Chapter 90: One Truly Cannot Relent So Easily

“Tsk tsk, I didn’t expect Mr. Zhao to be an outstanding graduate of Jinling University of Technology. No wonder he has such vision and boldness!” Upon hearing that Zhao Guoyang graduated from a prestigious university, Township Chief Wang couldn’t help but praise him repeatedly; his doubts eased a little more.

Seeing the admiration written all over the other’s face, Zhao Guoyang couldn’t help but secretly chuckle: In this era, the identity of a university student really does solve many problems. Unlike the time before he was reborn, when university graduates were everywhere and lived no better than dogs.

After briefly discussing the project his factory would be investing in with Township Chief Wang and Village Chief Sun, Zhao Guoyang noticed that both men looked visibly pleased.

“Mr. Zhao has foresight—the manufacturing industry is in its prime now. If you really get this going, the benefits are sure to be good!” Township Chief Wang exclaimed.

“Yes, yes, Mr. Zhao’s enterprise will surely prosper!” Sun Laogen chimed in, winking at the monkey standing behind Zhao Guoyang.

Sun Laogen’s meaning was perfectly clear to Zhao Guoyang: he was urging the monkey to bring up the issue of industrial electricity rates, treating him as if he were one of Zhao’s own assistants.

Seeing the monkey’s sour expression, Zhao Guoyang secretly laughed.

He composed himself and addressed Wang Hongqi and Sun Laogen: “Township Chief Wang, Village Chief Sun, our factory has already filed for a business license at the Jianghai County Industry and Commerce Bureau and the Tax Bureau. I believe it won't be long before it's approved.”

“That means our factory can start operations immediately. Today, I’ve come to discuss the price of industrial electricity, as well as what incentives and support policies the township can offer us.”

“Ah! Electricity rates, that's easy to negotiate, very easy indeed! As for incentives and support policies, Mr. Zhao, you can rest assured—the township chief will fully support you!” Hearing the talk turn to money, Sun Laogen’s eyes crinkled into slits, and he agreed swiftly.

Wang Hongqi looked at Zhao Guoyang in surprise, realizing this young man was not to be underestimated.

Actually, in the early nineties, township enterprises in the republic were not yet fully regulated, so local support policies were quite flexible.

Take taxes, for example. Since the introduction of personal income tax in 1986, local townships often managed to secure a share from county-level administrative institutions, benefiting in various ways.

In early 1990, the State Council issued Document No. 19, “Notice on Circulating the Ministry of Agriculture’s Report on Promoting the Sustainable, Rapid, and Healthy Development of Township Enterprises,” which stipulated that all levels of finance were to allocate funds annually to support township enterprise development.

A month later, the Planning Commission’s Document No. 8 also stated: Encourage and prioritize support for local township enterprise development. Special loans for township enterprise demonstration projects in east-west cooperation, as well as poverty alleviation loans for underdeveloped areas, were to be timely and adequate, with increasing support over time.

Banks, credit cooperatives, and other non-bank financial organizations were to actively support township enterprises, following the principle of “differentiated treatment, selective support, and efficiency first,” increasing credit input year by year.

Every level of government was to arrange a certain amount of revolving funds annually, focusing on technological upgrades, new product development, export earnings, and processing of agricultural and sideline products for township enterprises.

At the same time, according to the “Republic Township Enterprise Law” and relevant State Council regulations, all levels of government were encouraged and supported to establish township enterprise development funds.

Under such overarching policies, the development of township enterprises inevitably became intertwined with the township party committee and government.

The reason was simple: items like subsidized loans and SME support funds required township-level governments to draft and verify applications.

Zhao Guoyang’s earlier remarks clearly showed he was well-versed in these matters, which greatly surprised Wang Hongqi.

As for Wang Hongqi’s silence, Zhao Guoyang paid it little mind.

He knew that his sudden move had likely had the intended effect.

Only by disrupting the other side’s plans could he steer things toward his own advantage.

Zhao Guoyang could remain calm, but Sun Laogen at his side certainly could not.

Though Sunjia Village hadn’t qualified as a national poverty-stricken village, its annual harvests barely yielded a small surplus.

In such circumstances, Sun Laogen naturally hoped for one or two more enterprises in the village, to help bolster the village committee’s funds.

Even if no taxes were collected from a business, electricity fees and management charges alone could bring the village a few thousand yuan annually—a sizable sum at that time.

So with Zhao Guoyang and the monkey about to open a factory, how could Sun Laogen not care?

The young Mr. Zhao seemed so confident as he raised terms with the township chief, and Sun Laogen worried that Wang Hongqi’s attitude might derail the whole affair.

He kept signaling to Wang Hongqi, his face filled with the plaintive look of a daughter-in-law meeting her in-laws.

Wang Hongqi saw Sun Laogen’s pleading gaze and sighed inwardly.

He knew Sunjia Village was not wealthy, and he understood Sun Laogen’s difficulties.

Yet, he truly couldn’t lightly promise incentive and support policies.

The reason was simple: these policies directly affected the township’s own revenues.

If too many subsidized loans were granted to a private enterprise, it would be as though the township were paying out of pocket to help it grow—certainly unrealistic.

After pondering for a while, Wang Hongqi coughed and spoke: “Mr. Zhao, regarding the township’s support for your enterprise, I cannot give you a guarantee right now. I’ll need to convene the township party committee to discuss it. But rest assured, your factory will certainly enjoy all the basic policies, one hundred percent.”

Zhao Guoyang smiled slightly, gesturing politely for Township Chief Wang to continue.

Looking at Sun Laogen, who was fidgeting anxiously beside him, Wang Hongqi gritted his teeth and said, “Mr. Zhao, in fact, our Heima Township has always been very supportive of rural entrepreneurship.”

“How about this: if your enterprise’s investment exceeds one hundred thousand yuan, the township government will provide a one-time subsidy equal to fifty percent of the annual loan interest; if the investment reaches two hundred thousand yuan, we’ll subsidize sixty percent; and if your investment exceeds three hundred thousand yuan... we’ll subsidize eighty percent of the annual loan interest.”

“Additionally, if your factory can introduce foreign technology and equipment, as long as it complies with national tax policies, I will recommend waiving customs duties and import VAT at the relevant stages...”

It had to be said: Township Chief Wang truly showed his competence, and the support policies he offered were quite substantial.

Yet Zhao Guoyang was not satisfied. After considering for a moment, he said, “Township Chief Wang, I appreciate the interest subsidy policy you proposed, but we don’t need to borrow that much from the bank right now, so it’s not immediately relevant.”

Hearing this, Wang Hongqi was momentarily stunned, unable to grasp what Zhao Guoyang was getting at.