Chapter 451 |
There are numerous international organizations and conferences in the world.
In the economic sphere, the largest conference is the famous World Economic Forum. It is held annually in Davos, Switzerland, hence it is also called the Davos Forum.
Leaders, entrepreneurs, investors, economists, and journalists from various countries attend to discuss the problems and solutions of the world economy, and the reports and statements that come out of it have a great impact on the world economy.
The eligibility requirements for participation are extremely strict. Only invited individuals can participate, and in addition to the annual membership fee of $17,000, they must also pay for participation and accommodation separately.
Due to the high cost and the exclusive nature of the gathering, it is sometimes derided as a high-end social club.
Moreover, it tends to represent the interests of the Western world and is dominated by mainstream American economics, so there is considerable opposition to it.
To counter this, three years ago, China, Russia, and India took the lead in creating the Asian Economic Forum.
Although China and India are usually at odds, they agreed on the need for an international conference free from Western influence, and Russia stepped in to mediate between them, allowing the forum to be launched.
ASEAN countries, which are heavily influenced by China, as well as Central Asian countries under Russia's influence, also signed on as founding members.
Korea did not participate as a founding member due to its consideration of the United States, but as the name is the Asian Economic Forum, it stealthily listed itself as a participating country for geopolitical reasons.
The first forum was held in Beijing, China, the second in Mumbai, India, and this time it is Russia's turn.
Contrary to everyone's expectation that it would be held in Moscow, Russia chose Vladivostok as the forum's location.
Russia is the country with the largest territory in the world, but most of it is frozen tundra or wasteland where people cannot live. The distance between cities is as great as the distance from Asia to Europe, so the regional imbalance is severe.
Compared to the capital, Moscow, or St. Petersburg, which is adjacent to Europe, the Far East region is very underdeveloped.
Vladivostok is the gateway to the Far East. Choosing it as the forum's location shows the Russian government's will to develop the Far East.
President Vysotsky announced that he would build three TWRs in Vladivostok, following the one in Kaliningrad.
His plan is to use this forum as an opportunity to sell TWRs and at the same time attract factories to the Far East by expanding the power infrastructure.
President Vysotsky called me.
[Isn't it about time we saw each other? Come visit with your fiancée. Vladivostok is also a good resort.]
The reason he's calling me is to promote the forum and the TWR, right?
The president is personally requesting my attendance, so it's not easy to refuse. And since Russia is the host country, Professor Petrov will of course attend, and Professor Mohan has also decided to come.
This is my first time at such a forum, so I'm a little interested.
I readily replied.
"Alright. I'll see you in Vladivostok."
***
I flew to Vladivostok with Ellie on a private jet.
After arriving in Vladivostok, we moved to the hotel and unpacked our luggage. Ellie laid out and sorted the items she had bought at the duty-free shop.
"This is for your mother, this is for Jessica. Oh! This is mine. How do I look?"
Ellie posed with a bag on her shoulder.
"You look great."
When she bought it, the duty-free shop staff also praised her, saying she looked like a model. It was probably just lip service they say to everyone, but half of it must have been sincere, right?
We rested for about an hour and then got ready to go out.
Ellie washed up and dressed neatly in a suit, and I also changed into a suit I had brought with me.
We took the prepared car to the forum venue.
***
The opening ceremony of the 3rd Asian Economic Forum was held grandly.
I shook hands with President Vysotsky. He slapped my shoulder hard and said.
"Welcome. Was your journey uncomfortable?"
"Not at all. It was a short trip since it's close."
"Haha, that's Vladivostok's biggest advantage. You should consider doing business here."
It's Minister of Commerce Li Xuewei. He greeted me by shaking my hand warmly, as if meeting an old friend.
We continued to exchange greetings with many people in a flurry. Everyone was eager to offer their congratulations on our marriage.
During the forum, there were summits and closed-door meetings between leaders, as well as business meetings between entrepreneurs and investors.
***
The United States leads the world economy, and economics is also the most developed there. Therefore, the Nobel Prize in Economics has been almost exclusively won by Americans.
However, China, with the world's largest population and the second-largest economy, also has many outstanding economists.
The most famous among them is Professor Yu Hewei of the Department of Economics at Peking University.
China was a communist country in the past, and after adopting capitalism, it adopted a state-led development strategy.
He was originally a famous economist, but he gained international fame for accurately predicting the collapse of the Shanghai Composite Index in 2015.
At that time, the stock market, which had been hovering in the low 2000s, soared to over 5000 thanks to the Chinese government's strong stock market stimulus measures.
People thought that a full-fledged bull market had begun, and even monks and housewives rushed to securities firms with their money to buy stocks.
Until then, no one paid attention to Professor Yu Hewei's warnings about the overheating of the stock market.
However, after hitting its peak, the Shanghai Composite Index plummeted by more than 40 percent in just two months.
Almost all stocks were cut in half, and in some sectors, there were many stocks that fell by 80-90 percent.
The situation was so serious that it was said to be the beginning of the collapse of the Chinese bubble and a signal of a global economic recession.
Fortunately, thanks to the Chinese government's various efforts, the plunge was barely calmed down. The Shanghai Composite Index is still nowhere near its previous peak.
I wore an interpreter in my ear, but Ellie, who can speak Chinese, listened without one. I asked her in a low voice.
"Is it okay to give a presentation pointing out the problems of the Chinese economy at an international forum like this?"
Ellie also said in a low voice.
No matter how famous an economist he is, he would not be able to give a presentation that goes against the will of the party. It should probably be seen as being within a certain permitted range.
You need to have this kind of background to be able to criticize the party and not be dragged away by the public security bureau.
The private jet was loaded with bags and cosmetics purchased at the duty-free shop last week.
"It feels like we're going on vacation."
Ellie shook her head.
"A vacation, what are you talking about? We're going for work."
Officially, it's a business trip as an employee of the Golden Gate Korea branch. Isn't an international event like this an extension of work? Besides, the president personally asked us to come.
"Then why are you looking at a travel guide?"
"Hehe, I'm just going to look around for a bit after work."
"..."
For someone who said that, she bought a new bikini to wear at the hotel pool. I didn't bother to stop her because I wanted to see her in it.
The flight time to Vladivostok is about 2 hours. Since Korean national carriers cannot fly through North Korean airspace, the private jet took a detour.
In the meantime, I looked at the list of attendees.
President Vysotsky, the head of the host country, will of course attend, and many Asian leaders will also come. President Heo Chang-min is scheduled to come with the Minister of Foreign Affairs and the Minister of Unification, and many Korean business leaders will also attend.
The largest contingent is, of course, from China.
Both China and Russia are sparing no expense in their investments, as they plan to turn the Asian Economic Forum into a world-class economic forum that can rival the Davos Forum.
Since the launch of the Asian Economic Forum, both countries have not attended the Davos Forum, and business leaders and scholars who are mindful of the government have naturally stopped going.
The United States is not pleased with this forum led by China and Russia, but it has not imposed any particular sanctions on the participation of private companies and individuals.
On the other hand, a large number of economists from the United States and Europe attended this time. The biggest reason is that the Chinese side paid for their invitation and accommodation.
Was it too much money to refuse?
Thanks to this, both the number of participating countries and the number of participants reached an all-time high.
The 5-star hotels near the convention center where the forum was held were filled up long ago, and other hotels were also fully booked.
Therefore, Airbnb was booming, and the citizens of Vladivostok were making pocket money by renting out rooms or entire 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 the Russian manufacturing industry. Therefore, CarOS is building a factory in Kaliningrad.
In addition, Eunsung Motors is operating a factory on the Russian mainland. In the future, these factories will be sequentially converted to electric vehicle production lines.
Currently, the Russian economy is in a slump due to Western sanctions.
To overcome this difficulty, President Vysotsky is pursuing a strategy of strengthening cooperation with Asian countries while trying to improve relations with Europe through TWR cooperation. That's why he chose this place as the forum venue.
After finishing his greetings, President Vysotsky went to talk to other people, and in the meantime, a group of men approached us.
"Haha! It's been a while, Mr. Kang."
"I sincerely congratulate you on your marriage."
"Thank you."
"Haha, Mr. Kang's connection with China is quite special."
Minister of Commerce Li Xuewei then also greeted Ellie. Ellie gave a bitter smile but said nothing.
Chairman Zhang Pinghua is scheduled to come only for the closing ceremony, so we won't run into him. Professor Petrov and Professor Mohan are scheduled to come the day after tomorrow.
He is also often mentioned as a candidate for the Nobel Prize in Economics, but it will not be easy as he is far from mainstream economics.
Through these unique processes, Chinese economics has particularly developed in the field of planned economy.
Although it is far from mainstream economics, there are many theories that countries that have just started economic development can refer to.
I listened to Professor Yu Hewei's presentation. He spoke in detail about the problems that the Chinese economy is currently facing.
The three major problems of the Chinese economy, also known as the gray rhinos, are corporate debt, the real estate bubble, and shadow banking. He showed data and pointed out that these problems are not temporary but structural.
"Right now, we must prioritize solving the accumulated problems, even if it means sacrificing some economic growth. Otherwise, we will face irreversible consequences."
"The party also needs someone to appropriately voice opposition. That way, it looks like they are allowing academic freedom, and they can pretend to listen to criticism. And it's also good to use as an excuse when they change their economic policy later."
It is impossible to achieve conflicting economic goals simultaneously. If you start industrial restructuring, the growth rate will decrease and unemployment will increase. This is why the ruling party has no choice but to neglect the problem, even though they know they have to solve it.
I nodded my head.
And Professor Yu Hewei's grandfather went on the Long March with Mao Zedong, his father and brother worked in high-ranking positions in the Ministry of Finance, and he himself is an advisor to the Ministry of Commerce.
As I listened to the lecture, I suddenly became interested.
"I think I need to meet that professor."
***
After the presentation, I went to see Professor Yu Hewei.
"Hello, Professor. I enjoyed your lecture."
He was pleased to see me.
"You're CEO Kang Jin-hoo. I was surprised to see you sitting there earlier."
"If you have time, would you like to have a cup of tea?"
He looked at his watch.
"I have an appointment, but I have about 40 minutes."
We moved to a place where we could avoid people's eyes.
Well, even if we avoid people's eyes, the story will probably have already reached the Russian and Chinese sides. In any case, I plan to meet and listen to various economists.
"In your lecture earlier, you mentioned the possibility of an economic crisis in China. How high do you think the probability of it happening is?"
At my question, Professor Yu Hewei shook his head.