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Chapter 096: Foreign Trade Commodity Processing Zone

Before telling his plan, Xu Guo first analyzed Principal Niu's concerns.

“I think this problem is completely controllable!

The specific solution is to establish a special foreign trade commodity processing zone, and all foreign investment outside the area controlled by the People's Republic of China can only be invested in foreign trade commodity processing zones.

All outputs in this region are directly used for exports, which can minimize the impact on our economy.

In this way, the existence of processing zones can also provide additional employment opportunities for domestic labor, and the country can also obtain more foreign exchange reserves through the value-added part of foreign trade.

I call this model encapsulation. Through this encapsulation, we can decouple the commercial behavior in this area from other commercial behaviors in China to the greatest extent.

Because in this case, the encapsulated foreign trade commodity processing zone has only two links left to the domestic commercial connection.

The first is to buy raw material products that were originally intended for export from China.

The second is that the processing zone introduces labor force from China, and these imported labor force can be regarded as exporting foreign labor in China.

If you insist on saying there are three connections, then you will pay the foreign exchange to Huaxia for the above two connections."

In fact, the concept that Xu Guo threw out at this time was the most typical representative of the industrial development zone created by Bei Gaoyang. That industrial development zone was completely decoupled from Bei Gaoyang.

At this time, the concept of industrial development zones was not popular yet, let alone industrial zones specifically used for foreign trade commodity processing. Xu Guo also added a packaging concept to this basis, which surpassed this era.

After hearing the idea proposed by Xu Guo, Niu Shouzhuo thought that although this plan was simple, the benefit was just the word simplicity.

It is very simple and clear to operate. It can not only use foreign capital with confidence, but also completely isolate the possible impacts of foreign capital.

"The plan you proposed sounds good, I personally agree with it. Is there anything else you can add to it?"

Niu Shouzhuo felt that the other party might have something else he hadn't said, so he asked tentatively.

Xu Guo thought about it carefully for a while and felt that he still didn't talk too deeply and everything needed to be done step by step. So he decided not to talk more deeply, but to give a specific example.

"I don't have any more in-depth ideas at the moment, but I have a specific business example for reference."

After hearing Xu Guo say this, Niu Shouzhuo became curious. After all, he is a big shot in the economics industry. Although he is old now, he has done very little on-site research.

However, because he has many disciples and his information channels are much wider than those of ordinary people, he has not been exposed to similar examples yet, so he is very curious.

"There are actually examples, so hurry up and listen."

Seeing that the other party was willing to listen, Xu Guo was of course happy to give examples. As for the case, of course, it was the wind-type radio manufacturing factory that Lou Changshun set up around Xiangjiang and the trading company that opened in Xiangjiang.

The reason why he used this as an example was that he wanted to push Lou Changshun to a higher stage and become the most dazzling member of the Chinese red capitalist.

As for the reason, of course, it is because Xu Guo has a relationship with the surname Lou, which makes him a star representative of the red capitalist, which may be more beneficial to him in the future.

"I wonder if the principal knows Mr. Lou Changshun, an entrepreneur in our Beidu City?"

"Oh, you said Lou Changshun. I saw it when I was holding a seminar some time ago. I just don't know what the matter you are talking about has to do with him?

As far as I know, he runs a steel enterprise in Beidu City, and his Changshun Steel Plant is quite famous. However, our country is short of steel now, and it is not enough to use it yourself. It should be impossible to talk about exports."

As expected, the circle of Beidu is so big that these relatively upper-level people know each other.

"I think this example is not about Mr. Lou's Changshun Steel Plant, but about the clockwork radio project he invested in some time ago.

In order to make it easier to sell the clockwork radio to areas with good relations with Western countries, Mr. Lou opened a trading company in Xiangjiang to sell the clockwork radio.

Although its operation process is not exactly the kind I mentioned before, it can also be regarded as a kind of deformation.

In other words, Mr. Lou’s Xiangjiang Company is the main body of operation. It delegates radio orders to domestic production plants, and the production plants then produce according to the orders and sends all the produced orders to the sales location designated by Mr. Lou Xiangjiang Company.

During this process, the products produced by domestic manufacturers have been completely sold abroad, so they have no impact on the local radio market.

As far as I know, Mr. Lou’s Xiangjiang Company is still trying a new commissioned processing method, specifically the incoming materials are commissioned processing.

The reason why I tried this commissioned processing method was entirely because Mr. Lou's winding radio developed a new product based on the existing products.

This new product uses the latest foreign electronic tube instead of the previously used domestic electronic tubes, which reduces energy consumption and allows for longer listening to the clockwork at one time.

Although this kind of foreign high-performance electronic tube can be purchased sporadically on the market, it may still be restricted if it wants to buy it in large quantities as the original for production. Therefore, I wonder if it is used for material processing.

As for whether it can operate in this way, Mr. Lou was wondering whether to file with the Xiangjiang authorities and put this business on the surface.

If this operation works, it will be considered a starting point for similar processing methods in the future. There will be a mature model in the future, which can be used as a reference.

Of course, this model can also be included in the industrial development zone model we mentioned earlier, so that the products produced by imported spare parts will not have any impact on the domestic market."

After Xu Guo's introduction, Niu Shouzhuo discovered that Lou Changshun was the owner of the wind-style radio manufacturer that was very famous in the foreign trade system not long ago.

This new model of incoming materials commissioned processing in the planned plan can be said to be an innovation in a complete sense. If it works, it can be considered to have found a new way out for China's industrial development.

"I remember you said just now that you came from Xiangjiang. I wonder what kind of relationship you have with Mr. Lou?"

"My parents work for Mr. Lou. As for my relationship with Mr. Lou, I think it should be more about the clockwork radio."

"How do you say this?"

"Because the winding radio is the result of my classmates and I'm the research and development, of course, I obtained the commissioned research funds through Mr. Lou to successfully complete the research and development of the winding radio.

Because I need to start a sales company in Xiangjiang for sale, my parents were transferred there to work for a long time. I followed me because I was underage, so I am now taking the identity of Xiangjiang.”
Chapter completed!
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