Investor That Can See The Future

Chapter 452

There are many international organizations and conferences in the world.

The biggest conference on the economic front is the famous World Economic Forum. It is called Davos Forum because it is held every year in Davos, Switzerland.

Leaders, entrepreneurs, investors, economists, and journalists from each country attend to discuss problems and solutions of the global economy, and reports and statements from these countries have a great impact on the global economy.

The eligibility requirements for participation are very strict. Only invited guests are allowed to participate, and in addition to the annual membership fee of $17,000, there is a separate fee for participation and stay.

As we gather together at such a high cost, we sometimes hear sarcasm about whether it is a high-end social club.

In addition, there is a lot of backlash against this because it basically tends to represent the interests of the Western world, and it flows mainly from the mainstream economics of the United States.

To counter this, three years ago, China, Russia, and India were the main actors to create the Asian Economic Forum.

Although China and India are usually on a bad relationship, they agreed on the need for an international conference that was free from Western influence, and Russia stepped in and coordinated the relationship between the two and the forum was launched.

Asean countries that are heavily influenced by China, as well as Central Asian countries that are influenced by Russia, were also listed as promoters.

At this event, issues related to the overall economy such as regional development, investment attraction, infrastructure development in connection with the Asian Infrastructure Investment Bank (AIIB), Asian economic cooperation, and trade revitalization will be discussed. It is also a place where summit meetings and various business are held.

Korea did not participate as a promoter because it was noticing the US, but as it was called the Asian Economic Forum, it was secretly listed as a participating country for geopolitical reasons.

The first forum was held in Beijing, China, the second forum was held in Mumbai, India, and this time in Russia.

Contrary to everyone’s expectation that the meeting will be held in Moscow, Russia chose Vladivostok as the forum location.

Russia has the largest territory in the world, but most of it is uninhabitable frozen land or wasteland. Since the distances between cities are as far apart in Asia as in Europe, regional imbalances are severe.

Compared to Moscow, the capital city, and Saint Petersburg, which is close to Europe, the Far East is far behind.

Vladivostok is the gateway to the Far East. The fact that this was chosen as the forum place shows the Russian government’s will to develop the Far East.

President Vysotsky announced the construction of a TWR century in Vladivostok following Kaliningrad.

The plan is to use this forum as an opportunity for TWR sales, and at the same time expand the power base to attract factories in the Far East.

President Vysotsky called me.

[Isn’t it time to see your face once in a while? Come hang out with her fiancee. Vladivostok is good as a vacation spot.]

The reason they call me is to promote the forum and TWR, right?

The president directly requests to attend, but it is not right to refuse. And since the chair country is Russia, of course, Professor Petrov will attend, and Professor Mohan will also come.

This is my first forum like this, so I am interested.

I gladly answered.

“Okay. See you in Vladivostok.”

* * *

I went to Vladivostok on a private plane with Ellie.

Arriving in Vladivostok, we went to the hotel to unpack. Ellie arranged and sorted the items she bought at the duty-free shop.

“This is my mother’s, and this is Jessica’s. uh! This is mine. how is it? Does it suit you?”

Ellie posed her pose with her bag on her shoulder.

“It suits you very well.”

When making a purchase, the duty-free shop staff did not spare compliments, saying that he looked like a model. It’s a lip service for everyone, but it must have been half sincere, right?

We rested for about an hour and then got ready to go out.

Eli washed and put on a neat suit, and I also changed into the suit I brought.

We got into the prepared car and headed to the forum where the forum was held.

* * *

The opening ceremony of the 3rd Asian Economic Forum was held with a grandeur.

I shook hands with President Vysotsky. He patted my shoulder hard and said.

“You are welcome. Was there anything inconvenient for you to come?”

“What. It’s close and I’m here soon.”

“Haha, that’s Vladivostok’s biggest strength. Consider doing business here.”

Li Suwei is the head of commerce. He greeted me by holding my hand as if meeting an old friend.

We continued to say hello to a lot of people frantically. Everyone rushed to say congratulations on the wedding.

During the forum, summits and closed room meetings were held between the leaders, as well as business meetings between businessmen and investors.

* * *

The United States leads the world economy, and economics is also the most developed. For this reason, the Nobel Prize in Economics was almost swept away by the United States.

However, China also has the world’s largest population and the world’s second-largest economy, so there are many outstanding economists.

One of the most famous economists is Yu Hewei, a professor of economics at Peking University.

China was a communist country in the past, and after adopting capitalism, it adopted a state-led development strategy.

Originally a famous economist, he gained worldwide fame because he accurately predicted the collapse of the Shanghai Composite Index in 2015.

At the time, the stock market, which stayed in the early 2,000s, soared to over 5,000 thanks to the strong stimulus measures of the Chinese government.

People thought that a full-fledged bull market had begun, and even monks and housewives packed up their money to buy stocks and rushed to the brokerage firm.

Up to this point, no one was paying attention to Professor Wei Hewei’s warning about stock market overheating.

However, the Shanghai Composite Index plunged more than 40 percent in just two months after peaking.

Almost all stocks were cut in half, and some stocks plummeted by 80 to 90 percent, depending on the industry.

The situation was so serious that it was even said that it was the beginning of the collapse of the Chinese bubble and the signal of a global economic downturn.

Fortunately, after much efforts by the Chinese government, the decline has barely subsided. The Shanghai Composite Index is still not even close to the stock price at that time.

I put on an interpreter in my ear, but Ellie, who can speak Chinese, just listened. I asked her in her small voice.

“Is it okay to make a presentation pointing out the Chinese economic problems in an international forum like this?” she said.

Ellie also said in a low voice.

No matter how famous he may be, he cannot make a statement against the will of the party. Perhaps, to some extent, it is considered an acceptable range.

With this kind of background, you can’t be dragged into the Ministry of Public Security even if you criticize the party.

The private plane was loaded with bags and cosmetics purchased at the duty-free shop last week.

“It feels like going on vacation.”

Ellie shook her head.

“Vacation, what do you mean? I’m definitely going there for work.”

Officially, this is a business trip to the Golden Gate Korean branch employee. Isn’t this international event an extension of business? In addition, the president personally asked me to come.

“But why are you looking at the travel brochure?”

“Hey, I’ll take a look around after work.”

“… … .”

For that, I even bought a new bikini to wear at the hotel pool. I didn’t want to dry it because I wanted to see what she was wearing.

Flight time to Vladivostok is approximately 2 hours. Since South Korean flag planes cannot pass through North Korean airspace, the private planes turned around and moved.

In the meantime, I looked at the faces of the attendees.

President Vysotsky, the head of the opening country, of course, attends, and quite a few heads of Asian countries also come. President Huh Chang-min will come along with the Minister of Foreign Affairs and the Minister of Unification, and many Korean businessmen will also attend.

The largest number is still China.

Both China and Russia are sparing investment in whether they intend to develop the Asian Economic Forum into a global economic forum that will check the Davos Forum.

The two countries have not participated in the Davos Forum since the launch of the Asian Economic Forum, and businessmen and academics who are paying attention to the government have also naturally cut off their visits.

The United States is not happy with the forum, led by China and Russia, but has not specifically sanctioned the participation of private companies and individuals.

On the other hand, many economists from the United States and Europe attended this time. The biggest reason is that the Chinese side paid the invitation fee and the cost of stay.

Was it too much money to refuse?

Thanks to this, both the participating countries and the number of participants recorded an all-time high.

Five-star hotels near the convention hall where the forum was held were already full, and other hotels were full.

Because of this, Airbnc was booming, and Vladivostok citizens started making pocket money by renting out whole rooms or houses.

Although we decided to participate late, we were able to get a room thanks to the consideration of the organizers.

One of the conditions for allowing financial investment in TWR is investment in Russian manufacturing. So Karos is building a factory in Kaliningrad.

Eunsung Motors also operates a plant in mainland Russia. In the future, these factories will sequentially change to electric vehicle production lines.

The Russian economy is currently in a slump due to Western sanctions.

To overcome this obstacle, President Vysotsky sought to restore relations with Europe through TWR cooperation, while taking a strategy to strengthen cooperation with Asian countries. That’s why I chose this place for the forum.

After saying goodbye, President Vysotsky went to talk with the others, while a group of men approached us.

“haha! Long time no see, Mr. Kang.”

“Congratulations on your marriage.”

“Thank you.”

“Haha, the relationship between Mr. Kang and China is very special.”

Li Suwei, director of commerce, also exchanged greetings with Eli. Ellie smiled bitterly, but she didn’t say anything.

President Zhang Pinghua is expected to come only at the closing ceremony, so there will be no encounters. Professor Petrov and Professor Mohan are due the day after tomorrow.

Although it is often mentioned as a candidate for the Nobel Prize in Economics, it will not be easy as it is far from mainstream economics.(Read more @ wuxiax.com)

Through these unusual processes, Chinese economics is particularly developed in the field of planned economy.

Although it is far from mainstream economics, there are many theories that can be referenced from the perspective of countries that have just started economic development.

I listened to Professor Wei Hewei’s presentation. He talked about the problems with the current Chinese economy one by one.

The three major problems of China’s economy, so-called gray rhinos, are corporate debt, real estate bubbles, and shadow finance. He showed the data and pointed out that these problems are structural, not temporary.

“Even if we give up some economic growth for now, we have to deal with a bunch of problems first,” he said. Otherwise, there will be irreversible consequences.”

“From the party’s point of view, we need someone who can properly voice our opposition. That way, it can appear to allow academic freedom and act as if it is listening to bitterness. And it’s good to use it as an excuse to change economic policies later.”

It is impossible to simultaneously achieve opposite economic goals. If industrial restructuring begins, the growth rate will decrease and unemployment will increase. This is why the ruling party has no choice but to ignore the problem even though it knows it has to solve the problem.

I nodded.

And Professor Wei Wei’s grandfather had a long journey with Mao Zedong, and his father and older brother work in senior positions in the Ministry of Finance, and he also serves as an advisor to the Ministry of Commerce.

As I listened to the lecture, I suddenly became interested.

“I want to meet that professor.”

* * *

After the presentation, I went to see Professor Wei Hewei.

“Hello professor. I enjoyed the lecture.”

He looked at me and was delighted.

“You are CEO Kang Jin-hoo. I was surprised to see you sitting there earlier.”

“If you have time, would you like a cup of tea?”

He looked at the clock.

“I have an appointment, but 40 minutes is fine.”

We moved away from people’s eyes.

Well, even if you avert your eyes, the Russian and Chinese sides will already be talking about it. Anyway, I’m thinking of meeting all the economists and listening to them.

“In your lecture, you mentioned the possibility of an economic crisis in China. How do you see the possibility of an economic crisis occurring?”

Professor Wei Hewei shook his head at my question.

“Your question is wrong. China’s crisis is not a matter of possibility, it is a matter of timing.”