Countercurrent 1982

Chapter 1710 Most Favored Nation Treatment
As more and more American local electronic traders came to the booth to inquire about the price of VCD, this made Duan Yun very happy, which meant that he was likely to get orders from the United States through this exhibition.

Although Tianyin Group has received orders from countries such as Southeast Asia through channels such as the Canton Fair in the past, it has never exported any of its products to the United States. Even the NAND flash memory chips it produced before were licensed by Duan Yun. , handed over to American companies such as Texas Instruments for OEM, and direct export has never been a thing.

In the current Sino-US trade, apart from China’s Minmetals Group and some textile crafts in the South that have export records to the United States, there are very few other Chinese state-owned enterprises that can sell their products to the United States, and even none of the private enterprises. Duan Yun is likely to become the person who makes history.

In addition, Chinese products exported to the United States also have relevant preferential policies.

Before China joined the WTO, it was very important to China whether the United States gave China most-favored-nation treatment.

Throughout the 80s and 90s, the issue of most-favored-nation treatment once became a prominent issue affecting the development of Sino-US economic and trade relations. The United States conducts annual reviews on the issue of China's most-favored-nation treatment. Every review affects the nerves of many Chinese people.

The United States first gave China the most-favored-nation treatment on January 1980, 1. The U.S. Senate and the House of Representatives passed a proposal to give China the most-favored-nation treatment, which would reduce the US tariff on Chinese goods from the current 26% to about 20.00%. , the same tariffs imposed on virtually every other U.S. trading partner at the time.

At that time, the main reason why the United States gave China the most national treatment was because the two countries were in the honeymoon period at that time. The United States needed to win over China to deal with the Soviet Union, while China had just started reform and opening up, and urgently needed to open up the American market in exchange for a large amount of foreign exchange needed for national development. .

However, at that time, China’s exports to the United States were mainly raw material products with little technological added value, including iron ore, coal, textiles, and timber, which were also the only commodities China was competitive in the international market.

Until the early 90s, China’s foreign exports were still dominated by minerals and resources. In terms of electronic products, the United States mainly imported products from Europe and Japan, especially Japan, which can be said to be the leader. Among the products, they are the largest importers of the United States, and if Tianyin Group's products can enter the American market, it will definitely become a historic breakthrough.

Especially when Chinese people know that Tianyin Group's electronic products can be exported to the United States, it will definitely cause a sensation among the Chinese people, and it will have a very high brand effect on Tianyin Group.

In order to get orders from the United States, Duan Yun’s quotations for these American distributors are also very low. Currently, the laser disc players commonly used by Americans are about 1000-1500 US dollars, and the CDs used also need 40-50 US dollars. , not because of the high cost of optical discs, but because the protection of intellectual property rights and patents in the United States is very strict, and high royalties are required to be paid for each optical disc.

When this kind of product arrived in China, the price of a laser disc player was nearly 80 yuan, and when the most expensive disc was [-] to [-] yuan a piece, you must know that it was in the [-]s, so this kind of product is very popular for Chinese people. , is undoubtedly a luxury.

Duan Yun’s quotation to the American dealer this time is that the price of each VCD is 450 US dollars, which is almost only half or even 1/3 of the price of laser disc players, and the cost of VCDs using optical discs is also very low. 3-5 dollars, even if the copyright of the audio-visual content is included, the final price in the US market is only about [-] to [-] dollars. No matter in terms of product performance or price, VCD is far more cost-effective than Laser disc players in the US market are even much cheaper than those old-fashioned video recorders.

Even if Duan Yun gives such a low price, he still has a lot of money to make. According to the current ratio of 1:8 of RMB to US dollar in the debugging foreign exchange market in Shenzhen, 450 US dollars is equivalent to 3600 yuan, and the actual production cost price of VCD It is around 3000 yuan, and the net profit can reach 20%, which is already a very considerable profit.

It is precisely because of this that when Duan Yun announced the quotation of his products, it caused quite a stir in the entire exhibition hall. For a while, there was an endless stream of American manufacturers who came to inquire about their products. On-site interviews were conducted.

Some American distributors even directly proposed to obtain the exclusive agency right of this product in the North American market, which surprised Li Yun, Liang Mengsong and others who were helping on the side. They did not expect that VCD would be here. It was an instant hit at the exhibition.

However, Duan Yun will definitely not easily hand over the agency rights in North America to others, because he has also seen the huge commercial potential of VCD products in the international market. Strong, agents with a large and mature sales network maximize the benefits.

Therefore, when an American distributor offered to act as an agent of this product in the United States, Duan Yun would politely refuse the other party on the grounds that the product has not yet been mass-produced, and left the contact information of the other party, so that after the exhibition, Duan Yun would choose from it. filter.

Duan Yun also knows that if he is not careful in the selection of agents, it is likely to affect his strategic layout in the US market.

When the exhibition ended that afternoon, Luanyun and his party dragged their tired bodies back to the hotel in the urban area.

"This time we need to prepare at least 25 US dollars to invite friends from the media." At this time, Duan Yun sat on the bed, carefully checking the business cards of media reporters that Li Yun and Liang Mengsong's people collected from the exhibition, and said casually.

"$25!? Why so much money?" Liang Mengsong asked in surprise.

"We're going to hold a luxurious dinner this time, and we need to invite at least seventy or eighty journalists from the United States and Europe, which in itself is not a small expense." Duan Yun paused, and then said: "In addition, you should know that This is a casino city, and there is a luxurious casino below our hotel. I think it is very sincere to give them 2000 US dollars in chips, at least let them know what they should do after leaving the exhibition..."

"I'm here to call these media reporters. I think the best time is the night after tomorrow. At that time, the exhibition has come to an end. If it was any later, many people would have already gone home." Li Yun immediately understood Duan Yunyun's intention. Meaning, said with a smile.

(End of this chapter)