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Chapter 731: Top-Tier Capital

In other words, the money that Indians earn from hard work in outsourcing services and the foreign exchange they send back home is all used to purchase Huaxia products.But the foreign exchange Indians earn is not only used to purchase Huaxia products; there are other expenditures, such as interest on previously incurred debts.

Therefore, India still owes nearly 100 billion USD in foreign exchange each year, and its current foreign exchange reserves can only last for seven months.

This is also why India’s sovereign credit rating is only slightly above junk status.

Because the foreign debt is too large.

A few years ago, to repay the money, Indians had no choice but to extort all foreign-invested enterprises domestically, leading to a decrease in foreign investment, which used to be about 10 billion USD per year, to a little over 300 million USD now.

Facing such a big client that’s always on the brink of bankruptcy but still spends like crazy buying things every year, Chen Yiyang could understand the policy of being lenient with Indian traders.

Such a big spender might just disappear one day.

However, just as Chen Yiyang was thinking about finding an excuse to get rid of the few Indians, he received a phone call.

It was from a professional he had consulted regarding shield machine issues.

"Mr. Chen, the situation regarding those few shield machines that were detained has changed again."

"What changed?" Chen Yiyang asked curiously.

"A new regulation has been issued to prevent specialized machinery like shield machines from being used by other countries in non-civilian sectors, causing negative international impacts. Now, exporting shield machines requires strict scrutiny, and buyers must guarantee that the shield machines won’t be used for other projects.

With this regulation, it’s no longer just a matter of Indians paying the remaining balance to take the shield machines; their buyers must reapply."

"Okay, I get it." Chen Yiyang realized this was good news.

He finally had an excuse to get rid of those Indians.

So he immediately called his assistant to relay the regulation to the Indians, telling them that no one could take away those three shield machines for now, and they should properly prepare the application materials back home.

After sending away the assistant, the person in charge of Kuxing Coffee, Jiang City, sent Chen Yiyang a video call request.

Chen Yiyang clicked agree.

"Mr. Chen, I’ve received news that Starbucks has finally decided to sell themselves to Berthold Capital. They will sell 60% of Starbucks Huaxia’s shares to Berthold, and they will form a joint venture to operate Starbucks in Huaxia together."

"Berthold?" Upon hearing this name, Chen Yiyang immediately understood why Jiang City was in such a hurry to contact him.

Because this was quite a troublesome opponent.

The name Berthold might not be as familiar as Ah Li or Tengxu, feeling unlike a big company.

But in reality, this company can be described with four words in the country: omnipotent.

This is a company that truly holds top-tier resources.

Let’s put it this way, if Chen Yiyang’s good ally in the future, Yang Chengru’s descendants, who have climbed to very high positions, want to start a business to earn some money.

Then the capital formed by the descendants of Chen Yiyang, Yang Chengru, network connections from Schaefer, and local premier forces abroad like the Marco Clan from Brazil is called Berthold.

Internationally, there are also capitals similar to Berthold. Their names are BlackRock, Vanguard, and State Street.

These three capitals collectively hold 3.9 trillion USD in assets and manage 43.3 trillion USD in financial assets, equivalent to 40% of the global GDP.

They are extremely low-key, do not manufacture products, and only play with capital.

And Berthold has a characteristic of being precise with their actions and extremely low-key.

They have previously invested in companies like Ah Li, Ant Group, Net One Cloud Music, Slowhand, Kiwifruit, some financial companies, consumer goods companies, and medical companies.

Basically, every industry leader has them behind the scenes.

However, because Berthold is extremely low-key, there is little information about them.

Therefore, most people do not know Berthold.

But at Chen Yiyang’s level, he knows some of the inside stories.

Berthold is a private equity firm, and its investment purpose is to exit and cash out.

So the purpose of Berthold investing in Starbucks is clear. It is to inject resources into Starbucks using their own resources.

Previously, Starbucks, facing competition from Kuxing and Misnow, was somewhat restrained, unable to engage in a price war.

The reason was that Starbucks had to be accountable to shareholders and needed to consider profitability expectations and brand image.

But Berthold doesn’t need to consider this.

As long as they can make Starbucks’ financial statements look outstanding in a few years, they can push for the listing of the joint venture managing Starbucks.

If Starbucks’ financial statements are impressive enough in these years, once listed, Starbucks’ market value in the stock market can reach at least 30 to 40 billion USD.

By then, Berthold can sell their shares and gain investment returns dozens of times over.

For consumers, this is good news. Because in the future, Starbucks will surely lead another round of price wars in the coffee beverage industry.

But for Chen Yiyang, it’s troubling because Kuxing finally formed a cooperation with Misnow to avoid internal competition and guarantee profitability.

Yet they have to be dragged into the next price war again.

"Prepare for the worst," Chen Yiyang told Jiang City helplessly, "just as soldiers are equipped to deal with any attack, Kuxing should be ready to engage in another price war in the coming years. Yiyang Flash Sale will support you then."

Although Chen Yiyang’s expression was serious when talking to Jiang City.

He thought to himself that he might not necessarily lose.

Now, the companies under him have formed a very strong alliance.

Kuxing, Yiyang Flash Sale, plus a slew of media resources, are enough to handle any company’s challenge.

Not to mention Chen Yiyang also has several highly profitable gaming companies and no shortage of cash.

Moreover, as long as Kuxing can hold on for three to five years, they just need to wait for Starbucks to go public again.

After chatting with Jiang City, Chen Yiyang noticed it was time to clock out from work.

So he promptly took a car to pick up the accountant and head home together.

"What are you looking at?" Chen Yiyang noticed the accountant drooling over the phone in the car.

"I’m watching a particularly delicious barbecue, but unfortunately, I can’t eat it," the accountant said with deep regret.

"Is there anything you can’t eat? Why, is it grilled bear’s paw? If we can’t eat it domestically, we can go abroad to eat it."

Chen Yiyang said this as he leaned over.

And then he saw the barbecue video the accountant was watching.

It wasn’t anything like grilled bear paws, a legally prohibited ingredient.

The barbecue ingredients in the video were just simple chicken wings and steaks.

But after watching it, all Chen Yiyang could do was sigh.

"I want to eat it too, but this stuff is really hard to get."