Chapter 17 Chapter 16 Why are the Germans so unreasonable
German Chancellor Iron Lady brings a huge delegation to visit China, what is her intention?
What the Germans want is the Chinese market, but the technology is not shared.
The $500 billion Chinese government procurement order has been targeted by the Germans again.
To fully recognize China's market economy status is a dream.
Germany is an opponent we don't really know.
I found that our land in China is very attractive. We have just concluded the second Sino-US Strategic and Economic Dialogue with great difficulty. We have finally sent away a huge delegation of 200 people from the United States. We have not taken a breath yet. 2010 In mid-July, German Chancellor Merkel led a large delegation to China again, saying that they were here for a visit. Look at the situation. They have chartered three planes this time. Who are the people on the planes? Woolen cloth?I will make a list for the readers: President Winterkorn of Volkswagen, Enders President of Airbus, He Binjie, President of BASF, Loescher, President of Siemens, Kaudes, President of Metro, Thyssen, President of ION, Weiers, President of SMS Group, Business Bank president Blessing, etc., a total of 25 corporate giants, in addition to almost half of the cabinet members of the German government, and many parliamentarians.
We feel really good about ourselves now. Ouch, so many dignitaries are visiting China together, which shows how envious we are of our economic development achievements. It shows that we have indeed risen!But according to my understanding of new imperialism, this matter is not that simple, so I have an ominous feeling in my heart again.I don't know what the Iron Lady is planning to bring us this time with such a large delegation.
We're such a feel-good people, so daring to put money on our faces.The media’s evaluation of Merkel is extremely good. Let’s see what aspects the media chooses to report on. What did Merkel say when she came to China?Let me pick a few sentences for you to read. "Xi'an is a part of Chinese history and culture, and I am very happy to be able to come to this historic city"; "Da Dan represents my heart, and China and Germany have another 'honeymoon'"... In addition, we also have extensive Reported a speech of unknown origin, saying that Merkel herself had said in a speech earlier in 2010, "We must learn to understand China, its great culture and its great future potential"
It's completely random and sensational, and the media is nothing. What makes me even more angry is that our experts feel very good. For example, Feng Zhongping, director of the European Institute of the Institute of Modern International Relations, what did he say?He said: In fact, since Merkel came to power in 2005 and was re-elected in October 2009 last year, this is the fourth time to visit China. You can see that Merkel is a part of the German government's view of China. Variety.I think there are two factors in this, the main one is the impact of the economic crisis and financial crisis. Germany and Europe have been greatly affected by the global financial crisis. Now it is the European debt crisis. Germany also has a relatively high government deficit and is also implementing Reduce Policy.It can be said that the financial crisis has changed Germany's views on China.
Everyone, don't you find it strange?Why is Merkel so polite to us?You know, even German business leaders have learned to attack us Premier Wen suddenly.Logically speaking, Merkel should be more mean. After all, these German companies still have large investments in China?He Binjie, the chairman of BASF, complained that he was "forced by the Chinese government to disclose the technology."There is also Loescher, the CEO of Siemens, who also bluntly stated that "the procurement rules for Chinese government orders are unreasonable." The "Wall Street Journal" also made a summary of this, saying that "when criticizing China's policies, executives of foreign companies are more outspoken."
What is the actual situation?In fact, people have long understood China's decision-making system. Even if the commercial negotiations with local companies do not go well, and the unequal treaties they want cannot be negotiated, it will be fine, as long as it is in front of Merkel and Wen Jiabao. Er boldly accused that once Premier Wen was deceived, they would immediately investigate and deal with the unequal treaty.For example, BASF invested about 1 billion US dollars in the MDI (diphenylmethane diisocyanate) project in Chongqing. Their president complained to Premier Wen. What is the complaint?He complained that according to the plan, the National Development and Reform Commission's approval document should be passed by the end of 2009, but at present, the project is still in the process of approval, which is half a year later than the original plan.Moreover, this person even accused, "Forcing the disclosure of the company's technical secrets in exchange for a license to enter the market will affect the investment decisions of foreign companies in China." Very arrogant!
On the surface, the Germans are really wronged. You can see that the National Development and Reform Commission has approved the document, but your local government has not implemented it, so your local government must be obstructing it, and this will affect your international image of China.But is the real situation so simple?Don't forget, this is not a simple foundry, but a chemical plant, a chemical plant that produces pollutants!It should be known that in the general production process of MDT, nitrobenzene needs to be produced through the reaction of benzene and nitric acid.Nitrobenzene is very toxic, and it is very easy to absorb through skin contact. If it is exposed for a long time, it will cause serious damage to our central nervous system.Do you still remember the Songhua River pollution incident in 2005?This nitrobenzene was the main pollutant that caused that pollution incident.
The MDI project we mentioned just now is a chemical project, which will have high pollution and high toxicity, such as wastewater and waste residue from chemical plants. Even if they are treated, where will they be discharged after treatment?Chongqing is located in the Three Gorges Reservoir area. Is it possible to have such a large-scale chemical project in the Three Gorges Reservoir area?This should be something very cautious.But the boss of BASF wiped out all the efforts of the Chongqing local government's environmental assessment with one sentence.Fortunately, Premier Wen responded quickly. At the meeting, he reiterated that China welcomes investment from Germany and persuaded German managers to remain calm. He said that BASF's project would be further reviewed.
The boss of BASF complained that we were forcing him to hand over intellectual property rights. At first glance, it sounded like a success of our "market for technology" strategy, but if we look back at the automotive industry, we will find that this is not the case at all. The fact is that we not only Did not learn the technology, but also lost the market.At the beginning of the reform and opening up, probably since 1984, we successively established three joint venture car factories: Beijing Jeep, Shanghai Volkswagen, and Guangzhou Peugeot.It was not until 1987 that our country officially decided to establish its own car factory, and then it was not until the early 1990s that Tianjin Xiali, FAW-Volkswagen, and Shenlong projects were launched successively. Among these three factories, except Xiali, which imported technology , the other two are also joint ventures.The results of it?The Chinese car market is still dominated by imported cars. According to statistics, imported cars accounted for 95% of the Chinese market in 1984.There are only 6,000 domestically produced cars and Beijing 212 models in total, and the rest are imported and smuggled cars.At that time, we really "lost the market".In those years, when the two sessions were held in Beijing every year, looking around, there were so many cars parked under the black pressure under the steps, how many of them were made in China?Basically none, almost all Japanese imported cars.In fact, it is not terrible to lose the market. The terrible thing is that we have never obtained any technology.
Mei Yonghong, Director of the Research Office of the Ministry of Science and Technology: Lacking a sound system and policy design, the result of "exchanging the market for technology" is counterproductive; the Chinese car industry has stagnated in terms of technological capabilities for 20 years, and this is the reason.Lu Feng, a professor at the School of Government Administration of Peking University, said that the real core technology cannot be bought; the joint venture model does not support China's ability to produce systematic independent research and development. On the contrary, joint ventures generally have strict technical restrictions. There are many ways to prevent China from producing new design capabilities.Zhu Huarong, vice president of Changan Automobile Group, also said that we have been engaged in joint ventures and cooperation for 20 years. While promoting the development of the automobile industry, there is still a serious problem that has not been resolved, "that is, the lack of independent innovation capabilities, core technologies and independent brands. The market-for-technology actually didn’t meet our expectations. Who of us got the technology?”
The German grip on our technology is simply unimaginable.When Chery just produced its first car, Volkswagen bought a batch of cars and sent them to Germany for research. It turned out that some parts were compatible with the Jetta produced by FAW-Volkswagen.German Volkswagen immediately asked all suppliers of FAW-Volkswagen to stop supporting Chery.At that time, Chery was still under the name of SAIC in order to be included in the catalog, and German Volkswagen put pressure on its partner SAIC through Shanghai Volkswagen to ask SAIC to stop the production of Chery's model.Some people came out and said, aren't we a joint venture?Isn't there a brand in this way?He also said that this joint venture made full use of the peaceful development environment and the opportunity brought by the eastward shift of the global auto industry's center of gravity. He said that the 50-to-50 shareholding ratio is an insurmountable red line for foreign capital, and most of the Chinese parties are backbone state-owned enterprises.They also used the FAW-Volkswagen joint venture to prove that what they said was correct. They said that the Chinese side accounted for 60% of the shares, Volkswagen accounted for 30%, and Audi accounted for 10%. This shows that we have not lost anything through this joint venture. Not those vassals of multinational corporations.A plausible look.I don't know what the purpose of these people is to say these words.Let me show you some data. Let me first look at the key areas of the automobile manufacturing industry, that is, the core components such as engines and gearboxes. What is the market share of multinational companies? 90%.What about parts? More than 60%; and in the car parts industry, it has reached more than 80%.Looking at these data, can we still say that we have nothing to lose?We have lost the most important thing, which is the dominant position in the market, and our Chinese auto industry has been "hollowed out" step by step. This is just manufacturing capability. You can say that you don’t have technology. What’s even more worrying is that we don’t even have marketing now.Let’s just talk about BMW Brilliance. In 2003, Brilliance and BMW established a joint venture company. After that, BMW’s business in China was unimpeded.Do you think BMW is satisfied with this?It's not that easy. They want more than that. What they want is to take full control of the joint venture. By 2007, BMW will replace the president of BMW Brilliance. They took this opportunity to transfer the sales rights of the joint venture to BMW. Greater China.Then marketing, brand communication, advertising, channel management, etc. were all taken down, and they achieved their goals easily in this way.That's what the Germans do. Then let's take a look at the German delegation's visit to China, and how many markets we have opened to Germany.Siemens AG signed a $3.5 billion agreement with Shanghai Electric Group Co. to develop steam turbines and engines.Daimler AG, Daimler Northeast Asia Investment Co., Ltd. and Beiqi Foton Motor Co., Ltd. signed a cooperation document for the joint production of medium and heavy trucks and engines, involving an amount of 6.35 billion yuan.Even the location has been selected. In Huairou, Beijing, the annual production is expected to be 100,000 complete vehicles and 45,000 heavy-duty diesel engines.In addition, China and Germany also signed an agreement of 124 million euros to encourage energy conservation and emission reduction. Well, even if we didn't have a decent car production line back then, so it was justifiable to trade the market for technology, what about heavy trucks?You know, 50 years ago, we had two truck factories with independent technology, FAW Jiefang and Second Automobile Dongfeng.Looking at our current truck market, it is really frightening. It is basically a joint venture, and behind every enterprise is a foreign enterprise with malicious intentions.Let me show you a document to see which foreign capitals our eight major truck companies have established joint ventures with.Behind FAW Jiefang, which has the largest market share, is German Deutz; behind Sinotruk is German MAN; Behind Mercedes-Benz, Hyundai, and SAIC is Iveco from Italy, and behind JAC is Caterpillar from the United States.That is to say, among the eight major enterprises, there is China Weichai behind Shaanxi Automobile, but it still has a joint venture factory with Cummins of the United States, and all others have fallen.Another interesting phenomenon is that we found that German companies accounted for almost half of the country.The most worthy of our calm is Volvo. Geely Automobile acquired Volvo. I have discussed this matter in detail in Chapter 12 of this book. For the car business that this family abandoned more than 20 years ago, we still spend With so much money to buy back, you must know that the truck business with real technical content and international competitiveness has always been in the hands of the Volvo Group.But you can see that we are full of ambition and triumphant, and we feel really good about ourselves. I also want to remind everyone that investment alone cannot satisfy the appetite of these German companies. They still want a lot. For example, my country's government procurement market is now completely targeted by them.According to the calculation of the Organization for Economic Cooperation and Development (CECD), the central and local government purchases generally account for 10% to 15% of GDP.Specific to our country, at the end of 2009, government procurement accounted for only 2% of GDP.If it is expanded to 10%, it will be at least 500 billion US dollars.Such a big market, such a fat piece of fat, how could they let it go?In order to gain access to this market, German entrepreneurs have tried their best. Through the media and following government interviews, they have frequently exerted pressure on the top leaders of the Chinese government. The purpose is to strive for the greatest benefit, or what I said In a word, the greedy nature of these new imperialisms has never changed. So can they succeed?can!They are very smart, because they have also calculated that if China joins the GPA, China can also enjoy the same government procurement access as other GPA members.The size of this market in 2008 was about 1.6 trillion US dollars, of which 1 trillion US dollars came from the United States.Let's think about it differently. Is China willing to protect the domestic government procurement market, or is it more willing to allow Chinese companies to enter another $1.6 trillion market?At present, which market has the greatest potential for products produced in Germany, such as Mercedes-Benz, BMW, and Audi?The answer is obvious, it must be China.Daimler, the parent company of Mercedes-Benz, said its sales volume in the Chinese market reached 13,700 vehicles in May 2010, a year-on-year surge of 177%.Of course, there is a factor of the falling euro, but I believe this is not attractive to people who can't afford a car.From historical data, the sales volume of Daimler-Benz in China has increased by 280% in the past 4 years.And in 2009, look at the "2009-2010 Central State Organ Automobile Agreement Supplier List", the BMW brand of Brilliance BMW Automotive Co., Ltd. and the Mercedes-Benz of Beijing Benz-DaimlerChrysler Automobile Co., Ltd. What does it mean that the Mercedes-Benz brand appears on this list?This means that these two global luxury car brands have officially entered the central government's procurement list for official vehicles. Well, Germany has the investment it wants, the government procurement agreement it wants, so we should get something in exchange, right?For us in China, what do we want?Recognize China's market economy status!Why?Because there is no market economy status, it is impossible to take the initiative in international trade disputes, and Chinese export companies will be very passive when facing anti-dumping lawsuits.Our China is sued by the United States and the European Union in the name of anti-dumping at every turn.What is anti-dumping?That is, if you sell products in Germany, in order to seize the market, you set the price of your product very low, sometimes even lower than the cost, then Germany can sue you, and they can impose high tariffs as a penalty.The key to dumping depends on the difference between the cost and the selling price, but how is the cost determined?For example, Germany will say that because China is not a market economy, the talents and means of production in your market are not operating in a market economy environment, so the cost is not real, and the price cannot reflect market demand.what to do?Then find a third country, or the market price of a substitute country to replace your Chinese price, such as India and Brazil.They can even replace your Chinese prices with the prices of unrelated developed countries.It is useless for you to say that this is unreasonable. Who told you that you are not a market economy? In the 1990s, the European Union’s anti-dumping of color TVs against China was to use Singapore as a surrogate country to calculate the production cost of my country’s color TVs.You must know that the labor cost in Singapore was more than 20 times higher than that in China at that time. The so-called "normal" price must be much higher than the sales price of Chinese color TVs in Europe, but the EU doesn't care about your reasons. They use the data from Singapore As a basis, I will label you as "low-price dumping". What can you do? In June 2010, the EU’s anti-dumping case against our ceramic tiles was the same. They chose the United States as the surrogate country, and the result calculated that the dumping rate of our ceramic tile prices was as high as 430%. Since it is such a useful trade war tool, how could the Germans easily give it to us?How naive we are.If you just like to read domestic newspapers, you must think that we have won this time." On July 16, 2010, China and Germany issued a joint communiqué "China-Germany Joint Communiqué on Comprehensively Promoting Strategic Partnership", which will comprehensively promote China's strategic partnership. Germany’s strategic partnership. In the communiqué, Germany expressed its active support for the EU’s recognition of China’s full market economy status as soon as possible.” Look at the headline in the First Financial Daily: “Germany proposes to support the EU’s recognition of China’s market economy status for the first time.”Also, "Securities Daily" said that "Germany urges the EU to recognize China's full market economy status." So what is the actual situation?If you read the press release of the German Federal Government, you will find that instead of recognizing it, Germany firmly opposes it.Let's look at the report of the German News Agency. What did German Chancellor Angela Merkel say?She said that it is still not possible for the EU to recognize China's market economy status.After the meeting with our Premier Wen Jiabao, some media asked Merkel whether China could get market economy status?What is her answer?She said: "I believe that we have not reached this point yet. Issues such as China's intellectual property protection and market access have yet to be clarified. We must be sure that discrimination will not occur." And market access is not an ordinary problem.Her meaning is very clear, that is, Germany must protect intellectual property rights, and China cannot trade the market for technology.In addition, market access she refers to allowing Germans to enter China's government procurement list, as well as allowing German companies to enter China's independent innovation fields.In other words, we have given them what they want, but they can't return what we want now.It's really hateful and deceiving! But we were so excited, what did we say?It is said that this communiqué is the second joint communiqué between China and Germany.The website of the German Ministry of Foreign Affairs provides services in four languages: English, French, Spanish and German, but this "important" communique between us is only available in German.The Deutsche Presse Presse report is very casual and very understated. It only said that in a joint communiqué, the two sides stated that "Germany will continue to make active efforts for the EU to recognize China's market economy status. China will cooperate with the EU on this issue. Continue to have frequent conversations."This is obviously just a diplomatic rhetoric, and Germany has not made any commitments at all.But what is the corresponding statement in our Chinese version of the communiqué?Said that "Germany will actively support the EU to recognize China's full market economy status as soon as possible, and China will continue dialogue with the EU on this issue."I can't figure it out, is this a mistake in our translation, or is it deliberately misleading the public? The problem is that dialogue does not amount to acknowledgment, nor does it amount to any commitment.Therefore, the statement of the German News Agency is that Merkel said that if China takes corresponding measures in this regard, she will work hard to reach a "fair and targeted negotiation".However, from the standpoint of BASF, do you think they really want to charge us a full market economy status, and how much extra road money will they charge?Even if Germany gave us a full market economy status, the benefits we get are not as good as those received by Germany.Readers, don't forget that Germany was the world's largest exporter before 2003.The British "Financial Times" reported that in the context of weak demand in the United States and many parts of Europe, German manufacturers believe that the accelerating recovery of Germany, Europe's largest economy, is driven by China.Facts have proved that this is true. Although Germany's exports fell by 18% in 2003, its exports to China rose by 7%.The bilateral trade volume between China and Germany is 105.7 billion US dollars, which is equivalent to a quarter of the trade between China and Europe.Take the textile industry as an example. Almost all of the textile industry in the world is located in China, but where do our Chinese textile machinery come from?I tell you, almost exclusively from Germany.Like the Chinese clothing brands we often hear, such as Lilang, Shanshan, Youngor, etc., many of their machines and equipment are from Germany.Even in 2009, Germany exported 628 million euros of textile machinery to China, four times that of the second largest market, India.There is also the shoemaking industry. China is the largest exporter of footwear products. After the depreciation of the euro and the appreciation of the renminbi, 56% of our enterprises are on the verge of loss. Germany, as the largest exporter of shoemaking and leather equipment, has a large export volume after the depreciation of the euro. increase in magnitude. This is Germany, this is the real Germany, a rival we don't really know. The doctor is the owner of a listed company on Wall Street. He remembers very clearly that after "9.11", the market was closed for a few days. After the market resumed, the market recorded the largest weekly decline in 60 years within a week.It's not all about 9/11, it's largely the final blow of the dot-com bust.There is someone—let's call him "Mr. Market". Mr. Market thinks that the stock market is like lukewarm water and needs a "surgical" blow, so there is "9.11". The current public opinion is that "9.11" was a terrorist attack organized by the Arab aristocrat Bin Laden. Bin Laden was an Arab mafia trained by the CIA. In the past eight years, no matter how much high technology was used, the United States still could not catch Bin Laden.Then there were rumors that the man had already died.Just as there was no truth about Kennedy's assassination, the truth about "9.11" was also buried in the wind. The term "Mr. Market" was first advocated by Benjamin Graham, the father of value investing. His student Buffett often cited the ubiquitous Mr. Market concept in his annual shareholder reports.Mr. Market is the stock market. The stock market is changing every day. Occasionally, his invisible hand will show its true colors, that is, "Mr. Market Maker". After being fiddled with by market makers like Anthony, the stock of Doctor's Company rose from a few cents to tens of dollars, and then from tens of dollars to an ellipsis after "9.11", rolled and galloped like a roller coaster, and finally landed abruptly. On the day of "9.11", the original "captain" of the company had already left, because he knew too much inside information about the company and the industry.It is difficult to define what is insider trading.A postman was once convicted of copying BusinessWeek's "Wall Street Insider" and redistributing the magazine in exchange for it.This column introduces three stocks every week. It is released after the market closes on Thursdays. Usually, the stocks named will rise sharply.The postman took advantage of his position to get a sneak peek, and this kind of small shrimp was convicted. In comparison, the inside story that the president of a listed company knows can be called a valuable inside story. On the day of "9.11", when I was on the phone, the building suddenly shook, and then there was a lot of glass breaking. I said to the other end of the phone: "Wait a minute, something seems to be wrong."I stood up and turned around a few times in a daze. The corridor was quiet, no one was there.Go to the fire stairs, open the door, oh my god, the stairs are full of people, but there is no sound, everyone is going down, very slowly.The atmosphere is eerie.After walking a few floors, some firefighters came up and were fully loaded. They went up and we went down.Today, we know that all the hundreds of firefighters who went up here are gone forever.They don't know, or if they know, they don't hesitate.These people are true heroes. This article is excerpted from "The Wall Street Conspiracy" by Max Pu Chen The book is over!
The German grip on our technology is simply unimaginable.When Chery just produced its first car, Volkswagen bought a batch of cars and sent them to Germany for research. It turned out that some parts were compatible with the Jetta produced by FAW-Volkswagen.German Volkswagen immediately asked all suppliers of FAW-Volkswagen to stop supporting Chery.At that time, Chery was still under the name of SAIC in order to be included in the catalog, and German Volkswagen put pressure on its partner SAIC through Shanghai Volkswagen to ask SAIC to stop the production of Chery's model.Some people came out and said, aren't we a joint venture?Isn't there a brand in this way?He also said that this joint venture made full use of the peaceful development environment and the opportunity brought by the eastward shift of the global auto industry's center of gravity. He said that the 50-to-50 shareholding ratio is an insurmountable red line for foreign capital, and most of the Chinese parties are backbone state-owned enterprises.They also used the FAW-Volkswagen joint venture to prove that what they said was correct. They said that the Chinese side accounted for 60% of the shares, Volkswagen accounted for 30%, and Audi accounted for 10%. This shows that we have not lost anything through this joint venture. Not those vassals of multinational corporations.A plausible look.I don't know what the purpose of these people is to say these words.Let me show you some data. Let me first look at the key areas of the automobile manufacturing industry, that is, the core components such as engines and gearboxes. What is the market share of multinational companies? 90%.What about parts? More than 60%; and in the car parts industry, it has reached more than 80%.Looking at these data, can we still say that we have nothing to lose?We have lost the most important thing, which is the dominant position in the market, and our Chinese auto industry has been "hollowed out" step by step. This is just manufacturing capability. You can say that you don’t have technology. What’s even more worrying is that we don’t even have marketing now.Let’s just talk about BMW Brilliance. In 2003, Brilliance and BMW established a joint venture company. After that, BMW’s business in China was unimpeded.Do you think BMW is satisfied with this?It's not that easy. They want more than that. What they want is to take full control of the joint venture. By 2007, BMW will replace the president of BMW Brilliance. They took this opportunity to transfer the sales rights of the joint venture to BMW. Greater China.Then marketing, brand communication, advertising, channel management, etc. were all taken down, and they achieved their goals easily in this way.That's what the Germans do. Then let's take a look at the German delegation's visit to China, and how many markets we have opened to Germany.Siemens AG signed a $3.5 billion agreement with Shanghai Electric Group Co. to develop steam turbines and engines.Daimler AG, Daimler Northeast Asia Investment Co., Ltd. and Beiqi Foton Motor Co., Ltd. signed a cooperation document for the joint production of medium and heavy trucks and engines, involving an amount of 6.35 billion yuan.Even the location has been selected. In Huairou, Beijing, the annual production is expected to be 100,000 complete vehicles and 45,000 heavy-duty diesel engines.In addition, China and Germany also signed an agreement of 124 million euros to encourage energy conservation and emission reduction. Well, even if we didn't have a decent car production line back then, so it was justifiable to trade the market for technology, what about heavy trucks?You know, 50 years ago, we had two truck factories with independent technology, FAW Jiefang and Second Automobile Dongfeng.Looking at our current truck market, it is really frightening. It is basically a joint venture, and behind every enterprise is a foreign enterprise with malicious intentions.Let me show you a document to see which foreign capitals our eight major truck companies have established joint ventures with.Behind FAW Jiefang, which has the largest market share, is German Deutz; behind Sinotruk is German MAN; Behind Mercedes-Benz, Hyundai, and SAIC is Iveco from Italy, and behind JAC is Caterpillar from the United States.That is to say, among the eight major enterprises, there is China Weichai behind Shaanxi Automobile, but it still has a joint venture factory with Cummins of the United States, and all others have fallen.Another interesting phenomenon is that we found that German companies accounted for almost half of the country.The most worthy of our calm is Volvo. Geely Automobile acquired Volvo. I have discussed this matter in detail in Chapter 12 of this book. For the car business that this family abandoned more than 20 years ago, we still spend With so much money to buy back, you must know that the truck business with real technical content and international competitiveness has always been in the hands of the Volvo Group.But you can see that we are full of ambition and triumphant, and we feel really good about ourselves. I also want to remind everyone that investment alone cannot satisfy the appetite of these German companies. They still want a lot. For example, my country's government procurement market is now completely targeted by them.According to the calculation of the Organization for Economic Cooperation and Development (CECD), the central and local government purchases generally account for 10% to 15% of GDP.Specific to our country, at the end of 2009, government procurement accounted for only 2% of GDP.If it is expanded to 10%, it will be at least 500 billion US dollars.Such a big market, such a fat piece of fat, how could they let it go?In order to gain access to this market, German entrepreneurs have tried their best. Through the media and following government interviews, they have frequently exerted pressure on the top leaders of the Chinese government. The purpose is to strive for the greatest benefit, or what I said In a word, the greedy nature of these new imperialisms has never changed. So can they succeed?can!They are very smart, because they have also calculated that if China joins the GPA, China can also enjoy the same government procurement access as other GPA members.The size of this market in 2008 was about 1.6 trillion US dollars, of which 1 trillion US dollars came from the United States.Let's think about it differently. Is China willing to protect the domestic government procurement market, or is it more willing to allow Chinese companies to enter another $1.6 trillion market?At present, which market has the greatest potential for products produced in Germany, such as Mercedes-Benz, BMW, and Audi?The answer is obvious, it must be China.Daimler, the parent company of Mercedes-Benz, said its sales volume in the Chinese market reached 13,700 vehicles in May 2010, a year-on-year surge of 177%.Of course, there is a factor of the falling euro, but I believe this is not attractive to people who can't afford a car.From historical data, the sales volume of Daimler-Benz in China has increased by 280% in the past 4 years.And in 2009, look at the "2009-2010 Central State Organ Automobile Agreement Supplier List", the BMW brand of Brilliance BMW Automotive Co., Ltd. and the Mercedes-Benz of Beijing Benz-DaimlerChrysler Automobile Co., Ltd. What does it mean that the Mercedes-Benz brand appears on this list?This means that these two global luxury car brands have officially entered the central government's procurement list for official vehicles. Well, Germany has the investment it wants, the government procurement agreement it wants, so we should get something in exchange, right?For us in China, what do we want?Recognize China's market economy status!Why?Because there is no market economy status, it is impossible to take the initiative in international trade disputes, and Chinese export companies will be very passive when facing anti-dumping lawsuits.Our China is sued by the United States and the European Union in the name of anti-dumping at every turn.What is anti-dumping?That is, if you sell products in Germany, in order to seize the market, you set the price of your product very low, sometimes even lower than the cost, then Germany can sue you, and they can impose high tariffs as a penalty.The key to dumping depends on the difference between the cost and the selling price, but how is the cost determined?For example, Germany will say that because China is not a market economy, the talents and means of production in your market are not operating in a market economy environment, so the cost is not real, and the price cannot reflect market demand.what to do?Then find a third country, or the market price of a substitute country to replace your Chinese price, such as India and Brazil.They can even replace your Chinese prices with the prices of unrelated developed countries.It is useless for you to say that this is unreasonable. Who told you that you are not a market economy? In the 1990s, the European Union’s anti-dumping of color TVs against China was to use Singapore as a surrogate country to calculate the production cost of my country’s color TVs.You must know that the labor cost in Singapore was more than 20 times higher than that in China at that time. The so-called "normal" price must be much higher than the sales price of Chinese color TVs in Europe, but the EU doesn't care about your reasons. They use the data from Singapore As a basis, I will label you as "low-price dumping". What can you do? In June 2010, the EU’s anti-dumping case against our ceramic tiles was the same. They chose the United States as the surrogate country, and the result calculated that the dumping rate of our ceramic tile prices was as high as 430%. Since it is such a useful trade war tool, how could the Germans easily give it to us?How naive we are.If you just like to read domestic newspapers, you must think that we have won this time." On July 16, 2010, China and Germany issued a joint communiqué "China-Germany Joint Communiqué on Comprehensively Promoting Strategic Partnership", which will comprehensively promote China's strategic partnership. Germany’s strategic partnership. In the communiqué, Germany expressed its active support for the EU’s recognition of China’s full market economy status as soon as possible.” Look at the headline in the First Financial Daily: “Germany proposes to support the EU’s recognition of China’s market economy status for the first time.”Also, "Securities Daily" said that "Germany urges the EU to recognize China's full market economy status." So what is the actual situation?If you read the press release of the German Federal Government, you will find that instead of recognizing it, Germany firmly opposes it.Let's look at the report of the German News Agency. What did German Chancellor Angela Merkel say?She said that it is still not possible for the EU to recognize China's market economy status.After the meeting with our Premier Wen Jiabao, some media asked Merkel whether China could get market economy status?What is her answer?She said: "I believe that we have not reached this point yet. Issues such as China's intellectual property protection and market access have yet to be clarified. We must be sure that discrimination will not occur." And market access is not an ordinary problem.Her meaning is very clear, that is, Germany must protect intellectual property rights, and China cannot trade the market for technology.In addition, market access she refers to allowing Germans to enter China's government procurement list, as well as allowing German companies to enter China's independent innovation fields.In other words, we have given them what they want, but they can't return what we want now.It's really hateful and deceiving! But we were so excited, what did we say?It is said that this communiqué is the second joint communiqué between China and Germany.The website of the German Ministry of Foreign Affairs provides services in four languages: English, French, Spanish and German, but this "important" communique between us is only available in German.The Deutsche Presse Presse report is very casual and very understated. It only said that in a joint communiqué, the two sides stated that "Germany will continue to make active efforts for the EU to recognize China's market economy status. China will cooperate with the EU on this issue. Continue to have frequent conversations."This is obviously just a diplomatic rhetoric, and Germany has not made any commitments at all.But what is the corresponding statement in our Chinese version of the communiqué?Said that "Germany will actively support the EU to recognize China's full market economy status as soon as possible, and China will continue dialogue with the EU on this issue."I can't figure it out, is this a mistake in our translation, or is it deliberately misleading the public? The problem is that dialogue does not amount to acknowledgment, nor does it amount to any commitment.Therefore, the statement of the German News Agency is that Merkel said that if China takes corresponding measures in this regard, she will work hard to reach a "fair and targeted negotiation".However, from the standpoint of BASF, do you think they really want to charge us a full market economy status, and how much extra road money will they charge?Even if Germany gave us a full market economy status, the benefits we get are not as good as those received by Germany.Readers, don't forget that Germany was the world's largest exporter before 2003.The British "Financial Times" reported that in the context of weak demand in the United States and many parts of Europe, German manufacturers believe that the accelerating recovery of Germany, Europe's largest economy, is driven by China.Facts have proved that this is true. Although Germany's exports fell by 18% in 2003, its exports to China rose by 7%.The bilateral trade volume between China and Germany is 105.7 billion US dollars, which is equivalent to a quarter of the trade between China and Europe.Take the textile industry as an example. Almost all of the textile industry in the world is located in China, but where do our Chinese textile machinery come from?I tell you, almost exclusively from Germany.Like the Chinese clothing brands we often hear, such as Lilang, Shanshan, Youngor, etc., many of their machines and equipment are from Germany.Even in 2009, Germany exported 628 million euros of textile machinery to China, four times that of the second largest market, India.There is also the shoemaking industry. China is the largest exporter of footwear products. After the depreciation of the euro and the appreciation of the renminbi, 56% of our enterprises are on the verge of loss. Germany, as the largest exporter of shoemaking and leather equipment, has a large export volume after the depreciation of the euro. increase in magnitude. This is Germany, this is the real Germany, a rival we don't really know. The doctor is the owner of a listed company on Wall Street. He remembers very clearly that after "9.11", the market was closed for a few days. After the market resumed, the market recorded the largest weekly decline in 60 years within a week.It's not all about 9/11, it's largely the final blow of the dot-com bust.There is someone—let's call him "Mr. Market". Mr. Market thinks that the stock market is like lukewarm water and needs a "surgical" blow, so there is "9.11". The current public opinion is that "9.11" was a terrorist attack organized by the Arab aristocrat Bin Laden. Bin Laden was an Arab mafia trained by the CIA. In the past eight years, no matter how much high technology was used, the United States still could not catch Bin Laden.Then there were rumors that the man had already died.Just as there was no truth about Kennedy's assassination, the truth about "9.11" was also buried in the wind. The term "Mr. Market" was first advocated by Benjamin Graham, the father of value investing. His student Buffett often cited the ubiquitous Mr. Market concept in his annual shareholder reports.Mr. Market is the stock market. The stock market is changing every day. Occasionally, his invisible hand will show its true colors, that is, "Mr. Market Maker". After being fiddled with by market makers like Anthony, the stock of Doctor's Company rose from a few cents to tens of dollars, and then from tens of dollars to an ellipsis after "9.11", rolled and galloped like a roller coaster, and finally landed abruptly. On the day of "9.11", the original "captain" of the company had already left, because he knew too much inside information about the company and the industry.It is difficult to define what is insider trading.A postman was once convicted of copying BusinessWeek's "Wall Street Insider" and redistributing the magazine in exchange for it.This column introduces three stocks every week. It is released after the market closes on Thursdays. Usually, the stocks named will rise sharply.The postman took advantage of his position to get a sneak peek, and this kind of small shrimp was convicted. In comparison, the inside story that the president of a listed company knows can be called a valuable inside story. On the day of "9.11", when I was on the phone, the building suddenly shook, and then there was a lot of glass breaking. I said to the other end of the phone: "Wait a minute, something seems to be wrong."I stood up and turned around a few times in a daze. The corridor was quiet, no one was there.Go to the fire stairs, open the door, oh my god, the stairs are full of people, but there is no sound, everyone is going down, very slowly.The atmosphere is eerie.After walking a few floors, some firefighters came up and were fully loaded. They went up and we went down.Today, we know that all the hundreds of firefighters who went up here are gone forever.They don't know, or if they know, they don't hesitate.These people are true heroes. This article is excerpted from "The Wall Street Conspiracy" by Max Pu Chen The book is over!