"You kid, you always come up with something new."
"Demographic dividend, this term, I've never heard of it before. And you say that merchants from developed countries will come to China to build factories in the future, that's too far-fetched."
"Countries are so developed, why would they need us to help them produce things?"
"And you said that they come here to invest and build factories, use our land, hire our workers, use our raw materials, and then sell the produced goods to us to make money. Wouldn't that mean we shouldn't let them into the country?"
Li Yong listened to Chen Yang's words, his mind also churning. The things Chen Yang spoke of were completely beyond his wildest imagination.
And what about pollution? He had never considered these issues.
Chen Yang seemed to have opened a new world for Li Yong, a world where many things were worth a lifetime of exploration and correction.
"Uncle Li, these are just the downsides of foreign investment. There are also good aspects. We can't look at these issues one-sidedly."
"When foreign capital comes, it hires our workers, creating job opportunities. It pays wages to workers and taxes to local governments, which can completely drive local economic development."
"And the products they produce aren't necessarily all sold domestically. They could also be exported to other countries. The biggest reason for them to build factories here is to save costs, because under the same conditions, the labor costs for producing goods are much lower here than in their own countries."
Chen Yang looked at Li Yong. He had to tell Li Yong about some of the drawbacks of introducing foreign investment, but he also had to mention some of the benefits.
The rapid development of China's reform and opening up was inseparable from attracting foreign investment later on. Even in the twenty-first century, many regions in China were eagerly trying to attract foreign investment.
"What you've said, I'll organize it when I get back. The matter of introducing foreign investment is still too far off for us right now."
"Whether we can introduce it, from which industries, and how to introduce it all requires research. Our technology is undoubtedly lagging behind foreign technology in many aspects."
"If we truly bring in foreign enterprises, will it impact our own industries, and even lead to the monopolization of the entire sector? This is a matter with potentially severe consequences."
Li Yong was very cautious, and Chen Yang deeply agreed with his words.
At that time, Jianlibao was popular all over the country, as were Tianfu Cola, Laoshan Cola, Beibingyang, and others. Chinese beverages were blooming, with brands from every region.
But in the end, they were defeated one by one by Coca-Cola and Pepsi, leading to the domestic beverage market being dominated by these two companies in the future.
Later, only Master Kong and Uni-President were able to put up some resistance, but these two were enterprises from the island. Among domestic beverage brands, there was virtually no one able to compete in the domestic market.
Therefore, Li Yong's concerns were not unfounded. Foreign capital was powerful, with ample funds and mature technology. Many domestic brands were no match for them.
"Uncle Li, these are matters for later. Our economic reforms have just begun. Everyone is crossing the river by feeling the stones, and we definitely can't take too big a step."
"Your concerns are not without reason. Even if we are to introduce foreign investment, it will be subject to strict review."
Introducing foreign investment was not without its benefits. It could drive local economic development. It could be said that the reform and opening up achieved such great results in such a short period of time, and it was inseparable from introducing foreign investment.
Especially after China joined the World Trade Organization, further opening up and attracting foreign investment to build factories in China led to economic growth and development that was at the forefront of the world.
On the issue of introducing foreign investment, we cannot open our doors without any scruples, nor can we be overly cautious and reject it entirely, otherwise, it would not achieve the goal of opening up and promoting rapid economic development.
"We will discuss this matter in detail later. Regarding the television sets, why don't you talk about it yourself? How about the pricing method?"
"What is your purchase price, and what is your selling price? How much revenue can the department store and the supply and marketing cooperative get?"
"You two can discuss this matter amongst yourselves. You don't need to ask me."
All Li Yong could do was to act as a matchmaker. The rest would be up to Chen Yang. But this was enough.
Currently, the market price for a 14-inch Zhenhua brand television was around 600 yuan, a 16-inch was 750 yuan, and an 18-inch was nearly 900 yuan.
For Zhenhua Electrical Appliance Factory, due to mass production, both labor costs and component procurement prices had decreased significantly compared to before.
The cost price of a 14-inch television was around 400 yuan, a 16-inch was around 500 yuan, and an 18-inch was around 600 yuan. The profit per unit could reach between 200 to 300 yuan.
Previously, Chen Yang wholesaled each unit at 50 yuan less than the market price to the Wenzhou merchants for sale. As for how much they sold, it depended on their own capabilities, and Chen Yang would not interfere.
However, department stores and supply and marketing cooperatives, as state-owned units, could not possibly have multiple prices for the same product. The previous arrangement would not work.
"Director Lou, Director Wang, let me be straightforward. The purchase price I offer for the 14-inch is 500 yuan, for the 16-inch it's 650 yuan, and for the 18-inch it's 800 yuan."
"Based on the current market selling price of televisions, the department store and the supply and marketing cooperative will have a profit of 100 yuan per unit. As for how this money is divided, that's up to the two of you."
Chen Yang naturally knew that in the past, it was a matter of course for state-owned factories to sell through department stores and supply and marketing cooperatives. At most, they would earn some hard-earned money by selling a few television coupons.
As for the purchase price and selling price, these were things that had nothing to do with the department stores and supply and marketing cooperatives. They would receive payment for each unit sold and did not need to bear any procurement costs.
"This, this is not in accordance with the rules..."
Upon hearing Chen Yang's words, Director Lou and Director Wang did not feel happy, but rather a bit apprehensive.
Previously, they operated on a consignment basis. Now that Chen Yang was offering them profits, it felt more like doing business, and they naturally had concerns.
"Uncle Li, you'll have to reassure the two directors. The final profits earned will still go to the state, not into their personal pockets. Economic reforms require reforms in marketing models as well."
Chen Yang knew that the two directors had concerns. No matter how much they earned, they wouldn't dare to make arbitrary decisions. Department stores and supply and marketing cooperatives were state-owned, and they could not make decisions on their own.