The rise of a great power: starting with military industry

Chapter 512: The Plan to Make a Big Money (Update)
Yes!

Given China's current development situation, it will change from an oil exporter to an oil importer either next year or the year after.

After all, China's oil reserves are limited and difficult to exploit. No matter how hard China tries, the increase in oil production will be limited.

China's oil extraction costs are much higher than those in the Middle East. In this case, China has to turn its attention to the Middle East.

The Middle East is the world's energy center.

The oil extracted from the Middle East is transported all over the world, maintaining the operation and development of industry.

Oil is called the 'blood of industry', and this is not in vain.

In fact, oil is indeed of great significance to the world today. It is irreplaceable and industrial development cannot do without oil.

Without oil, diesel engines cannot start, cars have no gasoline to run, warships cannot move and can only stay in naval ports, and merchant ships cannot sail and transport goods.

Even many things cannot be produced without the raw material of oil.

People's impression of oil is that it has economic significance as a fuel. In fact, hundreds of useful substances can be extracted from oil, and their economic value far exceeds the economic significance of burning it as a fuel. Petrochemicals can produce hundreds of chemical products, such as plastics, synthetic fibers, synthetic rubber, synthetic detergents, dyes, medicines, pesticides, explosives, fertilizers, etc.

Petroleum and petroleum products are not only necessities for people's livelihood, but also important materials for modern industry, agriculture and national defense.

Modern industry cannot do without oil, just like the human body cannot do without blood!
China's industrial and social development are also inseparable from oil.

Because the number of China's trucks and private cars is growing very fast, China's petrochemical products are being consumed very fast.

Therefore, China has established diplomatic relations with almost all Middle Eastern countries, set up embassies and sent ambassadors.

Now Saudi Arabia's King Fahd is coming to visit China, and one of the important agenda items is the purchase of medium-range ballistic missiles.

Medium-range ballistic missiles are powerful weapons. It is no exaggeration to say that they are the national treasure.

Tawfik came to me hoping to give Saudi Arabia a push when it was purchasing medium-range ballistic missiles.

After all, the person I am most familiar with and have dealt with the most is Liu Tao.

Liu Tao had to consider this matter.

In the last life, Saudi Arabia purchased the 'Dongfeng-3' medium-range ballistic missiles, but that may not be enough now.

Because the situation is completely different now. In the previous life, China was poor as hell and foreign exchange was in short supply. In 1980, the foreign exchange reserves were even -12.96 billion US dollars, which forced the foreign exchange control to be very strict. The whole country tried every means to get foreign exchange.

At that time, Saudi Arabia's 35 billion US dollars exceeded China's total foreign exchange reserves.

But it is different now. Although China does not have much foreign exchange, it does not have a small amount either. There is both inflow and outflow, and the annual foreign exchange reserve balance is barely enough.

Under such circumstances, it is hard to say whether China is still willing to export the 'Dongfeng-3' medium-range ballistic missile.

Liu Tao couldn't help but look thoughtful.

"Liu, as long as you are willing to sell, the price can be negotiated!" said Taofik.

Saudi Arabia's current weapons include Type 80 main battle tanks, Type 81 self-propelled anti-aircraft guns, anti-aircraft machine guns, heavy machine guns, and heavy sniper rifles. The rifles have also been replaced with Type 78 automatic rifles, and the pistols they carry are also Type 78 pistols. They are equipped with "Eagle Strike" anti-ship missiles and "Aegis" air defense missile systems.

Except for the Air Force which purchases European and American aircraft and the Navy which uses European and American warships, all others are produced by Panshan Group.

Even part of Saudi Arabia's national defense tasks is handed over to mercenaries, and there are as many as 2,000 mercenaries in Saudi Arabia.

The relationship between the two sides is very close.

Liu Tao said slowly, "It's not impossible to discuss medium-range ballistic missiles, but before discussing this deal, we have to talk about naval equipment."

"Naval equipment?" Tawfik frowned and said, "Liu, your navy is very weak, your shipbuilding industry is very backward, and your so-called four great kings are not as good as our Saudi warships."

"Your naval equipment is too outdated!" Taofik shook his head.

Now when buying warships, the first choice for countries around the world is the United States, followed by the United Kingdom, then the Soviet Union, followed by France, Germany, Italy, etc. As for China, does anyone want China's warships?

Unless it’s free!
As far as Saudi Arabia is concerned, it is not short of money. Even if China's warships were given to Saudi Arabia for free, Saudi Arabia would not be willing to accept them.

Liu Tao smiled faintly and said, "Our naval equipment is world-class and will definitely not let you down."

"You all know what kind of person I am. When have I ever lied to you friends?" Liu Tao showed off the reputation he had worked so hard to build up.

Naval equipment is expensive to produce, so if you sell it to the navy you are bound to get very low prices, and you may even end up making a loss.

The only way to make money is export trade.

Poor countries are reluctant to buy naval equipment, and cannot afford it. In the final analysis, it has to be a wealthy country like Saudi Arabia.

Tawfik frowned, then relaxed his brows. After a long while, he said, "I cannot make the decision on the naval equipment. Prince Sultan will arrive in Hong Kong in two days. You should discuss this with Prince Sultan."

Liu Tao nodded slightly.

This was a big deal and was indeed beyond Tawfik's authority.

Naval equipment is notoriously expensive throughout the world, easily costing tens of millions or even hundreds of millions of dollars.

Moreover, this transaction is most likely a one-time deal. Once this big deal is completed, it will be difficult to have such an opportunity again in the future.

After all, Saudi Arabia is different from Iraq and other countries that are at war. There is no threat of war and there are still US troops stationed there. Although Israel is the enemy of the entire Arab world, they will not easily fight.

Even if they want to fight, European and American countries will not agree.

Once the war breaks out, the price of oil will skyrocket, and it is not impossible for it to exceed $100 per barrel. This will undoubtedly make the already sluggish global economy even worse.

Therefore, when Saudi Arabia purchases weapons, it either buys advanced fighter jets from Europe and the United States, which is equivalent to paying protection fees, or it purchases weapons and equipment from Panshan Group, but the starting point is to protect itself.

Since there is no war, the consumption is very slow.

In the future, it will be a steady stream at best, buying some ammunition or asking for repairs every year.

This money will definitely be there every year, but it will never be much.

Liu Tao just wanted to take advantage of this opportunity to make a big sale.

As the saying goes, if you close your business for three years, you’ll make enough money for three years after you open it!

If we don't take this opportunity to make a fortune, it will be difficult in the future. Even if Saudi Arabia wants to buy it, the Americans will have objections.

And now in this special period, the Americans need to win over Saudi Arabia and appease the Arab world in order to teach Libya a lesson. Even if they knew about this, the Americans had to endure it and acquiesce to the deal.

It can be said that this opportunity is rare and this window period is also very rare.

It just so happens that now, Americans also need to appease China and win over China.

If they don’t allow the sale of weapons and equipment to Libya, they can’t also be unwilling to sell them to Saudi Arabia.

At this time, Liu Tao was already thinking about how to convince Prince Sultan, and he had to draw up a good plan.

The issue of medium-range ballistic missiles can be discussed, but the issue of naval equipment should be discussed more, because it concerns Panshan Group’s own territory.

Even if the medium-range ballistic missile issue is settled and the purchase amount is high, it will have nothing to do with Panshan Group.

　This chapter is updated!
　　Update for July 7th!

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　　By the way, I'm asking for monthly tickets and recommendation tickets. It would be even happier if there was a reward!
　　Haha~~
　　
　
(End of this chapter)