In the Li family study, the conversation continued!
After recovering from his shock, Old Chen said with a hint of scrutiny, “Everyone says you’re a whiz at business, but I never expected you to have such strategic vision. It seems we old-timers have all underestimated you!”
Li Yi smiled and replied, “You flatter me, Old Chen. Actually, I don’t think the flaws in the current economic policies are anything anyone can’t see. What our country has no shortage of is smart people—like you, Old Chen, and the Grand Elder, for example.”
“I’m sure you’ve all been aware of this problem for quite some time. It’s just that some issues can’t be resolved simply by recognizing them.”
Old Chen nodded and said, “That’s right. We’ve actually been aware of what you’re saying for some time, but we haven’t had a better solution. After all, we’ve been implementing a planned economy for nearly thirty years now. The ship is too big; we’ve already sailed into deep waters, and it’s not easy to turn back!”
“Our reforms and opening-up, our efforts to attract foreign investment—these were all intended to solve precisely these problems. As you said, we needed a ‘catfish’ to stir things up; that foreign capital was the catfish we deliberately let in. But if I follow your logic, what we’ve brought in isn’t a catfish—it’s a shark!”
Li Yi sighed and said, “Most foreign capital has been accumulated through generations of bloody struggle. They carry the scent of blood in their very bones. By inviting them in, we must anticipate that this will inevitably be an extremely lopsided slaughter—and we will have to pay a tremendous price!”
“Then, in your opinion, what should we do?” Old Chen asked in a grave tone.
“Since this economic war is inevitable, we must not cling to false hopes. We need to prepare for battle in advance—both physically and mentally!”
“Be more specific!” Old Chen said.
“We must not wait until foreign capital has fully entered the market before telling our domestic enterprises that they’ll have to fight these hungry wolves face-to-face—and that only by winning can they survive. That would be like sending green recruits straight into battle; the survival rate is obvious!”
Li Yi continued, “I suggest the government implement a bankruptcy liquidation system for existing enterprises. Any company that is insolvent should be put into bankruptcy liquidation.”
“Bankruptcy liquidation?”
Li Yi nodded and said, “Exactly. Our state-owned enterprises are currently living far too comfortably. It seems to make no difference whether they’re profitable or not. Even if a factory barely makes any money all year round, the salaries of employees and managers are still paid in full, and their benefits remain unchanged. The government backs them up in everything, which has made certain individuals or groups completely reckless!”
“But once the bankruptcy liquidation system is implemented, it will shatter their comfort zone. Not only will it lighten the burden on local governments, but it will also serve as a warning to others—making other enterprises realize that if they don’t find ways to improve their performance today, they might be packing their bags and leaving tomorrow.”
“That makes sense. Go on!” Old Chen said with interest.
“Secondly, we must encourage domestic enterprises to adopt a merger and acquisition system. Stronger companies can acquire weaker ones. This will not only boost corporate vitality but also rapidly create a group of highly competitive large enterprises.”
Li Yi continued, “Additionally, we need to align certain systems and policies with international standards as soon as possible—such as financial systems and patent protection systems.”
“After all, once foreign capital enters the market on a large scale, they won’t play by our rules. If we want to cooperate with them, we’ll have to operate under internationally accepted standards. With all due respect, most of the talent in our domestic enterprises knows nothing about these matters. If we rush into cooperation, we’re bound to suffer major losses.”
Li Yi wasn’t speaking idly on this matter. In the early days of reform and opening-up, we suffered far too many setbacks due to our unfamiliarity with international rules.
We lacked the capacity to manage these matters back then, but now he must remind Old Chen that we absolutely cannot let domestic enterprises repeat the mistakes of the past and go down the same path again.
Old Chen remained silent, instead giving serious thought to what Li Yi had just said.
The more he analyzed it, the more he felt Li Yi’s point made sense.
Although the measures Li Yi proposed would trigger a series of chain reactions,
but compared to the disaster that would result from directly pushing these state-owned enterprises into the market, these chain reactions were more manageable and posed less harm.
As the saying goes, when faced with two evils, one must choose the lesser of the two. Old Chen was immediately persuaded by Li Yi’s words.
After a long pause, Old Chen looked at Li Yi and said, “Your suggestions are very constructive and demonstrate a high level of strategic insight. I’ll go back and report them to the Grand Elder. I’ll also mention your plans to acquire the electronics factory and the wafer fab—I don’t think there will be any major issues. Aside from that, is there anything else you’d like to discuss?”
“Yes, I want a team of people!” Li Yi said.
“What kind of people?”
“People who can get the job done—like college graduates!”
Li Yi then explained, “As you know, our company has made massive investments in China this year. So far, the total amount has exceeded 1 billion yuan, and it will be even more next year.”
“But the immediate problem is that we’re severely understaffed, which is seriously affecting our normal operations. Since there are strict restrictions on foreign-invested companies hiring employees in China, we’ll need your help with this!”
Old Chen nodded and said, “I understand. I’ll issue a special authorization for your company. Your staff can take that document to various universities to recruit people. I’ll have the HR department cooperate with you!”
“That’s wonderful! Thank you so much!”
“No need to thank me—facilitating things for foreign-invested enterprises is simply our duty!”
Old Chen then changed the subject and added, “By the way, your old man told me about the Liu family. How do you plan to handle this? Do you want me to step in and issue a warning to the Liu family?”
Li Yi didn’t answer whether he wanted him to or not. Instead, he looked at Old Chen and asked, “Is the Liu family under your influence?”
“Not exactly, but…”
Before he could finish, Li Yi smiled and said, “Since they aren’t your people, then you shouldn’t get involved in this. I can handle it myself!”
“Oh, the Liu family may not be a top-tier clan, but they’re no pushover. You don’t want the Jiang family’s help, and you don’t want me to warn them either. Are you really planning to handle this on your own?” Old Chen asked with a smile.
“Exactly! You handle your own affairs—even a child knows that!”
Who was Teacher Chen? After a moment’s thought, he saw right through Li Yi’s intentions. He looked at Li Yi and said, “It seems you’re not planning to let this slide, young man. Do you intend to bring the Liu family down completely?”
“That’s the idea. After all, you can’t guard against thieves forever!”
Li Yi continued, “And if you do something wrong, you have to take responsibility. Since the Liu family failed to raise their child properly, I don’t mind helping them with that.”
“You’ve got guts, kid, but let me remind you: always know your limits. Don’t try to be a hero. If things get too tough, just go to your old man. The Liu family is no match for the Jiang family!” Old Chen cautioned.
“Rest assured, sir. I’m not the type to let pride get the better of me. If things get too tough, I’ll definitely tell my parents—and who knows, I might even ask you for help then!” Li Yi said with a smile.
“Alright, but I won’t do this for free. If I help you out once, you’ll have to do me a favor in return!” Old Chen said.
“Don’t talk like that, Old Chen. Even if I didn’t come to you, wouldn’t you still ask me to handle things for you whenever you need help?”
Li Yi continued, “Just tell me straight up what you need. As long as it’s within my power, I won’t turn you down!”
Old Chen chuckled. “You’re a shrewd one, aren’t you? No wonder you’ve built such a big business!”
“But I don’t need you just yet. When the time comes that I really need you to step in, you better not make any excuses to back out!”
“I certainly won’t!”
“Alright then, that’s all for today. If there’s any news regarding what you mentioned earlier, I’ll have someone let you know!”
“Got it…”
…………