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Chapter 1031 Data Overwhelms, the Prime Minister's Office is Silent!

In the reception room, the Iron Lady's gaze fell on Lin Haoran, and a polite smile appeared on her face: "Mr. Lin, welcome to 10 Downing Street."

Lin Haoran quickly stepped forward and shook hands with Margaret Thatcher: "Your Excellency, you are too kind. It is my honor to be invited here."

Margaret Thatcher then turned to Bao Yugang, her smile becoming even more amiable: "Sir Bao, it's been a while since we last met. You look to be in good health."

"Thanks to His Excellency the Prime Minister," Bao Yugang said with a smile, "my health is recovering quite well."

“That’s good.” Margaret Thatcher nodded. “I’ve prepared a feast. Please come with me.”

After speaking, Margaret Thatcher stepped aside and led the way, taking Lin Haoran and Bao Yugang through the reception room and towards the banquet hall next door.

Lin Haoran followed behind, his gaze sweeping over the ministers present without making a sound. In addition to Minister Lawrence, there were the Foreign Secretary, the Chancellor of the Exchequer, and several senior advisors from the Prime Minister's Office. He had met them all three years ago when he came to the UK with the Hong Kong delegation.

Everyone was sizing him up, their eyes filled with both curiosity and scrutiny, as if assessing just how much weight this young tycoon from the East really carried.

The banquet hall was not large; a long table was covered with a white tablecloth and set with exquisite silver cutlery and crystal glasses.

In the center of the table was a bouquet of white lilies, emitting a delicate fragrance.

As dusk deepened outside the window, the lights of London lit up one by one in the distance, streaming into the room through the floor-to-ceiling windows and adding a touch of warmth to the solemn occasion.

It was indeed a small banquet. Lin Haoran and Bao Yugang each brought one person, making a total of four people. On the Prime Minister's side, apart from the Iron Lady and a few ministers, there was no one else. There were no more than 10 people in the entire banquet hall.

Margaret Thatcher sat at one end of the long table, gesturing for Lin Haoran to sit to her right and Bao Yugang to sit to her left. The other ministers took their seats in order, while Davis and Bao Yugang's assistants sat at the very back.

Lin Haoran was somewhat surprised; this seating arrangement truly astonished him.

It seems that the Prime Minister's office values ​​him more than he imagined!

Before the dinner officially began, the Iron Lady picked up her water glass and raised it slightly to Lin Haoran and Bao Yugang: "Mr. Lin, Sir Bao, I wish you both a very successful trip to England."

Lin Haoran also raised his glass and bowed slightly: "Thank you for your kind hospitality, Prime Minister."

Everyone raised their glasses, clinked them together lightly, and took a sip.

After the wine glasses were set down, the formal dinner began.

The menu is not complicated. The appetizer is a light fish soup, the main course is roasted lamb chops with seasonal vegetables, and the dessert is a classic English pudding.

The tableware was made of silver, gleaming warmly in the candlelight, exuding an old-fashioned British elegance and restraint.

During the meeting, Margaret Thatcher did not rush to discuss serious matters, but instead chatted about some light topics, such as the weather in London, the changes in Hong Kong, and Lin Haoran's investments in the United States.

She steered the conversation to a deeper level in a natural and casual manner.

“Mr. Lin, your investments in New York have been very successful.” Margaret Thatcher put down her knife and fork, and gently wiped her mouth with a napkin. “Buying forty-five buildings at once is a rare feat in New York history. You seem to have a particular fondness for real estate?”

Lin Haoran smiled slightly: "Real estate is part of my investment portfolio, but not all of it. I prefer a diversified portfolio, including real estate, finance, manufacturing, and technology. The US market is just one part of it."

"So, where does Britain fit into your global strategy?" Thatcher asked a very insightful question.

Lin Haoran thought for a moment and said, "The UK is one of the markets I value very much. It has a profound historical heritage, a mature legal system, a developed financial market, and world-leading scientific research capabilities."

I have invested a lot of money in the UK, and the headquarters of most of my major groups in Europe are located in London, which is enough to prove how much I value the UK.

The UK economy is currently undergoing a transformation, and I believe that as economic reforms progress, even greater opportunities will emerge.

Margaret Thatcher nodded, a look of approval in her eyes: "Mr. Lin has a very insightful view. Reforms in Britain are indeed accelerating, and we welcome far-sighted investors to participate."

The banquet ended in a harmonious atmosphere.

After leaving the banquet hall, the group arrived at a reception room that was nearly 100 square meters in size.

This reception room was more spacious than the previous one, with several oil paintings hanging on the walls and the fireplace burning brightly, making a soft crackling sound.

London in March is still very cold, with changeable and rainy weather, and the temperature at night is only around 5 degrees Celsius.

Several sofas formed a semi-open conversation area, with tea sets and delicate snacks already laid out on the coffee table, clearly prepared in advance.

Margaret Thatcher led Lin Haoran and Bao Yugang to sit on the sofa, and the other ministers also took their seats, forming a semi-circular conversation area.

After the staff closed the door, the reception room fell into a brief silence.

At this point, the British Secretary of State for Business and Trade, Lawrence, spoke up: "We have all heard about Mr. Lin's achievements in the United States. Your judgment of the economic situation is very accurate, especially your public speech before the US stock market crash, which was very impressive."

Upon hearing this, Lin Haoran humbly replied, "Minister Lawrence, you flatter me. That was just a lucky judgment. That's how the financial market is sometimes. Being accurate in your judgment doesn't guarantee you'll do it right, and doing it right doesn't guarantee you'll make money. I just happened to be on the right side in that particular judgment."

Before coming to the UK, Lin Haoran made the necessary preparations and gained an in-depth understanding of the British economic situation.

Although he said that, Lawrence did not believe him.

Lawrence is an expert in the field of economics, which is one of the reasons why he was able to serve as the UK's Secretary of State for Business and Trade.

In Lawrence's view, if it were really just luck, Lin Haoran wouldn't have achieved his current status.

Once or twice is luck, three or four times is skill, and almost every major investment he has made over the years has been precisely timed, which can no longer be explained by luck.

The other ministers, however, were skeptical.

Unlike Lawrence, they were not experts in economics.

Lin Haoran was too young. Judging by his appearance alone, it was hard to believe that a young man not yet thirty could offer any valuable advice on the economic difficulties of an established industrial nation like Britain. In their eyes, Lin Haoran was more like a lucky speculator than a true entrepreneur who understood economic and industrial principles.

Nevertheless, none of the ministers interrupted.

"Mr. Lin should have some understanding of the economic situation in Britain, right?" Minister Lawrence continued.

Lin Haoran nodded and said, "I do know a little about it. As far as I know, Britain fell into stagflation starting in the 70s, and its GDP suffered negative growth for two consecutive years from 1980 to 1981."

Although last year was considered a step out of the recession, the foundation for recovery remains very fragile. While GDP may have returned to positive growth and inflation may have fallen sharply, this is only a numerical recovery. The structural contradictions accumulated over decades since the war have not only not been resolved, but have instead erupted during the painful period of reform.

The UK is currently facing a fundamental structural adjustment problem. Traditional manufacturing is shrinking, and emerging industries have not yet fully matured, creating a gap in the economy. Coupled with the slow global economic recovery, this has indeed put significant pressure on the UK economy.

Lin Haoran paused for a moment, then continued, "For example, the latest number of registered unemployed people in the UK is close to 300 million, and the annual unemployment rate exceeds 11%, which is the highest level since the Great Depression of the 1930s."

The reason why the unemployment rate is so high is essentially due to structural unemployment caused by the permanent clearing of manufacturing capacity.

In just four years, from 1979 to 1983, the UK manufacturing sector lost 1.5 million jobs, with a large number of traditional industrial jobs disappearing completely, and economic growth was unable to bring jobs back in tandem.

Britain's traditional manufacturing industry has three pillars: automobiles, steel, and shipbuilding. However, these three pillars have collapsed in recent years. For example, automobile production has plummeted from 200 million vehicles per year in 1970 to just over 100 million vehicles today, with the domestic market share being continuously eroded by Japanese and German automakers.

For example, in the steel industry, Britain's crude steel production was close to 3000 million tons in 1970, but has now fallen to less than 1500 million tons, with more than half of the capacity being shut down.

In 1979, British Steel employed more than 8 workers; today, it employs fewer than 3.

As for the shipbuilding industry, it has been almost completely wiped out. British shipyards, which once accounted for more than half of the world's merchant ship orders, now have a global market share of less than 2%.

Lin Haoran could readily cite these data, clearly demonstrating a deep understanding of the predicament of the British economy.

There was a few seconds of silence in the reception room.

The ministers exchanged glances, their eyes filled with shock.

Is this what you call knowing a little bit?

The ministers present looked at each other, and the same thought popped into their minds at the same time.

They initially thought Lin Haoran was just making a few polite remarks, but they didn't expect him to have such a precise grasp of British economic data. He could recite the specific production figures for the steel industry, the changes in automobile production, and the market share of the shipbuilding industry off the top of his head, without the slightest error.

They were well aware of what Lin Haoran was saying, but being pointed out so clearly by a young businessman from Hong Kong still made them feel subtly embarrassed.

The other party has an excellent understanding of the British economy!

At this moment, the ministers' attitudes toward Lin Haoran began to change.

The ministers who had initially looked down on Lin Haoran now regarded him with completely different eyes.

This isn't some lucky speculator; this is practically an expert who knows the British economy inside and out!

Even cabinet ministers like them might not be able to remember the exact figures for steel production, the changes in automobile production, or the market share of the shipbuilding industry so precisely.

The young man in front of me, who was not yet thirty, recited the words as if they were from his own account book, without a single mistake.

Margaret Thatcher remained unfazed and even nodded slightly: "Mr. Lin's research on the British economy is indeed very in-depth. The problems you mentioned are the difficulties we are facing now, and they are also the problems we are working hard to solve."

Mr. Lin has achieved remarkable success in the field of economics and has a thorough understanding of the British economic situation. I believe you must have unique insights into the British economic situation.

Since you have such a deep understanding of the British economy, what do you think is the best way to restore Britain to its status as the world's factory and create jobs for everyone?

Margaret Thatcher's words were both a request for advice and a test.

She knew Lin Haoran couldn't offer a panacea that could immediately revitalize Britain's manufacturing industry, but she wanted to see his thinking. What advice would a top investor with precise global reach offer in the face of Britain's structural predicament?

All eyes turned to Lin Haoran, including Bao Yugang's.

This is no ordinary problem; it's a problem that even the British government itself can't solve, yet it's now being thrown at a young man from Hong Kong.

Upon hearing this, Lin Haoran inwardly scoffed.

These British high-ranking officials are still clinging to old dreams, fantasizing that one day they can return to the era when the British Empire was at its industrial peak.

But history has proven that that era is gone forever.

Britain is no longer the world's factory, nor the leader of the Industrial Revolution.

It needs to face reality and find its place in the new global economic landscape.

Of course, on the surface, Lin Haoran did not show any disdain. Instead, he nodded slightly and said sincerely, "Your Excellency, the answer to this question may not be what everyone wants to hear."

He paused, his gaze sweeping over the ministers present, before slowly saying, "Your Excellency, to be honest, it is almost impossible for Britain to regain its status as the world's factory."

The atmosphere in the reception room froze slightly after those words were spoken.

The ministers all looked somewhat uneasy, and some even showed a hint of displeasure.

But Lin Haoran didn't pause and continued, "Because the world has changed. Low-end manufacturing is shifting to developing countries with lower labor costs. This is an irreversible trend, and Britain, as a developed country, cannot compete with those countries in this regard."

Moreover, global industries are undergoing a division of labor shift, and the rise of manufacturing in Germany and Japan is an inevitable trend. In my view, a reasonable reform goal is never to prevent deindustrialization, but to make the transformation process smoother and less costly to society.

The UK should use the growth in finance and services to absorb employment, use selective industrial policies to preserve the foundation of high-value-added manufacturing, and use social security and training to buffer the growing pains, ultimately smoothly transitioning from an 'industrial nation' to a 'services and high-end manufacturing nation'.

As soon as the words were spoken, everyone began to ponder. (End of Chapter)