Rebirth 79: I opened a bank in the United States

Chapter 359 Who Is More Important
"The current exchange rate is 1.7 RMB to 1 US dollar. How do you estimate the future situation? I remember that China is different from Thailand. They did not implement a fixed exchange rate system to attract foreign investment. And judging from the current situation , their products are basically uncompetitive in the international market, on the contrary, they still need a lot of international imports.”

"Under the ebb and flow, the depreciation of the renminbi is almost inevitable. This environment is not suitable for foreign investment like you! It is easy to have a situation where the increase in profit margins cannot catch up with the decline in exchange rates."

The open-air bath in the small courtyard is the open-air hot spring and bath pool.The two of Carter looked up at the starry sky, with drinks in their hands, and while they were sipping leisurely, they discussed the specific situation.

Akio Toyoda put it more tactfully, the depreciation of the RMB currency is very fast in this era!Carter remembered that in his own impression, the exchange rate between the US dollar and the renminbi was always 1:8 for a while, and it did not become about 1:6 until he crossed.

Compared with the current 1:1.7, the depreciation is nearly 5 times!
Carter can't remember exactly which year it became 1 to 8.Then suppose the millennium is used as the boundary, 19 years!The exchange rate difference will widen five times!
Taking this situation as a hypothetical blueprint to consider, Carter couldn't help sighing, saying:
"Depreciation is certain. I did this because I only considered their system problems? Entering the market early, if you don't consider the withdrawal of funds, it is actually not a good thing."

"I think this way, for example, this year it is 1 to 1.7 US dollars, assuming that it becomes 1 to 3.4 next year, and the RMB depreciates by one time. Then my investment in the Chinese market, as long as the gross profit rate does not double, it will be a loss! But this loss is only relative to my dollar investment, isn't it?"

"If I don't evacuate the funds and only look at the RMB revenue, I will still make a profit. Then use the profits to continue to stay in the Chinese market to expand the scale, so that I can avoid part of the exchange loss!"

"That's what you say, but what's the use of keeping so much renminbi in your hand? Do you think the renminbi will appreciate in the future?"

Akio Toyoda shook his head helplessly, and he didn't know whether to say that this guy was blindly optimistic or really farsighted.After all, he doesn't know much about China at present. If you only look at it with his eyes
"Maybe, but is that twenty years later? Thirty years later? Or forty, fifty years?"

"Let's not talk about their weak foundation. Do you think the United States will let them continue to develop smoothly? Look at us in Japan"

"Since the first oil crisis in 73, until now. Just looking at the market, we have stronger product competitiveness and higher production capacity than American cars! Just last year, our annual output of Japanese cars exceeded 1104 million units , completely surpassing the United States and becoming the world's largest automobile production country!"

"What greeted us in the end? Not a broader market, nor a fertile ground that could accelerate our development, but the Voluntary Export Restraint Agreement, hey! We are really voluntary!"

"After the war, our Japanese economy can be said to rely on American capital to develop. We are a lesson from the past! Relying on American capital to develop and start, the future will also be restricted by American capital!"

"Don't blame me for speaking harshly. You, the United States, have always advertised free human rights, free markets, and free thought. But in fact, you have never been free, at least for people from other countries like us, you have not abided by the principle of free competition at all!"

"How can there be absolute freedom? There are only absolute interests."

Thinking about all the deeds about Huawei being banned in the United States and the chips and other industries being stuck in the future, Carter agrees with Akio Toyoda's words very much.Don't talk about relying on American capital to start a business, even if you don't rely on it, he should do it for you, and he will do it.

There is no other reason, only related interests!
Even the character of Jimmy Carter, Carter sometimes thinks that he may not have no hope of improving Sino-US relations, and then use China to contain the Soviet Union, right?
In other words, this factor may be the main reason. However
"Those things are not for small businessmen like us. Well, sorry, I should say that small businessmen like me should think about it! Even if China has followed in your Japan's footsteps, the benefits are still real!"

"It's like you are now, the exchange rate does not seem to have changed much. The yen has not appreciated, but the total amount of money has increased, and some companies and shops have made more money. You can’t say it’s a loss, can you?”

"As for the investment in China, my plan is to hold it for at least 20 years! At least 20 years, no, it should be said that the investment will not be withdrawn within [-] years! I firmly believe in the future of this country and this place!"

"You and I both know that currency is worthless if it loses its anchor. The key is to have real, tangible assets! No matter whether it is the depreciation of the renminbi or the appreciation of the U.S. dollar."

"If I open a hotel, as long as the buildings of the hotel are in my name and the land is in my name, that's enough! This is a real thing! Assets that no one can erase, just like I bought took a house."

"The value of this house for me is to live in. So no matter whether the external housing price is falling or rising, it has little impact on me! The housing price has plummeted, and its value to me has not changed, and it can still protect me. Wind and rain; house prices have soared, which is a good thing, I can sell it, and then change to a better place to improve the living conditions!"

"The fundamental value has not changed. For a house, its fundamental and original value is to live in yourself! For a hotel, it is to solve the short-term living needs of others. As long as this demand does not decrease, its value will increase. There has been!"

"So, are you insisting on not withdrawing the funds invested in China? Then how do we solve our current plan? It's only 200 million US dollars. Even the initial investment and the establishment of mutual trust and cooperation are very difficult!"

Like Goodman, after finding it difficult to persuade Carter.Akio Toyoda immediately turned around and started looking for a new solution to the problem:

"You have to know, if this cooperation can be successful! In the future, when Japanese car companies enter the United States, Georgia will be the first choice, or the must-choice place! With our annual production capacity of more than [-] million vehicles, the North American market It is also the largest automobile consumption area in the world”

"Combining these two 'most', the total investment of our Japanese cars in the construction of American factories will definitely not be less than 10 billion US dollars! But these are all based on mutual trust! Without this One step, we dare not increase the scale and directly enter Georgia!"

"In your heart, do you think our cooperation is more important, or the RMB in the Chinese market is more important?"

(End of this chapter)