The Snake Venom Queen: From $450,000 Per Bottle to a Hummer, How She Took on America

The Snake Venom Queen: From $450,000 Per Bottle to a Hummer, How She Took on AmericaIn the 1980s, Lu Hua graduated from Sun Yat-sen University. With her fluent English, she secured a coveted job at the Foreign Trade Bureau, earning a monthly salary of 300 yuan, making her the envy of her neighborhood

The Snake Venom Queen: From $450,000 Per Bottle to a Hummer, How She Took on America

In the 1980s, Lu Hua graduated from Sun Yat-sen University. With her fluent English, she secured a coveted job at the Foreign Trade Bureau, earning a monthly salary of 300 yuan, making her the envy of her neighborhood.

In 1988, at a trade fair in Guangzhou, Lu Hua was responsible for managing the exhibition area. She noticed a peculiar item brought by an American businessman: a 500-gram bottle of snake venom, priced at an astonishing 3 million yuan ($450,000). After a brief conversation with the American businessman, Lu Hua encountered a fellow villager from Yulin, Guangxi, who bred snakes and was interested in collaborating with the American. However, language barriers and outdated communication technology hindered the partnership. Sensing an opportunity, Lu Hua, leveraging her connections from her Foreign Trade Bureau job, became the intermediary between the two. Within a year, she had earned 1.08 million yuan ($160,000) from exporting snake venom.

The massive profits lured Lu Hua. She resigned from the Foreign Trade Bureau and dedicated herself to the snake venom business. Over five years, she accumulated over 9.8 million yuan ($1.4 million). However, a change in regulations in 1999 designated snake venom as a special commodity, making exports more complex and expensive. Lu Hua began exploring new avenues for her product.

Through research, she discovered the reason for snake venom's exorbitant price: its vital role in medicine. Despite its potency, snake venom could be used to create drugs for various ailments. Moreover, only a handful of countries, including China and India, had the capacity to produce snake venom. The extraction process was even more challenging, requiring highly venomous snakesa single bite could be fatal. A snake yields only a few grams of venom, and obtaining 500 ml would require approximately 500 snakes. This scarcity made snake venom rarer and more valuable than gold. The American demand stemmed from its use in developing an AIDS treatment.

Recognizing snake venom's potential, Lu Hua sought to create products from it and collaborate with the Americans to establish a factory in China. However, they rejected her proposal. Unfazed, Lu Hua threatened to cut off their supply. To her surprise, the Americans remained unconcerned.

The stalemate persisted. Lu Hua learned that the Americans had obtained snake venom from other sources. She needed to sever their access to Chinese snake venom, forcing them to cooperate. Therefore, she implemented a monopoly strategy. She approached a local snake venom dealer, offering to buy his entire stock at a premium price. The dealer readily agreed, as it meant he could focus on collecting venom without the hassle of trading it. To ensure secrecy, Lu Hua demanded complete confidentiality, including price and buyer identity.

Through acquisitions and brokerage, Lu Hua effectively monopolized the domestic snake venom market within two years, accumulating an astounding 424 kg. With complete control over the supply chain, she once again confronted the Americans. However, they remained unmoved, believing that Lu Hua's venom was useless without their market.

Lu Hua found herself in a predicament. Years of investment yielded no returns, her financial resources dwindled, and she couldn't even afford to pay her employees. To survive, she used her savings to open a natural gas supply station and a pickled pepper shop, barely making ends meet.

The impasse dragged on for years. Lu Hua became increasingly anxious, but the Americans remained calm. She realized their confidence stemmed from their control over snake venom pharmaceutical technology, a skill no other country possessed.

Lu Hua began searching for a breakthrough. She discovered that Guangxi Medical University had a snake venom research institute and approached the director, proposing a collaboration. The director, impressed by her substantial venom supply, readily agreed. Lu Hua informed the Americans, expecting their concern. However, they remained cool, convinced that China's technological capabilities were inadequate for success.

Determined to prove herself, Lu Hua bid on a piece of land for a future factory, securing it successfully. However, she was struggling financially, unable to pay her employees. Others urged her to sell some venom to the Americans to salvage her existing business, but she refused, determined not to let them dictate the terms. To persevere, she resorted to borrowing money.

After a year of stalemate, Guangxi Medical University delivered good news. The snake venom institute, utilizing the ample supply, achieved a significant breakthrough, developing drugs to treat cerebral thrombosis and cancer within a year, obtaining production licenses. Lu Hua's snake venom finally had a stable market and was no longer a burden. When she informed the Americans, they remained silent for 30 seconds, speechless.

One might wonder why, with a domestic market, she would still pursue collaboration with the Americans. There could be two reasons: the larger profits associated with AIDS treatment and, as the saying goes, "it's about principle."

A week later, the Americans conceded. To appease her, they offered to gift her a car, any model she desired. Lu Hua chose the Hummer, a powerful and expensive military vehicle. The Americans promptly delivered the Hummer and agreed to her previously bid-on land for factory construction.

Following the negotiations, Lu Hua secured an order worth 500 million yuan ($72 million), making her story a real-life success saga.

However, during her turbulent journey, Lu Hua faced immense pressure and threats to her life.

After monopolizing the market, she constantly felt like she was being followed. She witnessed a stalker at a street corner, and her fear intensified, prompting her to remain constantly vigilant. Her mental state deteriorated, and her physical health suffered. Eventually, she broke down and called her best friend for help.

Her friend rushed to her side and, upon hearing her woes, advised her to report the incident to the police. Lu Hua agreed. The police, upon arriving, were incredulous at the billions of yuan involved in this small town and conducted their own investigation, confirming the authenticity of the transactions.

The authorities took the matter seriously. Days later, the police station installed infrared cameras around Lu Hua's residence, triggering alarms if anyone trespassed. The local police chief also met with Lu Hua, assuring her of ongoing protection. Every time she transported venom to Guangxi Medical University, she was escorted by police.

With police intervention, the stalking ceased, and Lu Hua's mental state gradually improved.

However, Lu Hua's experiences sparked controversy. Since she didn't have a regular job yet invested in a factory and engaged in secret deals, many suspected that her wealth stemmed from drug trafficking. However, Lu Hua never offered an explanation. While many admired her after her victory against the Americans, this admiration was short-lived.

After her success, Lu Hua strayed onto a path of wrongdoing. Her company, using the snake venom project as a front, illegally raised 12 million yuan ($1.7 million), defrauding many elderly individuals. Reports suggest that Lu Hua was sentenced to 35 years in prison, although no official confirmation is available. Her company remains operational.

Lu Hua's story is a captivating, albeit controversial, tale of a woman with a keen business sense who seized an opportunity and triumphed in a battle against American interests. Ultimately, she chose a path of deception, leaving a bittersweet ending.

References

• Sichuan Chang'an Net, May 9, 2023: "Guangyuan Intermediate Court Allows a 'Magnifying Glass' Experience of Judicial Warmth"

• CCTV Program "Enriching the Economy," September 2, 2011: "The Woman Who Built a Fortune Through Mysterious Deals"

• Tencent News, January 12, 2024: "Guangxi's 'Snake Venom Queen': Holding 4.7 Billion Yuan in Snake Venom, Battling with Americans, What Happened Next?"

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