Chapter 1275 Unstoppable!(1/2)
It has to be said that the problem that Dean Zhu mentioned is very fatal, and he has even set his sights on it decades later.
Just like in previous lives, China's economic aggregate surpassing that of the United States seems to be just around the corner. Even those who are picky about China cannot deny this.
But whether this is the rise in the minds of the Chinese people is probably not certain.
At least in Fang Chen's mind, the sign of China's initial rise is that its economic aggregate exceeds twice that of the United States, and its per capita GDP reaches half that of the United States.
Then technology, finance, military, culture, etc. comprehensively surpassed the United States.
Some people may even think that the latter four are more important than the economy, but in fact this is a chicken-and-egg problem. Only when the economic aggregate exceeds can the latter four be surpassed.
The reason is very simple, the most important thing in this world is money.
Whether it is technological development, financial innovation, or even military struggle, or even so-called cultural figures, all the masters are after is money.
In other words, money is like a sycamore tree. Only with money can you attract the golden phoenix.
Why in the past life, a large number of high-level talents abandoned their hometowns and flew to the southeast? Isn't it because the wages in the south were high?
If you can find a job with the same salary right at your doorstep, who would be willing to leave your hometown and go to other places?
Even just a little bit better.
But the problem is that they can't find jobs locally, let alone jobs that are close to 10 jobs.
However, if we talk about the fundamentals of China's rapid economic growth at this time, it is the cost-effectiveness of China's workers and China's continued technological innovation, which has overcome every obstacle.
As for other things, it is not necessarily true, because generally speaking, China's transportation costs, electricity costs, natural gas costs, land costs, financial costs, etc. have actually been higher than those in developed countries in Europe and the United States for a long time.
Also note that what Fang Chen just said was that Chinese workers are cost-effective, not that their wages are low.
Because there are a lot of countries with lower wages than those in China, such as Siam, Annam, Tianzhu, and other Southeast Asian, South Asian countries, and even Latin America. The wages of workers are much lower than those in China.
Not to mention Africa.
But compared to the Chinese people, the workers in these places are lazier and stupider. They don’t even know what discipline is. There are many people who spend three days fishing and two days netting. In addition, the international political situation is chaotic, so it is not
What a good place to invest and build a factory.
In European and American countries, the level of workers' skills is actually higher than that of China, and the political situation is also stable. But why are the manufacturing industries hollowing out? It is obviously because wages are too high.
Such high wages no longer allow them to produce clothes and shirts that cost only a few dozen yuan, or even electrical appliances that cost hundreds or thousands of yuan.
In terms of technological innovation, it is actually easy to understand.
Take Huawei as an example. Huawei first purchased switches from Xiangjiang, put its own brand on them, became a second-tier dealer, and then step by step developed its own 24-door switches, 100-door switches, 1,000-door switches, 10,000-door switches, 2G, and 3G
, 4G, and eventually become the world’s number one communications equipment company in the 5G era.
During this period, Huawei has overcome countless technological difficulties, and how many foreign communications companies in developed countries have been eclipsed, or even bankrupted and died.
The eight international communications giants that were wreaking havoc in China before are basically dead in later generations. Even if they are not dead, they can only be said to be lingering on.
And examples like this abound in China.
From this perspective, China is the crusher of developed countries, which is definitely not nonsense.
But China has achieved it, such as 5G, but there are some technological products that China may not be able to achieve for decades.
For example, chips.
First of all, chips are a winner-takes-all technology product. If the second-in-command cannot come up with a product that is comparable to the first-in-command, he will be choked with soup.
Coupled with the first-mover advantages of Intel and Qualcomm, as well as huge investment in scientific research funds of tens of billions of dollars every year.
This has caused something very embarrassing for China, that is, China must invest huge amounts of resources every year, more than tens of billions of dollars, to have the possibility of catching up with Intel and Qualcomm.
After all, they are already ahead of China, so why should they catch up if they don’t invest more than others?
But here’s the problem. Intel and Qualcomm invest tens of billions of dollars every year. They can make money, make profits, and have a positive cycle.
But China paid for it out of its own pocket.
Not to mention whether you are willing to spend so much money, but if you have been losing money every day for ten years and there is no hope of profit, it is difficult for anyone to persevere.
This is why, in recent years, there has been a lot of mention of Huaxia Chip's self-production to solve the problem of Huaxia Chip's high dependence on external parties, but basically it has not been realized. Even if there are occasional achievements, it will happen again within a few years.
.
However, as time goes by, the wages of Chinese people increase, the cost-effectiveness of Chinese workers disappears, and whether technological innovation can surpass European and American countries, where should China go? Can it achieve its rise?
This is probably a very serious problem.
Even at this moment, Fang Chen suddenly realized that Dean Zhu's question was addressed to both Hua Xia and him.
Because he wants to make chips, he is very likely to face such a situation.
It is very likely that he will have to endure losses in the chip field for a long, long time. It is even possible that if Intel does not stop making progress, Qingtian will not be able to catch up with Intel in the chip field.
If this is the case, then every penny he invests in the chip field will actually be a loss, and it may even bring down Qingtian.
Thinking of this, Fang Chen couldn't help but sigh.
Looking at Fang Chen who said nothing and fell into silence, although Dean Zhu was calm on the surface, deep inside he was already in turmoil.
This question has actually been hidden in his mind for a long time, and he still has no answer.
So in China, it seems that the only person who can solve his problem is Fang Chen, the world's richest man who is too young and has created countless business miracles.
This was another very important purpose besides inviting Fang Chen over to apologize.
But looking at Fang Chen's appearance at this time, Dean Zhu couldn't help but sigh, he seemed to be a little too difficult for Fang Chen.
After all, even thousands of economists cannot come up with a relatively good answer to such a question.
In other words, if it were really that easy to answer and solve, there would be no such things as the middle-income trap, Latin Americanization, etc.
Those developing countries with much better economic conditions than China have become developed countries.
But the reality is that in the past ten years, it seems that except for South Korea, no medium-sized country with a population of more than 10 million has entered the ranks of developed countries.
However, at this moment, Fang Chen suddenly raised his head and wanted to say something, but he seemed to think it was not good enough, so he thought carefully twice.
Then he said slowly and solemnly: "Dean, your question is really too big. I can't guarantee whether what I said is correct. I can only base it on my understanding of the world, China, and the social economy.
A shallow understanding of development is needed to make a prediction.”
"Let me talk about the conclusion first. I think that even if we encounter such a situation, China is still very hopeful to achieve its rise and rejuvenation."
After hearing this, Dean Zhu's eyes suddenly lit up.
"First of all, the two resistances you mentioned are that the increase in wages will lead to an increase in product costs, thereby losing competitiveness. This is unsolvable. After all, it is impossible for incomes to not increase. Therefore, the focus can only be on technological innovation.
The growth brought about by scientific and technological progress has increased."
"I think this is achievable. Even if we don't see the possibility of catching up with European and American countries in some technological products, I just thought about it. We have an advantage that other countries don't have, and that is the market. However,
Any economic activity that controls the market will surely achieve final victory."
"We have the largest population in the world. As economic development continues to improve, we will also have the largest market in the world. If we don't find a way to sell any goods in the world, they will lose 20% or even 30%.
market, this is a pain that no company can bear."
"Even once this part of the market is lost, the company will die instantly."
"Whoever controls the market controls everything!"
Fang Chen is not being alarmist. Generally speaking, a company's profits are mostly around 5% to 20%. If it loses 30% of the market, it means a loss, and loss is the prelude to the death of the company.
In fact, whether it is relative to capital, technology, or even productivity, the market, that is, consumers, is always the most important.
Without a market, no matter how good a company's products are, it will still be nothing.
This can be seen by looking at the development of Dongwa. After reaching its peak in the early 1990s, Dongwa has been in decline for the next thirty years.
Per capita income has increased from 1.5 times that of the United States to 70% of the previous life, and the per capita income of Eastern Japan has more than doubled.
The reason is that the United States forcibly raised the exchange rate between Japan and Japan.
However, why did raising the exchange rate of Dong-Japan lead to the continuous decline of Dong-Japan for thirty years?
It is because the market of Dongwa itself is too small, and the products produced cannot be digested locally and must be exported.
But now the exchange rate has increased, which has led to an increase in export costs and a sharp decrease in export volume. The Eastern Japan has naturally declined.
But China does not have to worry about this problem. In the future, China will have a population of 1.4 billion, as well as the combined population of all medium and large developed countries such as the European Union, the United States, Japan, South Korea, Canada, and Australia, as well as small developed countries such as Qatar.
quite.
In other words, once China enters the ranks of developed countries, it means that the population of developed countries will directly double.
This part of the market is undoubtedly very huge. It can even be said that whoever wins the Chinese market will win the whole world.
However, at this moment, China's requirements for chips are not high, and it does not need the latest Pentium series. Even if it has a 286 computer, as long as the price is right, many users can buy it.
In other words, Optimus Chip does not need to catch up with Intel. As long as it can meet the needs of the current Chinese people, it is enough. Then as the Chinese market expands, it will slowly enter all over the world and become the world's number one.
Even when Fang Chen recalled it, the Kirin chip in his previous life followed such a path.
The initial Kirin chips were not easy to use and had various defects. Even the first model, K3V2E, had never been heard of by most people.
At that time, Huawei used Kirin chips in its flagship phones. The outside world was very skeptical, and consumers did not buy it. It can be said that Huawei was not only losing money on chips, but also losing money on mobile phones.
But even so, Huawei has been biting the bullet and has been using Kirin chips.
To be continued...