After 2008, the domestic real estate industry has developed rapidly. Houses are no longer just a place to live. Many people buy houses not for living, but for asset preservation or appreciation.

Houses have gradually acquired the characteristics of financial management products and will inevitably develop in the direction of monetization. With the expansion of the real estate market, China's economy is increasingly dependent on real estate.

Before 2008, although the domestic real estate market had reached a certain scale, real estate could not be regarded as the core pillar industry of the Chinese economy. At this time, the status of manufacturing was still the highest.

For local governments, real estate investment is a one-shot deal, just like a one-time sale. In addition to earning a financial income when selling land, the taxes and fees related to real estate can only be collected once.

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Even if building houses can create some employment, it will only be temporary. After the project is completed, construction practitioners will have new projects to continue their employment, otherwise they will become unemployed again. Therefore, real estate needs to continue to expand in order to have

So called employment.

Investment in the manufacturing industry is different. The manufacturing industry is sustainable. No matter what product is produced, it is impossible to close the factory after producing only one batch. As long as the factory continues to produce, it can bring continuous tax revenue, and it can also bring continuous tax revenue.

sexual employment.

It is not uncommon for foreign manufacturing companies that have been rooted in a place for hundreds of years. Even in China, there are many manufacturing companies that are almost the same age as the Republic and have been driving a local economy for decades.

A real estate investment project can bring fiscal revenue to the local area in the short term, while a manufacturing investment project can bring prosperity to a city for decades.

Therefore, for the same amount of investment, one is investment in real estate projects and the other is investment in manufacturing projects. Local governments will definitely give priority to manufacturing investments.

Manufacturing investment also contributes more to GDP than real estate.

One yuan of investment in fixed assets can drive three yuan of GDP growth, and if it is invested in manufacturing, one yuan invested in ordinary machinery manufacturing can drive ten yuan of GDP growth.

If we move up to some high-end manufacturing industries, such as manufacturing nuclear magnetic resonance, manufacturing intelligent robots, manufacturing photolithography machines, and manufacturing commercial airliners, the impact of manufacturing industries with relatively high added output values ​​on GDP cannot be measured in numbers.

In that era of GDP-only theory, when Li Weidong offered to reinvest profits and 50% of the amount would be invested in the manufacturing industry, it was another bait that the local government could not refuse.

…

In the afternoon of that day, Li Weidong was invited to the city to be interviewed by city leaders.

After a brief exchange of greetings, the leader said, "Chairman Li, during the first round of bidding, you once proposed that you would not take away any profit from the project and invest all of it in Shanghai. On behalf of the Municipal Party Committee, I would like to express my gratitude to you.

We very much welcome developers like you who are willing to participate in urban economic development to invest in our city."

"I should thank Shanghai City and all the leaders for giving me an opportunity to participate in urban development and construction!" Li Weidong said with a smile.

The leader continued to ask: "Chairman Li, in this second round of bidding, I have personally read Dongshan Real Estate's bid document. You have added two more clauses. One of them is to reinvest project profits and not to invest in real estate."

, can you tell me what you think?"

Li Weidong answered: "That's right. Reinvesting the profits from projects will indeed play a positive role in promoting the development of the city. But if the profits from these projects are used for real estate investment, the effect will be much smaller.

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A city cannot rely on just one industry. If only one industry dominates, it will be very detrimental to the development of the city. Especially for an international metropolis like Shanghai, it needs comprehensive and balanced development of various industries.

That’s why I proposed that when project profits are reinvested, I will not invest in real estate projects. I will invest the profits from real estate projects into other industries and promote other industries, which is beneficial to the balanced development of the entire city.

Of course, I also have selfish motives. The first selfish motive is of course that I hope to obtain more projects in this way; the second is that I am very optimistic about the future economic prospects here. As a capital investor, I am very willing to take root and operate here.

.”

"I didn't expect Chairman Li to be so candid. However, your plan is indeed mutually beneficial for both of us." The leader nodded, and then said:

"Second question, the second clause you proposed is that in the process of reinvesting profits, the investment ratio in manufacturing should not be less than 50%. I know that Chairman Li has many manufacturing industries, but I don't know what you plan to do.

What manufacturing industries are we investing in here?”

"I do have plans in this regard." Li Weidong paused and then said, "I plan to invest in the automobile industry and build a factory to produce automobiles in Shanghai."

"Car?" Excitement flashed in the leader's eyes.

Li Weidong continued: "Not long ago, I acquired Jaguar Land Rover from the Ford Group, and I plan to move Jaguar Land Rover's production lines to China. I think Shanghai is a good choice, as there is already a SAIC Motor Group here.

, it also has a relatively complete automotive parts supply chain, coupled with the advantages of the port, it is very suitable for the development of the automotive industry."

"Your chairman, do you really plan to move Jaguar Land Rover's factory to our place?" The leader's face was already full of joy.

"The premise is that I can get enough projects in this bidding." Li Weidong smiled slightly and then said: "I use the profits from the projects to reinvest. Only with enough profits can I have sufficient funds to build here.

factory."

"I understand!" The leader took a deep breath, and then said: "Thank you, Chairman Li, for your support of Shanghai's economic development. Regarding the project bidding, the city still needs to discuss it before making a decision."

Li Weidong said, "Regarding the construction of the Jaguar Land Rover factory, if the city is not at ease, we can sign a supplementary agreement. If I can get all eight projects, then within the next three years, Jaguar Land Rover will build the factory

The project will definitely be implemented.”

…

When Li Weidong took out the project profits and reinvested them, he already thought that other developers would follow suit.

Although real estate developers are not philanthropic, they will definitely do charity in order to get more projects.

In the infrastructure construction of various cities in later generations, such as road projects, bridges, factories, pipeline projects, etc. in the city, many were funded by real estate developers, and in exchange the developers would receive some projects.

There are also some renovation projects in shantytowns. The local government does not even have to spend a penny, and it is all completed by developers. All they have to pay is to set aside a part of the land for developers to build commercial buildings.

There are many examples of developers directly investing in poverty alleviation. The top real estate giants allocate hundreds of millions to poverty alleviation work in impoverished areas every year.

Of course, there is a saying that if you don't make a profit, you can't afford it. If the money is spent, it will be treated as public relations expenses, and it will be much easier to use the land for projects in the future.

In order to obtain land for projects, real estate developers really dare to give money to poor areas. So how can developers be reluctant to invest in the Yangtze River Delta region, one of the two major engines of China's economy?

Therefore, the method of reinvesting project profits may stop some real estate companies with tight capital chains, and it may also stop real estate companies such as Hong Kong investors that only focus on short-term profits, but it will definitely not stop those who are willing to take root in China and are also optimistic about the Yangtze River Delta. Economic development developers.

So Li Weidong came up with the second trick, which was differentiated investment.

If other real estate companies use project profits to reinvest, they will definitely invest in real estate. Let them invest in other industries, but they don't know how to do it.

Li Weidong started out in the manufacturing industry, so he can use the profits from projects to invest in the manufacturing industry. This is Li Weidong's biggest advantage over other real estate companies.

More importantly, Li Weidong now owns Jaguar Land Rover, a luxury car brand. Although Jaguar Land Rover has been losing money for many years, it is a very good thing for the city.

The automobile industry is an important industry among industries. The automobile industry has high added value, can absorb a large number of jobs, and can drive a relatively large number of industrial chains. Its energy consumption is not high, and the pollution is not serious.

In contrast, the added value of low-end manufacturing is too low, the energy consumption of the materials industry is often high, and the chemical industry inevitably has pollution problems.

As for the manufacturing of high-precision products, it is impossible to gather an industrial chain and can only create limited employment opportunities.

Take the nuclear magnetic resonance machine, for example. Although it is a high-end manufacturing industry, only a few units of it can be produced or sold throughout the year. Although the added value is high, it cannot actually feed many people.

Moreover, the high-end manufacturing industry has low demand for required parts. For example, if a factory can produce a thousand units of nuclear magnetic resonance machines a year, it is considered very good. It can be packed in a courier box. How can this kind of demand form any industrial cluster?

As for automobile factories, they can easily produce hundreds of thousands or even hundreds of thousands of units a year. It is not a problem to feed thousands of people by itself. Coupled with the supply of upstream parts and components, one automobile factory is more than enough to support a fourth-tier city.

Therefore, no matter whether it is a developed or developing country, no city will refuse the establishment of a car company, let alone a luxury car brand like Jaguar Land Rover.

No matter how good the reputation of a luxury car brand is, the quality is there. If a city introduces the production base of a luxury car brand, it will look good when it comes to publicity, or at least it will make it look taller.

While Li Weidong was still negotiating with Ford, he was already considering moving Jaguar Land Rover's production lines from the United States.

The cost of production in the United States is really too high, and the automobile union often stirs up troubles. If it is not to compete with the American market, there is really no need to produce in the United States.

Even if you have to compete with the US market, there is actually no need to produce in the US. There is Mexico right next to the US. Although the security in Mexico is worse and the efficiency of the workers is average, it is much cheaper than in the US.

If the automobile production line is moved, the best place to relocate is of course China.

China has a complete supply chain system, infrastructure that can satisfy any industrial production, convenient logistics system, and cheap labor. More importantly, China will be the largest automobile market in the world in the future, even if you just want to think more

To sell cars, the factory should also be moved to China.

The Yangtze River Delta region already has a complete supply chain system for automobile parts and has a world-class port, which is very suitable for the development of the automobile industry. Moreover, the economy here is developed, and the demand for luxury brands is also greater. For example, in the future, special

Sila is located in the Yangtze River Delta region.

As for Jaguar Land Rover's production lines in Europe, Li Weidong has no plans to relocate. Jaguar Land Rover's European factory is located in Liverpool. After all, the UK is Jaguar Land Rover's main market, and the parent company and R&D institutions are there, so it is not easy to move.

matter.

In fact, locating factories in the UK is not a good choice. It is not that the UK's industrial capacity is insufficient, nor that British workers are too expensive, but that the UK will leave the EU in the future, which will be a serious blow to British manufacturing.

After the United Kingdom leaves the European Union, it has become much more difficult for industrial products made in the United Kingdom to be sold to the European continent, which has given opportunities to Germany and France, two traditional industrial powers. In the European continent, both German and French cars are sold.

a certain degree of growth.

Historically, Jaguar Land Rover CEO Ralph Speth's strategy to offset the impact of Brexit was to build a new assembly plant in Paris, France, and sell French-made Jaguar Land Rovers on the European continent.

However, as soon as the factory was built, Europe was holding high the banner of limiting carbon emissions. It planned to ban the sale of fuel vehicles and began to promote new energy vehicles. Jaguar Land Rover had no technical accumulation in this area, but it could only follow up forcefully.

Then came the outbreak of the epidemic again, and the market demand for luxury cars dropped sharply. Two years later, Europe chose to lie down in the face of the epidemic. Seeing that the market was about to recover, it encountered the conflict between Russia and Ukraine, and luxury cars still could not be sold. In short, it is

If a person is unlucky enough to drink cold water, his teeth will be blocked.

But in terms of results, Jaguar Land Rover's decision to bet on the European market is obviously wrong, but they should not change it. After all, the owner behind Jaguar Land Rover is India's Tata Group.

The confident Indians have been colonized by Europeans for too long. Even if they lose billions every year, they still have to show their glory to the Europeans!

…

Li Weidong proposed new conditions, and the city leaders met again to discuss it. Li Weidong didn't know the specific details of the discussion, but only three days later, the city leader responsible for attracting investment personally set up a dinner party, invited Li Weidong, and introduced him by the way.

There are a lot of cadres responsible for attracting investment.

Next, the group of cadres responsible for attracting investment began to talk to Li Weidong about introducing the Jaguar Land Rover factory.

At the negotiation table, Li Weidong said bluntly: "Director Chen, of course I know that you really hope that I can build a Jaguar Land Rover production plant in Shanghai as soon as possible, but the time to build the Jaguar Land Rover factory depends on how much money I have.

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To be continued...