Jing Jian was drinking tea aside, as if he had nothing to do with him. Gu Hongxing had already been stunned. He never expected that he would suddenly be involved in such a huge project.

The discussion continues: "I have no way to tell you about the specific operational matters, but please do not question the strength of our group. This is a photocopy of our US$100 million promissory note at the Bank of America. If the project is officially established, the money can be transferred to the bank designated by the Chinese government at any time. This is a 80 billion yen fund guarantee issued by Hirata Bank. For the others, I believe that you China will never be uninterested in land transfer fees, construction projects, and equipment that can be produced in China. You should also give RMB loans or convert them into investments, right? This can be discussed during formal negotiations. In addition, it can be revealed that our funds can be introduced in various forms. We can introduce strategic investors, loans or bonds, and even prepare for listing financing. Our water well is a very mature commercial investment company. The first thing we consider is the controllable risks of commercial projects. That is to say, we are more worried about the possibility of failure of this project than you!"

"Thanks to Mr. Jaton for his explanation. This is my personal curiosity. Why are you considering being in Hujiang Market?"

"Two considerations: first, safety and environmental protection, and construction on islands is more appropriate; second, water transportation is convenient, oil and natural gas import transportation and product sales transportation costs are relatively low."

"Huh? Don't you consider the domestically produced oil and gas?"

"Of course, but we still want to master the supply of raw materials from multiple channels and do not want to be controlled by others."

"Sorry, I suddenly thought of a question. If you import oil and gas from overseas and then sell petrochemical products in China, how should the foreign exchange balance problem be solved? How do you plan to solve the problem of export proportion?"

At this time, all three-invested enterprises in China have a foreign exchange balance problem. That is to say, as much foreign exchange raw materials you import, you need to export as much foreign exchange products. The same is true for the investment part. The foreign exchange part of the investment can be converted into foreign exchange at the official price and taken out of the country. The excess currency cannot be freely exchanged and transferred.

This is why last year, the Hong Kong Branch of Bank of China was gritting the bullet and using ultra-low official prices to recover RMB, because the RMB in foreign business plans can be converted into foreign exchange at official prices. The Hong Kong RMB black market market will be so prosperous. It will take a few years later, when the RMB ends the dual-track system and the central bank launches a settlement and exchange center, and this problem is gradually solved. In other words, it is simply to transfer Hong Kong's black market to the mainland and make it public.

Specifically for this project, it is obvious that oil imports use foreign exchange, while sales in the Chinese market are obtained from RMB, and it involves huge capital flows, which cannot pass the balance of the Hong Kong black market. It is conceivable how big the impact this will have on the stability of the RMB exchange rate?

At this time, Wang Yongqing's "901 Project", he promised that 100% of oil and natural gas would be imported and that the products produced would be exported 100% of the same. He did not force China to agree to the conditions for 100% domestic sales as he did later.

Jetton or Jing Jian had considered this issue: "From an economic perspective, petrochemical projects must follow the principle of sales place. Shipping overseas for low prices or loss-making sales is inconsistent with the laws of business. And it is precisely because we see explosive growth in the Sinopec product market that we are interested in such large projects. As for the import of oil and natural gas? According to our group's experts' forecast, China will become an oil importer in the next three or four years."

Jaton spread his hands and said, "I'm helpless too!"

In fact, many people do not know, or are misled, and think that China is an oil-poor country. This is correct in some aspects, but it is not accurate in some aspects. China's oil and natural gas production has never fallen below the top five in the world, and even exceeds the production of most oil-producing countries in the Middle East. The proven shale oil and shale gas reserves are ranked first and third in the world. It is nothing more than encountering the "per capita" killer, coupled with the extreme demand for raw materials from the world's factories, which has led to China's oil and natural gas imports increasing year by year.

This is like iron ore. China's iron ore is actually not short of, but what is lacking is rich ore. The economy is relatively poor, and all iron and steelmaking equipment is adapted to the refinement of imported rich ore. Therefore, from the perspective of commercial terms, it can only endure the surge in the mining trusts of foreign countries. But from the perspective of strategic materials, it doesn't matter at all. When it is blocked abroad, it is just a poor ore and domestic reserves. If it is blocked, will it still consider the issue of mere cost?

Yu Zhu understood that what Jaton said made sense, but compared with the conditions of "901 Project" at this time, there was absolutely no attractiveness left.

China's economy is regulated at the macro level. It does not mean that you can invest whatever you want. You think that just having money is enough, and you still need to be approved, that is, the review and approval of the Planning Commission (later the Development and Reform Commission).

For example, the Planning Commission predicts that the gap in the market of China Petroleum and Chemical Corporation will be 1 million tons of ethylene in the next five years, so if it gives the "901 Project" 700,000 tons and the remaining 300,000 tons of domestic manufacturers, then the Water Well Group will have no share.

This is to prevent repeated construction waste, and it does have a good effect in economic construction. However, there are also some problems, such as insufficient forecasts for economic demand, which leads to lag in construction. Do you remember the national shortage of electricity? It is because the Three Gorges Project occupied most of the quotas, which led to fewer or more approvals from other power stations. I didn’t expect that China’s economy was developing so rapidly that there was a shortage of electricity. This led to vigorous development of power stations and transmission networks in various places.

In fact, this is really helpless. Even if big data is realized, who dares to predict China's economic development in 20 years? At this time, who can predict that China's economy will cheat in the next 20 years? What will lead to a large gap in a large number of basic industries including petrochemicals and electricity?
Chapter completed!