Territories.
Xia Yu sat in the back row and opened the car window. He breathed the fresh air full of natural fragrance, with a refreshing feeling of clear brain.
Looking at the skipped fields, Xia Yu seemed to see modern factories being built in this place.
At this moment, Li Qian leaned next to Xia Yu, her eyebrows lightly clumped, and asked with some worry: ”A Yu, haven't you always told me that setting up a factory in Pengcheng on the opposite mainland can greatly reduce production costs. Well, many of your companies have gone to open factories there. Why do you still want to build a science and technology industrial park in Yuen Long District?”
”The straight-line distance between Yuen Long District and Pengcheng should be less than 20 kilometers, right? With such a close distance, can the Yuen Long Technology Industrial Park develop?”
Xia Yu retracted his gaze and looked at Li Qian, who was worried about his career. He smiled softly, and gently smoothed Li Qian's frowning brow with his fingers, and said softly: ”Cici, don't worry, when do you see me? Have made the wrong decision?”
”Although the Science and Technology Industrial Park is close to Pengcheng, this does not mean that it will not develop.”
Seeing Li Qian's ignorant and cute look, but wanting to figure it out, Xia Yu smiled and said, ”I'll talk to you.”
Li Qian nodded like an obedient elementary school student, blinked at Xia Yu with big eyes, waiting for Xia Yu's teaching.
Xia Yu gently hugged Li Qian into his arms and spoke slowly with gentle words.
”Xiqian, the positioning of the Yuen Long Science and Technology Industrial Park is not a light industry with low technology thresholds, but heavy industries such as electronic high-tech, automobile manufacturing, petrochemicals and other industries. These industries are industries with high thresholds, high output value and high added value. The profit margin far exceeds that of low-threshold light industrial industries such as textiles and toys.”
”Although the labor cost of Xiangjiang far exceeds that of the mainland, it is far worse than developed countries such as island countries, the United Kingdom and the United States.”
”Since such high labor costs in island countries, the United Kingdom, and the United States can enable companies in the electronic high-tech, automobile manufacturing, petrochemical industries and other industries to develop healthily, it is unreasonable that Xiangjiang's lower labor costs can't.
”Compared with labor costs, the technical costs of these industries account for the bulk of the cost. As long as the technical costs are controlled properly, you are not afraid of not having the strength to compete in the market.”
”Then talk about the mainland. Although the mainland has very low labor costs, it must be able to be used, and it is useless if it is not low.”
”Other ordinary light industries such as toys, textiles, etc., have no entry restrictions in the mainland. Xiangjiang companies want to set up factories in Pengcheng, but the electronic high-tech, automotive and heavy industries, petrochemical industries are different.”
”In addition to the slightly better electronics field, the mainland is not open to the outside world in fields such as automobiles, heavy industry, petrochemicals, etc., and we can't even enter. I don't know how many years we have to wait.”
”Even if these industries are opened up, the mainland will set many restrictions. The simplest controlling rights will not be available, and the maximum profit can only be 49%.”
”Considering that in these sensitive industries, the tariff cost between the mainland and other countries in the world is much higher than the tariff cost between Hong Kong and other countries in the world. Many parts and components have to be purchased from all over the world. The cost can offset a large part of the labor cost, or even offset the excess.”
”Unless the mainland considers liberalizing restrictions one day, it will be possible to reduce tariffs. Before the liberalization, it is almost impossible to reduce tariffs in these areas.”
”Of course, the combined import and export tariffs are the highest. If you set up factories in the mainland to build the entire industrial chain, you only need to purchase raw materials, and the tariffs are low, and as long as the products are not exported, they are sold directly in the mainland. Setting up a factory in the mainland will have a huge cost advantage.”
”But even if it is not for export but for domestic sales, the current market capacity and supporting industrial chain in mainland China are still a big problem, not to mention the industry entry restrictions that do not know when it will be released.”
”So I must be prepared with both hands. I can't do nothing and wait. It is always right to establish a science and technology industrial park in Xiangjiang first.”
is as Xia Yu said.
Give a simple example.