The Initiative

Unable to hold back any longer, Xiao Dongming asked, "Director Huang, what are your recycling costs like?"

Huang Guotong gave a vague answer. "They're acceptable. We can keep the factory running normally. The specific figures involve company secrets and aren't made public."

"Understandable." Xiao Dongming knew perfectly well that a company with this kind of technology wouldn't casually disclose detailed figures.

Meanwhile, Li Jiye was working out how to bring Suiren Company to Pengcheng.

As a modern international metropolis, Pengcheng had faced considerable challenges during the subprime mortgage crisis.

As the city grew, the industrial competitiveness of big cities like Pengcheng would gradually decline. Wages, rent, the cost of living, and environmental pollution all continued to undermine the industrial foundations of major cities.

This, in turn, drove industry to less developed regions, leaving major cities as sources of capital and technology, with economies dominated by finance and services. This was the hollowing-out of industry in developed cities, and it was a trend seen across countries as well.

For a big city, industrial hollowing-out was undoubtedly a difficult choice. The financial and service sectors were too fragile; without support from the real economy, any economic crisis could lead to a frightening disparity between rich and poor.

Li Jiye wasn't thinking that far ahead. What concerned him was Pengcheng's current pollution problem and the mounting pressure on its sanitation services. The authorities were indeed considering outsourcing them.

But Huang Guotong, who was accompanying them, had shown no particular enthusiasm. He treated them like ordinary visitors and hadn't said a word about going to Pengcheng or anything of the sort. His attitude was utterly indifferent.

Li Jiye had already hinted several times that he wanted to steer the conversation toward Pengcheng's sanitation contract. But Huang Guotong was as thick as a plank, and somehow managed to kill the conversation every time.

Left with no choice, Li Jiye spoke up himself. "Director Huang, I'd like to arrange a time to meet with your company's Mr. Lin or Mr. Huang and discuss sanitation services in Pengcheng."

Huang Guotong put on an awkward expression. "That may be difficult. Mr. Lin went to the Rongcheng branch a few days ago, and Mr. Huang is working on a research project. He generally doesn't handle the company's business affairs."

Another member of the delegation looked displeased. "Director Huang, we're approaching you in good faith. If we can reach an agreement, Pengcheng's market is far bigger than Shanmei's."

"This kind of major partnership isn't something I can decide. All I can do is report it to my superiors," Huang Guotong replied perfunctorily.

He wasn't afraid of Pengcheng. Once Suiren Company completed its plans, cities would come knocking on its door. There was no need for the company to humble itself.

After hitting a wall, Li Jiye and the others had no choice but to return to their hotel in the city center.

But they didn't give up. They sought out Cai Haiyi, hoping he could put in a good word and help arrange a partnership between Suiren Company and Pengcheng.

Cai Haiyi was flattered when he heard the news. Pengcheng taking the initiative to seek cooperation was practically unheard of in Shanmei.

But he didn't let the excitement go to his head. Once he'd calmed down, he realized this was a very thorny matter.

Suiren Company wasn't an ordinary business. A few days earlier, the special commissioner had already spoken to the district about the sign outside the company's headquarters. If this was mishandled, Cai Haiyi could lose his position.

Resigned, Cai Haiyi had no choice but to go to the hotel himself.

"Welcome to Shanmei, District Chief Li. We're honored to have you here. Please forgive us if anything about our hospitality falls short."

Li Jiye wasn't one to snub a friendly face. He exchanged pleasantries for a few minutes, then asked about Suiren Company.

Cai Haiyi could only explain awkwardly, "District Chief Li, both I personally and the district would very much like to help bring this partnership about. It's just that Suiren Company is a little..."

He didn't finish the sentence, but pointed at the ceiling instead. "You'll understand if you take a look at this." He then asked his assistant to bring out a laptop and open a website.

Huh? This website... Li Jiye had initially thought little of it. But when he saw the site's name and the catalog of publicly licensed technology, he realized he'd underestimated Suiren Company.

He'd thought they were just local toughs. He hadn't realized they were a powerful outsider.

After weighing the pros and cons for a moment, Li Jiye said, his gaze shifting, "Thank you for the warning, District Chief Cai. We're only looking to explore a normal business partnership. As long as both sides sit down and talk, it doesn't matter whether we reach an agreement."

"That shouldn't be a problem."

With Cai Haiyi's help, Suiren Company agreed to meet with them a week later.

Li Jiye and the others returned to Pengcheng and began preparing the relevant materials, hoping to come up with reasonable terms that would persuade Suiren Company to establish a presence there.

Lin Baijie, who hadn't gone to Rongcheng after all, began making arrangements as well.

Suiren Company's business was already expanding steadily.

Its contracts with Xinli Group, Dechang Company, and Lingfeng Paper Industry alone brought in a substantial amount each year. Add sales of gas, organic fertilizer, and some recycled materials, and the company could reach an annual turnover of over a hundred million yuan in Shanmei alone.

The Rongcheng branch had also begun laying the groundwork and setting up a factory. It was expected to begin initial operations around October.

Lin Baijie and Huang Xiuyuan were both perfectly calm about the partnership with Pengcheng. Judging by supply and demand, Suiren Company didn't need Pengcheng; Pengcheng needed Suiren Company. That meant Suiren Company held the upper hand in negotiations.

They might be entering a partnership, but Suiren Company had no intention of groveling. If we can make money on our feet, why should we get down on our knees?

Suiren Company's position was clear: they were happy to work together, but if Pengcheng wasn't interested, that was fine too.

August 28.

The two sides began formal negotiations at the headquarters of Shiguang Blog.

Lin Baijie, Jiang Hailin, and the others represented Suiren Company, while Li Jiye, Xiao Dongming, and the others represented Pengcheng. They began confidential negotiations in the conference room on the seventh floor.

Lin Baijie looked through the terms Pengcheng had offered without changing expression, then asked, "Fifteen hundred million a year to take over all of Pengcheng's sanitation services? I don't think this is worth pursuing."

"Mr. Lin, as I understand it, your company's contract for sanitation services in Shanmei's urban district is only five million a year, while the contract for Rongcheng is only three hundred million a year. I think Pengcheng's offer is quite reasonable." One of Pengcheng's negotiators presented the figures.

Lin Baijie shook his head. "Those two places are only pilot cities. Their figures can't be used as the final benchmark for expansion."

Jiang Hailin chimed in. "Pengcheng has about thirty-five thousand sanitation workers. According to the figures I found, their total monthly wages come to around sixty million. Wages alone add up to seven hundred and twenty million a year."

After a pause, Jiang Hailin continued, striking back with the numbers. "If we use the standards we've set in Shanmei, the average sanitation worker's pay would have to reach three thousand yuan. For thirty-five thousand workers, that would mean an annual wage bill of one billion and fifty million. How do you expect us to make a profit?"

"Then there are insurance and benefits, which would cost at least five hundred million a year; the purchase and depreciation of vehicles and equipment, work gear, employee dormitories..."

Faced with Jiang Hailin's relentless barrage, Pengcheng's side struggled to keep up. By that way of calculating, they'd need at least seven or eight billion a year just to break even.

On that point, Pengcheng felt helpless too. They couldn't very well tell Suiren Company not to provide sanitation workers with good pay and benefits.

They were desperately tempted to say exactly that, but they absolutely couldn't let it slip. It would bring trouble down on their heads in an instant.