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Chapter 726: Procurement Mission (Part 1)
🕑 Added 2023-10-13 08:45:06 +0000 UTCTransformers Begin : Table of Content/Chapter List
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In the heartland of Xia Country, the Land of Abundance, Lu Yi, a manufacturer of automotive components, returned home after a long day, his breath heavy with the scent of alcohol.
His wife and children were already fast asleep, and he didn't want to disturb them. After a quick freshening up, Lu Yi poured himself a hot cup of tea and retired to his study. With a restless mind, he pondered, "Business is becoming increasingly challenging."
In recent years, as international conflicts escalated and the European and American countries, the architects of globalization after World War II, reevaluated their strategies, they realized that while globalization had indeed facilitated their economic dominance over other nations in the new era, it had also sown the seeds of a resurging Cold War mentality.
The once selfless advocates of global connectivity had now become the chief architects of global discord and destruction. They orchestrated disputes and wars while assuming a moral high ground, meddling in the internal affairs of other countries, and wielding protectionism and trade barriers as weapons to attack and undermine globalization.
Under the influence of this shift, the global environment had deteriorated significantly in recent years.
Xia Country, often referred to as the "world's factory," was one of the biggest beneficiaries of economic globalization. It had also been an alternative global elite before the rise of the Anglo-Saxon people. Consequently, it had naturally become a prime target for the power centers established by the Anglo-Saxon people.
Small-time entrepreneurs like Lu Yi, who had some wealth, were among the most sensitive barometers of economic shifts. At only thirty-six years old, he could be considered a wealthy second-generation businessman.
His father, during the economic reforms of the 1980s, had initially worked as a factory laborer in an automotive corporation after graduating from college. By the end of the last century, Lu Yi's father had become self-reliant. Leveraging the technical expertise and connections he had gained from over a decade of working in the automotive industry, he had built his own business empire.
A decade had passed since then, and when Lu Yi took over two years ago, his late father had left him with an accumulated wealth of around one billion, four factories, over three thousand employees, and the capacity to manufacture over one hundred and seventy different automotive components. His father's sudden death, due to stomach cancer, had caught him off guard, but he had spent over a decade working closely with his father after finishing college.
Following his father's demise, Lu Yi smoothly transitioned into managing the corporation and maintaining the relationships his father had cultivated over the years. However, this couldn't reverse the corporation's recent decline. Over the past two years, frequent outbreaks of protectionism in international trade had led to exorbitant tariffs on the products exported by many Xia Country corporations to European and American regions.
The automotive industry, in particular, was an industry that had been relatively unscathed in European and American regions, as it was considered a vital component of their industrial complex. This was especially true in Europe, where the impact on other countries' automotive industries had been severe. Lu Yi's corporation specialized in Autobot components, and although it was not the largest in Xia Country, it was renowned for its commitment to quality.
Previously, they had primarily exported their products overseas because competing with the hundreds of domestic rivals meant constantly cutting costs, resulting in razor-thin profits. Lu Yi's father had been dismissive of the meager domestic profits, but now, with the soaring tariffs on their exported products, Lu Yi's options were becoming increasingly limited.
Tonight, he was hosting a visit from a manager of a provincial automobile company, who was coming to inspect the factory, and he wanted to offer some hospitality as well.
However, the attitude of the guest left Lu Yi somewhat frustrated. The components produced by his corporation were of high quality, making the final products more expensive compared to what domestic competitors offered.
Due to variations in production costs among countries, Lu Yi's corporation used to earn decent profits when exporting its products overseas. This was mainly due to the higher production costs in the regions where the European car manufacturers they cooperated with were located. All they needed to do was to maintain quality.
Now, with high tariffs in place, European car manufacturers were switching to other parts suppliers, and Lu Yi needed to compete with domestic competitors to secure orders from Xia Country's car manufacturers. To do so, he had to figure out how to reduce costs.
In the past, both Lu Yi and his father had made great efforts. His corporation had already trimmed costs to the limit while maintaining quality.
Further reductions would require unethical compromises in quality and materials, a path that Lu Yi was clearly unwilling to take. From a young age, he had lost his mother in a car accident due to a malfunction in the skid control system. Because of this tragic experience, both his father and Lu Yi had always adhered to their ultimate bottom line: product quality.
Lu Yi took a sip of hot tea, and it seemed to help clear the lingering effects of the alcohol. He sat pondering for a while and then thought about his corporation's current situation, letting out a sigh.
"...The domestic market for automotive components has almost turned into a profitless 'Red Sea.' It looks like we'll have to find a way to export... but before that, I need to figure out a way to generate some more funds."
In the past two years, although Lu Yi's corporation had been operating at a reduced capacity, employee salaries still needed to be paid, and the factory and equipment required maintenance. Manufacturing companies, with their heavy capital investments, did not enjoy the same level of cash flow as service-oriented and low-capital businesses.
Over the past six months, if it weren't for his unexpected entry into a special chatroom, his corporation would have struggled to stay afloat.
"By the way, I haven't visited the chatroom in a while. Maybe I can find some production tasks there!"
With this thought in mind, Lu Yi quickly opened the computer in his study, and directly clicked on a chat software named "Magic House" on his desktop. Among the numerous chat rooms, he double-clicked on "[Xia Country Technology Exchange Room 1]."
The chat room quickly prompted him to enter a password. He needed an invitation code to enter.
Still somewhat under the influence of alcohol, Lu Yi thought carefully and remembered the new invitation code he had received just a few days ago. He typed it into the input box and clicked "OK."
The chat room interface appeared in the next moment.
Even though it was deep into a winter's night, the chat room was ablaze with activity.
"Hahaha, thanks to the Administrator for securing these benefits for us. This batch of procurement tasks involves a lot of materials. We can make a fortune..."
"I've taken on two tasks, and the 46 million yuan deposit has already been transferred to the corporation's account. Administrator, your efficiency is as high as ever, haha..."
"I've got five tasks this time; I'm going to make a killing!"
"Administrator: Attention, everyone. This batch of procurement tasks is a benefit for all Xia Country members from the 'Progressive Chinese Federation.' All members are eligible to participate, but Administrator will review membership eligibility, and those who qualify must prepay fifty percent of the deposit. Those who are not eligible or offer subpar products will receive one warning; a second offense will result in expulsion from the chat room."
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Next Chapter >>Chapter 727: Procurement Mission (Part 2)
