Top of the Great Era

Chapter 3182 Control and Transfer

After the meeting, Zhou Buqi left.

Because the secretary told him that there was news from Estar, the latest news.

The New Delhi court has just reviewed and approved the temporary entry of some mobile phones equipped with Qualcomm chips. As for the three low-end phones equipped with MediaTek chips and self-developed chips, they cannot enter the Indian market.

This is exactly as expected.

high efficiency.

Qualcomm's move is not small.

Zhou Buqi left in a hurry, and as for the filming of the "League of Legends" TV series, it was left to Lao Zhang to handle.

When Lao Zhang saw him running away, he got angry and scolded him.

Changyou has two multiplayer competitive games, "League of Legends" and "DOTA2". Now it is making a TV series for "League of Legends" but ignoring "DOTA2". This unfair resource allocation will obviously cause dissatisfaction among many people inside the company.

You know, in the European and American markets, "DOTA2" is much more popular than "League of Legends"!

In the field of film and television dramas, Europe and the United States are the main markets!
Zhou Buqi ignored all that and just ran away.

Not long after we set off, Zhou Shaoning called.

Zhou Buqi answered the phone and said with a smile, "I see. India has approved the temporary permit. I'm on my way there."

Zhou Shaoning said: "Someone from Samsung contacted me."

"Samsung? What's wrong?"

Zhou Buqi didn't care at first, after all, Estar and Samsung had a lot of business cooperation.

Zhou Shaoning said: "Samsung's mobile phones have also been stopped by India."

"cough……"

After hearing this, Zhou Buqi was stunned at first, and then he burst into laughter.

Zhou Shaoning laughed and said, "In fact, it's not just Samsung that is being targeted. Xiaomi has also been targeted. Xiaomi also has two phones equipped with MediaTek that have entered the Indian market and have also been stopped. Now, except for Qualcomm phones, all other irrelevant products have been stopped. They have all infringed Ericsson's patents."

"That's good, it's fair." Zhou Buqi's mood was much clearer now, "Who will come from Samsung?"

"He was originally the vice president in charge of the mobile phone business." Zhou Shaoning knew what position Boss Zhou held. "But I told him that you were also here, so Samsung might have changed people."

"Who changed?"

"Lee Jae-yong, no one else can do it."

"when will you arrive?"

"Maybe we'll arrive in the afternoon. It's not far anyway, only an hour or two's flight."

Zhou Shaoning arranged this matter very well.

If Mr. Zhou was not here, it would not be too much for Samsung Electronics to send a senior vice president in charge of the mobile phone business. But now that Mr. Zhou was here, Samsung only sent a vice president, which was a bit unequal.

Even Lee Jae-yong is marrying up a bit, it would be better if his father came forward.

However, Zhou Buqi prefers to deal with Li Zairong. His father is too old-fashioned, and his health is not very good. His English is halting, and it is too difficult to communicate with him.

Sure enough, as soon as this call ended, a new call came in.

It was Lee Jae-yong.

Just say he has already booked a flight for noon and will arrive in the afternoon.

Zhou Buqi smiled and asked, "What's the matter? Why are you in such a hurry?"

Lee Jae-yong said: "Something has happened in the Indian market!"

Zhou Buqi said, "Oh," and said, "I heard something. What? Is it serious?"

Lee Zairong complained: "Qualcomm may have made a commitment to India, and Ericsson may have also made a commitment to invest in India's semiconductor industry. Otherwise, the Indian authorities would not have cooperated with them so much. Even if they did, the efficiency would not have been so high."

"Indian semiconductors?" Zhou Buqi frowned slightly. "Are they any good?"

Li Zairong smiled and said, "We are still very strong in the IT field. We may not be strong enough in manufacturing because we lack skilled and efficient workers. But we have always been strong in design and R&D."

India's IT capabilities are certainly very strong, and the top-notch ones are in the United States.

The second-rate ones stay in India.

It’s similar to the situation in China.

Although its strength is not as good as that of the United States, it is also considered one of the world's top industries.

Zhou Buqi thought for a moment and said, "I seem to have heard that India will focus on developing the IT industry in the next few years."

"Yes, that is actually a very strong scientific research force." Li Zairong talked about another thing, "India has very strict foreign exchange controls, you know?"

Zhou Buqi couldn't help but laugh, "How could I not know? This is a joke in the industry. Make money in India and spend it in India. I want to take some home."

Lee Jae-yong had no other choice but to say, "Yes, that's the way it is. No one can avoid it. Samsung also has a lot of business in India, with at least several billion dollars in revenue each year, but it lacks effective means to transfer it out."

Zhou Buqi asked, "How can we solve this problem?"

Li Zairong said: "There is no solution!"

"Ah?" Zhou Buqi didn't believe that he could just sit back and do nothing. "Samsung has been developing in India for at least a decade, right? And it didn't make a single cent?"

Lee Jae-yong hesitated for a moment and said, "Samsung will not learn from Apple. We don't have the energy to do those financial and technical things. Our business strategy will be more pragmatic. We don't need to transfer assets from India."

"What about the money?"

“It’s mainly made in two parts.”

"Ah."

"The first part is scientific research." Li Zairong smiled. "India has strong scientific research capabilities in the IT field. Whether it is semiconductors, hardware development or software development, it can be said that they are all world-class. Invest the money earned in India in research and development. The results of research and development will naturally cross the border restrictions."

Zhou Buqi nodded, "That makes sense."

If you make money in India, you definitely cannot transfer the money out.

However, if Samsung's Indian team develops a scientific research result, this result belongs to Samsung and can naturally be applied to the whole world. Anyway, Samsung has to invest heavily in scientific research. By making full use of the money earned in the Indian market, it can circumvent regulatory restrictions. Li Zairong continued: "The other part is to further invest in building factories. Samsung has two manufacturing plants in India, with a total investment of more than 3.5 million US dollars. This strategy is not as good as investing in scientific research, but it is also a good choice."

India's IT scientific research capabilities are very strong because India's elites are very strong; India's IT manufacturing industry is not so good because the front-line business of manufacturing is not done by elites and relies on ordinary workers. India is a bit lagging in this regard.

"What kind of business?"

Zhou Buqi immediately realized the difference between Samsung Electronics and Asda.

Lee Jae-yong said: "One factory produces consumer electronics products, and the other one mainly manufactures mobile phones."

Zhou Buqi could only sigh secretly.

It really can't be compared with Samsung. They are a big company with plenty of ways to deal with it.

The so-called consumer electronics products are mainly TV sets and Walkmans. It is impossible to manufacture products that are too difficult because Indian workers are not capable of that. However, it is not that difficult to make a TV set, monitor, earphone, speaker, or even assemble a laptop.

The so-called mobile phone manufacturing factory is definitely a feature phone factory.

After the factory is built, the products are exported.

The money can’t go out, but the products can.

The products are exported and sold overseas, which is equivalent to Samsung transferring money from India to overseas.

Later, many mobile phone manufacturers, including Apple, Samsung, Xiaomi, OV, etc., went to India to build mobile phone manufacturing plants. In fact, it was for the same reason. If the money could not come out, then find another way to transfer the profits out.

Such strategies are not uncommon.

Many foreign companies also adopt this strategy to deal with domestic foreign exchange controls.

For example, Apple has made so much money in China, but there are great restrictions on transferring it out. It is even more difficult for domestic companies to transfer some wealth out of China, as foreign exchange is very difficult to transfer.

Converting money into products and then converting products into money is a legitimate, legal, compliant and socially beneficial means.

Take the iPhone for example.

Apple makes a lot of money in China, but it cannot illegally transfer the money. This requires that the iPhone production line be transferred to China. To produce and process iPhones in China, Apple needs to spend domestic money to purchase goods from more than 200 suppliers around the world, and then assemble and process them.

After the finished iPhone is processed, it is exported.

The iPhone is sold overseas and makes money.

These funds will not be transferred to the country, but directly transferred to the tax haven by Apple. In this way, Apple can not only solve the restrictions of foreign exchange control in the producing country, but also avoid the high taxation in the selling country.

The situation would be different if domestic iPhone sales plummeted, causing Apple's domestic revenue to plummet.

This means Apple has less wealth to transfer.

There is less money to be converted into products.

This means that Apple does not need to produce so many iPhones in China, and can appropriately transfer its domestic production lines to other countries with currency controls, such as India, Vietnam, and Indonesia, to convert the money in those countries into products, and then turn it into money through the export and sales of the products, thereby completing the cross-border transfer of funds.

This is a legal method.

This is also the method preferred by all countries.

Many countries set up foreign exchange control regulations in the hope that companies and wealthy people can transfer wealth through manufacturing and production. This process can create a large number of jobs and tax revenues, rather than simply transferring funds.

This is a good thing.

However, there are loopholes here that will be exploited by some people.

Zhou Buqi smiled and said, "Someone has mentioned this strategy to me before. However, it is not about using the manufacturing industry. After all, India is still far behind in terms of manufacturing capabilities! If there is a choice, wouldn't it be ten or a hundred times better to open a manufacturing factory in our country than in India?"

"Oh?" Li Zairong was also very curious about this, "How?"

Zhou Buqi smiled and said, "It's a work of art!"

"Artwork? What?"

Li Zairong is a professional "entrepreneur". His style is completely different from Zhou Buqi's. He has almost no personal hobbies and not much gossip. His life is basically filled with business.

Zhou Buqi simply described it, "For example, if you earn $1 million in India but cannot transfer it out, you can spend $1 to buy an Indian antique in the UK and then put it up for auction. India will come forward and offer $1 million to buy the antique. The $1 million will be transferred from India to the UK. India is now so nationalistic that everyone is promoting India's -year-old history. There is also a social opinion to bring back antiques that were stolen by the powers. This is legitimate and in line with the main theme and public opinion of India. People will not only not scold you for transferring wealth, but will also praise you for loving India! You are a big businessman with a conscience and sense of responsibility!"

"Oh, this..." Li Zairong just remembered and couldn't help laughing, "Oh, I see, a consultant did propose a similar plan. But I don't think it's necessary, at least for now. Samsung doesn't need to do this. What? You want to go this way?"

"No, not for now." Zhou Buqi did not hide it, "But this is a good way out. You see, the art market has skyrocketed in recent years, and the big buyers are all from countries with foreign exchange control markets."

Li Zairong smiled and said, "No way? I heard that you are the largest buyer in the global art market! I heard that you bought up all the collections of old European aristocrats? Is this true or false?"

Zhou Buqi said: "I am a big buyer, but I use US dollars for transactions. I don't do those gray activities. I don't need them."

Li Zairong laughed and complimented, "I believe that with your financial resources, spending billions of dollars to buy some art is as easy as buying vegetables on the street."

Zhou Buqi sighed, "I don't want that to happen. I'm a big buyer, and I'm really interested in some artworks and antiques. But the market right now is... it's hard to describe. If the whole world stopped money laundering and relaxed foreign exchange controls, the prices of artworks and antiques would definitely fall sharply. I wouldn't have to spend so much money on collecting."

"You like art..." Li Zairong has been trying to get along well with him. "By the way, I have a few paintings by Kim Hwan-ki. He is the most successful contemporary painter in South Korea. Do you like his works?"

"good."

Zhou Buqi had never heard of this person, but since he is the most famous Korean painter of our time, his works must be of great value.

Don't want it for nothing.

Bring it to Senior Sister Wu and Yameng as a toy.

Li Zairong smiled and said, "That's perfect. I'll be there in a minute and give you a painting. These paintings of mine were also given to me by him. I don't understand art and can't appreciate it, so there's no point in keeping them."

Zhou Buqi thanked him and talked about India again, "Is the New Delhi court so fierce this time?"

Lee Zairong said: "There are definitely factors related to the overall environment. India has launched a national policy of 'Make in India' and is somewhat resistant to electronic products imported from overseas. It has also raised tariffs to 20%."

Zhou Buqi snorted, "Do you dare to attack all mobile phone manufacturers?"

Li Zairong was silent for a moment, "It seems not."

"Hmm?" Zhou Buqi paused. "All mobile phones that do not use Qualcomm chips are banned, right? Can anyone negotiate with Ericsson alone and pay excessive patent fees?"

Li Zairong said: "There are exceptions!"

"Who?"

"Apple doesn't pay royalties to Ericsson, but its phones are not restricted in India."