For the first time in history, father and son sat face to face as adults, discussing adult matters. Liu Jun held several business proposals that the Progress Factory was currently considering. After glancing through them roughly, he asked curiously: “Why are they all export businesses? I remember before, more than half were domestic business.”
“Then you must also remember that I spent less than two months at home throughout the year, with the remaining ten months—one-third spent on business negotiations and two-thirds chasing accounts receivable. Domestic trade is difficult to do, and collecting payments is even harder. Not only is collecting payments difficult… Let’s discuss work while I introduce you to domestic conditions. Another problem with domestic trade is that it requires a lot of working capital. Unlike foreign trade, where we work on orders, once an order is confirmed and the letter of credit comes through, I can take the letter of credit to the bank for a loan, requiring almost no working capital of my own. Domestic trade is different. With domestic trade, working capital gets tied up in raw material procurement; the purchased raw materials get tied up again during production; finished goods inventory ties up another portion; and finally, accounts receivable tie up a huge chunk. When you calculate it all out, working capital needs to be three times the monthly production and sales volume to maintain normal operations. How many can handle such working capital requirements? If it were you, would you choose foreign trade or domestic trade?”
As Liu Jun listened, he gradually shifted his gaze from the papers to his father, nodding involuntarily. “No wonder. These past few years, I’ve always read in newspapers that wherever the market is, factories move there. The whole world covets China’s one billion consumers, many companies invest in China, and I thought domestic companies should have the advantages of favorable timing, location, and people. I never expected…”
Liu Shitang was satisfied with his performance, his face becoming increasingly dignified and magnanimous. “Of course you wouldn’t know without having done it. But I can’t handle all these orders on hand…”
“It’s simple—our two workshops have sufficient processing capacity.”
“The problem is there’s no one to operate them. The older generation has good technical skills, but they can’t operate the new equipment, can’t even learn it, and I can’t learn it either. I hired several technical school graduates specifically to learn wire-cutting programming, but as soon as they learned it and became proficient, they left within days. I couldn’t even recover my training costs.”
“Are you paying too low wages? I’ll look at the equipment manuals later—it shouldn’t be a big problem. The entire factory only needs one person who knows how to do it; the rest just need to watch the equipment foolishly. Essentially, this kind of entry-level CNC equipment is like a point-and-shoot camera—extremely simple.”
Liu Shitang slapped his palm down hard. “That’s exactly what I was waiting to hear from you. Other families send their sons, nephews, and sons-in-law for programming training, but our Liu family only has you as a son, so I had to hire outsiders. But I couldn’t offer high enough wages—I couldn’t pay more than the veteran technicians, and I couldn’t let labor costs get too high. Look at these quotes—I barely make any profit on each one. What could I use to pay high wages? I could only watch them fly away. So when you didn’t come, and I saw the market getting tight starting last year, I simply shut down. Since you’re here now, let’s quickly get samples of these orders ready to negotiate with foreign clients. Once we close the deals, we’ll start production immediately and first recover all costs to break even. While you help me get things running, you can also observe what the market lacks and develop some new products for me.”
Liu Jun listened to his father in a daze. “So if I hadn’t come back, and you had no money to hire people to operate the new equipment, the factory would have remained closed indefinitely?”
“Not at all. Market conditions always improve eventually. When profits increase, paying labor costs won’t be difficult. Unlike other big factories that fear shutting down, I’m not afraid of stopping. I don’t have a penny in loans; the factory building and equipment are all mine. When stopped, I only need to pay wages for two accountants and one security guard—I can afford it. Only the tax bureau hates having no skin to scrape.”
Liu Jun was even more dazzled listening to this. “Don’t you need to pay minimum wages to workers during shutdowns? Don’t you pay insurance and such things for them?”
“I’m not a state-owned enterprise. Here, of course, it’s pay for a day’s work when you work a day. Don’t worry, there are plenty of people in the market…”
“But you can’t find anyone capable. Dad, you can’t keep going down this old path…”
Liu Shitang also interrupted his son’s words. “Dad knows, too, but Dad’s thinking can’t keep up anymore. Now it should be you young people’s world.”
Liu Jun didn’t realize at all that his old man had just dumped this burden on his shoulders through such roundabout means, nor did he realize that this burden couldn’t possibly be completed in just one year. He was only listening to the highly distorted current situation his father described, and with great determination, he thought that there were far too many areas where he needed to make his mark, not just in technology.
Father and son talked until very late. Liu Shitang lingered until he had to leave, leaving his son with keys to a brand-new Jetta and a newly released Nokia phone. He also instructed his son not to do housework—from now on, Aunt Fu would come daily to take care of everything.
At noon, Qian Hongming received a call from his sister asking him to meet and talk that evening. He didn’t know what his sister suddenly wanted to discuss. That evening, after cooking dinner and eating with his wife, he hurried alone to his sister’s house. Upon seeing his sister, he instinctively checked her complexion first, and only relaxed when he saw she looked normal. After going inside to greet his parents, the siblings closed the door to talk privately.
“I want to discuss something with you. Shi Yiji is preparing to relocate entirely, and that land plot is planned for comprehensive real estate development. Sister Hao told me today that Mr. An and Yang Xun from Shi Yiji talked to her, asking her to manage sales there, and she wants to bring me along. I’m asking you—what’s the reputation of those two people, Shen Baotian and Yang Xun?”
Qian Hongming naturally didn’t dare to be careless. After thinking for a while, he said cautiously, “Both are currently prominent figures in this city. Yang Xun is an upstart from out of town, while Shen Baotian is more legitimate and has a better reputation. The key is whether they have the financial resources to develop that land. I heard that buying that plot nearly bankrupted both of them, and they owe the bank a lot of money.”
Qian Hongying smiled: “Just speak directly—can I go work there or not?”
Qian Hongming also smiled: “Sister already has her own opinion, so why ask me? Tell me, what’s the second matter?”
“Sneaky—is it so hard to get a straight answer from you? Of course I won’t go. It’s best if Sister Hao goes, so her position can be vacated for me. I plan to invite our boss to dinner to discuss this matter once Sister Hao has firmly established herself there. Which restaurant has the most luxurious private dining rooms now?”
Upon hearing this, Qian Hongming’s heart trembled. “Let me go in your place…”
“Qian Hongming, where is your mind going?!” Qian Hongying’s eyebrows shot up, and her eyes widened in anger. “What kind of person do you think I am? Am I that cheap?”
“No, Sister, I didn’t mean that. When you invite the boss to dinner, you’ll need to give gifts. It’s easier for us men to discuss such matters over drinks.”
“Qian Hongming, you’re even trying to deceive me—I’m not your naive little wife. Tell me honestly what you were thinking. We’re not resolving this issue today, so don’t even think about leaving.” Qian Hongying moved her chair sideways, blocking the door.
Qian Hongming had no way to deal with his sister. He held his left hand near his mouth and faced off with his sister for a long time before hesitantly saying: “I hope you’ll cut off any dealings with Liu Shitang.”
“There we have it. Aren’t you afraid that keeping this bottled up will give you cancer? I have no relationship with Liu Shitang, but since he introduced friends to buy several apartments from me, I have no reason not to remember his kindness. Besides, even when his wife’s suicide caused a citywide uproar, he didn’t betray me. What good would it do me to offend him? Would I encourage him to turn against me and smear my reputation? I have to placate him. Don’t interfere in my affairs, and you don’t need to curry favor with his son to build up goodwill for me.”
“That’s not what I meant. Sister, do you believe that Liu Jun apologized to me first when we met? Anyone else could apologize, but not him.”
Qian Hongying was shocked. “Don’t tell me the old fox raised a naive fool?” But Qian Hongying immediately glanced at her brother. “So you’ve been trying to make amends by running around serving him?” Seeing her brother lower his head and look away, Qian Hongying also lowered her head and sighed. “I’ve harmed you. Go home now, I understand the situation.”
“Sister, don’t say that. Liu Jun is a good person.”
“I know. Don’t do wrong to yourself too much. Go on, leave. What are you dawdling for?”
Qian Hongming had no choice but to leave. Since childhood, with their parents being sickly, his sister had been like a mother to him, and he had always listened to her. But after walking out the door, he stood in a daze for a long time, not wanting to just go home like this. Seeing it was already nine o’clock, he turned toward a nightclub, where he sat alone and silently watched the entire song and dance performance before quietly returning home. By then, his wife was already asleep, her rosy, round face as carefree as a child’s.