Chapter 35: Benefits from Pricing Rights

When Iwasaki Shun retreated from the Dagukou Fort, his face was basically green.

The conditions given to him by Fan Wubing are really unacceptable. China's rare earth market can be said to have been reshuffled. Now Fan Wubing is the only one who has the dominance. As for other small-scale production enterprises, the quality and quantity of their products do not meet the requirements of Shun Iwasaki, and export power is also an obstacle.

The Chinese government has issued few export licenses to rare earth production enterprises, and only a dozen companies have export powers. These companies have now stopped production and rectified and have gradually been integrated under Fan Wubing's three major rare earth production companies. Since then, Fan Wubing has completely mastered the voice and pricing power of rare earth exports.

I think next year, I have to pay a greater price to obtain the same share of rare earth mineral resources. Iwasaki Toshi's steps were a little staggering, and the road was difficult to walk, so he almost tripped. The employees next to him quickly supported him.

Iwasaki Shun was probably unhappy and waved away the employee who wanted to support him, and walked outside by himself.

"Yanqijun, welcome to come again next year!" Fan Wubing shouted loudly from behind.

Yan Qijun turned around and looked at Fan Wubing, who was full of energy. A breath of depression in his chest finally burst out. A mouthful of blood spurted into his clothes and spots were covered with spots, which looked particularly scary, but after the blood spurted out, the chest finally felt much more relaxed.

Ion Qijun's men glared at Fan Wubing, thinking that Fan Wubing was intentionally humiliating Ion Qijun, but Fan Wubing then said, "It's good to vomit it out, otherwise if you go back to Japan like this, you will definitely become depressed and taking medicine will be ineffective."

After touching his chest, Yan Qijun felt that after the blood was spurted out, his body felt much more relaxed. When he thought of Fan Wubing's title of miracle doctor, he realized that although Fan Wubing made him vomit blood, what he said was the truth. If he really went back like this, he would inevitably get seriously ill.

So Ion Qijun turned around and bowed to Fan Wubing, then said, "Thank you! See you next year!"

Fan Wubing nodded and watched their convoy gradually leave.

"Mr. Fan, is this Japanese man so angry that he vomited blood? He even said thank you-" A staff member following Fan Wubing asked curiously.

Fan Wubing smiled and said, "You are wrongly blaming me. If I don't vomit this blood stasis, at least I will have a serious illness. I just want to do business with them and help him. But this person is quite capable and knows what I say is true and much better than ordinary people."

"Will you still negotiate the price issue with him next year?" someone asked.

"That's certain." Fan Wubing nodded and replied, "You can determine the annual sales price of rare earth minerals by talking once a year, which is very beneficial to us. As the main exporter of rare earth resources, we can control the pricing power and decide our profit targets, which is something we never dared to think about before."

For Ion Qijun, he is also willing to continue negotiations with Fan Wubing. At least Fan Wubing still leaves him room for his own price and does not price him completely according to the international market price. I believe that by next year, Fan Wubing will not be able to match the rare earth price with the international market price level. This will always leave a profit margin for Ion Qijun.

It’s not that Fan Wubing is selling national interests with the Japanese. He does not give up on some important rare metals and rare earth elements. However, for ordinary rare earth resources, the price is slightly lower than that of the international market, making it easier to maintain the existing rare earth consumer market, maintain its market share and not be eaten by others, and further form a substantial monopoly on the rare earth market.

With the current domestic technical level, it is not realistic to fully utilize the effects of many rare earth elements. The main direction for rare earth application in the international market is the arms industry, which is an extremely profitable industry. Therefore, they can afford sky-high rare earth raw materials, which is Fan Wubing's way of making money.

For China, there is no future and no financial resources to engage in an arms race. Therefore, it is the top priority to make up for the difficult finances by indirectly using rare earth resources. As for the future development and the need to use these resources, a large-scale strategic reserve has been formed in China, so there is no need to worry about the good things being sold.

After a month of pause in domestic rare earth production, it began to recover gradually. Fan Wubing invested a lot of money to be used in enterprise transformation. Now major enterprises have opened up 50% of the production capacity, and the rest of the labor force is familiar with new equipment and new processes. After about two months, a new production process is formed to renew and transform extensive mineral management into a fine mineral management direction. As for those small enterprises, they achieve resource integration through mergers to avoid resource waste caused by transitional mining.

As for the pollution problem, the shutdown and rectification have begun to show results. At least the water quality in the river has improved a lot, and the one-month shutdown effect is significant. This also provides people with confidence in the effectiveness of controlling environmental pollution, so everyone is very concerned about technological transformation.

In the past, I had no money to do these things, but now that someone has paid for technical reforms, everyone is still willing to see their hometowns beautiful mountains and rivers instead of causing endless harm.

The media also cooperated very well. The reporters used irrefutable facts to prove this to the world through open and secret investigations of rare earth production areas. The government's decision to shut down rare earth production enterprises is extremely correct, effective, and responsible for the safety of the people's lives.

For the health of the people, the government shut down rare earth production enterprises and suffered great losses. The enterprises made great sacrifices, but all this was worth it. We finally saw the green mountains and clear waters again.

At this time, Yan Qijun had already begun to pay the goods to Fan Wubing one after another, handing over his current list of mineral resources to Fan Wubing to purchase corresponding mineral resources.

The exported resources, Fan Wubing’s standard is to classify and select them, but without refining, the purpose is to reduce domestic pollution problems. If you go back and refine the things you want to use, we cannot sacrifice our own environment to do these simple tasks for you.

In fact, Iwakitsuki hopes to go back and refine these minerals by himself. After all, their separation and refinement technology have been mature for a long time. In addition, many technologies obtained from the Rare Earth Research Institute have been maturely invested in the application level. If they separate ore themselves, they can at least increase some benefits and increase utilization by more than 20%, which is equivalent to reducing the cost by more than 20 percentage points.

After Fan Wubing waited for more than a month, June was coming, and he had to go back to school no matter how hard he didn't even take the exam, wouldn't it be too much? Although the principals of Fudan are now shocked by him and dare not neglect him, the four words of respecting teachers and respecting Taoism also require a lot of effort. After all, it is a tradition of the Chinese.

Before returning to Shanghai, Fan Wubing went to see Boss Zhu.

"Your rare earth project is so popular!" Boss Zhu is still very busy, but he must have taken out the time to see Fan Wubing.

Not to mention anything else, Fan Wubing has increased the tax profit by hundreds of times for the country just for rare earth exports. What is this concept? This item alone has increased China's annual revenue by more than 10 billion yuan. You should know that the annual tax revenue in China is only more than 300 billion yuan. An originally inconspicuous project has actually created such a high profit, which has shocked all the Standing Committee members in the Politburo to the point of falling out.

What is even more rare is that compared with the original total export volume, this part of the remaining part has entered the newly built national strategic resource reserve library. This part of the reserve is a strategic reserve that Fan Wubing promised to leave to the country free of charge. If Fan Wubing needs to use this part of the resources, it also requires the government's authorization and purchase it at market prices.

The value of this part of the national strategic reserve is no less than the total value of the part of the rare earth resources purchased by the Mitsubishi chaebol every year.

"This year is a period of transformation, everything needs investment, and it is estimated that next year will be much better." Fan Wubing told Boss Zhu, "Next year, I believe that the environment of the mining area will be no less than the living environment of ordinary cities, and the government's fiscal revenue will continue to increase. I hope that it can provide more than 15 billion in revenue for national tax revenue next year."

Boss Zhu looked at Fan Wubing and said, "You are a miracle hand. After your guidance, the rare earth industry has undergone earth-shaking changes. The country, local, and enterprises have all achieved huge returns. This is really touching. If this is not the case, the tax revenue of rare earths this year is only more than 200 million, and no one can believe that there will be tens of billions of tax revenue!"

Fan Wubing said in response to this point, "In some ways, private enterprises should have more business vitality than state-owned enterprises. If we simply emphasize the importance of rare earths and require major state-owned enterprises to pay attention to rare earth production, be cautious about rare earth exports, and be cautious about environmental protection issues, the effect will be minimal. The key to benefiting from the three parties now is that I can have the right to speak in the rare earth industry and the pricing power for rare earth exports. This is the key to winning."

"Do you have any experience to teach this?" Boss Zhu heard it very seriously, took out his small notebook and wrote and painted it carefully.
Chapter completed!