Chapter 450 Good things come in hard times
Wang Deming came to Shanghai to meet with several chief engineers of the Y-10 aircraft project and to prepare for the layout of the Shanghai stock market.

In the past life, there was a very popular TV series, "Fang Hua" directed by Wong Kar-wai, which cost 5 million yuan and used movie shots to reflect the lights and debauchery of old Shanghai and the Yellow River Road.

When Wang Deming came to Shanghai in his previous life, he went to Huanghe Road for a stroll because of this TV series, and also had dinner at Taishengyuan, the prototype of the restaurant in the TV series.

How should I put it? It feels like a state-owned restaurant. The waiters and waitresses are all Shanghai natives, and they specialize in Shanghai local dishes.

He is not used to eating it.

In the Jiangsu and Zhejiang areas, the dishes tend to be sweeter, and the same is true in Shanghai.

At that time, various bills were still used in the country. He came to Shanghai this time, just like Shenzhen, because he wanted to get involved in the real estate sector, that is, to build a five-star hotel.

Previously, Wang Deming was involved in the renovation of Shanghai’s old city and technical schools, and he had laid enough connections, so he quickly reached an agreement with the Shanghai Municipal Government.

When we talked to the Shanghai leaders about Shanghai's electronic industries such as Radio Factory No. 14, Electron Tube Factory, and Component Factory No. 5, they were having a headache.

In order to better adapt to the market economy, the state allocated these factories that were originally under the jurisdiction of the central government to Shanghai. The leaders of Shanghai were very happy. In the 70s, the annual profit margin of each of these factories was as high as more than 2000 million.

But it's only been a few years and these electronic component factories are already at risk of making losses.

Especially Radio Factory No. 6000, which specializes in the production of TTL and HTL digital integrated circuits. It has a 76-square-meter clean workshop, which was built in 300 with an investment of million yuan by the Fourth Ministry of Machine Building. It is such a pity.

All these problems, one after another, are a headache for the leaders of the Shanghai Stock Exchange. They can only focus on the big ones and let the small ones go.

Because they want to save the Baosteel project and restart it.

Compared with the electronics industry, Baosteel's total investment in the project is 300 billion yuan.
The Shanghai Stock Exchange is trying every means to restart the Baosteel project and cannot take care of the electronics industry in Shanghai.

这几年因为大项目，79年1100多个，80年又新增1100多.然后81年暂停400多，82年也是赞同200多，这其中就包括宝钢。

Wang Deming's proposal to build a five-star hotel was exactly what the Shanghai leaders wanted.

What drives the economy?
It’s definitely an investment!

This is the theory that is regarded as the golden rule in this era, or even in the next few decades.

This theory originated from Roosevelt's New Deal in the United States.

So there is nothing new in this world.

Read more newspapers and history, and you will understand many things clearly.

However, the Shanghai market leaders were eager to expand their horizons, especially Wang Deming, who initially guided the leaders to focus on the electronics industry.

So after thinking for a while, the leader took the initiative to say, "Comrade Deming, the electronic industry foundation in Shanghai is particularly good."

"In the field of electronics industry, whether it is chips? Or DRMM memory? Or integrated circuit boards?"

"We all have a solid foundation, and the Wuxi Jiangnan Wireless Electronics Factory (Factory 742) in the Yangtze River Delta just spent 6600 million this year to introduce a 3-inch wafer production line from Toshiba of Japan."

The leader was always observing Wang Deming's expression. When he saw that he was lost in thought, he was overjoyed and continued to recommend: "Although the mainstream in the world now is the 5-inch wafer production line, the production line of Wuxi Wireless Electronics Factory is the best in the country."

"If Comrade Deming thinks it is possible, we can contact our comrades in JS Province to jointly promote the joint venture issue in the electronics industry!" If it were not for coming to this era, Wang Deming really did not know that our electronics industry had such a glorious experience.

He knew that after the easing of Sino-US relations in 73, the leaders made a plan to introduce seven 7-inch round wafer production lines from Europe and the United States, which was the most advanced technology in the world at that time.

You should know that it was not until 1975 that Intel in the United States built the world's first 4-inch wafer factory.

However, due to the technological blockade by Europe and the United States, it was not until the 80s that the three 3-inch wafer production lines introduced into China were completed and put into production, namely the Beijing East Optoelectronics Factory (Factory 3), Shaanxi Lishan (Institute 878) and Guizhou Wind and Photovoltaic Factory (Factory 771).

Even so, we are only three years behind Taiwan and two years behind South Korea.

This is just the chip aspect. In 1975, the 109th Factory of the Chinese Academy of Sciences in Beijing produced the first 1K DRMM memory in China, and in 81 it developed and produced 16K DRMM memory.

South Korea and Taiwan relied on the crazy investment of 20 billion US dollars from the United States, while suppressing Japan's electronics industry, transferring chip and memory technology to South Korea and Japan, and directly licensing 64K DRMM memory.

In 93, Factory 742 was reorganized into Wuxi Huajing Electronics Factory, which produced the country's first 256K DRMM memory.

It's already a private enterprise.

It is not just the Wuxi Jiangnan Electronics Factory. These electronics factories in Shanghai are the predecessors of Belling Semiconductor and Philips Semiconductors.

To put it bluntly, if we don't have any electronic industry foundation in China, will foreign capital from Europe and the United States invest? No, they are willing to invest in China because they see that China has rich industry accumulation and experience, especially excellent technical workers.

Wang Deming has never been interested in the establishment of investment promotion departments at any level of the country.

It's very simple. Capitalism is all about profit. If there is no money to be made, how could they come to invest in the country?

Wang Deming was very pleased with what the leader said. He smiled and said, "Shanghai has such a good electronic industry foundation. I believe our colleagues in Hong Kong must be very eager to cooperate with several electronic factories in Shanghai."

"To be honest with you, leaders, Beijing has agreed to form a joint venture with Hong Kong Global Electronics, with the electronics factory in Jiuxianqiao as the main focus."

The leader of Shanghai City suddenly became anxious and slammed the table, "Comrade Deming, whatever conditions the Beijing City gives you, I will fight for it here!"

Wang Deming said with a smile: "It's nothing. We must abide by our laws, right? It's in accordance with the foreign investment cooperation bill that the country just issued last year."

"Each of them will hold 50% of the shares, but the management will be done by Xiangjiang."

"If the losses continue, the state can also buy back the shares at a very low price, as long as the compensation is paid for the shares."

The leader understood immediately. He gritted his teeth and slammed the table again, "Deming, we will contact the capital right away."

"It is imperative that Global Electronics in Hong Kong be relocated to our Shanghai Stock Exchange."

The leaders also acted decisively. After making some harsh remarks, they prepared to take their people back to the municipal government.

He must report Wang Deming's request to his leader first.

"Leader, please stay." Wang Deming quickly called the city leader to stop. He touched the non-existent sweat and asked respectfully, "Leader, there is one more thing."

(End of this chapter)