Extraordinary Genius Chapter 841

Extraordinary Genius

Chapter 841 - Sudden invitation

"Answermy question!" Director Fang shouted.

ZhuShuangyin was shaking and could not say a word. Director Fang waved his handimpatiently. The government has lots of civil servants and black sheep existamong them.

"Go backand wait for our punishment!"

This wasZhu Shuangyin's verdict, and Zhu Shuangyin quickly leaves the room. He had tocut all ties with those two companies and erase evidence that he had receivedbribes from them.

"DirectorFang, 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, andlots of dirt will be dug up. He wonders who the next a.s.sociation's Chairmanwill be.

"What isit?" Director Fang heard Feng Yu's tone and felt it must be somethingimportant.

"Currently,our country has a trend of thinking that imported products are superiorproducts and domestically produced products are inferior. Such a mindset isvery dangerous, and we must encourage our people to support Chinese products. Thequality of many domestically produced products is on the international leveland those imported goods are ridiculously expensive."

"You aretelling me our manufacturing standards had caught up with internationalstandards?"

"Forcertain products, we had caught up and even exceeded international standards. However,some products are below average. But if we continue to let overseas productsenter China in large volumes, our manufacturing sector will be affected. Thesefactories will not sell their products and how can they increase theirtechnology and invent new products?" Feng Yu said.

DirectorFang frowned and replied worryingly. "You want to have a close-door policy? Wewill be shut off from the rest of the world!"

"No, I amnot saying we should cut off ties with the rest of the world. This is a form ofprotectionist policy. Trading must still continue, but we must encourage peopleto support local products and increase spending. This way, our local companiescan have enough funds to grow." Feng Yu said.

"You areasking me to protect your companies?" Director Fang looked at Feng Yu withsuspicion.

Feng Yulaughed and shook his head. He replied proudly. "Director Fang, all mycompanies are exporting their products overseas. Do you think I needprotectionism policies from the government?"

Even FengYu's weakest products, beverages, were exported overseas now, let alone hisother products. His humidifiers, bladeless fans, VCD players, were holding the biggestmarket share in the world!

DirectorFang 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 moneyand the donations will not affect his companies' growth and his life. If hisprofits 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 notmonopolize 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 neededsome help from the government.

"ManagerFeng, did you invest in a new company? A kind-hearted entrepreneur like youshould 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. Forexample, his cordless phones and handphones will grow faster, and currently,these two products are still not the most advanced in the world.

Protectionismpolicies will benefit the country and its people. In Feng Yu's previous life,China had implemented these policies, but the results were not good. Forexample, the automobile manufacturing industry had been taken over by foreignbrands, and the electronics, apparels, etc. sectors were also lagging behindoverseas brands.

"DirectorFang, you misunderstood my words. I know our country had been deprived by the developedcountries 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 lotsof profits. But have you ever thought that giving up most of the profits tothose foreign companies, the gap between China and those countries will widenfurther? Now, the whole world knows that Asia is the upcoming market and Chinais one of the major markets in the world. Almost every country in the world iseyeing the Chinese market. They treat us like a piece of meat, and everyonewants a bite of us. Why don't we make use of this against them?"

"Make useof this against them? What do you mean?"

"Forexample, j.a.pan. Their economy is in recession, and if they did not sign thetrade agreement with us, their economy would be worse. The last time when thej.a.panese companies polluted our country, we got lots of benefits from thej.a.panese government, right? They were forced to give in to us because theycannot afford to lose us. That's why we should start selecting the companiesentering our country and implement protectionist policies, like increasingimportation taxes, and removing tax subsidies for foreign companies, inselected industries.

Feng Yuhad been opposing foreign investors’ tax subsidies. Why do foreign companiesget to enjoy 3 years of tax exemption and 2 years of tax subsidies? Even jointventures have subsidies. But why Chinese companies don't get to enjoy thesebenefits?

That'sright. Attracting foreign direct investments might be necessary, but thereshould be a limit. China should not be the world's factory, as it will suppressChinese 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 willbe starting a trade war if we increase the importation taxes." Director Fangwas 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 justtarget some countries and help some countries. Anyway, our country is notexporting lots of products. In a trade war, the other country will have more tolose 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 beprotected. The importation tax must be increased for products from theseindustries and some products must even be restricted. At the same time, we gotto promote to our people that many of our products are already the best in theworld. If even our own people doubt our domestic products' quality, how are wegoing to compete internationally?"

What FengYu said was the same as what the government is discussing now. Some people feelChina should join the WTO as soon as possible as this will break the westerncountries' monopoly of the major trade. However, some people think that Chinashould continue its protectionist policies of their trade. Once China entersthe WTO, many domestic products will face stiff compet.i.tion from overseasbrands.

Butwithout protectionist measures, can China still enter the WTO? In fact, afterimplementing more protectionist policies, it will be easier for China to joinWTO as other countries will give in to gain access to the Chinese market. Chinaand many countries want China to enter the WTO for lower importation taxes.

DirectorFang thought for a while. "We are also discussing this. What is said isinteresting, and during our next meeting, you will represent the businesssector to partic.i.p.ate. For discussion on such topics, we will invite peoplefrom various industries to partic.i.p.ate. Are you interested in becoming a memberof the National Committee of CPPCC?"

Translator's notes:

Chinese People’s Political ConsultativeConference

https://en.wikipedia.org/wiki/Chinese_People’s_Political_Consultative_Conference