The rise of a great power: starting with military industry

Chapter 128 Father and son confront each other (please subscribe to monthly ticket)

Export trade!

This is a great choice for China!

Relying on preliminary industrialization, making low-end manufacturing products such as shirts and socks, and relying on cheap labor, we earn foreign exchange, and then use the foreign exchange earned to purchase advanced equipment and support talents to study abroad.

But in Liu Tao's view, arms trade also belongs to export trade and can also earn foreign exchange.

Moreover, the arms trade is a highly profitable industry, and the profits are extremely staggering.

Liu Tao has a deep understanding of this point.

The reason why Panshan Machinery Factory can develop so fast is because it relies on the arms trade, earns huge profits, and has enough profits for its own development!
"dong dong~~"

Just as the two were discussing the arms export trade and how to become a qualified international arms dealer, there was a knock on the door.

"Director Liu, Director Liu, the leadership is ready!" said the secretary.

Liu Zhenbang and Liu Tao stood up and walked towards Wang Baoguo's office.

As soon as I walked into the office, I saw Wang Baoguo looking tired. It was obvious that he had been very busy today.

"How was the discussion today? Was it going well?" Wang Baoguo picked up the enamel teacup and took a sip of water.

"It's going pretty smoothly. They are very excited and are now contacting their superiors. I am confident that I can get a large order." Liu Tao said confidently: "The price I offered is $10 per anti-aircraft machine gun, $25 per twin anti-aircraft machine gun, $80 million to $440 million per Type 460 self-propelled anti-aircraft gun, and $80 million per Type 150 tank."

Liu Tao reported to Wang Baoguo, "Tomorrow I plan to contact Saudi Arabia and promote our products to them as well!"

"Didn't I say before that there are no additional conditions? Now you are planning to bundle weapons such as the Type 54 pistol and Type 56 rifle at the same time. Isn't that also an additional condition?" Wang Baoguo frowned slightly. "This involves the reputation of the country."

"Leader, we are discussing arms business. There are no political interests attached or requiring them to transfer oil fields, so it is naturally not an additional condition." Liu Tao spread his hands.

Wang Baoguo said: "Iraq doesn't need Type 54 pistols, Type 56 rifles, Type 56 machine guns, etc. Will they agree?"

"I don't think it's a big problem. They don't need it, but their brothers do!" Liu Tao smiled. "The Islamic world doesn't have any industrial capacity. Many countries need it."

Not to mention now, the same will be true even forty years from now!

Gas tanks can even be used as powerful weapons!
"Leader, the 2000 Type 59 tanks we negotiated a few days ago are no longer enough. Most of them have to be transferred from the troops' active equipment. The troops' leaders are very dissatisfied. This means that the number of Type 59 tanks in the troops will be reduced by 20%!" Liu Zhenbang said, "I also went to see the self-propelled anti-aircraft guns and tanks today. I still think it is inappropriate to export such advanced weapons. It is better to wait until our troops are well equipped, replace the Type 59 tanks, and then export them later."

"Or let the First Machine Factory and other tank manufacturing plants hurry up and produce tanks!"

Although Liu Tao is his son, Liu Zhenbang still expressed his opinions to his leader.

This is about the matter, not the person!
Wang Baoguo looked at Liu Tao, "What do you think?"

"I have no objection to the First Machine Factory and other tank manufacturers producing Type 69 tanks for export. After all, there are no extra Type 69 tanks now, and the troops don't have a single Type 69 tank." Liu Tao said, "But I don't recommend producing Type 59 tanks. I think the troops should eliminate the Type 59 tanks currently in service and replace them with Type 80 main battle tanks!"

"Although the number of tanks in the army has decreased in the short term, from a long-term perspective, it is imperative to eliminate the Type 59 tanks and equip the Type 80 main battle tanks." Liu Tao also insisted on his point of view, "Our productivity is limited. We should not waste productivity, but concentrate productivity, build a Type 80 tank production line, train workers, carry out small-scale production, and then carry out large-scale production!"

Wang Baoguo rubbed his temples. He also felt that this matter was a bit difficult to handle. "Well, I will report this matter to the leader, and then we will hold a meeting to discuss it." Wang Baoguo thought for a while and said.

Afterwards, Liu Tao proposed to settle the bill.

"Leader, you know that our Panshan Machinery Factory is such a big business, and the province keeps assigning other third-line factories to us. We are so poor that we have to become beggars." Liu Tao said pitifully.

Wang Baoguo said unhappily, "I believe that other factories are so poor that they have to become beggars, but your factory has the most comfortable life in the country. We distribute housing every month, and the salary is high and the benefits are good. We live like the landlords in the past."

Wang Baoguo was shocked after visiting Panshan Machinery Factory.

Panshan Machinery Factory is the only one in the country that looks most like a modern factory. Even the factories that had previously received huge state investment are not as good as Panshan Machinery Factory.

After returning to the Fifth Ministry of Machine Building, Wang Baoguo specially wrote a report, which caused a sensation and attention in the entire Fifth Ministry of Machine Building. The Fifth Ministry of Machine Building also specially held a discussion meeting.

However, Wang Baoguo also knew that the rapid development of Panshan Machinery Factory was due to a steady stream of capital investment.

The profits generated by foreign trade orders account for the majority of this.

And all this was brought by Liu Tao.

"Next we need to build a production line for self-propelled anti-aircraft guns and tanks. The investment is huge, at least more than 2 billion RMB." Liu Tao shrugged, helpless: "As a factory director, I only sleep four or five hours a day. The pressure is too great, and the higher-ups are unwilling to allocate money to us."

"I don't have money, but I do have people!" Wang Baoguo glared at Liu Tao.

Even if the entire year's funding of the Fifth Ministry of Machine Building was given to Liu Tao, it would not be enough!
However, Wang Baoguo slowed down his tone and said, "The leaders in the department are all aware of your situation. It is not easy. Although the exchange rate has been lowered and 1 USD can only be exchanged for 1.49 RMB, the settlement will still be based on 1 USD to 1.75 RMB. This is considered to be support for you."

Liu Tao curled his lips. This was the exchange rate announced by the bank, but in fact, on the black market, 1 US dollar could be exchanged for at least 3 to 4 RMB.

What everyone lacks now is US dollars, not RMB.

Actually, it was Panshan Machinery Factory that suffered the loss.

He also knows that in the next decade or so, the RMB will depreciate rapidly, from the current 1:1.49 to 1:8.6.

If Panshan Machinery Factory had not needed money for construction, he would have kept the money in the account, and in ten years it would have appreciated by 5.8 times.

And this exchange rate is official, and more can be exchanged privately.

However, he is also confident that he can make more money by investing this money in building a factory, so the loss is not that big.

"Thank you for the support, leaders. Our Panshan Machinery Factory will definitely not let you down. We will continue to work hard and achieve even better results!" Although Liu Tao muttered in his heart, his words sounded different.

After all, Panshan Machinery Factory is now directly under the jurisdiction of the Fifth Ministry of Machine Building. If the Fifth Ministry of Machine Building wants to interfere in Panshan Machinery Factory, he as the factory director must obey the order. The Fifth Ministry of Machine Building only needs to issue a transfer order, and he will no longer be the director of Panshan Machinery Factory.

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(End of this chapter)