69novels Chapter 370 Clash of the Century
Chapter 370 Clash of the Century
"Resources," Lin Yan stated bluntly, "especially your country's abundant reserves of rare metal minerals, which lack sufficient development capabilities. We are willing to provide the most advanced exploration and mining technologies for cooperative development."
"What are the cooperation methods?" Gu Mu pressed.
"We provide all the capital, technology, and equipment, while you contribute mineral exploration rights and land as equity, holding a minority stake. The mined ore will be supplied to our own global supply chain on a priority basis, at international market prices. Of course, we will pay the mining taxes and shareholder dividends." Lin Yan paused, "However, this 'international market price' is usually determined by the London or New York stock exchanges, and the major traders... have long-term cooperative relationships with us."
Chen Yun's voice grew even colder: "So, you're saying the underground mines belong to us, but how much we mine, who we sell it to, and at what price are mainly determined by you. What we get is limited taxes, a small share of profits, and a piece of land that's been hollowed out?"
"Mr. Chen, technology, capital, and international market channels all have costs," Lin Yan said unmoved. "Capital seeks to allocate resources globally to minimize costs and maximize profits. Embedding your country's resource advantages into our global production chain is precisely where its value lies. Otherwise, mineral deposits remain buried underground and cannot be transformed into development capital."
Li Xiannian's calculations were running high in his mind: "What about foreign exchange? The profit repatriation you just mentioned, plus the import of equipment and even some high-end raw materials, all require foreign exchange. Our foreign exchange reserves may not be enough to support this model of 'large-scale opening up'."
"So, we're back to square one." Lin Yan spread his hands. "Your country needs our investment to revitalize its economy and earn foreign exchange, while we need your market and resources to complete our global expansion. It's a cycle. The only way to break the cycle is for your country to possess irreplaceable leverage, or... be willing to endure a longer period of 'profit transfer'."
At this moment, Zhou Enlai slowly spoke, her gaze sharp: "Mr. Lin, according to you, capital is like water, pervasive and driven by profit. So, in order to maximize profits, where is your bottom line? For example, if the environmental standards of the investment location are low and labor protections are weak, does that mean higher profits?"
Lin Yan remained silent for a moment, a pause that seemed to freeze the air in the room.
When he spoke again, his tone was almost coldly frank: "Mr. Zhou, let's talk business. Capital's duty is to increase its value, not to act as a moral judge. If local laws allow it, and doing so significantly reduces costs and increases competitiveness, capital finds it hard to resist the temptation. Competition is brutal, and other capital will do the same. That's why sound and strictly enforced laws, and the cultivation of local enterprises that can compete on equal footing with foreign capital, are so important. They are not shackles that restrict capital, but rather barriers that ensure the game proceeds on a healthy track and prevent the market from being distorted and destroyed. Otherwise, the weaker party will be ruthlessly devoured by the logic of capital."
As soon as he finished speaking, the room was so quiet you could hear a pin drop. Only the smoke drifted silently by.
The shrewd, slightly oppressive capitalist expression on Lin Yan's face melted away like ice and snow, returning to his usual calm. He picked up his teacup and took a sip of the now slightly cool tea.
"Alright, my 'role-playing' is over," he said softly. "What I just demonstrated is the most typical, and perhaps not the most greedy, 'cooperation plan' and thought process that international capital might bring when entering a market that is eager to develop but lacks experience. What they bring are urgently needed goods, jobs, and initial capital injections; what they want is market dominance, pricing power over resources, and long-term profit channels. This has nothing to do with personal morality; it is the inevitable form of capital's profit-seeking instinct under specific conditions."
The chief designer forcefully stubbed out his cigarette in the ashtray, his eyes blazing: "If we agree to these conditions..."
"Well then," Lin Yan continued, his tone heavy, "in the short term, the market will prosper, goods will be plentiful, and some people will get rich first. But in the long run, key industries will be controlled, technology will be difficult to truly absorb, profits will flow out in large quantities, resources will be exported cheaply, and domestic industries will wither away in unequal competition. When capital has earned excess profits or discovered more promising markets, it may move away without hesitation, leaving behind hollowed-out industries and a host of social problems. This is not a prophecy; it is a story that has been repeatedly played out in many developing countries over the past few decades."
Chen Yun let out a long breath, as if to release all the pent-up frustration in his chest: "So, the answer to your question from yesterday is right here—are we prepared to deal with this kind of capital? What 'irreplaceable bargaining chips' do we have? Are our laws, our companies, and our negotiating talent ready?"
"That's the key," Lin Yan nodded. "Openness isn't simply about welcoming guests. It's a game based on strength and wisdom. We need to figure out what we want to exchange for the market. Is it simply exchanging for goods, or is it resolutely exchanging for technology, time, and the ability to upgrade our industries? How do we formulate rules that attract capital while preventing it from overflowing, and even guide it to irrigate our own fields?"
A thoughtful glint flashed in Gu Mu's eyes: "So, in your opinion, this first step..."
Lin Yan looked at everyone: "Perhaps the first step isn't to roll out on all fronts and welcome behemoths like 'Global United Capital.' Instead, we should carve out a small 'test field,' using special policies to proactively screen, negotiate, and engage with different types of capital. Within a controllable scope, we can learn how to dance with capital, how to establish rules, and how to cultivate our own 'swimmers.' We can put every issue from the simulated negotiations—sole proprietorship or joint venture? How to offer tax incentives? How to transfer technology? How to balance foreign exchange—into a real-world exercise there, finding our own answers."
Li Xiannian pondered: "This requires extremely meticulous design and control."
"Yes, this is ten times harder than simply opening a door," Lin Yan said frankly. "But it may be the only way for us to avoid being swallowed up by openness and instead become truly powerful."
Yu Guangyuan closed his notebook and remarked with emotion, "Tonight, I truly had a vivid and practical lesson in 'Capital.' Marx's analysis of the nature of capital became so clear and impactful in the face of specific negotiation terms."
The chief designer lit another cigarette, his eyes clear and even excited behind the smoke: "It seems we not only need to learn how to 'open' things, but also how to 'manage' them and how to 'compete'. This is a very profound subject."
Zhou Enlai looked around at everyone, her gaze finally settling on Lin Yan, gentle yet firm: "The more we debate, the clearer things become. We need a more concrete plan for how to proceed. Xiao Yan, you've provided another perspective, and that's crucial."