Chapter 838 – Combination punches
“Manager Wei, I have said all I have to say, and it is up to you whether if you want to listen. Based on our agreement, you are breaching the contract. Don’t think you have special privileges just because you are from Taiwan!” Zhong Qingxian sat on the sofa, looking at the slightly shaken Wei Yingchuan.
Initially, no one wants Kang Shifu and Tongyi to join the alliance, but the Chairman of the Beverage Industry Association wanted to establish a good relationship with both straits and allowed these two companies to participate.
After joining the alliance, the rest of the companies also took care of these two Taiwanese companies, but these two companies disappointed everyone in the end.
Did they think they are Taiwanese companies, and they can do whatever they want? The Chinese government might be giving in to Taiwan to try to reconcile with them. But that does not mean the Taiwanese companies can ignore the agreement signed during the formation of the alliance.
“Mr. Zhong, we had met with some difficulties.”
“You don’t need to explain. I had already finished what I have to say, and this is the alliance’s decision. I will give you 3 days to consider.” Zhong Qingxian can’t be bothered to say anything more and left.
Back at the hotel, Li Jingwei entered Zhong Qingxian’s room.
“I had told Manager Luo, and he looks like he does not believe we can do anything to them.” Li Jingwei sneered.
“Kang Shifu is also the same. They thought we will tolerate their nonsense. I think we should act according to the contract and stop their payment for this month’s goods.” Zhong Qingxian replied coldly. Kang Shifu and Tongyi were selling tea beverages like Lehaha, and Lehaha is still China’s biggest tea beverage manufacturer. What they are doing will affect Lehaha’s profits.
“They are Taiwanese companies, and if we fall out with them, can we handle the aftermath? The Chairman still have not say anything.” Li Jingwei asked worryingly.
The relationship between China and Taiwan had been tense, and if this incident becomes an international dispute, it will be out of the alliance’s control.
“Manager Feng says he will handle this, and we don’t need to worry about all these. Manager Feng might be young, but he has relationships with the top brass of the government.” Zhong Qingxian was calm as he knows Feng Yu can handle all these troubles.
……
“Manager Feng, those two companies’ replies are the same. They claim their production had met with some difficulties, and everything will be fine after two months.”
Two months? They want to drag until we have opened up the markets and take advantage of it? Their replies after two months will surely be the same, and after the Chinese beverage brands had successfully established a foothold in the US next year, they will resume their supply to the overseas market. Meanwhile, they will increase their market share and profits in the Chinese market.
Fat hope!
“Ok. I will handle this!”
These two Taiwanese companies are trying to be funny? Fine. I don’t mind teaching them a lesson!
Now, it is all up to Feng Yu’s BML company. These beverage companies do not have any branch offices overseas and had to depend on BML company for payments of their goods. Feng Yu immediately call BML to hold the payments for these two companies.
……
“What? BML still has not settle last month’s payment? It’s been 3 days, why didn’t you tell me earlier?”
“Director, I thought it is because of the time difference between the US and China. When I called them, they told me our payments were being held by them. I tried to speak to the person-in-charge, but he is very firm. I have no choice but to call you.” Luo Zhixian called Gao Qinghui to report.
“They dare to hold our payments? Fine! I will contact Chairman Zhu now. I will make sure they regret this!”
“Director, they also held back the payments for Tongyi. I think we can work with them to pressure BML to release our payments. After all, we are all Taiwanese.” Luo Zhixian said.
“Alright, we will blow up this matter!”
Before Kang Shifu and Tongyi can blow things up, they realized they were reported.
CCTV’s <Oriental Horizon> reports about the beverage alliance in their latest episode. The program emphasized that the Chinese beverages formed this alliance to compete in the overseas market and mentioned Taiwanese companies and Hong Kong companies are also in this alliance.
But during the interview with one of the founders of this alliance, Lehaha Group’s Zhong Qingxian, he said something shocking.
“We chose the companies in the alliance based on their companies’ financial strength, scale, and brand awareness. This is to enter the overseas market together. During that time, a few Taiwanese companies wanted to participate in this alliance. After some consideration, we picked the strongest two Taiwanese companies. Actually, these two companies are not strong at all, and we are just helping them. This is also to improve its relationship with Taiwan.”
“But what happened in the end? After all the companies signed the agreement, we paid all the fees accordingly and tried our best to penetrate the overseas market. Some companies are just sitting there trying to reap the benefits without putting in the effort like the rest of us and even tried to hinder us. When our overseas Sales Representative Company asked them to deliver their goods, they could not deliver it. What they did had greatly tarnish our alliance’s reputation and our customers will lose their trust in us. They are tarnishing the reputation of China!” Zhong Qingxian got agitated.
“Chairman Zhong, sorry for interrupting. Can I ask which company is this? Or is there more than one company?” The reporter asked.
“They are all Taiwanese companies. One is Kang Shifu, and the other is Tongyi,” Zhong Qingxian replied.
“These two companies are selling instant noodles, right?”
“That’s right. They were selling instant noodles, and when they see our tea beverages selling well, they follow suit. I don’t mind them imitating our products, packaging and taste. But when doing business, we should abide by the rules. What are the rules? The rules are written in the contract signed by them!”
“You are saying they breach the contract?”
“It’s more serious than breaching the contract. They think they are Taiwanese companies and can take advantage of us. More than one month ago, they had already breached the contract, and when we approached them, they gave us all sorts of excuses. This beverage alliance is a non-profit organization and even our overseas sales company, BML, did not earn a single cent from us and even had to pump in some money. But these two companies were too much and we tried to speak to them again. But they still have the same attitude, which is to ignore the terms of the contract!”
“Chairman Zhong, how are you all going to settle this?”
“How are we going to settle this? We will go according to the terms of the contract. This contract is already beneficial to them, and they still chose to breach the terms. We will not take this lying down! We don’t care where they come from, they must abide by the contract and respect the laws!” Zhong Qingxian shouted.
……
“Damn! Zhong Qingxian, Lehaha, you all are trying to force us? Get the legal department to issue them a letter! We will fight them in courts!”
“Director, we cannot do this. According to the contract, we had breached the terms of the contract. Look at this term. The compensation for breaching the contract terms is 10 times the original amount. If we go to courts, we might have to pay them more!”
“Then tell me what we should do? Admit we are at fault?” Gao Qingyuan asked furiously.
“Actually, I think this is a good opportunity for us to enter the western countries’ markets. When Tongyi was first set up, we are also losing money for the first 6 years. After that, we used 2 years to recover the losses from the 6 years. Why don’t we just supply the goods according to the contract, and I believe they will release our payments after we give in as we are a Taiwanese company after all.” Luo Zhixian said.
“What is Kang Shifu going to do?”
“I heard they are going to their connections for help. How about we join them and use some of our connections? I believe Chairman Zhu should be able to help.”
“Alright. You must settle this matter properly! The Chinese market is too significant to us, and we cannot afford to lose it. You must turn our reputation around and if necessary, push all the blame to Kang Shifu. Understand?” Guo Qingyuan’s thinking was simple. If I am in trouble, my competitors must also be in trouble!
“Yes. I know what to do!”
