Chapter Thirty-Five: Successful Borrowing

  This sentence made Huang Chujiao's heart sink, and for a moment, he didn't know how to face Jiang Yu's obvious suspicion.

  Nourishing the brain? What is the brain? What definition constitutes nourishment?

  Just when Huang Chujiao was about to explode, Jiang Yu suddenly laughed and said: "Although I don't believe it, but Mr. Huang is indeed a talented person, because you can make those healthy people pay money obediently. However, can Mr. Huang consider using this cleverness on foreigners?"

  "Foreigner?" Huang Chujiao exclaimed in surprise.

  "Not bad, in China I wouldn't allow you to sell these messy brain tonics, but overseas is a much bigger market, it's up to you to grasp it. Western pharmaceutical companies, they usually introduce various health supplements and deceive people into spending money, but the actual effect of those health supplements can't compare to traditional Chinese medicine, or even have no effect at all, yet people still buy them, perhaps just buying a wish." Jiang Yu said to Huang Chujiao, "If Old Master Huang is willing, Huadong Group can invest some money and start a health supplement company with you, internally operating traditional Chinese medicinal cuisine with real ingredients, externally selling those brain tonics, vitamin tablets and whatnot."

  "Of course, there is!" Huang Chujiu became excited, the meaning of Jiang Yu's words was obvious, he wanted to work with him on this kind of "health product", and rely on the Huadong Group, a big tree, after that it would be easier to mix.

  "Besides, it won't be long before China enters a monopoly in the pharmaceutical and drug sales sectors. Your pharmaceutical companies and large pharmacies should take action when necessary, or they will become targets for rectification." Jiang Yu's words carried some implicit meaning, giving Huang Chujiao a very clear hint.

  The profit of making medicine is very high, at least over 200%, while the profit of selling medicine is relatively low, generally only over 50%.

  If it's a monopoly, then the profit can be even higher.

  If competition is excessive, pharmaceutical manufacturing will lose most of its profits.

  Huang Chujiu was shocked after hearing Jiang Yu's words, and secretly thought to himself that no wonder there had been various forces suppressing the major pharmacies recently, it turned out to be the actions of this person in front of him.

  Out of Jiang's mansion, Huang Chujiao got into the sedan and sped away.

  A few days later, Huang Chujiao sold most of the shares of Zhongfa Pharmacy and Wuzhou Pharmacy to Huadong Pharmacy, retaining only 20% of the shares.

  Of course, Huang Chujiao's identification was affirmed by the Huadong Group, and soon a mechanical designer was sent to work with Huang Chujiao to design a production line for the Ren Dan.

  Rendan, Rendan, the former is a product of Japanese people, with a Japanese man with a mustache, giving Chinese people at that time another way to describe 'Rendan mustache'.

  The latter is the Ren Dan made by Huang Chujin to change the situation that Chinese people have to buy Japanese Ren Dan. It was developed by combining ancient prescriptions such as "Zhuge Xingjun San" and packaged with a dragon on the left and a tiger on the right, also known as "Longhu Ren Dan".

  Qiao Hu Zi Ren Dan and Long Hu Ren Dan have started competing in the market, but at this time, Huang Chujiu's Long Hu Ren Dan has no reputation, secondly, it is purely handmade, with low production volume and efficiency, so Huang Chujiu is still losing to Ren Dan in the competition for the market.

  The Longhu Ren Dan was soon repackaged, but the dragon and tiger pattern remained unchanged.

  The Longhu Ren Dan was produced using pipeline production and adopted new packaging, with lower costs and a more advanced appearance, which was welcomed by the common people.

  It soon sold not only all over the country but also exported to Southeast Asia and other places.

  The Japanese, however, accused Huang Chujiu's Longhu Ren Dan of plagiarizing Japan's Hu Zhang Ren Dan and appealed to the Chinese court. The lawsuit went all the way from the lower courts to the Supreme Court in Beijing, where the Beiyang government ultimately ruled in favor of the Japanese merchant, as the prescriptions were clearly different, and the prescription for Japan's Ren Dan was also passed down from ancient China.

  Huadong Group extended its hand from monopoly in heavy industry to monopoly in light industry, and even stretched into the monopoly of pharmaceuticals.

  At this time, China was giving birth to the Huadong Group, a monopolistic monster.

  All sorts of monopolies can be easily seen in the Hua Dong Group, including cartel monopoly, syndicate monopoly and trust monopoly.

  While Jiang Yu is working hard to make Huadong Group the most powerful trust monster, rather than a mediocre cartel little monster.

  ……

  After more than a week of negotiations, the five banks finally determined their respective shares for the loan to Jiangyu.

  The majority of which was held by the Rothschild syndicate, amounting to ￡80 million, while the American Morgan and Rockefeller banking groups together took a share of ￡18 million, and other banks in England, France, Russia and Japan shared the remaining ￡20 million.

  It can be said that this loan is simply a borrowing from Jiang Yu to the financial group.

  From this loan, Jiang Yu also fully felt the terror of the Rothschild family's financial power. When a country cannot establish a financial barrier through policy, it is best not to play any financial games with Westerners, otherwise it will die miserably.

  Jiang Yu even thought about whether he should first shut down those stock exchanges in Shanghai?

  The stock market is a place to make money, the difference lies in who makes the money and whether the means of making money are technical. Under the strong financial power of Western capital and China's weak diplomacy, it is obvious that China's stock market may become their playground at any time.

  Innumerable bloody examples are placed in front of later generations. These large capital groups can cause a country's wealth to shrink drastically through the stock market.

  Two days later, Jiang Yu personally signed his name on the loan contracts of various banks.

  A huge loan has come out.

  These loans will arrive in three batches, the first batch is 300 million pounds, which can be received within half a month, and another 300 million pounds will be received after half a year. By next June, the last batch of 400 million pound loan will also be received, totaling 1 billion pounds.

  Jiang Yu obtained such a huge loan and immediately convened Zhou Ziyue, Chen Guangfu and others to discuss the use of these funds.

  "The first batch of funds is 300 million pounds, equivalent to 3 billion silver dollars, which is enough for us to build a 5,000-kilometer-long railway and open more mines and build larger steel plants." Jiang Yu said, turning to ask Zhou Ziyue: "What do you think, Old Zhou?"

  "I think, first of all, we should invest in capital and build the production lines for agricultural machinery, trucks, and cars. At the same time, we should construct railways and highways to ensure smooth transportation. In this way, we can quickly form an economic entity with the manufacturing of agricultural machinery, automobiles, and cars as its pillar industries. The large-scale production of agricultural machinery will also drive the development of agriculture and petroleum industries, while the automobile industry will promote highway construction and solve the problem of insufficient railway length in our country."

  "Hmm! That makes sense." Jiang Yu nodded, the assembly line production model was currently Jiang Yu's trump card. At this time, Ford had just introduced the Model T car, but they hadn't yet figured out the assembly line production model, while Jiang Yu had already applied it to munitions production.

  In recent years, Far East Group and Huadong Group have accumulated a lot of experience in the design and manufacturing of semi-automatic production lines.

  At this time, the engineers of Huadong Group were studying the "fully automatic production line" proposed by Jiangyu. No mistake, it was fully automatic!

  In an era without computers, it was indeed possible to achieve full automation.

  ——————

  The first update is here!

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