The rise of a great power: starting with military industry

Chapter 339: Build eight or ten ships? A sky-high price!
"The radar system uses a 346A four-sided three-coordinate multifunctional active phased array radar, a 364 X-band two-coordinate air/sea search radar, a 517B/HA A-band meter-wave two-coordinate long-range air surveillance radar, a 366 shipborne multifunctional over-the-horizon radar, a 344A main gun fire control radar, a 349 close-in fire control radar, an RM-1290 navigation radar, a 726 series electronic countermeasure system, a SQS-53 new bulbous bow sonar, a SJG-311 towed active and passive low-frequency sonar, an H/ZBJ-1 automatic command system, an HN-900 data link, an SNTI-240 satellite communication system, a long- and short-wave integrated communication system, and a 656 friend-or-foe identification system."

Liu Tao introduced radar and electronic equipment.

There is no doubt that these radars and electronic equipment are at the world's advanced level.

It is precisely because of the advanced radar and electronic equipment, equipped with advanced air defense missiles, anti-ship missiles and torpedoes, that this destroyer has such powerful combat capability.

Technical aspects were explained one by one.

Those who were able to attend this technical meeting have undoubtedly passed strict political review and are trustworthy, so it is almost impossible for leaks to occur.

The experts have a good understanding of their own fields one by one.

As for the navy, they couldn't wait to ask: "Comrade Liu Tao, how long does it take to build a 052 destroyer? How much does it cost?"

The advanced performance of the Type 052 destroyer has greatly impressed the navy, making it ecstatic.

Now the Navy is only concerned about how long it will take to build one ship and how much it will cost.

"The construction period will take about three years, and the cost, calculated based on current prices, is estimated to be RMB 3 billion. Once the technology is mature and the supporting facilities are complete, the cost can be reduced to RMB 20 billion." Liu Tao also made an estimate of the cost.

20 billion RMB! ?
Everyone gasped when they heard this number.

This is an astronomical figure!
This year's military expenditure is only 177 billion yuan, but the cost of building a Type 052 destroyer is as high as 20 billion yuan, which is equivalent to 11.3% of the annual military expenditure!

In fact, this is equivalent to the navy’s annual military expenditure.

In other words, the Navy cannot afford to buy a Type 052 destroyer even if it saves money.

More than a decade ago, the budget for a Type 051 destroyer was approximately RMB 6000 million!

My goodness, a Type 052 destroyer now costs 20 billion RMB, which is 10 billion US dollars based on the current exchange rate.

Seeing the navy representative’s face full of shock, opening his mouth but unable to speak, Liu Tao was helpless.

Modern naval vessels have extremely high construction costs, which is a global problem. As the weapons used become more and more advanced, the construction costs are naturally higher.

In the 70s, the average cost of the US Navy's "Spruance" class destroyers was as high as $4 million. It was precisely because the cost of the "Spruance" class destroyers was too high that the US Navy was forced to order the "Perry" class frigates, which cost only $7000 million, to make up the number.

But now the cost of building a Perry-class frigate also exceeds $1 million.

The US Navy plans to use the Ticonderoga-class cruiser to replace the Spruance-class destroyer, with the first ship costing as much as $11 billion.

You have to know that the shipbuilding industry in the United States is very advanced and developed, while China's shipbuilding industry is still far behind.

If Liu Tao had not solved a series of technologies and was able to produce and process core materials by himself, if he had thrown the entire set of construction drawings to the Huaxia Shipyard for construction, it would probably have taken ten years and cost as much as 40 billion yuan.

And it may not be possible to produce it.

One of the important reasons why the first Type 052 destroyer is so expensive is that it needs to form supporting facilities in this process. As long as the supporting facilities are completed, the cost of the Type 052 destroyer will drop.

The cost of 20 billion RMB, equivalent to 10 billion US dollars, sounds exaggerated.

But when the RMB exchange rate reaches 8, the cost will be less than 2.5 million US dollars, which is very cost-effective in comparison.

Even when the shipbuilding industry level is improved, the cost will be further reduced. However, at that time, due to the increase in labor costs and material costs, the cost may increase further.

After all, the renminbi continues to depreciate, and money cannot keep up with inflation. This is the general trend.

The naval representatives were so shocked that their whole bodies were numb. They had originally thought of building ten or eight ships, but now they didn't even dare to think about it.

The military’s entire annual budget is not enough to build ten Type 052 destroyers.

Beijing.

Liu Tao, who returned to Beijing for vacation, was called to a meeting.

"Comrade Liu Tao, can the cost of this Type 052 destroyer be reduced?" The old man looked at Liu Tao with a thick Sichuan accent.

The high cost and excellent performance of the Type 052 destroyer were reported to the superiors.

Although they had developed such an advanced destroyer, the cost was too high. The navy was not even able to build the first ship, and did not even have the confidence to mention it.

The cost of 20 billion RMB is so high that the Navy doesn't even have the courage to mention it.

But the navy was unwilling to accept this, after all, the navy really and urgently needed an advanced destroyer.

Only with advanced destroyers can we truly deter jackals, tigers and leopards, making them dare not to covet or offend.

Therefore, this matter was eventually reported to the higher-ups.

The leadership is also in a difficult position. Now the country's focus is on economic development, and everything revolves around economic development. The country needs the army to be patient, so even this year's military expenditure is only 177 billion yuan.

The cost of 20 billion RMB is too high and we really can’t afford it.

The other leaders all looked at Liu Tao. They all knew Liu Tao.

The things they produce are very advanced, but the prices are often also high, so high that it makes people's teeth ache.

Many weapons and equipment have to be sold at a discount or given away for free before the army can afford to purchase them.

Now, the Type 022 missile boat is expensive, the Type 054 frigate is expensive, and now the Type 052 destroyer is even more outrageously expensive.

You know, the cost of 20 billion RMB does not include missiles, torpedoes, and helicopters!
Liu Tao showed a helpless look, "Leaders, 20 billion RMB is inevitable for the first ship. It involves a lot of new technologies and new materials. For example, the hull is made of new special steel. The brain of the 052 destroyer is the newly designed H/ZBJ-1 combat information command system. The system collects all radar perception intelligence before the war, and then the commander uses various air defense, anti-ship, and anti-submarine firepower according to the information. The command center integrates multiple anti-submarine sonar consoles, air defense consoles, commander consoles and air defense boards, which use displays that can display more information at the same time."

"The computing power of the computer far exceeds that of the current 'Galaxy' supercomputer!" Liu Tao spread his hands: "There is no such thing as a cheap product, and there is a reason why it is expensive!"

"Even if a Type 052 destroyer is put into service for 40 years, its performance will not fall behind the world's advanced level. Once built, it can be put into service for 40 to 50 years!" Liu Tao said, "We can't make it like the Type 051 destroyer, which is outdated before it is built and can only stare blankly at the powerful enemy warships?"

Many of them are individually built and are highly confidential.

For example, special steels, advanced radar systems, advanced chips, and information command systems.

A destroyer like this would cost 20 billion RMB, equivalent to 10 billion U.S. dollars. If it were given to the Soviet Union or the United States, it would probably cost 50 billion U.S. dollars, and they would all be vying for it.

All I can say is that the navy now thinks it is too expensive because China is too poor. It is so poor that it can only sigh at the 20 billion RMB and feel that it is out of reach.

(End of this chapter)