Chapter 500 Impact
Fugong is located in the middle section of the Nujiang Grand Canyon, surrounded by the Biluo Snow Mountain and Gaoligong Mountain. It is the core area of ​​the 'Three Parallel Rivers' World Natural Heritage.

The forest coverage rate is as high as 73.09%.

When you get up early in the morning, open the window and breathe in high-quality fresh air.

After having lunch in the restaurant, Guo Yang came to Jiahe’s office in Fugong.

To the north of Fugong, about 100 kilometers upstream of the Nujiang River, there is another county town: Gongshan, and Chayu is even further northwest.

The four counties of Medog, Dudeng in the Yangsang River basin, Chayu in the Chayu River basin, Gongshan and Fugong in the Nujiang River form the most critical and difficult section of the Hongqi River water diversion project.

For nearly half a year, Guo Yang has stayed in Chayu, Gongshan and Fugong to learn about the vegetation environment here.

Primeval forests, alpine meadows, lakes intertwined...the natural and vegetation resources are extremely rich, which can be simply summarized in eight words: a secret canyon and a paradise for health and wellness.

At the same time, the economy is very backward, industries mainly rely on agriculture and tourism, and infrastructure is in urgent need of improvement.

Under such conditions, if the Hongqi River project were to be developed, it would definitely be an ecological disaster.

Many animals and plants may become extinct in this large-scale development.

With another bumper harvest in the energy forest, biodiesel has become increasingly important in the domestic energy sector, and calls for the Hongqi River in society are growing louder.

It is also related to the indulgence of the upper class.

In short, the Hongqi River has gradually been exposed, and various forces are vying for it.

The biggest controversy has shifted from investment returns to ecological protection.

That is indeed the problem.

However, the interests involved in the Hongqi River are too great, and with the country's support behind the scenes, the end result is that various plant and environmental experts gathered in the relevant area.

The goal is to come up with a feasible ecological protection plan.

Guo Yang is also one of the members, and Lian Cun and other members of the Tianhe seed collection team also came here.

To this end, he bought and collected a large amount of planting resources in the Yarlung Zangbo Grand Canyon and the Three Parallel Rivers area.

Some of them were collected by him personally, some were collected by the Tianhe Seed Collection Team, and some were exchanged with other experts.

After a few months, Guo Yang also used the seed store to screen and cultivate a large number of viable plants.

The Fugong office is located in an inconspicuous five-story building in the county town, next to the government compound.

Guo Yang's office is also very ordinary, with a mahogany table, a chair, a computer, and a sofa, which are all the furniture.

After arriving at the office, Guo Yang did not delay and started reading the documents sent by Qi Ziwen.

Jiahe has a total of four funds for sugar and cotton futures, with each fund worth US$10 billion, totaling US$40 billion.

With the increase in sugarcane and cotton production in India, futures prices have been diving for almost a year. Recently, India has significantly raised its cotton expectations, which has set off a bloody storm.

But Golden Harvest became one of the biggest winners.

In futures trading alone, the amount held in the account has tripled or quadrupled, with net profits exceeding tens of billions of dollars.

In addition to Jiahe, cotton upstream and downstream companies such as Yageo, Huafu, Guannong, Peak, and Xinnong that invested in related funds also made considerable profits.

Although the settlement time has not yet arrived, these people have called to congratulate me.

What he said was to explore the market trend and when he could withdraw the money.

The email sent by Qi Ziwen also mentioned the difficulties of the domestic cotton market.

Against the backdrop of India's increased production, the United States's capacity recovery and Brazil's increased production, domestic cotton farmers, textile and clothing companies are all having a hard time.

With the increase in agricultural production materials and labor costs, the production cost of domestic cotton continues to increase, and the price gap between domestic and foreign cotton is getting bigger and bigger.

The current price difference for one ton of cotton is close to 6000 yuan!
The main reason for such a large price difference is the fierce competition abroad. India has relied on a significant increase in yield and a decrease in unit cost to achieve its goal. Although the cost of American cotton is higher, its cotton also has a price advantage after receiving huge subsidies.

On the other hand is the domestic storage policy.

In order to protect cotton farmers, domestic storage policies have raised cotton prices.

As the purchase and storage price was much higher than the international cotton price and the disposal price was beyond the affordability of textile enterprises, a large amount of cotton entered the national treasury but was not used by textile enterprises.

Today, the domestic cotton purchase and storage policy is caught in a dilemma and is about to collapse.

At this time, the advantages of the JCIA cotton brand led by Jiahe were highlighted.

Under normal market conditions, textile companies cannot purchase cotton directly from cotton farmers, and there is information asymmetry in multiple cotton transactions, resulting in widespread problems of multiple, disorderly and mixed cotton varieties, and a very chaotic layout of cotton varieties.

According to a survey report from Jiahe Cotton and Linen Company, the cotton planting area in a certain county in Hunan Province is 12 acres, with more than 60 varieties, some even exceeding 100.

In the Corps, a division that reaches a certain scale has 10 to 20 cotton varieties, and some regiments have as many as 20 cotton varieties.

The variety of cotton varieties makes it impossible to guarantee the quality and yield of cotton.

The JCIA alliance avoids this problem entirely.

Cotton varieties are provided by Tianhe.

There are mainly two high-quality varieties in Xinjiang Province, one is Tianmian 20 and the other is Tianzamian No. 1. Both varieties have extremely strong varietal advantages.

At the same time, there is a high degree of unity in the planting, management, harvesting, processing, transportation, and storage links.

Both production and quality are guaranteed.

In addition to Xinjiang Province, Tianhe has also launched cotton varieties in the Yangtze River and Yellow River basins, but the promotion has not been so smooth.

The reason is that the management of cotton variety rights is too chaotic.

Cotton varieties are bred quickly and in many types, but their adaptability and stability are insufficient, especially the machine-harvested varieties, most of which are difficult to make a breakthrough in.

At the same time, the costs of production factors such as labor in the Yangtze River and Yellow River basins have also increased significantly.

A variety of factors have led to the current predicament of the cotton industry.

The same example also happened in the sugarcane and sugar beet industries, but the varieties of sugarcane and sugar beets are outdated and there are too few types.

After reading Qi Ziwen's report on cotton, Guo Yang began to reply to emails.

After thinking about it, I finally wrote down four words: Without destruction, there is no construction!

Apart from using futures to hedge risks, no matter what measures are taken, it will be difficult for domestic cotton and sugar to avoid the impact from India.

Jiahe has already done futures hedging, and companies from planting to clothing have joined in.

After several years of development, the quality of JCIA's textile and clothing products has gradually been recognized by the market.

So, let the storm come harder!
Eliminate low-end growers, eliminate low-end varieties, eliminate low-end textile companies, create national clothing brands, and reshape the industrial landscape!

The more violent the storm is, the more powerful vitality the companies that survive it will unleash!

After replying to Qi Ziwen’s first email, Guo Yang began to read the survey on India’s land and water resources.

The investigation came from within Golden Harvest. In addition to Cheng Di's channels, Golden Harvest was also collecting relevant media information about Asan.

According to the survey results, several major sugarcane-growing cities in Maharashtra have experienced fierce conflicts over water resources this year.

In addition, fighting broke out between states, such as Mabon and Kalibo, over water resources. There have been more than 200 recorded conflicts over water resources in Jiahe, which is almost double the number in the same period of the previous two years.

According to reports from some Indian media, the consequences of land degradation have begun to emerge.

But under the Singh government's vigorous propaganda, people only noticed the increase in production and ignored what kind of resources were paid for it.

After some research, Guo Yang first forwarded the email to Yang Cheng, and then called Ji Linchuan of the Cotton and Linen Company.

After the call was connected, Guo Yang said, "I forwarded you an email. Please take a look and choose a suitable time to disclose it to reporters at home and abroad."

Ji Linchuan said: "Okay, I'll be in front of the computer and take a look right away."

Guo Yang said: "Okay, I'll wait for you. See if you have any questions."

Two minutes later, Ji Linchuan exclaimed, "Boss, is the content in the document true?"

Guo Yang pondered and said, "The truth of the matter may be more serious than what we know, but no matter how long Ah San delays, the cotton and sugarcane production next year will be exposed, so we have to find a suitable time."

Ji Linchuan thought for a moment and said, "Boss, it's better to send it out sooner rather than later. The sooner we send it out, the faster we can relieve the pressure on the national cotton and national sugar industries."

Guo Yang said those four words again, "No destruction, no construction."

"Wait a little longer, and teach domestic cotton practitioners a profound lesson! This is both a disaster and an opportunity for development and growth.

Cotton and linen companies should also prepare in advance, strive to seize the opportunity, and go abroad in one fell swoop! "

Guo Yang then repeated the same words to Zou Kun from the Sugar Company.

India's temporary "outburst" killed 800 enemies and lost 1,000 of its own. In addition to domestic cotton, American cotton, Australian cotton and Brazilian cotton were also affected.

Jiahe got ahead of the game and had excess profits in futures, which not only made up for the losses in spot goods, but also allowed it to take the opportunity to make large-scale acquisitions. This is exactly what "no destruction, no construction" means.

After finishing these two things, Guo Yang stood up, stretched and exercised his body.

Luo Xiu, who had been traveling with him, also boiled water and made tea.

Guo Yang had just taken a sip when Zhao Xitao came to his office again.

"Oh, it's better to arrive at the right time than to arrive early. Come, give me a cup of tea too."

Guo Yang said unhappily, "You come here every day at this time to drink tea. You don't just come at the right time. You come here according to the time."

Zhao Xitao said: "Isn't your tea better?"

Guo Yang shook his head and said, "I told you I'd give you a few more boxes, but you insisted on getting them when you didn't want them. I don't understand you."

"Hehe." Zhao Xitao finished brewing the tea and said with a smile, "I have discovered that Mr. Guo's tea will change every few days, just like falling in love. Who wouldn't want to try a few more times?"

Guo Yang: “…”

After a period of time, Guo Yang and Zhao Xitao became very familiar with each other.

Almost all scientific researchers could not understand why a big boss like Guo Yang came to the front line to conduct research.

Only Zhao Xitao, perhaps because he had been in contact with them for a long time, knew that the Hongqi River route hidden in the dark was created by Guo Yang.

This made Zhao Xitao less sensitive to Guo Yang's identity as an entrepreneur.

Over time, the two of them often stayed together to discuss various technical issues.

Zhao Xitao said: "In another year, the planning and design of the second half of Hongqi River will be completed, and the first half will be completed soon, but we don't know when construction can start."

The second half of the construction is simpler, but the amount of water is not much, so the final result still depends on the first half.

Guo Yang smiled and said, "That day is not far away."

Zhao Xitao held the teacup in both hands and asked in surprise, "Is the fight about to start?"

Guo Yang said: "Maybe there is no need to fight."

Zhao Xitao: "That's a large area of ​​disputed land!"

Guo Yang said coldly: "It's unclear whether the country of Ah San can still exist in the future!"

Zhao Xitao was stunned, his pupils shrank like needles. If there was no need to fight, then Ah San would only collapse from within. "Just rely on leeches?"

He didn't know that the leech was related to Guo Yang.

Guo Yang stretched out his right hand, pointed his index finger upwards, and said, "Of course there are more. There are other deployments above. I just heard some rumors that the Ah San is going to cause chaos."

When Zhao Xitao heard Guo Yang talking about the competition for water resources among the Indian states, his eyes widened.

After finally hearing about the hidden dangers of Asan's land, a few strands of hair on his forehead were stuck with cold sweat.

Is this something he could know?

As time went by, after December, a new batch of biodiesel entered the market, and the acceptance of ordinary people also increased significantly.

The Hongqi River Project has also been discussed repeatedly in the country.

What is different from the past is that there are fewer voices of opposition from Indians in the international community.

There is even less news about India building dams and hydropower stations in the lower reaches of the Brahmaputra River.

After careful investigation, I realized that it was caused by "vampire" leeches.

China already has an exclusive solution for this creature, but India does not.

But the 'vampire' leech is only one of the reasons why the Asans are collectively silent.

The remaining contradictions are even more of a focal point.

Assam is in complete chaos.

The fleeing soldiers spread insect eggs throughout the state, and the state with a population of more than 20 million has become a sea of ​​blood.

What is more terrifying than the chaos caused by leeches is the active reactionary organizations in Assam.

The United Liberation Front of Assam used to be active in the border areas of India and Sanam, but now, taking advantage of the leech rebellion, it is active throughout Assam.

They claim that Assam has never belonged to India and frequently attack government forces, police and immigrants.

In addition to the United Liberation Front of Assam, the National Democratic Front of Bodo and the Kartarpur Liberation Organization also took the opportunity to grow and develop.

India's control over Assam is rapidly weakening.

This is the case in Assam, not to mention the southern Tibet region further north.

In addition to the border areas represented by these two states, fierce conflicts over water resources among other Indian states are also weakening the ruling power of the Indian government.

Perhaps the only good news is the significant increase in sugarcane and cotton production.

As December approached, the production of cotton and sugarcane was completely determined, and the short sellers made their final sprint, pushing the prices of sugar and cotton to the bottom.

But even so, farmers in India have gained far more profits than before.

In contrast, farmers in other major sugar and cotton producing countries had a painful season.

(End of this chapter)