Hong Kong Tycoon: Starting from Delivering Dongfeng Express

Chapter 201 The Monopoly Dilemma
Shantou Port, wharf.

Watching the appliances being loaded onto the Liberation truck, a burly man in military uniform excitedly shook Ye Dongsheng's hand:
"Mr. Ye, thank you so much! This has really been a huge help to us!"

Division Commander Zhang, standing nearby, laughed and scolded, "Hey Old Ma, why don't you thank me? Without me, Old Zhang, how could you have gotten this good opportunity?"

This Division Commander Ma was from the Yangcheng Army, and he and Old Zhang were comrades-in-arms who had shared life and death. The appliances that were brought over were divided into two parts, with half going to the Yangcheng Army.

Commander Ma laughed and said, "Hehe, Lao Zhang, three bottles of Moutai, I'll thank you properly tonight, we won't leave until we're drunk!"

That night, after several bottles of Moutai, he was quite tipsy.

After listening to Old Zhang recount what had happened, Commander Ma thumped his chest loudly and said, "Brother Ye, don't worry! From now on, when you do business in Guangzhou, I'll make sure you never encounter anything like this!"

Ye Dongsheng smiled and raised his glass: "Then I must thank Brother Ma for his care! I'm about to visit a few departments in Guangzhou!"

Commander Ma's eyes lit up: "That's perfect! You'll come back with me! Which departments are you going to visit? The name of the Guangzhou Army still carries some weight!"

Ye Dongsheng didn't stand on ceremony any longer and said directly, "Actually, it's mainly the Provincial Post and Telecommunications Bureau."

Although they chased away Section Chief Li, who came for a surprise inspection a few days ago, and the local post office probably won't dare to mess with him again in the future, he did say one thing correctly: the postal monopoly!

Currently in China, the exclusive right to send letters, express deliveries, and parcels belongs to the postal service.

However, the postal service's exclusive right is not protected by law, nor are there any explicit provisions for what punishment will be imposed on others who deliver packages.

However, Ye Dongsheng had been thinking about this matter all along. If the postal service wanted to cause trouble, it could do so at any time. This time when he went back to Guangzhou, he had to go to the provincial post office to pay his respects and see what their attitude was. If he could win the operating rights, all the better. If not, he had to figure out the boundaries and see where the postal service's bottom line was.

"Provincial Post and Telecommunications Bureau?"

Commander Ma muttered it to himself, then thought for a few seconds before smiling and saying, "Leave this to me. I have plenty of comrades-in-arms, and I guarantee I'll get their leaders to come out for you!"

"Thank you so much, Brother Ma!"

Ye Dongsheng's face lit up with joy. With Commander Ma backing him up, the other party's attitude would definitely be much better after they were invited out!

"Hehe, if anyone should be thanking someone, it's me who should be thanking you. The source of wealth you gave our master is far more important than my small favor!"

Old Zhang picked up his glass and shouted, "Is it really necessary for you two to keep thanking each other like this? Come on, let's drink!"

"Great! Drink!"

A few days later, in Guangzhou, Dongfeng Express.

Ye Dongsheng was listening to Jimmy's report on the store's situation when the phone on the table suddenly rang. When he answered, Old Ma's hearty laughter came through:
"Brother Ye, I've arranged an appointment for you. It's the deputy director of the provincial post and telecommunications bureau, in charge of postal services. Is that enough?"

Ye Dongsheng laughed heartily, "That's enough, more than enough! As expected of Brother Ma, he always targets key figures! I'll host a banquet for him at the White Swan Hotel tonight!"

In a private room at the White Swan Hotel, Commander Ma smiled and said to Ye Dongsheng, "This is Director Lin Liang of our provincial postal service, in charge of postal business!"

"Director Lin, this is Boss Ye Dongsheng, a well-known Hong Kong businessman. He responded to the national call and returned to the country to invest and build, which has been a great help to our Guangzhou army!"

Ye Dongsheng extended both hands: "Director Lin, it's a pleasure to meet you!"

Director Lin also sized up Ye Dongsheng, and said with a smile:

"Mr. Ye, I've heard so much about you! Your Dongfeng Express made quite a splash at last year's Canton Fair, even provincial leaders and Mr. Huo praised you to your faces! You put a lot of pressure on us at the post office!"

"Not at all! Dongfeng Express can't compare to the old postal service. We just benefit from being based in Hong Kong and from the advantages brought by our reform and opening up. We only earn a little bit of delivery fees!"

Director Lin had met many Hong Kong businessmen before, and many of them were inherently arrogant and looked down on the poverty and backwardness of the mainland. However, this Mr. Ye in front of him was not at all pretentious, which made a good first impression on him.

Of course, the reason he came today was to give face to Commander Ma of the Yangcheng Army. Otherwise, why would he be so easy to talk to Dongfeng Express, his "enemy"?

Commander Ma said with a smile, "Gentlemen, don't just stand there, let's eat and chat!"

As the group took their seats, the table was filled with clinking glasses and laughter.

After a few meals and several rounds of drinks, Ye Dongsheng, seeing that the atmosphere was just right, spoke up:

"Director Lin, you are the head of Guangdong Provincial Post Office. I haven't been doing business here for long, and there are some rules I'm not familiar with yet. I need to ask you for guidance!"

Director Lin smiled and said, "You want to ask about that Dongfeng Express, right?"

Ye Dongsheng nodded repeatedly: "Director Lin, actually I've also dealt with some local post offices in other places, and they said that our post office has a monopoly and doesn't allow Dongfeng Express to do express delivery business. I just want to ask, is it really true that Dongfeng Express can't do it?"

Director Lin took out a cigarette, lit it, took a puff, and said, "Mr. Ye, the local post office is right. Letters, express deliveries, and other postal items are our postal monopoly; others cannot do them!"

Ye Dongsheng was prepared and remained calm, though a hint of anxiety appeared on his face: "But Director Lin, I had my lawyer go through all the relevant legal provisions, and it seems there isn't a single provision that prohibits other companies from engaging in express delivery services?"

Director Lin chuckled, then shook his head and said, "Boss Ye, you still don't understand us here! Ultimately, the law is enforced by people. Even if there are no specific written regulations, this rule was established when the country was founded, and no one dares to transgress it!"

He then chuckled and said, "Boss Ye, do you know why we haven't made a move against your Dongfeng Express?"

Ye Dongsheng shook his head.

"Actually, we knew about it when you opened your store in Guangzhou and caused a stir at the Canton Fair. At that time, the bureau had discussed Dongfeng Express, and some comrades had a lot of opinions about you, saying that you were infringing on our postal monopoly and wanted to shut you down."

However, at the Canton Fair, provincial leaders praised you, saying you had contributed to development, and we can't just immediately undermine their efforts.

Ye Dongsheng suddenly realized that it was all thanks to Old Huo. It was Old Huo who spoke well of Dongfeng Express to the leaders, which led to the leaders praising the company in public.

"Now that reform and opening up are underway, we are advocating for attracting investment. Guangdong Province is at the forefront, so we must also consider the impact and not dampen the enthusiasm of Hong Kong investors."

Furthermore, you Hong Kong businessmen always bring up the law, but as you just said, we don't have a legal basis yet, so we'll turn a blind eye to Dongfeng Express for now.

Ye Dongsheng astutely grasped a single word: "Temporarily?"

Director Lin nodded: "That's right! Mr. Ye, I'll also tell you something today. The relevant laws for our postal service have actually been drafted for a while now, and they will be submitted for review and approval this year."

"Once the Postal Law is enacted, we won't be able to pretend we don't see it anymore!" Ye Dongsheng immediately understood what the other party meant. It was a gap period before the Postal Law was enacted, and the other party had taken some factors into consideration and had not taken action against Dongfeng Express.

However, once the Postal Law is enacted, with legal backing, the postal service will no longer ignore Dongfeng Express and may very well shut it down directly!
Ye Dongsheng immediately asked, "Director Lin, when will the Postal Law be promulgated?"

"I reckon it'll happen either by the end of this year or early next year. Mr. Ye, you should be prepared!"

If it's the end of this year, then there's still a year left.

However, Ye Dongsheng was not satisfied with just letting Dongfeng Express operate for another year. He wanted to make Dongfeng Express the foundation for its long-term development!

"Director Lin, I wonder if you could offer some suggestions regarding the drafting of the Postal Law..."

Before Ye Dongsheng could even speak, Director Lin waved his hand to interrupt him, saying decisively:

"Impossible! We're all on the payroll from the postal service, who would dare to suggest giving up the franchise? Anyone who dared to say that would be hated by the entire postal service and could forget about ever working here again!"

Ye Dongsheng quickly cupped his hands and said, "I'm sorry, Director Lin, I was being presumptuous just now!"

Director Lin exhaled a puff of smoke and looked at Ye Dongsheng, saying:

"Mr. Ye, don't blame me for being blunt, but no one can do this!"

Let me put it this way: the Postal Law isn't just for Guangdong Province; it involves legal provisions from over thirty provinces across the country. Trying to influence the drafting of the Postal Law and decentralize the monopoly is futile, not even the words of a lowly deputy director like me, or even those of the provincial leaders!

The interests involved in the franchise are too great, affecting employees across the national postal system. It's simply impossible to touch it, otherwise it would be tantamount to making an enemy of the entire postal service.

Ye Dongsheng shook his head and said, "Director Lin, I understand that I definitely cannot touch the relevant provisions of the Postal Law and patent rights. But as you just said, in our area, the law is enforced by people."

Could you please, Director Lin, point me in the right direction and get the Guangdong Provincial Postal Service to make some concessions and open a channel for our cross-border express delivery?

Director Lin, actually, our cross-border express delivery doesn't mean to steal the postal service's business. Think about it, our customers are all factories invested in by Hong Kong businessmen. Even if we are shut down, can they really tolerate EMS's delivery time of more than 10 days?

I estimate that most of them won't be able to, and they'll still have to find someone to train them themselves, which will reduce the factory's operating efficiency and increase the trouble.

Therefore, our cross-border express delivery business will not affect the postal monopoly at all!

Director Lin was silent for a moment, then shook his head and said:

"Boss Ye, it's not that I don't want to help, but I really can't. I don't have that much ability."

First of all, I have neither the confidence nor the reason to convince the people in the bureau on my own. Even if I could convince the people in the provincial bureau, there are still the local post offices.

You have to understand, local postal services have a lot of autonomy, and sometimes they don't necessarily listen to what our province says.

Ye Dongsheng understood what the other party meant. After the "Postal Law" came out, if he wanted the postal network in Guangdong Province to turn a blind eye to Dongfeng Express, he had to get all the local post offices and the provincial post office in Guangdong Province on his side.

This "getting things done" doesn't mean having a powerful backer in the local area, like having Lao Zhang protecting him in Chaoshan. It means getting the other party to willingly refrain from doing anything to him.

Otherwise, once the Postal Law is enacted, there will be a legal basis for action. If the other party uses the franchise right to argue that you are operating illegally, no matter how tough you are, you won't be able to stand up to the law.

Division Commander Ma also chimed in, asking, "Director Lin, is there really no other way?"

Director Lin shook his head and said to Ye Dongsheng again, "Mr. Ye, you should start preparing for this year as soon as possible!"

After seeing Director Lin off, Division Commander Ma patted Ye Dongsheng on the shoulder: "Brother Ye, don't be discouraged. What Director Lin said may not be entirely accurate. I'll find someone else to ask him for you!"

Ye Dongsheng shook his head and said, "Brother Ma, there's no need to trouble yourself. Director Lin is in charge of the Guangdong Provincial Post Office. No one will know more about it than him."

He then smiled and said, "Thank you, Brother Ma. I'll think about it some more!"

Old Ma sighed inwardly, "Alright, if you need any help, just let me know!"

Ye Dongsheng was pondering why Director Lin's attitude was so resolute, leaving no room for negotiation. It was because once the Postal Law was promulgated, all courier shops on the market would be shut down.

In his previous life, Wang Wei founded SF Express and continued to do the same thing.

Before the new Express Delivery Law was promulgated in 2009, all express delivery companies, including SF Express, STO Express, YTO Express, ZTO Express, and Yunda Express, were illegal because they infringed on the postal service's monopoly. So why did these express delivery companies survive?

Ye Dongsheng reviewed the development history of these express delivery companies in his mind and finally came to a conclusion: timing!

The biggest difference between Dongfeng Express and those other companies is that it was founded several years earlier.

The establishment of SF Express and the "Three Tongs and One Da" (STO Express, YTO Express, ZTO Express, and Yunda Express) all occurred after Deng Xiaoping's Southern Tour in 92. At that time, the reform and opening-up policy was more robust and determined. Therefore, even though private express delivery companies emerged, the government tacitly accepted the situation and allowed them to proceed cautiously. As a result, the postal service could only accept it reluctantly, constantly cracking down on and fining these express delivery companies, but did not fundamentally eliminate them.

But it's only 86 now, and the current atmosphere is quite different from that after Deng Xiaoping's Southern Tour in 92, even in Guangdong Province, which is already the most open-minded.

Ye Dongsheng sighed. There were advantages to starting early; there wasn't as much competition, and they almost controlled the entire market in less than six months. But now, it seemed, there was a price to pay!

"Mr. Ye, didn't he say he'd get all the post offices in Yue Sheng Post Office sorted out? Well then, we'll feed them! From the local level to the provincial level, we'll take care of every single post office, one by one. I don't believe they won't take the money!"

Hearing Jimmy's words, Ye Dongsheng did not object:

“That’s one way. But if it gets out, it’ll cause a lot of trouble. You don’t understand, people here are different from those in Hong Kong. There are still a lot of people here who have faith, and not all of them are driven by money.”

Jimmy scratched his head. In fact, during the few months he had been here, he had come into contact with these people of faith that Ye Dongsheng had mentioned. In his opinion, they were rigid and inflexible, but sometimes he couldn't help but admire their principles.

Ye Dongsheng looked at Jimmy and said, "Think about this method yourself first. Giving money directly is too simple and crude. Giving gifts is also an art. It's best to grasp the other party's needs. For example, I built a canteen for the customs. It's not illegal and it satisfies them."

Jimmy nodded and kept those words in mind.

If there are no other options, Ye Dongsheng will definitely have to try feeding the entire system.

However, it's not necessarily true, as Director Lin just said. In fact, if one could get to know a higher-ranking bigwig who firmly supports reform and opening up and is willing to speak on one's behalf, then the existence of Dongfeng Express might not be impossible to make an exception for.

There's still a year left, so there's still a chance!
P.S.: Sorry, I've been busy and experiencing writer's block, I'm feeling a bit down. I'll make up for it with two chapters tomorrow.
(End of this chapter)