The rise of a great power: starting with military industry

Chapter 148 Arms trade is an important part of international trade

It is also during this era that information transmission is very slow and China is still in a relatively closed period.

If it were the Internet age, this order would definitely cause a huge sensation immediately.

At this time, after the two parties signed the contract agreement, they tacitly did not make a big fanfare, and there was not even a press conference.

Neither TV news nor radio reported the relevant news.

Just like all previous arms sales.

Liu Tao could only conclude that the Chinese people really understood the principle of making a fortune by keeping a low profile. Even after thirty years of socialist construction, the doctrine of the mean is still engraved in everyone's bones.

With this matter coming to a successful conclusion, all his important work in the capital came to an end.

On this day, Liu Tao invited me to a conference room.

Looking at each of the leaders, Liu Tao swallowed and his heart beat rapidly.

The last time I met these leaders was at the National Science and Technology Conference last year.

"Our God of Wealth, there are no tigers here, don't be nervous." An old man in his seventies said with a thick Sichuan accent and a smile.

He is not tall, but he has an extraordinary bearing that looks down on the world.

"Our God of Wealth has established a deep friendship with Prince Abdul these days. Prince Abdul praised him highly when he boarded the plane." The leader who accompanied Prince Abdul to the military base also laughed and said, "Comrade Liu Tao, you have made a great contribution this time. Do you have any difficulties that need to be solved by the country now?"

"Are there any problems completing the order?" the leader asked.

The old man fully affirmed: "Last year, we proposed to change the gratuitous military aid to paid military aid. After more than a year of practice, it has been proved that this path is feasible."

Changing the gratuitous military aid was a decision reached after much discussion.

It is simply because China is too poor, and the free aid of weapons and equipment is too expensive, and China cannot afford it.

Unexpectedly, as soon as this resolution was issued, Liu Tao took action and got the first order, which was a good start. Last year's military trade orders can be said to be a bumper harvest.

This year, it has reached a higher level.

The two orders from Iraq and Saudi Arabia are worth as much as 90 billion US dollars, which is almost equivalent to China’s total exports for the whole year of the previous year.

The most important thing is that the settlement is made directly in US dollars, rather than calculating the total export volume by exporting to various countries and then converting it in the end.

90 billion US dollars, the deposit is as high as 45 billion US dollars!
China can use this deposit, which is undoubtedly a timely relief for China.

Although the $90 billion order will take five or six years to complete, on average it means completing about $18 billion.

The profits from weapons and equipment are much higher than those from other industries.

After all, the arms trade has always been the most profitable of all industries in the world, without a doubt. Not only are the profits huge, but they also generate long-term and sustained benefits, and are accompanied by various economic and political benefits!
As for the reason for the huge profits, it is naturally its high degree of monopoly and high technology!
There are only a few countries in this world that can produce advanced weapons!

"The leader is right. Arms trade has always been an important part of international trade. Now we are just doing business, but the goods are arms." Liu Tao said somewhat stiffly.

"What difficulties does your Panshan Machinery Factory have? Can you complete the order in time? Do you need help from Factory 617 in production?" the leader asked.

Factory 617, whose full name is State-owned Factory 617, is the Inner Mongolia No. Machinery Factory, abbreviated as "No. Machinery Factory". It is located in Baotou, Inner Mongolia and is the largest tank production base in my country.

"The Type 80 self-propelled anti-aircraft gun and the Type 80 tank cannot be produced by the First Machine Factory," said Liu Tao.

The leader was puzzled: "The First Machine Factory can't produce it?" "Yes! The First Machine Factory can't produce it!" Liu Tao said affirmatively: "The Type 80 self-propelled anti-aircraft gun, Type 80 tank and Type 59 tank are different. They have a large number of parts and require very high production and processing precision. A large number of precision machine tools are needed, especially high-precision machine tools. The production and processing precision of many parts is required to be 0.05 mm, and the error is even smaller than a hair."

Factory 617 is naturally much larger than Factory 256 and has much more equipment.

But in terms of industrial level, the two are actually the same!

The role of Factory 256 is that after the fall of the prairie and the 617 can no longer produce tanks and armored vehicles for the country, Factory 256 and other tank factories can take on the task of producing tanks for the country.

Their instruments and equipment are the same.

Even the technical level of the workers is at the same level.

"The processing precision requirements are so high?" A leader was surprised.

Liu Tao nodded: "The more advanced the weapon, the higher the processing precision required, and the more difficult it is to produce. We now have more than a thousand people, many of whom are level eight workers. After working so hard for a month, we can barely produce two self-propelled anti-aircraft guns and two tanks."

This output is only possible because he keeps cheating.

Otherwise, the tank's main gun alone wouldn't be enough to handle the problem.

"Are there any difficulties in the construction of the tank manufacturing plant?" another leader asked.

The leaders all knew that Panshan Machinery Factory was building a large tank manufacturing plant with an investment of more than one billion yuan.

This is the largest investment in the country this year, and it is not the government that is investing the money, but rather an investment from a state-owned factory, Panshan Machinery Factory.

"There are still difficulties, mainly in terms of building materials," said Liu Tao.

The old man said firmly: "Send a telegram to Bashu to ensure that the construction of Factory 256 is completed smoothly."

Liu Tao secretly breathed a sigh of relief, as this meant that there would be no shortage of materials or local difficulties in the construction of Factory 256.

After all, this is the will of the country.

Although a dual-track system has been implemented, the planned economy still occupies an absolute dominant position at present.

No matter how big a state-owned factory is, it cannot resist the will of those above it. If any state-owned factory dares to neglect it, the factory director or even the entire factory leadership will be replaced.

Afterwards, the leader showed concern for Liu Tao and Panshan Machinery Factory and learned more about Panshan Machinery Factory.

Although they had all learned about Panshan Machinery Factory's information, it was not as detailed as what the factory director Liu Tao said in person.

In fact, many leaders found it incredible that Panshan Machinery Factory, a third-line factory located deep in the mountains and forests, had completed earth-shaking changes in just two years.

Not only was a modern factory built, but the economic development of the surrounding areas was also boosted.

And all these changes were brought about by this young man who is less than 30 years old.

God of Wealth! ?

Liu Tao's title of 'God of Wealth' was not only well-known in the Fifth Ministry of Machine Building, but the leaders had also heard of Liu Tao's title of 'God of Wealth'. That was why some leaders joked that Liu Tao was the 'God of Wealth' from the very beginning.

From a certain perspective, Liu Tao is truly the God of Wealth. After all, he has created countless wealth in just two years.

(End of this chapter)