The best answer to the trade war is to let more iron man dance “striptease”


Welcome to the wechat subscription number of “create a story”: sinacchangshiji
Wen / Cangyangjiacuo cuisine
Source: opinions don’t matter (ID: damnbig2015)
Yesterday, Tesla CEO Jack musk became a social media hot spot by performing a “striptease” at the new car delivery ceremony of the Shanghai Super factory. It is said that the first sentence of Musk’s speech was “thank the Chinese government”.
Musk is the most dazzling star of entrepreneurship on the planet. People call him the real iron man. He represents more than one enterprise. Many people even entrust the future of mankind to him.
Musk is a great aspiring entrepreneur and a crisis man. He has several business areas: 1. Tesla, the goal is to realize intelligent and clean cars; 2. Solar City, the goal is to develop household photovoltaic power generation; 3. SpaceX, the goal is to develop space technology.
For these three businesses, I will briefly summarize: the first two are aimed at using clean energy to save the earth, and the third is Noah’s Ark. If it can’t save the earth, it will take human beings to migrate to outer space. Whether musk is alarmist or not, these technologies are valuable in themselves. One investment friend commented on musk as follows: each of these three things is a trillion dollar level. One person can make one of them in his life, which is enough to be comparable to any entrepreneur in human history. Musk has made three at the same time.
Such entrepreneurs have come all the way to China to build factories and sing praises to the Chinese government. He is happy and the Chinese people are happy. How about turning this news into a Chinese entrepreneur, building factories in the United States and praising the investment environment in the United States? “No conscience”, “don’t let Cao de (Li Ka Shing) Wang run away”, “capital is only for profit”, such comments are repeated. People who denounced Cao de Wang at the beginning may be proud of Tesla’s landing in China in front of their mobile phones, but they won’t think at all. This is actually an event of the same nature.
Why did musk come to China to build a factory? Because China’s industrial environment enables Tesla to provide products to the market at a faster speed and lower cost. “The production cost (capital expenditure per unit capacity) of the model 3 production line of the Shanghai plant is 65% lower than that of the US plant,” Tesla said in its Q3 financial report. Just two days ago, Tesla China announced to reduce the low configuration version of model 3 to less than 300000.
In order to introduce Tesla, the Chinese government has also given a green light. In 2018, the national development and Reform Commission released a news that the restrictions on foreign ownership of special purpose vehicles and new energy vehicles were lifted, and Tesla was able to establish a wholly-owned factory in China. Before that, the shares of Chinese capital in the automobile factory should not be less than 50%.
Next, it’s time for China to show the strength of infrastructure mania. On January 7, 2019, Tesla held a foundation laying ceremony on a piece of farmland near the port of Shanghai. In August and September, Tesla has obtained the acceptance permission, and obtained the production qualification issued by the Ministry of industry and information technology in October. On January 7, 2020, it can deliver the finished products in large scale. In addition, in order to facilitate the successful implementation of Tesla’s Shanghai project, Tesla also obtained a low interest loan of 18.5 billion RMB from China syndicate. In contrast, Tesla’s Nevada super plant was set up in 2014, and delivery problems still exist for three days.
Among the above advantages, the cost of low production line comes from China’s efficient industrial environment; the government no longer restricts the proportion of foreign ownership, quickly checks and accepts factories, grants production licenses, etc., all of which are to reduce the control over enterprises; 18.5 billion yuan of low interest loans, which means special care, but the local government also keeps a hand, Tesla is required to invest 14.08 billion yuan in the next five years, and in 2023 At the end of the year, the annual output value is over RMB 75 billion and the annual tax revenue of RMB 2.23 billion is generated, which can be regarded as tax reduction in disguised form.
No wonder musk would like to thank the Chinese government for all the above-mentioned “grace outside France”.
Tesla China’s rapid and smooth construction of its factory fully embodies China’s practical advantages. If it is convenient for an enterprise to go abroad, the boiling public opinion can drown people.
Although it seems to mean “unfair competition”, I think the Chinese government’s approach in the Tesla project is commendable, because this series of actions are generally to reduce regulation and loosen enterprises. Although these actions are not all the same, it is still a good thing for each additional person and enterprise to gain more freedom.
In the trade war between China and the United States, one of the major demands of the United States is to let manufacturing return to the United States. Trump has a call to American enterprises for coercion, inducement and patriotism. In this context, Musk’s Hymn to China is more realistic. Mask, such a giant entrepreneur, is highly concerned by global capital and entrepreneurs. His actions will make more and more entrepreneurs focus on China.
People will eventually find that they must also accept the fact that in the long run, it is impossible to retain enterprises, capital and prosperity by relying on tariff barriers and patriotic sentiment of entrepreneurs. If we lose the soil of prosperity, no matter how good an enterprise is, no matter how much capital we have, we will fall into a mire. On the contrary, as long as we give more free business environment and lower tax rates, wealth can be created out of nothing and flowers can grow in the desert. What happened in China in the past 70 years, from both positive and negative directions, has completely verified this law.
How should China deal with the trade war? The best answer is to let more iron man dance striptease.
Note: some of the data in this paper are from tiger olfactory