Tech Giants: Starting from Bankrupt Companies

134: Chapter 134 Trio: Investment Promotion”Last point.” Zhao Qiming switched to the final slide, which showed a satellite map, ”The Belt and Road Initiative, the New Western Land-Sea Corridor... Mr. Wu, if your materials are exported from Shanghai Municipality, shipping to Europe takes 35 days. But starting from Chengdu, the Chengdu-Europe Railway Express only takes 13 days. Time is cost, and more importantly, it’s a market opportunity.”

Twenty minutes were up. Wu Yi stood up: ”Director Zhao, the data is very solid. We will arrange for a team to conduct a field visit next week.”

”We look forward to your arrival.” Zhao Qiming handed over a thick proposal, ”This contains more detailed data, including our calculated logistics cost comparisons, talent policy details, and... we have visited 12 potential upstream and downstream enterprises, all of whom are willing to follow Spark and settle in Chengdu.”

Wu Yi took the proposal; it felt heavy.

Act Three: Xian — The Confidence of a Thousand-Year Ancient Capital

The atmosphere in the second meeting room was completely different.

Zhou Jianguo, the 55-year-old deputy director of the Xian Economic and Technological Development Zone Management Committee, had graying hair and spoke with a distinct Shaanxi accent. He didn’t use a PPT but instead spread out a hand-drawn industrial map.

”Mr. Wu, I won’t give you any of that flashy talk.” Zhou Jianguo’s finger moved across the map, ”Look, this is Xifei, this is the Fourth Academy of Aerospace Science and Technology, and this is XD Group. This area is the backbone of Huaxia’s aerospace industry. You’re making high-end materials; if you don’t put it here, where else would you put it?”

Wu Yi was momentarily stunned by this blunt style.

”In our Xian, if nothing else, we have three words: a solid foundation.” Zhou Jianguo poured a cup of tea and pushed it toward Wu Yi, ”Xidian University, Xian Jiaotong University, State Key Laboratories of Materials Science—how many cities in the country have those? If your R&D encounters a problem, you can just hop on a bicycle and go consult an Academician. What other place can compare to this efficiency?”

”Regarding policies...” Wu Yi asked tentatively.

”Policies are easy to talk about.” Zhou Jianguo waved his hand, ”Tax exemptions, tax reductions, land incentives—I can give you everything others can. But what I want to tell you is what others can’t give you.”

He leaned in closer and lowered his voice: ”Military orders. Xingchen Military Industry’s assembly plant is in Chengdu, but their R&D center is in Xian. If you settle in Xian, I can pull some strings to let your R&D team directly interface with military requirements. From the lab to the equipment, the distance is cut in half.”

Wu Yi’s heart stirred. This was exactly the core of the ”industrial ecosystem” Su Chen emphasized—being close to customers, especially high-demand ones.

”But the brain drain in Xian...” Wu Yi voiced his concern.

”Yes, in the past, we couldn’t keep people.” Zhou Jianguo didn’t dodge the issue, ”But that was the past. Why couldn’t we keep them? Because there weren’t enough high-end positions! Once your Spark comes, you’ll be the benchmark. You start it off, and then there will be a second, a third. We’ve calculated that if the Spark Industrial Park is established, it will directly employ 8,000 people and indirectly drive 30,000. Of those 30,000, at least half will be young people who originally wanted to leave Xian.”

”What about logistics costs? Xian isn’t near the sea.”

”That’s why we’re building a dry port.” Zhou Jianguo spread out another planning map, ”The Xian International Trade & Logistics Park, and the ’Chang’an Express’ China-Europe Railway Express, which already has the highest number of departures in the country. Your materials going from Xian to Europe will be twice as fast as shipping from Qingdao. Besides, the Belt and Road Initiative—where is the starting point? It’s in Xian! This is the location our ancestors chose; it can’t be wrong.”

Another twenty minutes flew by. Zhou Jianguo said finally: ”Mr. Wu, Chengdu talks to you about efficiency, Wuhan talks to you about cost, and Zhengzhou talks to you about sincerity. I’m talking to you about the roots—the roots of the materials industry are right here. Think about it yourself.”

In the third meeting room, Liu Min was already prepared.

She was the only woman among the four representatives, 38 years old, with short, capable hair. In front of her was not a planning map, but a thick cost-analysis report.

”Mr. Wu, let’s just do the math.” Liu Min opened the report, ”Assuming the Spark Industrial Park has an annual output value of 10 billion, our raw material transportation costs are 12% lower than Chengdu’s, 18% lower than Xian’s, and 5% lower than Zhengzhou’s. Why? Because Wuhan is the shipping center of the middle reaches of the Yangtze River. Bulk raw materials go by water, and the cost is one-third of land transport.”

Wu Yi took the report, which was filled with dense logistics data comparisons.

”Outbound products.” Liu Min continued, ”Your materials have three routes: supplying the domestic market, exporting to Europe and America, or exporting to Southeast Asia. Starting from Wuhan and transferring at Shanghai Municipality port, the time is one day faster than Chengdu, and the cost is 8% lower. To Yantian Port, the time is about the same, but we have a river-sea coordinated transport subsidy policy.”

She switched the slide to a map and route chart.

”Second, talent costs.” Liu Min adjusted her glasses, ”Wuhan has 89 universities and 1.3 million college students, with 12,000 graduates in materials-related majors every year. But the average salary level in Wuhan is 5% lower than Chengdu, 3% lower than Xian, and 2% higher than Zhengzhou. Overall, for the same amount of money, you can build a larger-scale R&D team in Wuhan.”

Wu Yi quickly did the math in his head; this data was crucial.

”Third, industrial synergy.” Liu Min pulled up another set of data, ”Wuhan has one of the largest automotive industry clusters in Huaxia, and the headquarters of Dongfeng Motor Corporation is right here. You just said Hongqi Automobile are already using your materials, so what’s next? Will Dongfeng use them? Will the SAIC-GM Wuhan base use them? Within a 200-kilometer radius, there are 7 vehicle assembly plants—this is a ready-made market.”

”Fourth, the cost of living.” Liu Min said finally, ”Employees need to settle down, and children need to go to school. Housing prices in Wuhan are only 85% of Chengdu’s and 90% of Xian’s. We can build a supporting talent community next to the industrial park and provide it to core employees at cost. We’ve calculated that the likelihood of a master’s graduate engineer buying a house after working in Wuhan for five years is 30% higher than in the other three cities.”

The math was done. Liu Min closed the report: ”Mr. Wu, I know other cities will talk to you about sentiment and strategy. In Wuhan, we talk about the actual numbers—you invest 10 billion, and here, you can save at least 300 million in operating costs every year, employee stability increases by 15%, and the distance to market matching is cut in half. No matter how you calculate it, this deal makes sense.”

In the fourth meeting room, Wang Lihong was already waiting.

He hadn’t prepared a PPT or a report; he only brought a tablet and a video.

”Mr. Wu, I won’t say much else. Take a look at this first.” Wang Lihong clicked on the video.

The footage was an aerial shot of a vast piece of land that had already been leveled. Bulldozers and rollers were parked neatly to the side, and the land was covered with red flags.

”This is the Zhengzhou Airport Economy Zone, with 3,200 mu of land reserved specifically for the Spark Industrial Park.” Wang Lihong said, ”The footage you’re seeing was taken yesterday afternoon. From the moment we received the news to finishing the land leveling, it only took us 72 hours.”

Wu Yi watched the video without speaking.

”We know that compared to Chengdu, Xian, and Wuhan, Zhengzhou’s scientific research heritage isn’t the strongest, its university resources aren’t the most abundant, and its industrial foundation isn’t the thickest.” Wang Lihong’s tone was very candid, ”But we have one thing they can’t match—determination.”

He pulled up a second video showing construction drawings and a schedule.

”As long as you nod, work can start next week. We implement ’acceptance with missing documents and parallel approval,’ giving all procedures a green light. We’ve estimated that from start to production, it will take 14 months in Zhengzhou, at least 3 months faster than other cities. You know better than I do what those 3 months mean in the materials industry.”

”What about policies?”

”Three years of tax exemption, followed by five years at half-rate. We’ll provide the land at cost—it’s practically a gift.” Wang Lihong paused, ”Also, for the Zhengzhou-Europe Railway Express, although our volume isn’t the largest, we have a commitment—as long as it’s Spark’s goods, they get priority departure and will never be delayed. Regarding the airport, we have reached an agreement with Henan Cargo Airlines to reserve fixed cargo space for you.”

”How will the talent issue be solved?”

”We plan to co-build a New Materials Institute with Zhengzhou University and Henan University of Technology for targeted training. But frankly, in the short term, you might need to bring in a core team from elsewhere.” Wang Lihong looked directly at Wu Yi, ”So we are even more generous with our talent policies—a 50% personal income tax refund for executives, free talent apartments for core technical personnel, and their children can choose any school in the city.”

He said finally: ”Mr. Wu, Zhengzhou might not be the best choice, but it is definitely the most sincere choice. We know our shortcomings, so we will work 100% harder than anyone else. Give us a chance, and we’ll give you a miracle.”

At 11:40 AM, Wu Yi finally finished the fourth meeting. He went into the restroom and splashed cold water on his face.

In the mirror, his eyes were bloodshot, but his brain was racing.

Four cities, four styles, four advantages.

Chengdu: The most balanced overall advantages, the most mature industrial supporting facilities, and a hub position on the Belt and Road.

Xian: The deepest military R&D heritage, close to core customers, but logistics is a weak point.

Wuhan: Optimal cost, closest to the market, but industrial brand recognition isn’t as high as the first two.

Zhengzhou: Most sincere, fastest speed, but the weakest talent foundation.

Every city had shown the greatest sincerity, and every proposal had reasons that were impossible to refuse.

His phone vibrated; it was Su Chen.

”The four meetings are over?” Su Chen’s voice came through the receiver, the background was quiet.

”Just finished. Each was twenty minutes, but the amount of information was massive.”

”How do you feel?”

”Like I’m choosing a future destiny.” Wu Yi spoke truthfully, ”A 10-billion-yuan investment determines the company’s development trajectory for the next ten years and might even affect the landscape of the entire industry. The pressure is immense.”

Su Chen A few seconds of silence: ”Remember what I told you? Don’t just look at the policies.”

”I remember. Industrial clusters, talent attrition rates, ecosystem.”