Extraordinary Genius - Chapter 687
Chapter 687 – The Higher-ups acted
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Norio Ohga refused to resign. The Chairman still had not saidanything. When the Chairman picked him to be the acting President of Sony, hewas supportive of him.
That night, Norio Ohga and the rest were looking at theNYSE. That’s the battleground of Sony’s financial war. If their share pricesthere drops, they will suffer massive losses.
Sony had taken a series of measures, like the shareholdersannouncing to the public that they will increase their stakes and announcingthe dividends for this year. They hope the shareholders will not dump theirshares. This way, their share prices will not plummet drastically.
But when the market opens, Sony, Toshiba, and the other twocompanies’ share prices plunged. In less than 10 minutes, their share pricesfell by 5%, and it was still falling.
The US had also reported China’s news on this incident.Everyone knows that Sony, Toshiba, and the other two companies’ factories inChina were sealed.
When this news was released, all the shareholders felt thecost of Sony, Toshiba, and the other two companies will skyrocket. How couldthey still give out dividends?
The US market was doing well, and there were many companiesworth investing. The investors have no reason to hold on to the shares of thesefew companies.
This news was spread by Fu Rongqi’s men. This more seriousthis crisis was, the harder the share prices will fall.
Of course, Sony, Toshiba, and the other two companies’offices in the US also tried to save the situation. They kept announcingpositive news to cover up the negativity. Their share prices were fluctuating,but it still continues to fall. This panic selling was unstoppable.
Many people felt that the Chinese Government will penalizethese companies and will create more problems for these companies.
Everyone’s guess was right. The Chinese Government issued astatement on this incident. The first to speak out was the Mayor of the Cityreported in <Focus Report>. He came out to apologize for failing toregulate these factories. He had already suspended the operations of thosefactories and arranged for all the workers to undergo medical checks. He hadalso sent all his environmental-related departments to try to salvage theenvironmental pollution.
All the expenses from these measures will be borne byToshiba. Toshiba will also have to take care of all the medical treatments ofthe workers. The City will take Toshiba to the courts for their damage to theenvironment. Currently, Toshiba’s accounts in China were frozen!
This was only the first step. The Chinese government hadalso sent out several investigation teams to investigate all Japanese factoriesin China. The factories include electronic factories, chemical factories, andother heavy industries. There was no more trust for the Japanese companies inChina.
The action of sending out investigation teams showed theattitude of the Chinese Government. They will not let this incident go by soeasily and were treating this matter seriously.
Many Chinese leaders from various ministries publiclyannounced that they will pursue this matter and disciplinary actions will betaken against those officials who allowed those factories to operate this way.
Warnings were also issued to all government officials. Theyshould not cover up for those companies in return for political credits. Nomatter what the reason was, the people of China must come first.
Those who try to develop the economy of their regionsblindly and ignore the safety of the citizens and the environment should beremoved from their positions. China does not need such investments to develop!
At the same time, warnings were issued to the companies inother regions. Companies would be punished severely if their factories werefound to have polluted the environment!
China supported the decision of freezing the bank accountsof those companies involved in this saga. The government will melt out severepunishments to them. Even if they move out of China, the Chinese Governmentwill still pursue them internationally!
After this news was aired on CCTV, the whole nation cheered.All the major newspapers reported about this, and many people started to writein or call in to whistleblow on the factories that were causing pollution allover China.
The local authorities panicked. They immediately start toclamp down on the factories under their charge. Once they find any wrongdoingsby a factory, the factory will be suspended immediately for investigation.
Feng Yu did not expect the Central Government to take such aserious view on this incident. But this was a good thing, unlike the governmentin his previous life.
In Feng Yu’s previous life, the government brought in lotsof foreign companies to make money. But in the end, the government got to spendmore money to clean up the pollution caused by those companies. The people atthat time did not get to enjoy the economic benefits brought in by thosecompanies. Instead, most of the people in that region, where the factorieslocated fell sick.
Feng Yu looked down on those local officials. How could theyclaim they were not aware of what the factories were doing under their charge.They can’t claim that they were not aware that those companies were dealing inheavy industries and could damage the environment.
Feng Yu felt that the suspension of those factories was onlya temporary measure for them to lie low until the wind blows over. Who knowswhether if these factories will carry on operating and continue to pollute theenvironment after the dust had settled. After all, the local governments stillhave to depend on these factories for taxes.
Feng Yu could even guess what those companies bosses weredoing now. They should be at the local government leader offices negotiatingwith them. If they are supposed to be fined 1 million RMB, they will send giftsworth 500,000 RMB, in exchange for the government to not fine them and lift thesuspension.
How to settle the whistleblowers’ complains? There were lotsof ways to prove that there were no pollutions. The local government mightimpose some measures and light punishments to those factories and then let themcontinue to operate as before secretly. No one would know.
Even if someone found out about this, what can a civilian doagainst the local authorities? Giving some benefits to that civilian will besufficient to silence him. The most crucial factors in this crackdown were theattitude of the government officials and transparency. These were the source ofthe problem.
This news dealt a heavy blow to Sony, Toshiba, and the restof the companies. Some other Japanese factories in the chemical industry werealso exposed. All these companies’ share prices plunged overnight.
Now, the Japanese Government could no longer sit still. Allthose factories were suspended, and their bank accounts were frozen. The companiesinvolved still had to compensate the Chinese Government for their damages tothe environment. These had a significant impact on Japan’s economy.
Even before the compensations, the share prices of manyJapanese companies had fallen and caused the Japan stock market to crash. Inonly two days, the total losses amounted up to a few billion USD.
If this carries on, it will become a crisis for Japan. TheJapanese economy had just shown slight improvements, and everything will beback to square one.
Now, Japanese factories all over the world were in crisis.Even those factories that complied with the regulations were suspended forchecks.
How many losses will a company suffer if their factorieswere suspended for one day? No companies will agree to this. But now, there wasa trust issue with Japanese companies. Everyone in the world was suspectingJapanese factories were did not meet the required standards. Their factories’waste discharge were harmful to the environment and will cause serious pollution.Many people also come out to demand compensation from Japanese companies fortheir illness caused by their factories.
The Japanese Government was in trouble. But the ChineseGovernment had not contacted them. The Chinese Government seems to want to blowup this incident further. Japan could no longer wait for the Chinese Governmentto contact them. They immediately contact China…….
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