"Miss Hong Yan, you are much as I imagined, possessing a certain business acumen. Given the current economic scale of the Wuzhou District, completing the municipal contract assigned by the provincial capital is absolutely impossible. Wuzhou District lacks a complete industrial supply chain, only capable of developing low-end industries such as mining and small-scale handicraft. However, it's fine; having a contract is better than having none," Chen Feng said calmly.
"Chen Feng, this is the first municipal contract that Wuzhou District has undertaken. If we mess it up, we won't get another chance," Zhao Hong Yan said with worry, continuing to ask.
With Chen Feng's identity, Wuzhou District would not lack project contracts. However, Wuzhou District was too poor and had little supporting industry, making it nearly impossible to complete the projects assigned by higher authorities. If a contract was not handled well, even with Chen Feng's strong connections, subsequent project contracts would be difficult to obtain.
"No need to worry. While the environment of Wuzhou District is very poor, making it difficult to develop foreign trade contracts, we can take a different approach and develop the financial industry. Just like Hong Kong and New York, neither has a good industrial or agricultural environment, yet they can vigorously develop finance, tourism... leveraging strengths and avoiding weaknesses," Chen Feng explained unhurriedly.
"Continue," Zhao Hong Yan felt a bit of her unease subside.
"My meaning is simple. Since Wuzhou District cannot develop agriculture and industry, it shouldn't force itself. Acting against economic laws can only lead to failure. Developing the financial industry is a good idea. Simply put, Wuzhou District would act like a pimp, finding projects from elsewhere and then reselling them to others, earning high information fees and brokerage fees. This is one aspect. Additionally, we can attract the headquarters of large companies to Wuzhou District. No company headquarters is directly involved in production. This way, Wuzhou District wouldn't need a complete industrial production chain. As long as there are preferential policies, large company headquarters will settle here. Don't underestimate finance; Hong Kong is a financial center, earning an immense amount of money annually. For us to become a regional financial center in Huaxia, we can definitely make money," Chen Feng explained patiently.
"Chen Feng, I understand. You mean that for this municipal contract assigned by the provincial capital to Wuzhou District, we should resell it to other capable districts and then earn high brokerage fees," Zhao Hong Yan tentatively asked.
"Miss Hong Yan, you've touched upon the meaning of finance. Finance, in essence, is about making money out of thin air. Of course, to 'extract' more, and to extract it sustainably, we need to delve deeper into the concept of finance."
"For example..." Zhao Hong Yan asked with admiration. Facing ironclad facts, Chen Feng was truly a renaissance man. Not only did he master the political arena, transforming a rotten system in just a few days, but he also possessed unique insights and approaches in the business world. Most people believed Wuzhou District should forcefully develop industry and follow a path of industrial strength. Chen Feng, however, prescribed the right medicine, proposing the development of the financial industry. Such deep insight was something even the economic bigwigs in the provincial capital couldn't conceive.
"For example... this time, when we sell the provincial capital's municipal contract to Wuzhou District, we must attach a condition."
"What condition? Highest bidder?" Zhao Hong Yan tentatively asked. At this moment, she felt a sense of following Chen Feng's train of thought, yet not quite grasping it. It had to be said that Chen Feng's thinking was too profound and leaps forward.
"Highest bidder is the basic condition. I'm talking about an attached condition. You and your father are the project leaders, so I'll tell you this attached condition directly. Whoever wants to buy the Wuzhou District municipal contract from the provincial capital must set up the project command center in Wuzhou District, Jiangcheng." Chen Feng stated crisply.
"What is the purpose of setting up the project engineering department in Wuzhou District?" Zhao Hong Yan asked, completely perplexed.
"It's simple. If the project engineering department is not set up in Wuzhou District, then Wuzhou District can only earn brokerage fees once. If the engineering department is set up in Wuzhou District, then we can earn money long-term. A project takes at least three to four years, meaning the engineering department will be in Wuzhou District for three to four years. The key is that after the project is completed, the project engineering department can be transformed into a project development department on-site. A single project engineering department might not generate significant economic benefits. However, if Wuzhou District resells contracts each time and retains a project engineering department, economies of scale will be achieved. With economies of scale, even projects not handled by Wuzhou District will have their project engineering departments move to Wuzhou District." Chen Feng explained unhurriedly.
"I don't understand this. How would project engineering departments unrelated to Wuzhou District also move to Wuzhou District?" Zhao Hong Yan asked, feeling a bit dizzy. Before Chen Feng's arrival, she thought her business talent was decent enough to help her father manage the family's mining business. However, after Chen Feng arrived, Zhao Hong Yan realized her business talent was virtually non-existent. Many mysteries of the business world felt foreign. This showed that Chen Feng's business talent was truly remarkable.
"This involves the issue of costs. When the scale is large and everything is gathered together, the cost of doing business is lower. When the scale is small and only one entity is doing it, without a related industrial chain, the cost is very high," Chen Feng explained calmly.
"Chen Feng, with your explanation, I understand. Honestly, I have great confidence in the development of Wuzhou District now," Zhao Hong Yan said excitedly.
"By the way, Miss Hong Yan. Next, you and your father should not only be responsible for the financial project development of Wuzhou District but also gradually scale back the Zhao family's mining business." Chen Feng continued unhurriedly.
"What? Ask the Zhao family to scale back their mining business? My father will definitely not agree. While the mining resources are not as profitable as before, they still make some money," Zhao Hong Yan asked, perplexed.
"Hong Yan, I won't be staying in Wuzhou District for long in the future. The responsibility for Wuzhou District's development will fall on you. You have some business acumen now, but your long-term vision is still lacking. Take your Zhao family's mining resources as an example; you and your father lack long-term vision. Firstly, China has introduced overall economic policies emphasizing 'lucid waters and lush mountains are invaluable assets' over mountains of gold and silver. What does this mean? It signifies that the state highly values environmental protection and the upgrading of mineral extraction. Wuzhou District, being a backward area, will soon face prohibitions from the central government on further extraction, leading to direct mine closures. Although the Zhao family is a local force in Wuzhou District, they are not on the same level as China's top authorities. Secondly, although mineral resources are profitable, they are not as profitable as finance or tourism. Shutting down all of the Zhao family's mines and receiving generous policy subsidies from the state, then using this money along with the Zhao family's accumulated wealth to transition into the financial and tourism industries will yield far more than mining resources. Most importantly, you won't have to be a local strongman anymore. You can be a respected and successful businessman," Chen Feng explained word by word.
After listening to Chen Feng, Zhao Hong Yan felt only one thing: it was too much of a waste for Chen Feng to be a bureau chief in Wuzhou District. Chen Feng's political talent was more than enough to manage the economy of an entire provincial capital.
"Don't worry, husband, I will do as you say," Zhao Hong Yan deliberately called him "husband" very loudly. Since it was a political marriage, she would play the part to the end. Henceforth, for Wuzhou District's economic transformation, the local Zhao family and the politically powerful Chen Feng must cooperate closely.
"Then you and your father can proceed with the specific matters boldly," Chen Feng encouraged with a smile.
"May I ask presumptuously, husband, what will you do next?" Zhao Hong Yan asked curiously.
"I'm going to start a training class for Wuzhou District's political and administrative staff. For Wuzhou District to achieve sustainable development, especially after I leave, a cadre of excellent political and administrative staff is essential," Chen Feng said earnestly.
"Who will be selected for the Wuzhou District political and administrative staff training class? How about I introduce some people?" Zhao Hong Yan tentatively asked. This would be a perfect opportunity to place friends and relatives into Wuzhou District's political and administrative system.
"I already have candidates," Chen Feng replied with a meaningful smile.