Fan Wubing was eager to leave. There was a reason, not because Lu Qingtong was not attractive enough to him.

Since the recent stage, Fan Investment Group has had some different voices about the future development direction. This time he rushed back to the headquarters to unify his thinking and make long-term plans for the development of the new era.

After returning to the headquarters, I met local officials from all over the world who came to attend the meeting, such as Wu Zhi Xiaoji, Davis and others, and some of them had started to work in the form of self-employed people a few years ago, with hundreds of people in the same group.

When Fan Wubing arrived, they had been hotly discussed for a long time. When they saw the boss coming in person, everyone seemed very enthusiastic and applauded and welcomed him. After all, in addition to occasionally seeing Fan Wubing in the video, it is not so easy to see him. This is mainly because Fan's investment group has too many subsidiaries, and Fan Wubing doesn't like directors very much.

The theme of this large-scale meeting is whether Fan Investment Group needs to significantly adjust its strategic structure and focus on developing investments in finance and real estate.

Regarding this issue, in fact, it has been a long history. As we all know, Fan Wubing started his business, and then he found his first pot of gold from the overseas financial markets. He then had eased in the real estate markets of countries around the world and made a lot of gains. At this time, due to the development of large-scale domestic manufacturing industries, many companies have accumulated considerable wealth. Therefore, under the guidance of new real estate policies, everyone has developed a strong interest in developing the real estate industry.

"The investment in real estate development is not large, the return rate is very high, and the cycle is short. Although the construction cycle is generally more than one year, funds can be recovered in advance by selling houses. Compared with our manufacturing industry, it is not the same as our manufacturing industry." An executive of Fan's Investment Group explained this point, "President Fan was unwilling to get involved in the real estate development industry before, but now it seems that major companies are entering this emerging industry through their own channels. It would be a pity if we give up this project."

There are many people who hold the same view. Although Fan's Investment Group has entered the real estate development industry in Beijing, most of them are doing things in a manner, cooperating with government behavior, and regulating the real estate development market. They have not made great efforts to develop this business, and their achievements are also average.

Now everyone hopes to invest part of the funds used to develop the manufacturing industry into the real estate market, in order to get as many as several times the amount of high returns in the short term.

Fan Wubing sat there and nodded and listened, but his heart was very complicated.

The dispute over the manufacturing and financial real estate industries actually means a confrontation between two different factions within the group.

However, what Fan Wubing has always valued very much is the physical manufacturing industry.

Since entering the industrialized society, the development of manufacturing has always been one of the strategic points that countries rely on. Especially developed countries, the achievements and status they have today are all the results of the development of manufacturing.

At present, the proportion of modern service industries in a few of the most developed countries in the world, such as the United States, has been increasing, and the proportion of manufacturing industries has shown a downward trend, which is also the result of the economic development reaching a certain level. More importantly, advanced manufacturing is still the key to maintaining the world's leading level and is still the focus of development of these countries.

As a developing country with a large population, China has been able to achieve great economic achievements in the past few decades, to lift more than one billion people out of poverty and gradually embark on the road to a comprehensive well-off society, and what it relies on is the development strategy of developing the country through manufacturing.

It can be said that in the next few years, the development strategy of China's manufacturing industry will continue to be China's development strategy. The difference is that the connotation of the manufacturing industry needs to be improved, the extension needs to be expanded, and China's manufacturing needs to gradually transition and transfer to China's creation.

However, since the new century, due to various factors, the country has faced new challenges in the development of manufacturing.

The challenge first comes from the continuous decline in labor dividends, which makes the competitiveness of low-end manufacturing industries increasingly weaker.

In the past twenty years, one of the biggest competitive advantages of China's manufacturing industry is the labor dividend brought by cheap labor. It is precisely because the labor dividend has a relatively low composition in product costs that makes the export cart more vigor and competitive.

However, as workers' income requirements continue to increase, the proportion of labor costs is also increasing, resulting in a decline in competitiveness brought by labor dividends, which has made many investors, especially private investors, stay away from manufacturing and the real economy, and are keen on capital games such as financial services and real estate development.

The second important factor that gradually leaves investors and funds out of manufacturing is the decline in the carrying capacity of land and environmental resources.

The land, environmental resources on which low-end manufacturing industries rely on to survive and develop, as a large amount of arable land is occupied and the environment is overdestructed, and there are more and more restrictions, and there is less and less profit space available. In most cases, land and environmental costs have made the low-end manufacturing industries have no survivability and space. In this case, investors and funds have to choose to enter other fields and industries, thus bringing more and more impacts on the development of manufacturing.

Of course, local governments' excessive desire for political achievements and strong pursuit of short-term interests are also an important aspect that leads to the transfer of investment and funds to other areas.

One phenomenon that must be noted is that since the new century, with the rapid development of the real estate market, the real estate industry has become the main means for local governments to quickly create political achievements and create GDP.

It is also the rapid effect of the real estate industry on political achievements and GDP that not only allows large amounts of investment and funds to flow into the real estate industry, but also allows local governments to shift their enthusiasm and focus to the real estate industry, thus giving all the preferential policies that should be given to the manufacturing industry. So, how can the manufacturing industry continue to develop rapidly?

For some reasons, the difficulties and risks faced by manufacturing industry are far greater than those of the real estate industry and the so-called capital operation. If the investors in the manufacturing industry lack long-term vision and creative thinking, the enthusiasm and determination to continue to start businesses, the confidence and courage to no one else, and the power and motivation to constantly innovate, then they will change directions at the critical moment of transformation of the manufacturing industry and choose to stay away from the manufacturing industry.

The current debate within Fan's Investment Group is actually a good example.

In fact, Fan's Investment Group has a very basic foundation for entering the real estate development market on a large scale. As the most popular investor in China, Fan's has advantages that other companies cannot match in land transfer.

Most local governments are willing to welcome Fan Investment Group to invest locally. Due to well-known reasons, Fan Investment Group's various investments have maintained the myth of invincibility. The strong capital operation has made their investments in an all-out way, and it is also a strong guarantee for local governments to achieve good political achievements quickly.

Under such circumstances, Fan Investment Group can easily obtain a large amount of land through formal channels, and it has a superior geographical location.

Land is the primary factor in real estate development, and without this, you can’t play with real estate.

As a non-renewable resource, urban land will become increasingly tense. Instead of being involved in the constant disputes and troublesome urban old city renovation projects and slandering enterprises, it is better to use industrial land for development, which is more worry-free and has no sequelae.

In this regard, some large domestic manufacturing companies have begun to take action.

According to relevant media reports, after a period of running-in with industrial real estate operations, a relatively famous domestic manufacturing company signed a framework agreement with real estate companies to further promote cooperation in the field of industrial real estate. The agreement stipulates that the two parties will make full use of the unique advantages of real estate development and industrial land to open up a new direction and model for industrial real estate development.

Although the chairman of the manufacturing group made it clear that this move was not a rush to seek medical treatment, and its main business was still the manufacturing industry, especially the research and development and production of LCD products. However, no one could deny that in the face of the difficulties faced by the manufacturing industry, manufacturing companies, including many famous domestic companies, have also begun to re-examine their development strategies and goals.

Of course, they made such a choice, but another important factor was that they had invested a large amount of industrial land in the country through investment leverage in the past few years, which was enough for them to live a happy and stable life by relying on land development in the next few years.

It cannot be denied that the utilization rate of existing land can be effectively improved by developing industrial real estate. But it is worrying that if every enterprise uses the land it already has in its hands to develop industrial real estate like this, then who will invest in the real economy and how can its utilization rate of land and factory buildings be improved?

It can be expected that the cooperation between these two large enterprises may become a successful example. However, if many manufacturing companies cooperate with real estate companies and turn to developing real estate that relies entirely on capital and abandon traditional projects, what will happen to the domestic manufacturing industry?

In fact, the current escape from manufacturing has become a phenomenon that cannot be ignored in China's economic development, especially for those areas and industries with strong competitiveness and high innovation requirements, the escape phenomenon is even more serious.

To take a step back, if investors and funds stay away from manufacturing and turn to modern services like developed countries, there is not a big problem.

The problem is that more investors and funds have turned to the real estate industry and speculative market. Although they can also create GDP, their contribution to social wealth is very low.

In a sense, the terrible thing is that investors and funds enter the real estate industry more, which will make the living cost of society higher, workers have higher requirements for income, thus making labor dividends lower and manufacturing industry less competitive. This is the most terrible thing.
Chapter completed!