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Chapter 708 Strategic Deterrence Backup

According to common sense, it is not appropriate for Hu Jiefang to appear here.

Grumman's acquisition of McDonald is a relatively major event in the field of American aviation. Whether it is Congress or the Pentagon, first-class people, Boeing, Northrop, all forces have their own small plans.

If anyone supports Grumman's merger of McDonald, there will naturally be opposing forces. Boeing has been coveting McDonald for a long time. In the 1980s, Boeing actually expressed his willingness to merge with McDonald many times. As long as it can annex McDonald, Boeing will undoubtedly become the overlord of aviation. The interests here can be seen how complicated it is.

The Pentagon and Congress will not like this merger too much, but the Navy's attitude is relatively ambiguous. After the merger, Grumman McDonald will completely monopolize the supply of naval carrier-based aircraft. The Pentagon may worry about a decline in competitiveness, while Congress will consider the price issues caused by monopoly.

But the US Navy has some fantasies. The Air Force has an AtF plan, but there is no NaTF plan for the foreseeable future. The first-class people are in a state of injury. If a huge trust appears for the naval carrier-based aircraft supplier, can they support the Navy in carrying out the NatF plan?

Of course, when people don’t know, they will soon usher in the ending of the birds and bows.

As for Northrop...

Well, the plan they planned to annex Grumman was completely hopeless.

With the support of the blue pill, Grumman would give face to swallow Northrop if he didn't swallow Northrop. If Hu Wenhai hadn't intervened, maybe there would be no Northrop Grumman company in the future, and a Grumman Northrop company would have emerged.

However, in opposing Grumman's acquisition of McDonald, Northrop and Boeing are also fellows.

When so many forces were eyeing each other, Hu Jiefang appeared at the negotiation venue between the two sides, obviously creating topics for people out of thin air.

However, it is precisely because of this that his appearance is even more shocking to McDonald. Grumman has obviously made up his mind to take risks in order to acquire McDonald. Even the trump card of China's secret interference is on the table. If it fails, it can be imagined what it means to Grumman.

The hat of TG was buckled on its head, and still want the Pentagon order?

Of course, if successful, Grumman, who annexed McDonald, will be unstoppable. Pentagon? No planes are available on the aircraft carrier?

Douglas realized almost instantly that Grumman was serious, and the Chinese were also serious.

There is no need to doubt the sincerity of Grumman and the Chinese. There is only one thing to be sure of.

What can McDonald get if he sells himself?

"5 billion US dollars?" Douglas's face was solemn. This number determined McDonald's future fate, and he couldn't help but be careful.

"I want to know whether this $5 billion was invested by the Chinese government or whether Xinke Group is making the decision? Of course I know that Xinke has a great influence in China. However... as far as I know, China's aviation industry is a state-run enterprise and is managed by China's civil aviation department. Private enterprises have not been allowed to operate air transportation business yet, right?"

McDonald had long been drooling in China's official procurement and had already dealt with China's civil aviation a few years ago. McDonald's 1982 had entered China in the mid-1980s, and by the 1990s, it had more than fifty aircraft. More than 30 of them were assembled and produced from Shangfei.

With such a cooperative relationship as a foundation, McDonald is certainly clear about how to worship the temple gate if he wants to win government procurement.

Although Xinke Group has a wide influence in China, it is a private enterprise after all. The Civil Aviation Administration of China and the official procurement negotiation team in China are responsible for aircraft procurement.

Although Hu Jiefang is one of the members of the negotiation team, the entire negotiation team is too large. There are more than 500 people, covering experts and front-line managers from all walks of life, and a team of technical personnel. What is the use of one person?

Of course, if Hu Wenhai appears here, as long as he sneezes, Maddao will have to kneel down and sing to conquer on the spot. However, now it is to let the US Secret Service be in charge of General Hu's security. Do you think he dares to come over?

Oh, no. If the Secret Service is responsible for security, it will be even more dangerous.

As for his father.

Isn’t this still in the stage of winning the record?

Hu Jiefang was not surprised by Douglas's doubts and nodded gently. This is the reason why he did not hesitate to come forward in person. Some words must be said in person to be able to be convincing enough. Moreover, considering that Mr. Hu cannot run around the world in the future, he will naturally have the need to clean up people's heads.

Even if it is a strategic nuclear submarine, don’t you need a backup? When one is squatting at home, the other must go out to sea to maintain a deterrence.

Hu Jiefang's proper no-nosing will help maintain China's strategic deterrence ability when Mr. Hu is unable to go abroad...

Although China has stated that it will not use Hu Wenhai first, it has not said that Hu Jiefang cannot be used!

"Shinko is a private enterprise and is not qualified to operate the aviation industry yet, which Mr. Douglas is right."

This is not the first time Hu Jiefang has never seen the world's "roe deer" when he came to the United States. Now he fights with large companies in the Fortune 500 level, and he seems to be free and easy, without showing any timidity.

"However, Xinke Group itself is the major shareholder of China Xinli Airlines. Through this method, we have achieved the operation of private enterprises entering the civil aviation field. In fact, Xinke Group's layout in China's aviation industry has long been started. We not only have Xinli Airlines established with Baoli Company, but also Xinfei Aviation Industry Corporation established with Xi'an Airways Group, entering the upstream aviation manufacturing industry."

"It is obviously inaccurate to say that Xinke Group has no influence in the Chinese aviation field."

Douglas nodded, but as General Manager McDonald, he obviously would not be led by Hu Jiefang's remarks, but instead held on to the key points and chased them relentlessly. He quickly ended his conversation with the staff officers next to him and asked the key questions.

"So, can Xinke Group help us and influence the decision of the Civil Aviation Administration of China? Or can your Xinli Airlines eat orders worth $5 billion?"

Hu Jiefang said truthfully: "Xinli Airlines is a new company. Although we have strong funds, our management and business team are still limited. Five billion US dollars require at least hundreds of units, which is something we cannot achieve at the moment."

Douglas asked: "Can you influence the decision of the Civil Aviation Administration?"

Hu Jiefang shook his head: "Xinke is a law-abiding company in China. We are managed and led by superior departments, not the other way around."

"ell, then I don't understand." Douglas stared at Hu Jiefang's eyes: "How can you guarantee that McDonald will get this $5 billion passenger aircraft order?"

"This is very simple." Hu Jiefang was not forced by Douglas' step-by-step pressure, and he said slowly: "Mr. Douglas should know that the earth is round. Chinese planes can fly east across the Pacific Ocean to reach the United States, or west across the Eurasian continent and the Atlantic Ocean to reach the United States."

Douglas spread his hands, "Okay, I really want to hear what kind of power you have. There are many planes that can fly across the Pacific Ocean, but if you want to fly over half of the earth in one breath, you really need a big guy."

"Of course, this is not Mr. Douglas's problem. In fact, the vast majority of people know nothing about the power of the new science."

Hu Jiefang now understands Hu Wenhai's feelings. It's really addictive to sarcasm in person!

He was standing tall and crossed his legs. Although Hu Jiefang was sitting only at one corner of the negotiating table, he had already become the focus of the entire conference room at this time.

"In addition to investing in the aviation field, Xinke Group also develops its businesses in multiple fields such as railways and finance. Xinke Group is one of the major shareholders of China Railway Investment Bank. China Railway Construction Investment Bank is a state-owned investment bank in China and has the qualification to invest in any domestic industry in China. Xinke Group has reached a cooperation agreement with China Railway Construction Investment Bank to invest 5 billion US dollars in capital to establish Xinke Airway Investment Company. The company's business scope includes providing financial services such as aircraft leasing to airlines in China."

"Well, there's another one."

Hu Jiefang added a sentence lightly: "New Railway Aviation Investment Company has reached a cooperation intention with U.S. Bank of China, and U.S. Bank of China agreed in principle to provide loan financing services for New Railway Aviation Investment Company. Using aircraft as collateral, U.S. Bank of China is willing to provide a loan ratio of 70%. "

After Hu Jiefang said this, even if Douglas, who was used to the strong winds and waves and was considered a business elite in the United States, couldn't help but feel dizzy in his mind.

Hu Jiefang's last sentence is much more lethal than the previous paragraph.

What does his previous paragraph mean? To summarize, to put it simply, New Railway Airlines Investment provides Chinese airlines with rental and purchasing services, and does not require airlines to purchase aircraft directly from the United States, which perfectly avoids the jurisdiction of the State Administration of Civil Aviation. As long as the aircraft obtains an airworthiness certificate and does not spend the country's money to buy aircraft, there is naturally no need to go through the channels of the State Administration of Civil Aviation.

Renting a plane to travel routes is much more advantageous than the current one. The risks are smaller, the funds are more flexible, and the business can be expanded quickly. The benefits are endless.

The money from Xinzhihang Investment was not directly handed over to McDonald, but was loaned to U.S. Bank of China as a down payment. U.S. Bank of China said that the down payment of the loan could support 30%, which directly doubled the transaction scale.

The total transaction number is likely to reach $16.7 billion.

Douglas felt his knees weak.

This money is enough to create another McDonald.
Chapter completed!
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