Countercurrent 1982

Chapter 613 Export Subsidies
The next morning, Duan Yun drove to the Bureau of Light Industry and entered the director's office.

"Sit down." At this time Ruiyang was sitting at the desk looking at some documents, looked up at Duan Yun and motioned him to sit down.

"Director Rui, what happened the day before yesterday..."

"Being upright is not afraid of the shadow slanting, I believe you are an upright person." To Duan Yun's surprise, Ruiyang seemed not interested in the fact that he was arrested by the police station. He probably already knew the truth, so he continued: "Your factory is now a rookie enterprise in the Ministry. The superior has great expectations for your unit. This time I came to you to discuss the upcoming Canton Fair."

"Ah, how are things arranged for the Canton Fair?" Duan Yun asked.

"Today, our Provincial Department of Light Industry got a total of 7 booths, basically all of which are big foreign exchange earners in our province. The minister specially arranged for your factory's automobile gearbox products to be exhibited in the machinery and equipment area. This booth is hard-won. Your English is good. , I also had experience in communicating with foreigners before, but I should take advantage of this opportunity..." Ruiyang said to Duan Yun sternly.

"That's for sure. I will definitely seize this opportunity and try not to disappoint you and the leaders of the ministry!" Duan Yun said hastily.

"In addition, I want to remind you that if your factory does not get an order at the Canton Fair this year, then next year, you may not have the opportunity to participate in the Canton Fair..."

"why?"

"Last time when you went to BJ, you also had a face-to-face meeting with the minister. You should also know that the Ministry of Light Industry shoulders a very heavy task of earning foreign exchange through export, and our province SX has always been less than ideal in earning foreign exchange through export. The number of exhibitors is far away. Not as good as those big provinces in the south that earn foreign exchange through export. This year, in addition to your factory, there are Shanxi Fenjiu, Taihang sewing machine, Universal bicycle, Haitang washing machine and other provincial and superior products participating in the exhibition. They used to be big foreign exchange earners in our province, especially Universal brand bicycles. , began to export to Southeast Asian countries last year, and earned nearly 100 million US dollars in foreign exchange in two years, making it a major foreign exchange earner in our province..." Ruiyang introduced to Duan Yun.

"100 million US dollars is the province's largest foreign exchange earner?" Duan Yun was stunned when he heard this.

"Do you feel a little stressed?" Ruiyang asked Duan Yun with a smile.

Ruiyang thought that Duan Yun was intimidated by the amount of 100 million US dollars, but in fact, when Duan Yun heard a foreign exchange earning amount of 100 million US dollars, his first reaction was that it was pitifully small. If an ordinary small factory can It seems reasonable and reasonable to earn more than 100 million US dollars in foreign exchange from exports, but Ruiyang actually regards an enterprise with only 100 million US dollars in foreign exchange earning from exports as a major foreign exchange earner in the province, which makes him sound a little incredible.

But in fact, there are very few companies in the country that were able to earn 80 million foreign exchange through exports in the early 100s.

At that time, the general situation of the whole country was that all walks of life did not have advanced equipment and technology. To purchase these equipment from abroad, a large amount of foreign exchange was needed.

At that time, China's industrial products lacked export competitiveness. To obtain foreign exchange, they could only rely on the export of primary products. In 1981, the country's total foreign trade exports were 220 billion US dollars, half of which came from agricultural products and mineral products, such as coal, oil, copper ore Usha rare earth and so on are all traditional commodities that earn foreign exchange in the first place. The export of oil alone is worth billions of dollars a year.

"With two years of foreign exchange earning of 100 million US dollars, can we rank first in our SX province?" Duan Yun asked in disbelief.

"Our light industry system can't compare with the machinery and heavy industry sector. They only export copper ore and coal, and they earn tens of millions of foreign exchange income a year. The development of our country's light industry has a long way to go, and there is no market in the international market. Competitiveness, so the Ministry also takes care of rookie companies like you, hoping that you can develop better and better, and improve the competitiveness of our domestic products in the international market."

"Our factory also hopes to make contributions to the country." Duan Yun smiled slightly, and continued: "Of course our factory is currently small in scale, and we still need the provincial bureau and the ministry to provide us with some funds and policy..."

"Okay, okay! I can see that you are crying poor everywhere now. I have won funds and equipment from the provincial bureau before, but there are so many light industrial enterprises in the province, and I can't just take care of your factory. Right?" Ruiyang gave Duan Yun a blank look, and then said: "Didn't Minister Yang tell you when you came to the ministry last time, that the ministry will only consider it if it becomes a key export-earning enterprise in the province. Your factory will provide key support, so that other fraternal units in our province will have nothing to say, you should understand the truth of this."

"Understood!" Duan Yun nodded repeatedly.

Duan Yun can see that Director Rui has nothing to dig for for the time being. If he wants better policies and financial equipment support, Duan Yun can only rely on export orders.

"There is also the issue of product pricing in your factory. How much do you plan to sell for a gearbox?" Ruiyang asked.

"I calculated the cost before. At present, the cost price of such a new Longteng gearbox produced by our factory is about 1800 yuan. If it is converted into the current exchange rate, it is about 1000 US dollars." Duan Yun said after a while.

目前83年的人民币兑美元的汇率在1.8:1左右，也就是1块8人民币能换一美元。

If calculated in this way, the export price of Duanyun's auto gearbox should be around 1000 US dollars.

"$1000 a set is not cheap..." Ruiyang frowned when he heard this.

"The main reason is that this new product has not yet been mass-produced. If it can be mass-produced, the cost will definitely be flattened and reduced, but according to my estimation, the minimum should be around seven or eight hundred dollars. Otherwise, our factory will It’s a loss.” Duan Yun pondered for a while, and then said: “At present, I don’t know much about the ex-factory price of the same type of gearbox products abroad. If the price of our factory’s products is too high, we will lose the price advantage. This will make it difficult to attract the interest of foreign businessmen.”

"That's easy to say. I can help you contact the foreign trade office now. They should be able to find out the ex-factory price of similar foreign gearbox products. After getting the quotation, I will send someone to your factory, so that you know your Whether the factory's products have a price advantage."

"That's great."

"There is also Duan Yun, don't worry, our Ministry of Labor has subsidies and discounts for export-earning products. 1.8:1 is the official price. If it is an export enterprise, our Ministry also has a separate foreign exchange settlement price. Calculated according to 3.1, and if the export foreign exchange settlement is still not enough for the cost price of your factory's products, the Ministry will give you subsidies, and your factory will never lose money."

"Is there still a subsidy?" Duan Yun's eyes lit up when he heard this.

In fact, what Duan Yun didn’t know was that the foreign exchange rate in the early 80s was falsely high, and the basic exchange rate of RMB to the US dollar in the domestic black market was around 7:1 or even 10:1. Hope to get more dollars in exchange.

(End of this chapter)