Chapter 227 Wright's Thoughts

Chinese products are of high quality and low price, but for people outside China, this is just a vague concept. They know that they are low price, but they have not yet reached a consensus on the high quality.

Because of the selective reporting of Western media, most foreign people lack a rational understanding of how good Chinese products are.

But in the financial world, this is an indisputable fact.

Even in many originally high-end manufacturing industries, the Chinese have driven prices down to rock-bottom prices.

Guangjia Aerospace's space station has once again proved this point.

“Wright, all Chinese-related products are so cheap that their competitiveness in the international market is so strong.

This is the reality faced by the entire international industrial economic cycle over the past few decades.

Everyone would have thought that as China climbs up the manufacturing industry, with the increase in technological content, China's high-end manufacturing products would also enjoy higher premiums and have a relatively high price.

However, we found that this does not seem to be the case. Even with very high technical content and good competitiveness without price wars, Chinese companies will still choose a very low price to compete for the market.

It feels to me like Chinese companies are more hungry than ever before. Without high-intensity competition, they will immediately face the risk of bankruptcy.

However, in the field of commercial aerospace, Light Armor Aerospace does not face similar difficulties. Its only competitor is itself.

There is little overlap in the business between SpaceX and LightMech, and more importantly, there is little overlap in the customers between SpaceX and LightMech.

But Guangjia still offered a very low price, just like other Chinese companies.

I am very curious, why is this happening? What is the essence behind all the Chinese entrepreneurs’ choices? "

Nikola's problem is very sharp and profound, and it is also a problem that all developed countries are worried about at present.

As China's industries upgrade, everyone's original profits will be reduced to zero, because even with zero profits, we will not be able to compete with China.

China's industrial advantage has changed from its past labor advantage to an advantage in large-scale industrial production.

This is an advantage unique to China. Among all the countries in the world, only America has ever had it, and India may have it in the future.

Chen Yuanguang raised his eyebrows and said, "To be honest, this is a question that many people are curious about, and various experts have also answered it.

I can only talk about my opinion and why I made such a pricing strategy.

I think all Chinese entrepreneurs make similar decisions because China's manufacturing industry has only been developed for a limited time and companies do not yet know how to obtain excess profits.

In addition, in the global trade system established by America, Chinese companies often have to work harder than companies from other countries to gain a foothold.

America is making every effort to relocate its industries outside of China and is calling on their allies to do the same.

Under this current situation, Chinese companies do not have a good external environment to allow them to relax.

Finally, companies with technological advantages should use their technological advantages to gain excess profits, which is also a form of exploitation in a sense.

It is a means for developed industrial countries to exploit developing countries. As China was once an exploited country, we will subconsciously not want to deprive developing countries after we gain an advantage in this long-term race.

Here are some of my thoughts on the matter.

As for my personal pricing strategy, it is based on the fact that Guangjia Aerospace has no profit pressure or performance pressure, and we need to expand our scale as quickly as possible.

So we will set a relatively low price. As long as we don’t lose money, I think there is no problem.

We were planning to send a space station into space anyway, so sending an extra module wasn't a difficult task for us.

$20 billion is a relatively suitable price in my mind. This price can also effectively keep a large number of competitors out. "

After Chen Yuanguang finished speaking, Nicholas quickly asked back: "So are you willing at all or are you starting from a competitive perspective?"

Chen Yuanguang said: "Yes, the ultimate goal of an enterprise is to survive. Profit is just a means, not the ultimate goal."

Nicola said: "The point you just mentioned is very interesting, that developed industrial countries rely on their technological advantages to exploit developing countries.

In fact, few American entrepreneurs would think from this perspective, or Americans rarely talk about the word exploitation.

It's too socialist.

Do you think China is still in the position of being exploited in economic globalization? "

Chen Yuanguang said: "In some areas, such as advanced biomedicine, high-end instruments, imported oil, etc., its pricing still has some deliberate manipulation."

"If what you said is true, the field where China was most exploited in the past must be semiconductors. In the past, due to the limitations of technology and some American policies, China's industrial development in this area was not only restricted, but also trade was greatly restricted.

Is it because of dissatisfaction with the status quo that this project of topological semimetal was initiated? "Nicholas asked.

Chen Yuanguang thought for a while and said: "No, topological semimetals are more like accidents. It's because LK-99 came first, and then I had a great idea and thought I could do something in the field of room-temperature superconductivity.

Topological semimetals are an adjunct to room-temperature superconductivity.

It was more like a beautiful accident.”

After Chen Yuanguang finished speaking, Nicholas slapped his head on the other end of the phone:
“Such a surprise would not be so nice for Washington.

I think people in Washington will be very upset when they hear this, because this accident caused their complete strategic failure.

It has also put the Federation’s technological leadership into an unprecedented crisis.”

Nicola is the head of Norway's sovereign wealth fund and is undoubtedly Norwegian and European.

As a European, I am obviously happy to see America suffer a setback.

"In the past, we have been buying technology companies in Silicon Valley. We have large holdings in almost all of the big seven in Silicon Valley," Nikola continued.

Big7 are the most famous technology giants in Silicon Valley.

"We manage $1.6 trillion in assets, a size that is huge. Over the past decade, we have been increasing our stake in American International from percent to half.

And over the past year, we began to reduce our stake in American Enterprises for the first time.

Because we found that compared with Chinese companies, America's innovation is empty, like a beautiful bubble.

A big reason for this is the impact of topological semimetals. We realized that American's technological baquan is not as solid as they claim.

Wright, if there were not too few suitable targets in the Chinese stock market, if Guangjia Aerospace and Huawei were not listed, and if the supervision was not strict enough, the proportion of assets we transferred from the American stock market to the Chinese stock market would be even higher. "

Nikola also wants to complain about Greater Europe:

“Europeans don’t work as hard, aren’t as ambitious, are more regulated, and are more risk-averse than Americans.

I am not saying that America is doing well, for example, there is a lot of AI technology but no regulation, while Europe has no AI but a lot of regulation.

Isn’t this funny?
However, compared with the Chinese, the Americans do not work hard enough.”

(End of this chapter)