trade dispute
“We are very satisfied with this transaction. In particular, I think that there will always be something to repay for President Eugene’s generosity in offering such a reasonable price.”
Zhang Xiwei, who runs a seemingly mundane wealth management firm Pacific International on Wall Street, stopped by Eugene’s office to express satisfaction with a big deal in China.
Zhang Xiwei omitted the subject, but Yujin knew who he was referring to.
“Yes, please tell me it was a good deal for the clerk.”
Although he is not yet China’s top leader and only a member of the Standing Committee of the Communist Party of China, Eugene is well aware that he is favored by the current leader. A person who is looking forward to the future.
“I don’t know when that will be, but he wants to visit and meet him once Sino-US relations normalize.”
Regret that Eugene seldom leaves the United States, Jiang Shiwei vowed to meet without an appointment instead of an invitation.
The deal with Zhang Xiwei ended neatly, as always. Eugene and the other party got what they wanted.
All that remains now is to inform the other axis of the deal how much damage Eugene has suffered.
The next appointment was made for the very next day. Saying it was good news, Ivanka and Kushner came to New York.
They often stay at Trump Tower in New York to get things done, so this visit wasn’t a big deal.
Meanwhile, Eugene still often uses the Trump Tower home, so meeting with the Trump family didn’t have to worry about other people’s eyes.
“Ivanka Trump Fashion Group’s market share in China is growing. We plan to open another 100 new stores this year alone.”
“It’s amazing growth. To be able to open so many large stores in a year, the Chinese market is definitely a very attractive place.”
Ivanka Trump said with a satisfied smile after hearing the explanation from President Yuara Yu, who came from China.
“yes. China’s retail market is growing rapidly day by day. Beyond the United States, the world’s largest apparel market, it is firmly established as the world’s best market. Of course, it is also a very competitive market. All the major fast-fashion companies in the world are competing fiercely to enter and increase their market share.”
In front of the daughter and son-in-law of the world’s most powerful man, Yooara enthusiastically spoke about the growth of the Ivanka Trump fashion group.
“We are not going public yet, but by the end of this year alone, we will grow into a company worth at least $10 billion. And that’s just the beginning. In a few years, Ivanka Trump Fashion Group will be ranked as one of the world’s leading fashion companies in the global market, second only to Uniqlo and Zara.”
“It was the same with external analysis. President Yuara did a very good job.”
Eugene praised Yoo-ra for what she did beyond her expectations.
“It was a lot of hard work coming here from China. So, let the rest of the day rest comfortably. We have prepared a room for two people at the Plaza Hotel. If you need anything, just tell me.”
After the briefing, Eugene sent Yoo Ah-ra back. From now on, something really important remains.
“ha! It’s unfortunate.”
As the couple Yuara left, Ivanka sighed and said.
“If we look at the future growth potential, we need to improve our relationship with the Chinese government.”
“But there is no way. If we take the sanctions against China as a non-existent thing now, we will lose our power to lead the country.”
Ivanka and her husband were in a dilemma. Because Ivanka Fashion Group is doing so well in China.
It’s nice to see a company that gives them huge profits, but it’s also true that it made it difficult for his father, Trump, to carry out his policies.
“Trade sanctions with China are unavoidable. We have to come to that conclusion sooner or later.”
Kushner informed Eugene of his position with a perplexed expression.
“Isn’t the national policy the most important thing? Depending on the policy, a company can make a profit or a loss.”
And Eugene was comfortably supporting their position as if nothing had happened.
In fact, he had predicted it for a long time, so there was no reason to worry now.
As we moved into 2018, relations between the United States and China were very creaky.
It has been several years since American civil society and political circles had a broad consensus that China should now start checking and sanctioning China in some way because of China’s growing influence.
Moreover, Trump could not delay the check on China, as he has been insisting on protectionism for the national interest of the United States since his days as a presidential candidate.
In particular, the workers of Rustbelt, Trump’s biggest supporter, strongly wanted trade sanctions against China.
As Trump enters his second year in office, if he does not accept these voters’ requests, his future schedule will inevitably suffer.
This situation in the United States was also fully recognized by China.
And if the United States, the world’s largest importer, began to impose sanctions on China’s trade goods in any way, it was clear that the Chinese government would be hit hard.
As a result, the Chinese government has been lobbying Trump’s daughter Ivanka and son-in-law Kushner in various ways, but neither Kushner nor Ivanka can overturn the wishes of the voters.
The trade dispute between the US and China is only a matter of time.
“The sanctions will be significant. The Chinese government will have no choice but to respond.”
Kushner and Ivanka were torn between their own interests and their father’s policy decisions.
Not because they are patriots. Already, Kushner and the Trump family have been repeatedly criticized for not distinguishing between state management and private interests.
In such a situation, the Trump administration felt a crisis that if it failed to implement proper public policy because of the companies related to them again, the Trump administration could be stranded here.
However, if the US government starts sanctions against China, the Chinese government will have no choice but to come up with a countermeasure appropriate to it, and it was obvious that Ivanka Trump fashion group China, which is currently in full swing, would suffer the most.
“There is no need to worry about any damage on our part. It can always happen when it comes to carrying out national policy.”
“It is, but… … .”
Of course, Kushner and Ivanka aren’t worried about Eugene. It’s just a matter of diminishing returns to them.
Ivanka Trump Fashion Group China is a subsidiary of SS Partners in Korea and is wholly owned by Eugene.
Ivanka Trump only receives a portion of sales from China and Japan as royalties.
However, the size of the royalties, which were only part of it, was greater than they had imagined.
Moreover, it is not even necessary to calculate that future returns will be much greater in terms of growth levels.
“I am deeply saddened by the fact that Ivanka Trump’s fashion group China is causing the Trump administration to unintentionally look suspiciously at me. So, we are preparing our own way.”
“If it’s a room?”
“Even if it’s not, Ivanka Trump fashion group China has some places that want it, so I’m going to pass it on.”
“Are you going to sell the Ivanka Trump fashion group?”
The two are surprised.
“yes. I think it would rather not put a burden on the two of us, or even Donald.”
“Isn’t it too much to pass up now?”
This is not to worry about Eugene’s assets either. To the extent they are concerned about the royalties they will receive.
“I would be lying if I said it wasn’t worth it. But considering the future, it is better to do so. And for Ivanka’s profit.”
“It’s my income… … .”
Ivanka puts on a face that is intertwined with doubts and expectations.
“We will accept all expected royalties for at least five years in advance.”
“Isn’t that a small amount?”
“Of course I think so. But don’t worry too much. I will fill the two accounts with enough.”
At Eugene’s words, Kushner and Ivanka both start laughing out loud.
As he said, if Ivanka Trump’s fashion group China is handed over to someone else and the royalties are paid in advance, they will not be burdened with the trade dispute with China and will receive the expected income for five years at once. It was.
If the US-China trade dispute starts after it’s already sold out, it doesn’t matter whether Ivanka Trump’s fashion group China’s earnings decline or not.
“But is anyone willing to buy Ivanka Trump fashion group China with the US-China conflict predicted?”
Kushner asked suspiciously.
“It wasn’t easy to find a buyer, but after a lot of research, we found it. It was sad. If I had more money, I would have been able to get the right price.”
“That’s it.”
Perhaps because they had already been told that they would take care of their share, Ivanka and Kushner had a sad expression on their faces.
Of course, Eugene did not dare to reveal the fact that, in reality, there was not much to lose.
“If that happens, won’t there be a problem after our side announces trade sanctions with China?”
Kushner is a prudent person. He seems to be worried about the aftermath that might happen.
“I don’t think it’s going to be a big problem. On the other hand, we fully understand the conflict between the US and China. The price will be set with that in mind.”
Eugene dared to call Yoo Ah-ra and her husband and let them know how well they are doing to show that he is suffering a great loss.
Of course, I don’t think Kushner or Ivanka would be ignorant of that, but what they need to know should be made clear.
A reasonable transaction starts with letting the other party know your worth as much as possible.
“It’s definitely sad. At a time when the Chinese market is doing so well, it feels like selling off the brand really cuts flesh. I’m sorry we’re not the only ones hurting this.”
Ivanka was also a little shy, and gave an apologetic look to Eugene, who was trying to take care of them as much as possible.
“it’s okay. If you want to do business in China, you have to be prepared for this.”
It is true that Eugene does not benefit greatly financially. However, through this, Eugene was able to achieve greater things from the other party.
In exchange for handing over Ivanka Trump’s fashion group China, it was able to gain more access to Chinese companies, and by no means a small sum.
It is true that there is a feeling that it is a little loose compared to the future growth potential.
However, it cannot be argued strongly because the possibility of the future will be ruined by Ivanka’s father right away.
Of course, the buyer does not always want to buy at a loss.
As Yuara said, China’s fashion market was gradually growing, and Ivanka Trump’s fashion group China, which had already established itself second to Uniqlo and Zara, had enough value except for its brand name.
What’s more, those who want to buy are trying to get a lot of additional profits by listing them on the stock market soon. Perhaps you can make a profit that is several times more than the price you bought from Eugene.
Leaders in almost every country except Western democracies and Japan and South Korea are generating private profits in a variety of ways.
It is easy to use a lot of methods to tamper with the national finances, but if you are a little smart, you mainly prefer to invest in companies.
There are many methods such as holding a stake in a specific company under a borrowed name or a pseudonym and pushing the company to a public listing at an appropriate time, or passing it on to another company at a high price.
In particular, a significant portion of the slush funds of the dictators gradually increase in size in this way.
Iran’s Khameni has been using the secret corporate group Setad to create and use funds ranging from $100 billion to as many as hundreds of billions of dollars over the past 20 years as political funds.
Even Iran, whose economy is only a few hundred billion dollars, creates a slush fund of that size, not to mention China.
This time, the Ivanka Trump fashion group China, which was handed over to Eugene, will grow a little more and generate surprising profits.
However, Eugene is not sad about the income she can get through Ivanka Trump fashion group China.
Because the Chinese market is not a complete capitalist system, Eugene had no way to fully take advantage of the benefits.
Knowing that from the beginning, Eugene was thinking of passing it on at an appropriate time in line with the growth of Ivanka Trump fashion group China.