Rebirth 76: Industrial Internet Empire
Chapter 110 Huge liquidated damages
"What should I say now? Is the Donghai Steel Plant project ready to be suspended?" Yang Mo asked solemnly.
Liao Tingxuan seemed to have made a lot of determination and lowered his voice and said: "Now that things have happened, I am no longer afraid of violating discipline. There are two opinions above: one is to stop it immediately and stop the Donghai Steel Plant project. We will accept the If we cannot afford such a large foreign exchange expenditure, the other option is to grit our teeth and face the difficulties, tighten our belts and push forward this project. Otherwise, the nearly 100 billion yuan spent on the first phase of the project will be in vain. We You can’t spend so much money just to build a few blast furnaces to make iron! Then wouldn’t we all become sinners of history?”
As the first-generation metallurgist who has witnessed the development of this country's heavy industry, how could Yang Mo not know the history of grudges between Tokai Steel Works and Nippon Steel Corporation?
Yang Mo patted Liao Tingxuan, whose eye circles were slightly red, and said in a deep voice: "Director Liao, if my guess is correct, the purpose of your visit to Japan this time is to discuss the termination of the contract with Nippon Steel Corporation, right?"
Liao Tingxuan nodded: "Yes! The above means to temporarily stop the construction of the second phase of the project, which does not count as a complete termination of the contract. When the foreign exchange reserves are more abundant, we will continue to cooperate with Nippon Steel Co., Ltd. in accordance with the contract..."
"That's fine! The delivery date of the production line has been postponed. According to international practice, the payment can also be deferred!" Yang Mo nodded and said.
Liao Tingxuan said with a frown on his face: "That's the problem. As soon as the Japanese heard that we were going to stop the Donghai Steel Plant project, they immediately changed their appearance and demanded huge amounts of liquidated damages!"
Yang Mo smiled faintly and said: "As expected! Island people have always been like this. I have never seen a nation where the wolf nature and the servility coexist so perfectly. When they ask for something from you or surrender to you, they are respectful and polite. Once your face is broken, your mouth will be full of fangs. Only by beating them in pain will they be wary of you and not dare to act recklessly!"
Liao Tingxuan sighed heavily: "Oh! But once an international dispute arises, not only will we have to bear heavy and irreparable losses, but it will also affect our national image. Especially at the critical moment when the country has just opened its doors, we are in a dilemma!"
This is indeed a double-edged sword!Continuing to implement the contract is tantamount to betting all the foreign exchange reserves in the next few years on one project, halting the Donghai Steel Plant project. The key projects built by the country with huge sums of money can only be engaged in simple blast furnace ironmaking, and additionally have to pay Japan The huge amount of liquidated damages that the human lion opened his mouth to...
Yang Mo pondered for a long time, but couldn't find a breakthrough, so he had no choice but to call Lin Xi in and ask her to re-examine the contract signed with Nippon Steel Corporation to see if she could find any flaws.
Lin Xi read every clause of the contract text word by word, shook his head helplessly at Yang Mo and smiled bitterly: "The Japanese are too cunning and have made special comments on every exemption clause, such as exemption clauses for large natural disasters or wars, especially those for large natural disasters or wars. Added notes on natural disasters and war levels, especially wars, with a special note: Only a large-scale war declared by both parties can unilaterally cancel the contract, which means we cannot cancel the contract based on border friction that occurred on the southwest border!"
"Then according to international trade law, we have to pay huge amounts of compensation for breach of contract?" Yang Mo asked unwillingly.
Lin Xi nodded: "It seems that is indeed the case at present, unless we can find a reason to refuse to implement the contract!"
Liao Tingxuan suddenly said: "Listening to what Lawyer Lin said, I remembered one thing. During the original negotiation, according to the preliminary draft agreement, Nippon Steel Co., Ltd. needed to provide the most advanced cold rolling and hot rolling equipment production lines and provide technical support. , authorized patent license, but during the specific implementation process, Nippon Steel Co., Ltd. was unwilling to provide their most advanced production lines..."
Yang Mo and Lin Xi's eyes lit up at the same time, and they asked almost in unison: "What's going on? Can you tell us in detail?"
Liao Tingxuan thought for a while and then said: "At the beginning of this year, Nippon Steel Co., Ltd. submitted the first draft of the design master plan to us, but this draft was not recognized by the expert group of the Ministry of Metallurgy and the Donghai Steel Plant project team! The expert group unanimously It is believed that Nippon Steel Co., Ltd. has left something to be desired in the overall design and failed to provide us with the most advanced technology and equipment in accordance with the contract."
"Then what? Has Nippon Steel Co., Ltd. improved its final assembly plan?" Yang Mo and Lin Xi smiled at each other and continued to ask.
Liao Tingxuan shook his head, with a look of anger on his face: "Nippon Steel Co., Ltd. has no intention of modifying the design plan. The expert group of the Ministry of Metallurgy believes that the Japanese deliberately reduced Baosteel's production capacity and quality level out of consideration for their own strategic interests. We are worried that after China’s metallurgical level is greatly improved, it will affect Japan’s long-term interests.”
Yang Mo snorted coldly: "How can there be such a good thing in this world? Want to make money for major metallurgical equipment, but are you afraid that our metallurgical level will improve? You can't let your little Japan take all the good things! This is tens of billions of U.S. dollars, 4000 trillion yen..."
Liao Tingxuan continued to say in a low tone: "We feel aggrieved! For the Donghai Steel Plant project, we sold iron and tightened our belts. Japan Steel Co., Ltd. actually said that such advanced technology and equipment are not suitable for China. What the hell is this? talk?"
Liao Tingxuan rarely used foul language, but Lin Xi continued to ask from the perspective of a lawyer: "Director Liao, regarding the backwardness of technology and equipment, we cannot use a too general description. It needs to be specific to a certain piece of equipment and a certain item. Technology can be used as evidence to be accepted by the arbitral tribunal!”
Liao Tingxuan thought for a while and then said: "The specific equipment that is relatively backward needs to be interpreted by the comrades of the expert group. However, what impressed me most was the selection of wide-band steel rolling mills. The overall design drawing of Nippon Steel Co., Ltd. provided a set of The comrades of the Donghai Steel Plant project team believe that this rolling mill is outdated and cannot meet the needs of Donghai Steel Plant! We hope to obtain a more advanced 1750 mm wide band steel rolling mill to improve production efficiency and quality levels."
Lin Xi picked up the contract text again and began to review it. As her brows gradually relaxed, Yang Mo also put down the design sketch and leaned his head over it.
As Lin Xi's fingertips moved, she read: During the design and installation process of the complete production line, Party B needs to provide Party A with its most advanced equipment within its capabilities and provide training for Party A's technical personnel. Party A needs to provide corresponding Logistics support...
Liao Tingxuan seemed to have made a lot of determination and lowered his voice and said: "Now that things have happened, I am no longer afraid of violating discipline. There are two opinions above: one is to stop it immediately and stop the Donghai Steel Plant project. We will accept the If we cannot afford such a large foreign exchange expenditure, the other option is to grit our teeth and face the difficulties, tighten our belts and push forward this project. Otherwise, the nearly 100 billion yuan spent on the first phase of the project will be in vain. We You can’t spend so much money just to build a few blast furnaces to make iron! Then wouldn’t we all become sinners of history?”
As the first-generation metallurgist who has witnessed the development of this country's heavy industry, how could Yang Mo not know the history of grudges between Tokai Steel Works and Nippon Steel Corporation?
Yang Mo patted Liao Tingxuan, whose eye circles were slightly red, and said in a deep voice: "Director Liao, if my guess is correct, the purpose of your visit to Japan this time is to discuss the termination of the contract with Nippon Steel Corporation, right?"
Liao Tingxuan nodded: "Yes! The above means to temporarily stop the construction of the second phase of the project, which does not count as a complete termination of the contract. When the foreign exchange reserves are more abundant, we will continue to cooperate with Nippon Steel Co., Ltd. in accordance with the contract..."
"That's fine! The delivery date of the production line has been postponed. According to international practice, the payment can also be deferred!" Yang Mo nodded and said.
Liao Tingxuan said with a frown on his face: "That's the problem. As soon as the Japanese heard that we were going to stop the Donghai Steel Plant project, they immediately changed their appearance and demanded huge amounts of liquidated damages!"
Yang Mo smiled faintly and said: "As expected! Island people have always been like this. I have never seen a nation where the wolf nature and the servility coexist so perfectly. When they ask for something from you or surrender to you, they are respectful and polite. Once your face is broken, your mouth will be full of fangs. Only by beating them in pain will they be wary of you and not dare to act recklessly!"
Liao Tingxuan sighed heavily: "Oh! But once an international dispute arises, not only will we have to bear heavy and irreparable losses, but it will also affect our national image. Especially at the critical moment when the country has just opened its doors, we are in a dilemma!"
This is indeed a double-edged sword!Continuing to implement the contract is tantamount to betting all the foreign exchange reserves in the next few years on one project, halting the Donghai Steel Plant project. The key projects built by the country with huge sums of money can only be engaged in simple blast furnace ironmaking, and additionally have to pay Japan The huge amount of liquidated damages that the human lion opened his mouth to...
Yang Mo pondered for a long time, but couldn't find a breakthrough, so he had no choice but to call Lin Xi in and ask her to re-examine the contract signed with Nippon Steel Corporation to see if she could find any flaws.
Lin Xi read every clause of the contract text word by word, shook his head helplessly at Yang Mo and smiled bitterly: "The Japanese are too cunning and have made special comments on every exemption clause, such as exemption clauses for large natural disasters or wars, especially those for large natural disasters or wars. Added notes on natural disasters and war levels, especially wars, with a special note: Only a large-scale war declared by both parties can unilaterally cancel the contract, which means we cannot cancel the contract based on border friction that occurred on the southwest border!"
"Then according to international trade law, we have to pay huge amounts of compensation for breach of contract?" Yang Mo asked unwillingly.
Lin Xi nodded: "It seems that is indeed the case at present, unless we can find a reason to refuse to implement the contract!"
Liao Tingxuan suddenly said: "Listening to what Lawyer Lin said, I remembered one thing. During the original negotiation, according to the preliminary draft agreement, Nippon Steel Co., Ltd. needed to provide the most advanced cold rolling and hot rolling equipment production lines and provide technical support. , authorized patent license, but during the specific implementation process, Nippon Steel Co., Ltd. was unwilling to provide their most advanced production lines..."
Yang Mo and Lin Xi's eyes lit up at the same time, and they asked almost in unison: "What's going on? Can you tell us in detail?"
Liao Tingxuan thought for a while and then said: "At the beginning of this year, Nippon Steel Co., Ltd. submitted the first draft of the design master plan to us, but this draft was not recognized by the expert group of the Ministry of Metallurgy and the Donghai Steel Plant project team! The expert group unanimously It is believed that Nippon Steel Co., Ltd. has left something to be desired in the overall design and failed to provide us with the most advanced technology and equipment in accordance with the contract."
"Then what? Has Nippon Steel Co., Ltd. improved its final assembly plan?" Yang Mo and Lin Xi smiled at each other and continued to ask.
Liao Tingxuan shook his head, with a look of anger on his face: "Nippon Steel Co., Ltd. has no intention of modifying the design plan. The expert group of the Ministry of Metallurgy believes that the Japanese deliberately reduced Baosteel's production capacity and quality level out of consideration for their own strategic interests. We are worried that after China’s metallurgical level is greatly improved, it will affect Japan’s long-term interests.”
Yang Mo snorted coldly: "How can there be such a good thing in this world? Want to make money for major metallurgical equipment, but are you afraid that our metallurgical level will improve? You can't let your little Japan take all the good things! This is tens of billions of U.S. dollars, 4000 trillion yen..."
Liao Tingxuan continued to say in a low tone: "We feel aggrieved! For the Donghai Steel Plant project, we sold iron and tightened our belts. Japan Steel Co., Ltd. actually said that such advanced technology and equipment are not suitable for China. What the hell is this? talk?"
Liao Tingxuan rarely used foul language, but Lin Xi continued to ask from the perspective of a lawyer: "Director Liao, regarding the backwardness of technology and equipment, we cannot use a too general description. It needs to be specific to a certain piece of equipment and a certain item. Technology can be used as evidence to be accepted by the arbitral tribunal!”
Liao Tingxuan thought for a while and then said: "The specific equipment that is relatively backward needs to be interpreted by the comrades of the expert group. However, what impressed me most was the selection of wide-band steel rolling mills. The overall design drawing of Nippon Steel Co., Ltd. provided a set of The comrades of the Donghai Steel Plant project team believe that this rolling mill is outdated and cannot meet the needs of Donghai Steel Plant! We hope to obtain a more advanced 1750 mm wide band steel rolling mill to improve production efficiency and quality levels."
Lin Xi picked up the contract text again and began to review it. As her brows gradually relaxed, Yang Mo also put down the design sketch and leaned his head over it.
As Lin Xi's fingertips moved, she read: During the design and installation process of the complete production line, Party B needs to provide Party A with its most advanced equipment within its capabilities and provide training for Party A's technical personnel. Party A needs to provide corresponding Logistics support...
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