The Wealth Empire Crossing the Hong Kong
Chapter 696 Communication
This time, Li Jianhui did not ask the members of the East China Association to talk to the North, but Shi Shaoming directly arranged for Shi Shaoming to lead a delegation of group leaders including Iwatani Toru, Liu Qiulin, Xu Hongfei, Jiang Jianming, etc. to communicate with the North.
In the living room of Xiangjiang Xinghua Club, Li Jushen faced many senior officials of the Xinjian Department headed by Shi Shaoming, and knew that nothing good would happen this time.
According to his understanding, and during his tenure as the president, apart from Li Jianhui and his wife who have been here, this is the first time that a high-ranking member of the Xinjian department has visited.
As the leader of this time, and also the person in charge of the Greater China affairs of the Xinjian Department, Shi Shaoming took the lead and said after taking his seat:
"Director Liao, President Li, and all the leaders, we came here to visit today, mainly to communicate with you about the new tax rate for domestic sales of foreign-invested products."
In fact, Liao Lao and Li Jushen knew clearly after the tax rate came out, and I am afraid that the matter in this regard will not be easily subsided.
What they didn't expect was that the Xinjian department actually acted as the vanguard this time.
"Mr. Shi, as early as more than two months ago, our senior management communicated with Mr. Li Jianhui and other business elites about this matter. Mr. Li also expressed his complete obedience to our tax rate adjustment.
After comprehensively considering the interests of the country and foreign-funded enterprises, we have set this relatively appropriate tax rate. I wonder if Mr. Shi has any opinions on this tax rate? "
Facing Mr. Liao's words, Shi Shaoming said unhurriedly: "Our major companies have no objection to this tax rate. After all, this is a national policy and cannot be interfered by our companies.
It is only because of the 15% income tax that our company is willing to reach an agreement with you that the domestic sales profits will not be converted into foreign exchange and transferred out of the country within a short period of time.
Now that you have increased the tax rate, it is not much different from the domestic sales tax rate for investment products of foreign enterprises in most countries and regions.
We also hope that you, like most countries and regions, can relax the restrictions on the export of enterprises' domestic sales profits into foreign exchange.
Only in this way is the real win-win cooperation between the two parties, instead of implementing a double-standard policy, which only allows our company to undertake its due obligations and does not allow our company to obtain the right to profit. "
Mr. Liao originally thought that the Xinjian Department was dissatisfied with the tax rate, so he arranged for Shi Shaoming and other high-level officials to come, but he didn't expect that he wanted to abolish the previous [-]-year profit non-exit agreement.
To be honest, this surprised him quite a bit. You must know that the Xinjian Department invested in two highways, three airports, three ports, and several buildings in the mainland, costing tens of billions of dollars. The company’s profits in the north have not been transferred out in a short time. need.
It's just that he is not very good at responding to this aspect. According to most countries and regions, they should indeed abolish this agreement.
However, the current domestic demand for foreign exchange is quite large. Once the relevant agreement is abolished, it may immediately cause a huge impact on domestic foreign exchange, and at the same time affect the development of the country.
"Mr. Shi, I believe you are also aware of our country's foreign exchange situation. The reason why your company was able to sell domestically is because of signing this agreement.
If you are unwilling to accept this agreement, then we can only say sorry, your products can only go through customs to enter the mainland market.
As for the corporate tax rate for domestic products, it is impossible to maintain the income tax rate of 15% because of this agreement. We will not protect local companies but specifically target foreign-funded companies, let alone harm the interests of domestic companies because of the interests of foreign-funded companies. "
Shi Shaoming and others did not expect the other party's attitude to be so tough, and there was no room for negotiation on this.
They are only given two ways, one is to accept the new tax rate and still follow the agreement reached before.
Otherwise, the domestic sales qualification will be given up, and all products will go through customs and be sold in the northern market as imported products.
However, foreign exchange in the north is limited, and there is a quota for importing products every year. If companies like them give up their domestic sales qualifications, it means giving up the large northern market in a short period of time.
"Director Liao, you should be clear that the middle and senior management of our production base in the north are all from Xiangjiang, and their salaries cannot be paid in RMB. After all, their family still needs to live in Xiangjiang.
Even if we don’t abolish the previously signed agreement not to transfer out profits within 50 years, we hope to make changes so that at least [-]% of our profits are transferred out every year.
Of course, if the time can be reduced, we can make some concessions on this, but the minimum cannot be lower than 20%.
In addition, due to the relatively large number of employees in our subsidiaries in the mainland, our companies will soon establish a labor union for employees in accordance with international practice, and the chairman of the labor union will be elected from among the employees of the company. "
Shi Shaoming's previous conditions were nothing. When he heard that the Xinjian Department was going to establish an employee union in the northern enterprise, Mr. Liao, Li Jushen and others immediately lost their composure.
They once communicated with the Xinjian Department, and they also hope that the Xinjian Department will establish a corporate employee union in the mainland enterprise, but there is a prerequisite, that is, to establish a corporate D group.
It's just that the top management of the Xinjian Department only agreed to establish a company and employee union, and was unwilling to establish a group D of the company, so they put the matter on hold.
Unexpectedly, this time, the Xinjian Department has been establishing a union to put pressure on them. He really knows the trade unions of the enterprises under the East China Association.
This is a trade union that is completely controlled by the Donghua Association. More often than not, this union protects the interests of the Donghua Association rather than the interests of the employees.
Donghua United Federation of Trade Unions, the chairman of the federation is Zhang Hui. Ordinary citizens in Xiangjiang may not know much about this experience, but they do know it quite well.
He used to be the old superior of Chen Zhiyong and others. After coming to Xiangjiang, he was also a villager in Tiaojingling. Li Jianhui and others respected him a lot.
After Diaojingling was changed to Jinghua Village, he was invited by Li Jianhui to serve as the chairman of the trade union of Xinjian Group, and was also elected as the chairman of the Donghua United Federation of Trade Unions.
Even Mr. Liao suspects that the high-level executives of the Xinjian Department came to visit this time because of ulterior motives. The new tax rate for domestic sales companies may be just a pretext, and the other party is more likely to come for the company's trade unions.
Mr. Liao obviously didn't want to see a group in the mainland that was not guided and controlled by the government, so he brought up Group D again. The meaning in his words was quite clear. It is possible to establish a corporate union, but a corporate D group must be established.
And he also took the development of Xianghua Club in the mainland enterprises in the past two years as an example to highlight the benefits of Group D to the development of enterprises.
"Old Liao, the companies under the Donghua Economic Mutual Aid Association have always followed the purpose of the association, developed their own businesses in a dedicated way, did not interfere in any politics, and did not favor any politics.
The enterprise trade union is a trade union that safeguards the interests of the employees of the enterprise. The nature of the trade union should be pure and should not be affected by external factors.
The development of our enterprise should also be simple, that is to make our products popular with consumers and win the market with quality, rather than lingering under the protection of policies.
We are not qualified to tell what kind of road the companies under the Xianghua Economic Mutual Aid Association are willing to take, but our company's development direction is clear, even if it loses some markets because of it.
We hope that Mr. Liao and President Li can convey the opinions of our company, and hope that the senior management can reply as soon as possible. After all, it is only ten days before January, and we can also adjust our industrial layout in time. "
……
After seeing off Shi Shaoming and others, Mr. Liao and Li Jushen immediately held an emergency meeting.
The two of them are very clear about the meaning of Shi Shaoming's last words, because the cities of Rayong, Johor Bahru, Cebu, Bandung, and Sin Chew, as ASEAN's internal economic open zones, have a lot of preferential policies, including tariffs and taxes.
And the ASEAN market is the core development market of the Tung Wah Club. If they do not make any concessions this time, I am afraid that the mass production enterprises of the Tung Wah Club and the pro-Tung Wah Club will be transferred to Johor Bahru, Rayong, Cebu and other cities.
However, Donghua Club seems not to give them too much time. Mr. Liao received the news that afternoon that Jingyi Electric will transfer part of the production plant and production lines to Aimegao Electric, and the employees of this part of the production line will be hired by Amy. Gao Electric took over, which also means that Jingyi Electric officially announced its abandonment of domestic sales qualifications.
Mr. Liao is very clear that this is just the beginning, and more enterprises will choose to transfer in the future, especially those small and medium-sized textile and garment enterprises mainly engaged in domestic sales.
The increase in the tax rate, coupled with restrictions on the transfer of profits, will allow these companies to develop in other regions, especially the regions where the Donghua Club is currently focusing.
In order to avoid bigger turmoil, Mr. Liao flew directly to the capital in the evening after contacting the high-level officials. At the same time, many high-level officials from Guangdong Province and Pengcheng also went to the capital.
In the living room of Xiangjiang Xinghua Club, Li Jushen faced many senior officials of the Xinjian Department headed by Shi Shaoming, and knew that nothing good would happen this time.
According to his understanding, and during his tenure as the president, apart from Li Jianhui and his wife who have been here, this is the first time that a high-ranking member of the Xinjian department has visited.
As the leader of this time, and also the person in charge of the Greater China affairs of the Xinjian Department, Shi Shaoming took the lead and said after taking his seat:
"Director Liao, President Li, and all the leaders, we came here to visit today, mainly to communicate with you about the new tax rate for domestic sales of foreign-invested products."
In fact, Liao Lao and Li Jushen knew clearly after the tax rate came out, and I am afraid that the matter in this regard will not be easily subsided.
What they didn't expect was that the Xinjian department actually acted as the vanguard this time.
"Mr. Shi, as early as more than two months ago, our senior management communicated with Mr. Li Jianhui and other business elites about this matter. Mr. Li also expressed his complete obedience to our tax rate adjustment.
After comprehensively considering the interests of the country and foreign-funded enterprises, we have set this relatively appropriate tax rate. I wonder if Mr. Shi has any opinions on this tax rate? "
Facing Mr. Liao's words, Shi Shaoming said unhurriedly: "Our major companies have no objection to this tax rate. After all, this is a national policy and cannot be interfered by our companies.
It is only because of the 15% income tax that our company is willing to reach an agreement with you that the domestic sales profits will not be converted into foreign exchange and transferred out of the country within a short period of time.
Now that you have increased the tax rate, it is not much different from the domestic sales tax rate for investment products of foreign enterprises in most countries and regions.
We also hope that you, like most countries and regions, can relax the restrictions on the export of enterprises' domestic sales profits into foreign exchange.
Only in this way is the real win-win cooperation between the two parties, instead of implementing a double-standard policy, which only allows our company to undertake its due obligations and does not allow our company to obtain the right to profit. "
Mr. Liao originally thought that the Xinjian Department was dissatisfied with the tax rate, so he arranged for Shi Shaoming and other high-level officials to come, but he didn't expect that he wanted to abolish the previous [-]-year profit non-exit agreement.
To be honest, this surprised him quite a bit. You must know that the Xinjian Department invested in two highways, three airports, three ports, and several buildings in the mainland, costing tens of billions of dollars. The company’s profits in the north have not been transferred out in a short time. need.
It's just that he is not very good at responding to this aspect. According to most countries and regions, they should indeed abolish this agreement.
However, the current domestic demand for foreign exchange is quite large. Once the relevant agreement is abolished, it may immediately cause a huge impact on domestic foreign exchange, and at the same time affect the development of the country.
"Mr. Shi, I believe you are also aware of our country's foreign exchange situation. The reason why your company was able to sell domestically is because of signing this agreement.
If you are unwilling to accept this agreement, then we can only say sorry, your products can only go through customs to enter the mainland market.
As for the corporate tax rate for domestic products, it is impossible to maintain the income tax rate of 15% because of this agreement. We will not protect local companies but specifically target foreign-funded companies, let alone harm the interests of domestic companies because of the interests of foreign-funded companies. "
Shi Shaoming and others did not expect the other party's attitude to be so tough, and there was no room for negotiation on this.
They are only given two ways, one is to accept the new tax rate and still follow the agreement reached before.
Otherwise, the domestic sales qualification will be given up, and all products will go through customs and be sold in the northern market as imported products.
However, foreign exchange in the north is limited, and there is a quota for importing products every year. If companies like them give up their domestic sales qualifications, it means giving up the large northern market in a short period of time.
"Director Liao, you should be clear that the middle and senior management of our production base in the north are all from Xiangjiang, and their salaries cannot be paid in RMB. After all, their family still needs to live in Xiangjiang.
Even if we don’t abolish the previously signed agreement not to transfer out profits within 50 years, we hope to make changes so that at least [-]% of our profits are transferred out every year.
Of course, if the time can be reduced, we can make some concessions on this, but the minimum cannot be lower than 20%.
In addition, due to the relatively large number of employees in our subsidiaries in the mainland, our companies will soon establish a labor union for employees in accordance with international practice, and the chairman of the labor union will be elected from among the employees of the company. "
Shi Shaoming's previous conditions were nothing. When he heard that the Xinjian Department was going to establish an employee union in the northern enterprise, Mr. Liao, Li Jushen and others immediately lost their composure.
They once communicated with the Xinjian Department, and they also hope that the Xinjian Department will establish a corporate employee union in the mainland enterprise, but there is a prerequisite, that is, to establish a corporate D group.
It's just that the top management of the Xinjian Department only agreed to establish a company and employee union, and was unwilling to establish a group D of the company, so they put the matter on hold.
Unexpectedly, this time, the Xinjian Department has been establishing a union to put pressure on them. He really knows the trade unions of the enterprises under the East China Association.
This is a trade union that is completely controlled by the Donghua Association. More often than not, this union protects the interests of the Donghua Association rather than the interests of the employees.
Donghua United Federation of Trade Unions, the chairman of the federation is Zhang Hui. Ordinary citizens in Xiangjiang may not know much about this experience, but they do know it quite well.
He used to be the old superior of Chen Zhiyong and others. After coming to Xiangjiang, he was also a villager in Tiaojingling. Li Jianhui and others respected him a lot.
After Diaojingling was changed to Jinghua Village, he was invited by Li Jianhui to serve as the chairman of the trade union of Xinjian Group, and was also elected as the chairman of the Donghua United Federation of Trade Unions.
Even Mr. Liao suspects that the high-level executives of the Xinjian Department came to visit this time because of ulterior motives. The new tax rate for domestic sales companies may be just a pretext, and the other party is more likely to come for the company's trade unions.
Mr. Liao obviously didn't want to see a group in the mainland that was not guided and controlled by the government, so he brought up Group D again. The meaning in his words was quite clear. It is possible to establish a corporate union, but a corporate D group must be established.
And he also took the development of Xianghua Club in the mainland enterprises in the past two years as an example to highlight the benefits of Group D to the development of enterprises.
"Old Liao, the companies under the Donghua Economic Mutual Aid Association have always followed the purpose of the association, developed their own businesses in a dedicated way, did not interfere in any politics, and did not favor any politics.
The enterprise trade union is a trade union that safeguards the interests of the employees of the enterprise. The nature of the trade union should be pure and should not be affected by external factors.
The development of our enterprise should also be simple, that is to make our products popular with consumers and win the market with quality, rather than lingering under the protection of policies.
We are not qualified to tell what kind of road the companies under the Xianghua Economic Mutual Aid Association are willing to take, but our company's development direction is clear, even if it loses some markets because of it.
We hope that Mr. Liao and President Li can convey the opinions of our company, and hope that the senior management can reply as soon as possible. After all, it is only ten days before January, and we can also adjust our industrial layout in time. "
……
After seeing off Shi Shaoming and others, Mr. Liao and Li Jushen immediately held an emergency meeting.
The two of them are very clear about the meaning of Shi Shaoming's last words, because the cities of Rayong, Johor Bahru, Cebu, Bandung, and Sin Chew, as ASEAN's internal economic open zones, have a lot of preferential policies, including tariffs and taxes.
And the ASEAN market is the core development market of the Tung Wah Club. If they do not make any concessions this time, I am afraid that the mass production enterprises of the Tung Wah Club and the pro-Tung Wah Club will be transferred to Johor Bahru, Rayong, Cebu and other cities.
However, Donghua Club seems not to give them too much time. Mr. Liao received the news that afternoon that Jingyi Electric will transfer part of the production plant and production lines to Aimegao Electric, and the employees of this part of the production line will be hired by Amy. Gao Electric took over, which also means that Jingyi Electric officially announced its abandonment of domestic sales qualifications.
Mr. Liao is very clear that this is just the beginning, and more enterprises will choose to transfer in the future, especially those small and medium-sized textile and garment enterprises mainly engaged in domestic sales.
The increase in the tax rate, coupled with restrictions on the transfer of profits, will allow these companies to develop in other regions, especially the regions where the Donghua Club is currently focusing.
In order to avoid bigger turmoil, Mr. Liao flew directly to the capital in the evening after contacting the high-level officials. At the same time, many high-level officials from Guangdong Province and Pengcheng also went to the capital.
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