Rebirth 76: Industrial Internet Empire

Chapter 396 A trump card not easily used

"It's difficult! The foreign affairs department is still waiting for our reply!?" Liao Tingxuan asked with a frown.

"The reply is simple! China is a market economy country. The government cannot interfere with the legal operations of enterprises, let alone cancel futures transactions that have been completed!" Yang Mo said disapprovingly.

Liao Tingxuan smiled bitterly and shook his head. He should have known that there would be such a result. When had Yang Mo ever been willing to compromise?

"Director Liao, why are you still looking sad and bitter? You should be happy! The plan to rectify the rare earth industry has achieved unexpected results. It won't be long before we have absolute control over the rare earth industry. The right to speak!" Yang Mo joked.

"Why should I be happy? You have made money away from me! But our Metallurgical Industry Bureau bears the pressure. Who can I tell you!" Liao Tingxuan said angrily.

"Director Liao, you are not being kind to say that. The cooperation agreements we signed with several major state-owned rare earth companies have a supplementary agreement, and the profits from the appreciation of the sealed rough rare earths will be shared! Most of these companies are in the metallurgical industry. Under the Industrial Bureau, if it weren't for your face, we would not agree to the redistribution of profits..." Yang Mo said with aggrieved face.

"Stop pretending to be aggrieved! Who doesn't know that the majority of profits are in rare earth futures trading? How much appreciation can those sealed rare earths have? Before the delivery date of rare earth futures, you will not bring these sealed rare earths to the market. Wait until At the end of the delivery day, the supply of rare earths will be flat, and the price will also fall back to a reasonable price. Alas! This Zhao Hengbo was still fooled by you. He was so busy that he finally found out that he was just making a wedding dress for someone!" Liao Tingxuan waved his hand, Said disdainfully.

Yang Mo said sincerely: "Director Liao, the picture should be bigger! We can't just focus on the immediate interests. We spend huge sums of money not just to make three melons and two dates in the futures market, but to kick out foreign-funded enterprises." After this battle in the rare earth industry chain, the pricing power of the rare earth industry will be in your hands. In the final analysis, the Metallurgical Industry Bureau is the biggest beneficiary of the entire plan?"

"You just made three melons and two dates? The Metallurgical Industry Bureau can't bear the pressure for you in vain! Just invest all these three melons and two dates in the rare earth smelting industry!" Liao Tingxuan said.

"As you said, we do have this plan! Maybe Zhiyuan Mining Group will have its own rare earth smelting company soon!" Yang Mo chuckled.

"Looking at your smile, who are you planning to plot against?" Liao Tingxuan asked curiously.

"I have a habit. When I am gathering wool, I like to catch a sheep and pull it hard..." Yang Mo said with a smile.

"Tell me the final effect you want to achieve!" Liao Tingxuan said.

"Warm water boils frogs! We will not rush to close the net in the rare earth futures market. We will always give them hope of turning around, but it is like a mirage seen in the desert, elusive!" Yang Mo said in a deep voice.

"and then?"

"In this way, they will misjudge the situation again, refuse to purchase rare earth compounds at high prices as physical objects for delivery, and lose the last chance to save themselves! We will launch a general offensive within one month before the delivery date. As long as there are no physical objects for delivery on the market, they will Unable to turn over, at this point, there are only two ways to go before them!" Yang Mo continued.

"Which two ways?"

"One way is to settle according to the average price on the delivery day. Huge losses will even affect the parent company! Another way is to reluctantly give up and sell domestic enterprises at a low price to companies that hold the physical goods for delivery..." Yang Mo said with a smile. .

"Is the physical delivery object also in the hands of Haitao Rare Earth Reserve Company?" Liao Tingxuan asked.

Yang Mo chuckled and said: "I'm not sure about this! Anyway, Zhiyuan Group will not use this kind of hoarding method..."

"But have you ever thought about it? How serious the consequences will be if you do this? Most of the people who purchase rare earth compounds are multinational groups from Western developed countries. The skyrocketing price of rare earth compounds will be transmitted to steel, semiconductors, precision manufacturing, aerospace Many high-precision and cutting-edge industries have even caused supply chains of some core components to break!" Liao Tingxuan said with concern.

Yang Mo said disapprovingly: "Such an important and rare metal should return to its true value! The era of cabbage prices is also over! We are not imposing controls and not selling, as long as we pay the minimum price, isn't this Western Free trade has always been regarded as the standard!"

"I'm still a little worried. As the situation develops, your Zhiyuan Group will become the target of public criticism! This is also the main reason why I came to you today. You must think clearly..." Liao Tingxuan said seriously.

Yang Mo smiled heartlessly and said: "It doesn't matter. As long as Haitao Rare Earth Reserve Company is built into a profit-seeking financial company, Uncle Sam will not be afraid of it. It just so happens that profit-seeking is also in line with their core values!"

"What kind of logic are you talking about? Why can't people who are only seeking profit be scrupulous?" Liao Tingxuan asked in confusion.

"There is no national strategic intention behind the profit-seeking explanation. Haitao Rare Earth Reserve Company simply used capital power to set up a trap to assassinate Arm and Rhodia. Not only does such a financial company not pose a threat to Uncle Sam, on the contrary, sooner or later it will Join Wall Street..." Yang Mo explained.

Liao Tingxuan nodded: "Although your idea is a bit bizarre, it is not unreasonable!"

Yang Mo continued: "Director Liao, don't worry! I am sensible and will not undermine the country's overall rare earth strategy!"

Liao Tingxuan asked with great interest: "Do you still know the country's overall rare earth strategy? Tell me about it!"

"In fact, at first, you asked Zhiyuan Mining Group to participate in the plan to renovate the rare earth industry. You just wanted Zhiyuan to get involved in the domestic rare earth smelting industry, integrate some small and medium-sized enterprises, invest heavily in the purification and research and development of rare earth compounds, and improve the rare earth industry chain. You can suppress it easily. Multinational companies like Rhodia and ARM couldn't be better!" Yang Mo chuckled.

"Keep talking..." Liao Tingxuan said calmly.

"In fact, for so many years, Zhiyuan Mining Group has not invested in rare earth smelting production lines overseas. Instead, it would rather spend expensive freight to transport rough-processed rare earths back to China for refining and purification, in order to comply with the country's long-term rare earth strategy..." Yang Mo He said while suppressing the smile on his face.

"Then what do you think the country's long-term rare earth strategy is?" Liao Tingxuan asked with interest.

"Kill all the rare earth refining and purification production lines in the world at low prices! In the end, rare earths will become a trump card in our hands that is not easy to use!" Yang Mo said in a deep voice.

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