1905: Beer Hall Speaker

Page 140

This is the kind of person who inexplicably becomes a shareholder through stock trading; they would still think they are a stock investor even before receiving an invitation.

At the board meeting, Chen Jiaxie still firmly held the decision-making power, while other shareholders only had the right to attend the meeting and be informed. Because their shareholding was too small, it was like a little finger touching a pectoral muscle—they simply couldn't win.

Chen Jiaxie announced Tongda Power Company's expansion plan for this year, the first step of which is to buy land and expand the factory, with the production workshop to be expanded by more than three times.

Then, regarding the procurement of related manufacturing equipment, German shareholder Karl suggested that he could help facilitate the procurement from Germany, but the local shareholder insisted on sourcing from the local market. Manufacturers such as Wuhan Heavy Machinery Group, Hunan Zhuzhou Machinery, Jiangnan Precision, Guangzhou Dayang Machine Tool, and even the local Jiangnan Gun and Cannon Bureau were all capable of providing the equipment needed by Tongda Power Company.

Although domestically produced goods are of poor quality, have poor stability, and are somewhat expensive, and their operating costs are not low, compared to imported goods, domestically produced equipment has almost no advantages; the foundation is still too weak.

However, the shareholders, including Chen Jiaxie, insisted on purchasing from domestic suppliers. As long as the product was available and could be provided by domestic manufacturers, they would prioritize purchasing domestic goods. They were okay with the higher price and slightly lower quality; they could just bear with it.

Karl, the German, was furious. He had invested a lot of money and managed to acquire five percent of Tongda Power Company's shares. Seeing Chen Jiaxie's large-scale expansion, he thought the other party was a very shrewd businessman.

But I never expected that the other party would be so nationalistic in business. For the sake of national dignity, they couldn't even do basic accounting. They could have spent less money to buy better equipment, but they insisted on spending more money to buy inferior domestic products. What kind of logic is that?

If the concern was about after-sales service, Carl offered to take responsibility; if any problems arose with the equipment, he guaranteed someone would come to repair it, and he wouldn't overcharge. However, no one on the board agreed, insisting on a domestic manufacturer.

Carl lodged a strong protest, questioning Chen Jiaxie's ability to manage the company. He argued that importing advanced foreign equipment was not an act of treason, but simply the best choice for commercial interests. Why should the company's interests be sacrificed? This showed a disregard for shareholders and investors.

But before Chen Jiaxie could even speak, the other shareholders took the initiative to persuade Karl, leaving him speechless with one reason: the world of martial arts is not about fighting and killing, but about human relationships and social interactions!

Doing business isn't all about deceit and petty calculations; it also involves human relationships and social dynamics.

The same equipment is available domestically, but if you think it's too expensive or of poor quality, you can buy it abroad. On the surface, no one will say much, but in reality, everyone will think that Tongda Power Company is ignorant!

If Chen Jiaxie really agrees to buy it abroad, the municipal government will come and give them a warning the next day. Why go to such lengths when there are things available domestically, or even locally?

What's cheaper and of better quality? Is that why you abandoned domestic products and chose imported ones? It seems Tongda Power Company is quite good at calculating. In that case, the government should also do its due diligence. They've given you orders with preferential policies and support, so why not just cancel them? You only talk about profits, so I'll only talk about profits too!

If it's not available domestically, or if you try to buy it but the seller refuses, and you end up having no choice but to import it from abroad, no one will criticize you. They might even help you blame the domestic manufacturers for being unprofessional.

But if you have it domestically and are willing to sell it, and you refuse to sell it to foreigners instead, then you are an oddball.

Even if you successfully expand and save money and become more efficient, you will find that you have lost many things that are invisible and intangible.

The central government's strong tax-free support, along with various subsidies and preferential policies, has a clear purpose: to build an invisible and unassailable barrier, providing local enterprises with disguised tariff subsidies and support.

On the surface, it maintains its commitment to free trade and open markets, but in reality, it provides preferential treatment to domestic manufacturers, making them more competitive with imported goods.

Local manufacturing owners and investors are well aware of this; it's something that can't be discussed openly, but everyone knows the truth.

The government has never just made empty promises about "domestic products should strive for excellence," but has consistently invested real money and made continuous progress in promoting this goal.

The central government did not use sentimentality or lofty ideals to coerce enterprises, but instead persuaded them with tangible support and subsidies.

The companies below are also very sensible. Prioritizing domestic products has become a standard in all industries. Unless there is no other option, they must use domestic products.

This applies to both superiors and inferiors, and even more so to competitors. If you pay the price to buy my more expensive and inferior domestic products, I will definitely acknowledge that favor. In the future, I will also accept your products, as long as you don't deliberately cheat me. I will buy your products even if they are more expensive and of lower quality.

It is said that righteousness does not lead to business, but if you are truly unrighteous, no one will be loyal to you. Zhao Yan governed the country with righteousness, and people who do not value righteousness will not be able to get by anywhere.

This time, Tongda Power Company paid a price to save face for domestic manufacturers, and others will give you face in the future.

After listening, Carl fell silent. The shareholders didn't explain the unspoken rules of disguised subsidies to him, as those things were not suitable for a foreigner like him to hear. They only told him that only by buying domestic products could Tongda Power Company's products be sold smoothly in the domestic market in the future. This point alone was enough to convince Carl.

Karl, the German, then realized that this was not Europe, but a huge country comparable to Europe. Any one of its provinces would be the size of a large country in Europe.

Trade barriers are very serious in various European countries. Although China is a single country and the government is constantly working to eliminate trade barriers and localism between provinces, these issues are not entirely absent.

If you don't buy goods from other provinces, why should they buy yours? Even Zhao Yan wouldn't dare to eat alone, so why do you?

If you want to sell your goods to other provinces, you need connections and favors; otherwise, they'll block you in no time. Even if you want your local government to step in and support you, you still need connections and favors.

Tongda Power Company purchases equipment from other provinces, so their vehicles can be sold smoothly there. If there are any problems, you can contact the dealers there.

If they buy equipment from Shanghai and then face difficulties in the sales market, the Shanghai municipal government will help them out. That's just how things work out!

The People's Republic of China today is not like the Northeast University of decades to come. Some of the traditional morals left by our ancestors still exist and are the mainstream of social values. Social etiquette is no longer a derogatory term, but a real philosophy of survival.

Fellow villagers won't stab each other in the back, and business partners won't fight to the death; instead, they'll help each other because everyone is trying to make a living on this land.

Our biggest enemy is the dumping of foreign goods. If we don't unite, we will be wiped out by foreign dumping.

Free trade and open markets are a double-edged sword. Chinese people have gained access to vast overseas markets, but foreigners have also gained entry into China. No one will violate the rules on the surface, but the actual competition is extremely fierce.

China is already at a disadvantage in this field. Zhao Yan's approach of opening up markets and engaging in free trade with Europe and the United States on an equal footing is based on China's status as an agricultural country. It is no surprise that Europe and the United States want to dump their products and cripple China's fledgling national industry.

But China cannot refuse, because only by opening up a free market can it successfully introduce foreign technology and equipment to develop itself and attract overseas capital to strengthen itself.

Under immense financial pressure, Zhang Mingqi even risked being shot in the back by the Ministry of National Defense and shamelessly divided the spoils, while Zhao Yan was also desperately trying to make money.

In order to revive local industries, the government used fiscal investment to create a protective shield for the nascent national industries. The cost was enormous, but the results were remarkable.

The central government didn't just talk the talk; it actually put real money into the work, and the people below were all very sensible and followed the rules.

After all, the government has done everything it can and has no more resources left. In this situation, if the local businesses are not sensible and fail to live up to the government's good intentions, then...

All government subsidies will be immediately cancelled, and the so-called "three reductions and two exemptions" will become special preferential treatment only for foreign companies, while domestic companies will not receive any reductions or exemptions.

If you don't live up to expectations, the higher-ups won't tolerate you. You don't know how to be grateful or take care of the country's interests, so why should the government take care of you? Just because you think you're so great?

You know imported goods are better, but doesn't the government know that too? If you don't support domestic production and the purchase of imported goods, then the government might as well use its funds to attract foreign investment!

The reason why Tongda Power Company was able to establish itself in Shanghai and gain government favor, gradually developing from a blacksmith shop and steam workshop into the power company it is today, is because Chen Jiaxie is sensible, knows the rules, is rooted in the local area, operates locally, creates jobs, contributes taxes, and understands the way of unity. The government is very happy to support such a company.

Officials were happy to deal with Chen Jiaxie and maintain close ties with him. Even if they gave him gifts, the higher-ups would turn a blind eye and wouldn't bring up the issue of collusion between officials and businessmen. Even the central inspection team wouldn't say anything.

The higher-ups only look at the results and specific performance. If the results are obvious and the performance is good, they will ignore any flaws in the process.

Chapter 233 Bottom-line thinking

"What is this, social insurance? Why is it mandatory for companies to purchase it?"

"And what about the minimum wage standard, five yuan per month? Why is it mandatory that companies must allocate five percent of their annual net profit as an enterprise annuity to be equally distributed to every employee?"

"A maximum of twelve hours of workday and a mandatory one-day weekend are also legal requirements?"

Soon the board meeting began discussing worker recruitment, with the top priority being worker salaries and benefits, since labor costs are often one of the biggest cost burdens for a company.

Moreover, employment is one of the areas that the government values ​​most, and besides contributing taxes, a company's social role also includes providing employment opportunities.

But when Carl saw the mandatory items highlighted in red on the document, he couldn't help but protest again. What kind of mandatory constraints are these on businesses?

Modern Europe is not the welfare paradise it will be a century from now; rather, it is a living abyss known as an industrial hell.

There is a folk song in Germany that is officially banned from being sung. It was created by German textile workers, and its content is roughly as follows:

We have woven in a triple curse;

A God who fools mortals, we pray but are constantly deceived!

Our hardships cannot move the heart of a king who is extravagant and decadent!

One layer is a false motherland, where rotting corpses and dung feed maggots!

Shuttles fly, looms hum, we are weaving the shroud of Germany, busy day and night.

The most glorious moment for Europeans during the Industrial Revolution was also the time when capitalists and factory owners were at their lowest point. The so-called demographic dividend was discovered by Europeans as early as the beginning of the 19th century.

At its most outrageous point, the British Parliament was filled with a group of respectable, upper-class members of parliament, having a very serious discussion on "how to reduce the burden of the twelve-hour workday for children under ten."

Even a three-year-old kid has to make the most of things, hanging up a rope to clean the chimney. Even the Sky Chariot Khan Zhao Yan wouldn't dare to play like that.

Even when the Mongols were beheading someone, they would still erect a cartwheel as a sacrifice, but the gentlemen of old Europe would exploit even those less than a cartwheel.

Even in the Qing Dynasty, which was known for its incompetence, the government would build a few small huts for the poor to shelter from the wind and rain for a penny a night. But capitalists in old Europe invented the hanging bed.

It simply involves tying a few ropes taut, and when workers return to their dormitories to sleep, they hang themselves on these ropes, allowing them to sleep and rest in a semi-standing position, maximizing space utilization.

Europeans have always said how terrifying Satan is in hell, but in reality, Satan would need to smoke a cigarette to calm his nerves after hearing about the things they've done.

This kind of content, if it weren't purely fictional, it wouldn't be able to be written into a novel. It's just too shocking!

Everyone knows the little match girl in Hans Christian Andersen's fairy tale, but that was the most dignified ending for an underage cog in the industrial age. People at the time did indeed tell this story as a fairy tale.

For someone who sells matches to freeze to death on the street is a beautiful fairytale ending compared to being ground into mincemeat by gears or having their internal organs soaked in coal dust.

A hundred years from now, no matter how high the welfare benefits Europeans enjoy, they will take it all for granted, after all, their ancestors have already paid their social security contributions.

The benefits of the Age of Exploration and the colonial era were not available to ordinary Europeans. They could even be considered as colonized. The colonial regimes not only colonized foreign countries, but also domestically.

The current Republic, through opening up to the outside world, has had ample contact with Europe and has begun to understand its true nature. It is now quite understanding of its own heir's decision to go abroad to start a revolution aimed at liberating the world. There is a consensus that this embodies the principle of "when things are going well, one should help the world."

At the same time, various social strata in China also strongly agree with the various movements that have been happening in Europe. It can be said that if those events were held in China, the Chinese people would have long since become like Chen Sheng and Wu Guang, and everywhere there would be people saying, "Are kings and nobles born with special privileges?"

Therefore, the claim that the Chinese are the most hardworking and resilient people in the world is a false proposition. Just look at the industrial legends of old Europe during the industrial age, and you'll know who the most hardworking and resilient people really are.

That's something every Chinese person would wonder: why hasn't this kind of country been overthrown by an uprising?

Searching through history books, no Chinese person can find this answer. Let alone such exploitation, even if I were starving to death, I would still rebel. Let alone exploiting me like livestock and then starving or dying of disease, it would be strange if the emperor wasn't brought down.

The current Republic is very sensitive to the issue of worker and peasant treatment. As for the preferential treatment of farmers, it goes without saying that these peasants are too powerful in their rebellion!

Since the Qin Dynasty, peasant rebellions have been a constant occurrence for two thousand years. Countless dynasties have been overthrown by peasants wielding hoes, and even the mighty Tang Dynasty was brought down by peasant uprisings.

The central government of the Republic dares not touch the farmers' livelihoods. The current bigwigs all rose to power through rebellion. They witnessed the shocking scene of groups of farmers carrying hoes to join the revolution during their own revolution. Even if half of them starved to death on the way, they would still run over to overthrow the Qing Dynasty. How could you dare to mess with them?

The workers' revolt movement in Europe has set a good example. As long as you industrialize, workers will become a second "peasant group" and then combine to form a class that will change the world—the worker-peasant association.

The birth of the Comintern merely brought the ghost that haunted the world to life on earth. Zhao Yan and even Wu Zifu were just igniters; even without them, others would have lit the fire and set the whole world ablaze.

The Republic has learned from lessons both at home and abroad in this regard, and has developed some bottom line, no longer treating people like livestock.

After all, compared to the cost of suppression or even civil war, the price of improving the treatment of workers and farmers is just a drop in the ocean.

Zhao Yan knew how much President Chiang had sacrificed to suppress the Communists. He didn't want to spend so much on military spending to fight a civil war many years later. It would be better to use the money now to prepare for the future.

And you don't even have to pay out of your own pocket; the capitalists will pay. As for whether the capitalists will rebel? That's not a funny joke at all. They're already being lenient by not treating you like a fat pig to be slaughtered. You think they'd rebel?

Against this backdrop, the government of the Republic, upholding the banner of freedom and human rights, enacted the Labor Law, which stipulates minimum wages and maximum working hours. It sets a legal line, making it clear to capitalists that they can exploit them however they want above the line, but if they cross the line, they will be dealt with!

When you're out in the world, always leave yourself an out; don't push people to their limits.

These days, even Chinese bosses who still possess a modicum of traditional morality wouldn't want to hang themselves on streetlights as decorations, and Zhao Yan certainly wouldn't want his eldest disciple to one day walk into the Taihe Hall carrying Frostmourne and stab him.

We can't afford an eight-hour workday and a two-day weekend right now, but we can still manage a twelve-hour workday and a single day off. China's population size is what it is. What other countries with tens of millions of people need to work 24 hours a day to create national strength, China can create in just a few hours.

It doesn't matter if the per capita data is a bit low, as long as the total amount can keep up. When it comes to war, who the hell will fight you one-on-one? The real deal is to gang up on you.

Tongda Power Company now recruits employees strictly in accordance with the Labor Law, adhering to the minimum wage and maximum working hours stipulated by law.

The minimum wage standard is five yuan, which is based on the minimum salary of civil servants and will continue to follow the standard for civil servants. Five yuan per month, based on the current grain price after inflation, is only equivalent to 62.5 kilograms of hulled rice, which is completely affordable compared to the profits they generate for enterprises.

A strong laborer's annual income is equivalent to about 750 kilograms of rice. At most, one person working can support the whole family to a life that is neither too hot nor too cold, but at least enough to eat.

If two people work, they can guarantee enough to eat and wear, and if they squeeze in, they can even ensure their child attends primary school for a few years.

A 12-hour workday with one day off per week, after deducting meals and sleep, still leaves an hour or two for rest in between. One day off per week is the minimum guarantee that people won't go crazy. Working six days and resting one day at least gives you something to look forward to and prevents you from becoming desperate and numb.

Factories must provide food and lodging for their workers; this is a regulation. Otherwise, if workers are forced to bring their own food to work with such meager compensation, there will be nothing left. Workers must have a certain level of purchasing power to support their families and children. Otherwise, how can the country's population grow?

Social insurance is what is currently recognized as a poll tax in China. The central government does not mandate that every citizen pay it, but it is still enforced at the grassroots level.

Adults receive 10 cents per month, minors receive 20 cents per month, and the penalty is triggered only once in a lifetime, with a maximum penalty of 1,000 yuan. If anything goes wrong and you can't handle it on your own, the government will step in to save your life.

If it is not triggered by retirement age, it will automatically be converted into a monthly pension payment and returned to you with interest.

In rural areas, this money is paid as compensation for voluntary labor. Farmers simply cannot afford this monthly expense for their entire family, so the government simply has farmers participate in the construction of public facilities and pay it as compensation for their labor.

Generally, working for about 20 days during the off-season in a year can offset social insurance. Urban residents and workers pay in cash, but their employers usually make the payments. Only minors and disabled people who are unable to work need to pay on their own or simply waive their insurance.

The current distribution system in the Republic is basically like this: enterprises are responsible for providing daily income and basic necessities, the state is only responsible for saving your life in critical moments, and no one can manage the rest, let alone have the ability to manage it.

Inside the meeting room, Carl was once again taught a lesson by the shareholders, and was deeply shocked. It turned out that the Chinese people's so-called human rights and freedom were not just empty words; they were actually serious about it.

Carl was also a smart man; he saw through the surface and discovered a common concept among Chinese people, whether it was interpersonal relationships or the protection of labor laws.

These all reflect a Chinese concept: the bottom line, or moderation, avoiding extremes, emphasizing harmony, and leaving room for maneuver in everything.

Workers can't be too comfortable, capitalists can't be too ruthless, governments can't be too cruel, and farmers can't be too hungry. Everyone has to sacrifice something, and no one can enjoy all the benefits.

The ultimate goal is to ensure that the final line is not breached, and to prevent chaos from erupting. Everyone is trying to make a living from this pot, and no one can do anything to sabotage it.

From the central government to the grassroots, there is a strong emphasis on a bottom-line mentality, meaning that in everything we do, we must leave room for maneuver.

Even if development is slower and national strength is weaker, it's acceptable. If we can't compete with the old gentlemen of Europe, then we won't compete. When you're in chaos and I'm not, without fighting, I'll consider myself a winner.

Zhao Yan was the one who implemented and popularized this concept. In fact, Zhao Yan set this bottom line for progress based on the future development history.

The war was tough, but chaos was inevitable. After the war, stability was maintained and development continued. By 1940, when World War II began, Zhao Yan couldn't guarantee he would still be alive. After all, he would be seventy years old by then, and it would be quite normal for him to die.

If he's still alive, he can tough it out and get through that ordeal. If he dies, he'll have to hand over a stable and complete China to his successor or the next regime, who will then lead China to face the great war that will usher in a new world.

This also reflects the bottom-line thinking of a national leader: there must be a minimum standard in everything; we don't pursue perfection, but we do pursue sustainability.

The existing labor protection and distribution system, although it severely restricts the competitiveness of Chinese goods and drives up costs, is still acceptable as long as we remain united and maintain stability.