The Rong family is a typical representative of patriotic capitalists, and after liberation, the Communist Party that has gained a ruling position attaches great importance to such a family.
As the name suggests, the consortium is a monopoly group of oligarchic fusion of a small number of financial groups. Such a consortium exists widely in the United States, Japan and South Korea, and if the consortium goes wrong, it will have a great impact on the country's economic development. "China is the only one in the world who can really be called a consortium." The Rong family can get this evaluation because they do not only have money, but combine the development of industry with patriotic salvation. Making money is not the real goal, patriotism and national salvation are the real purpose.
The Rong family did not start a business in the same era as it is now, they had to fight with foreign capital and survive in an era of continuous war. Even so, the Rong family has always insisted on doing public welfare and insisting on investing in the education sector. They know that the prosperity of a country cannot be separated from knowledgeable and cultured youth. If you understand the entrepreneurship of the Rong family, you will understand that it is not easy to be a century-old domestic product enterprise.
There was once an interesting news, Chinese traveled thousands of miles to Japan to buy smart toilets, and it was hard to return to China, only to learn that the so-called high-end goods were actually made in China. There are many small towns in China, that is, they specialize in oemting international big names and making some manual fees. There are countless cases that show that Chinese manufacturing can make more money as long as it is labeled a foreign label, and it can be praised for good quality. Under the influence of public opinion on the better quality of foreign brands, The growth of Chinese enterprises needs to work hard.
In the 1920s and 1930s, Chinese companies encountered more difficulties than today.2 At that time, it was not only about product quality, but also about national strength. When foreign invaders invade China, even the state cannot stand up and talk about what enterprises stand up. The Rong family grew up in such an environment. The first generation of the Rong family was Rong Xi, who was just a water transporter, dragging goods back and forth between Wuxi and Shanghai.
By the time of Rong Zongjing and Rong Desheng' generation, the Chinese market is no longer the same. Countless foreign capitalists have poured into China to set up factories to make money, and foreigners can do it, so why can't Chinese do it? In 1901, the Rong brothers established the first flour mill in Wuxi, called Baoxing Flour Mill. The factory opened by the Rong brothers is still the second modern enterprise in Wuxi, which shows how fast the brothers have gone in two steps.
The starting point of the Rong brothers, but covering an area of 17 acres, has four French stone mills, three wheat sieves, two powder sieves, and a small factory. Fortunately, the Rong brothers had business acumen, and after 9 years, the number of small factories increased tenfold. The Rong brothers became the famous "flour king" and "cotton textile king" in the country. The merchants of that era did not want to be mercenary now, and the Rong brothers wanted to "save the country through industry." Only when a country's economy is strong can it cause backbone confrontation with other countries.
At that time, the most fierce competition with the Rong family was foreign capital. They use their political superiority to suppress Chinese companies and use financial rules to suppress Chinese companies. In 1919, Japanese merchants opened a futures exchange in Shanghai, through which Japan controlled the trading prices of flour, cotton and other commodities. How much Money Chinese Companies Buy Raw Materials in the International Market and How Much Money They Sell, Whether They Say It Or Not, is controlled by this futures exchange.
On May 4, 1919, the May Fourth patriotic movement broke out in China, and all students and citizens spontaneously boycotted foreign goods. Seeing an opportunity to regain control of prices, the Rong brothers joined forces with 18 flour mills in Shanghai to establish a flour Shanghai exchange. In 1921, a gauze exchange was also established in conjunction with the cotton factories. Chinese companies banded together and finally regained the pricing power of flour and gauze.
In 1937, the Japanese captured Shanghai, which fell and caused Chinese companies to suffer heavy losses. The Rong family's business will either be blown up or robbed. If you fall behind, you will be beaten, knowing that this is all illegal, what can you do? Fortunately, the Rong family's factory in the concession was still working, and the Japanese even coveted this asset, asking the Rong brothers to sell the yarn factory to the Japanese Toyota Spinning Factory. Of course, the Rong brothers did not want to, they were bankrupt, and they did not want to give cheap to the Japanese.
The people who sent the negotiators did not understand, saying that "half of China's country and mountains are given to the Japanese, and there are two small spinning mills." Don't toast and don't eat the penalty wine. The Rong brothers said in awe, "I'd rather crush jade than be complete." "Even if the Ei family's hard work is wasted, it will not be possible to contribute to Japan." After the founding of New China, the Rong family continued to exert their residual heat in Chinese business, made great contributions to China's reform, and was truly a responsible "Chinese consortium".