industrial overlord

Chapter 151 Export Subsidies
The application report written by Lin Zhenhua on the export of the five-blade fan finally received an echo.Zhu Tiejun personally accompanied Lin Zhenhua to the Qinghua Department and met with Xie Chunyan, the deputy director of the department.Xie Chunyan laughed when she saw Lin Zhenhua, and said, "Hey, Manager Xiao Lin is here, please sit down."

Lin Zhenhua had no choice but to put on a pitiful look and said, "Director Xie, if you have anything to say, just say it. I'll beat you up when you're polite."

Xie Chunyan said: "Even if I have something to say to you. You Xiaolin is a banner of our light chemical department. Do you know, Director Qiu from Xunzi, every time I see you, I will praise you. He He also applied to me, asking if he could transfer you to their factory and give you a position as assistant to the factory manager."

Assistant to the factory manager... Lin Zhenhua couldn't help but feel a little distressed. He remembered that there was an assistant to the factory manager who was said to look like him in Petrochemical Machinery. What's his name?By the way, it seems that Miss Shen didn't say anything.

Zhu Tiejun was not happy. He said to Xie Chunyan: "Why is this old Qiu doing this? Isn't this openly poaching the corner of our Hanhua factory?"

Xie Chunyan said: "That's because people value talents. It's not like your factory, who put Xiao Lin in the technical department and is still a deputy section chief. If you want to retain talents, you have to get Xiao Lin an assistant to the factory director, right?"

Zhu Tiejun smiled and said, "Okay, Director Xie, I will pass on your instructions when I get back, saying that you asked us to promote Xiao Lin to be the assistant to the factory director. Xiao Lin, you have to testify for me."

Lin Zhenhua shook his head again and again: "The two leaders, please don't make fun of me. As a 20-year-old me, being a deputy section chief is already very outrageous. If I become a factory assistant, people won't poke me in the back?"

The three laughed and laughed, but no one took it seriously.Lin Zhenhua knew that his qualifications were still young, and if he really wanted to be promoted, let alone whether he could do a good job, he could be overwhelmed by various procedures alone.The central government has only just begun to promote the promotion of young cadres, but there is no clear policy on how to do it.Lin Zhenhua's current age is really too young, and it is too eye-catching to be promoted.

Xie Chunyan and Zhu Tiejun also knew that it was too early to promote Lin Zhenhua, and the young people still needed to hone their skills. Too early promotion would be detrimental to the growth of young people.

"Okay, let's get down to business." Xie Chunyan said, "Xiao Lin, the export report you made has already been discussed in the hall. The hall is very supportive and encourages you to actively ask for export earnings. But you requested to participate in this year’s Spring Canton Fair, and this matter cannot be coordinated. The export of light industrial products in our province has always been unsatisfactory, so the Foreign Trade Department did not give us a separate participation index, but only allowed us to send a few products, which will be unified by the Foreign Trade Department arrange an exhibition."

"It's also okay to form a unified group, as long as you give us a few places to participate in the conference, we will send people to shout." Lin Zhenhua said.

Xie Chunyan shook her head: "This is not acceptable. The Canton Fair is a window for foreign trade and represents the image of the country. How can anyone go to shout it? There are only two places for the meeting in the light and chemical hall, and a comrade will be arranged in the hall. Go, the other place will be reserved for the Xinzhou Craft Woodcarving Factory, they are the traditional large exporters of our light industry system, and they can earn nearly one million foreign exchange a year."

"Nearly a million?" Lin Zhenhua said disdainfully.

"Why, you still don't believe it?" Xie Chunyan misunderstood Lin Zhenhua's meaning and thought he didn't believe it, "Xiaolin, foreign businessmen like our Chinese handicrafts, and the handicraft woodcarving of Xinzhou Wood Carving Factory is very famous in history. In [-], it was exported to Southeast Asia, Europe and the United States, and its ability to earn foreign exchange is very strong.”

Lin Zhenhua said: "It's not that I don't believe it, but I think it's too little. A foreign exchange income of just one million dollars is considered a big foreign exchange earner? Is there a mistake?"

Xie Chunyan said: "Of course our light industry system cannot compare with petroleum and mining departments. The Department of Geology and Mines exports tungsten sand and copper ore, and they earn tens of millions of foreign exchange income a year. By the way, there are also Rare earth, Kobayashi, you probably don’t know what rare earth is? That thing is gray and looks like earth, but the price is very expensive, four to five thousand dollars per ton. The export target of the Department of Geology and Mines this year It’s one thousand tons, good guy, that’s four or five million foreign exchange.”

He sold 500 tons of rare earths for a mere $[-] million, and Lin Zhenhua felt so distressed that he was about to bleed.However, Xie Chunyan looked envious, thinking that this was a big deal.Lin Zhenhua thought evilly that if there was a rare earth mine downstairs from Xie Chunyan's house, she would probably want to dig it out immediately with a shovel so that she can use it to earn foreign exchange through export.

Lin Zhenhua knew that Xie Chunyan was not wrong, the general situation of the whole country was like this.All walks of life lack advanced equipment, and to purchase these equipment from abroad requires a large amount of foreign exchange.It is difficult for a top expert like Yao Heliang to get a spare chip because of the lack of foreign exchange.

Back then, China's industrial products lacked export competitiveness, and if they wanted to obtain foreign exchange, they could only rely on the export of primary products. In 1981, the country's foreign trade exports totaled US$220 billion, half of which came from agricultural and mineral products.China's coal, petroleum, copper ore, tungsten sand, rare earth, etc., are all traditional export commodities.The export of oil alone costs billions of dollars a year.

Lin Zhenhua restrained the desire to teach Xie Chunyan a lesson on resources and environmental protection, and he brought the topic back to his own affairs:
"Mr. Xie, my opinion is that our country can't always rely on selling resources for foreign exchange. We should work hard to increase the proportion of manufactured products in exports. The five-bladed fan we are currently developing is an effective We hope to export products that earn foreign exchange. We hope that the Light Industry Department can give us more support."

Xie Chunyan said: "Xiao Lin, I understand your feelings. However, our country's light industrial products have not been favored in the international market. At present, the main export targets are Southeast Asian countries. How much can you sell for the five-blade fans you produce? , there is still a question mark drawn. I think you should submit a few samples this time and let the foreign trade department bring them to the Canton Fair for display. It would be the best if foreign merchants are interested.”

Lin Zhenhua was a little disappointed, but he also knew that this was not something he could change.The Light Chemical Department itself is not qualified to participate in the Canton Fair, but needs to listen to the arrangement of the Foreign Trade Department.He, Lin Zhenhua, is considered a minor celebrity in the Qinghua Department, but the Foreign Trade Department will not sell his account.

"Okay, we've already produced some samples, and I'll arrange packing and sending them over tomorrow." Lin Zhenhua said.

"By the way, what is your quotation for fans?" Xie Chunyan asked.

Speaking of quotations, Lin Zhenhua's head hurt again, and he said: "Director Xie, I'm going to report this matter to you. After we learned from some customers, the current price of electric fans in foreign markets It’s about $40 a piece. Our five-blade fan has a unique design, so the price is tentatively set at $45, and I’m afraid it won’t sell any more.”

"$45? Can it be sold at such a high price?" Xie Chunyan asked in surprise. In her opinion, $45 is a pretty big number.

Zhu Tiejun considered it from the perspective of the market. He shook his head and said, "Xiao Lin, if the fan of the foreign devils is priced at 40 dollars, I'm afraid you can't set it at 45 dollars, right? How can our country's products sell better than foreign ones?" Still expensive?"

Lin Zhenhua said: "The two leaders don't know something. Even if I sell it at 45 dollars, I will lose money. If the price is lower, it will be useless."

Xie Chunyan asked: "What does it mean to die at a loss? Come and listen to me."

Lin Zhenhua said: "To tell the truth from the two leaders, our five-blade fan, based on the production cost, has to be as low as 80 yuan. If we sell it for 45 dollars, at the exchange rate of 1 yuan 7, it is equivalent to 76 yuan in RMB. RMB 5. We have a net loss of RMB 3 every time we produce one.”

Xie Chunyan said: "Who told you that the exchange rate is 1 yuan 7?"

"Isn't it?" Lin Zhenhua's head was full of confusion. He remembered that it was always this price.

Xie Chunyan said: "Xiao Lin, you have never engaged in foreign trade, so you don't understand the situation. The exchange rate of 1 yuan 7 is the official price. If it is an export enterprise, the foreign exchange income has a separate foreign exchange settlement price, which is calculated at 2 yuan 8 .”

"Is this also to encourage exports?" Zhu Tiejun asked.

"That's right, it's an internal policy to encourage exports," Xie Chunyan said.

“2块8？”林振华眼前一亮，居然还有这样的好事？虽然比不上后世的8块多，但至于比1块7要强得多了。

"Based on 2 yuan and 8 yuan, 45 dollars is 126 yuan, um, it can barely make a profit." Lin Zhenhua breathed a sigh of relief, "However, Director Xie, we still have transportation costs, marketing costs, and foreign customers Merchants leave room for profit. If you do this calculation, you still can’t make any money. You know, we now sell an electric fan in the domestic market with a profit of 80 yuan, and exporting it is really not worthwhile.”

Xie Chunyan smiled and said, "Xiao Lin, why do you look like you are sure to win? Are you sure that your five-bladed fan can sell well in the international market?"

"If there is no accident, it should be like this." Lin Zhenhua said.

"Can you sell 2000 units a year?" Xie Chunyan asked.

Lin Zhenhua was sweating profusely: "Director Xie, you're swearing. I didn't offend you, did I?"

Xie Chunyan was already immune to Lin Zhenhua's up-and-down teasing, and she asked, "Why do you think I'm scolding you?"

Lin Zhenhua said: "I went to Guangzhou to apply for a patent bitterly, and went to Shanghai to use the military's relationship to use the molds made by the 5000-ton forging machine of Hudong Shipyard. If I only export 2000 sets a year, I will not become a big man. Stupid? If you ask me like that, aren’t you just scolding me? "

"Oh, you think 2000 units is too much to underestimate you." Xie Chunyan understood, and she asked, "In your opinion, how much can you sell?"

"At least 10 units are required." Lin Zhenhua said.

This is not Lin Zhenhua's big talk. After the 90s, the export of China's household appliances was calculated on the order of tens of millions.In 2007, before the financial crisis, China's annual export of electric fans reached 5 million units.If compared with this figure, the export volume of 10 units mentioned by Lin Zhenhua is too conservative.

"There are 10 units?" Zhu Tiejun was shocked, "Xiao Lin, don't brag, according to your quotation just now, 10 units is 450 million US dollars, how is this possible?"

Xie Chunyan also shook her head and said: "Xiaolin, you are too optimistic, are you being dazzled by your achievements in the domestic market? Well, you should be more down-to-earth, based on 2000 units, and strive for 1 units. If you this year If you can export 1 units and earn back 45 US dollars to the Department of Light and Chemical Industry, I will definitely reserve a place for you at the Canton Fair in the spring of next year."

Lin Zhenhua said: "[-] units is not a big problem. The key problem is that the more I sell, the more I lose. No matter how I think about it, I feel useless."

"How can you lose money?" Xie Chunyan stared and said, "As an enterprise that can earn foreign exchange through export, how can the country make you lose money? You just said that the cost is 80, right? The ex-factory price of your fans in the domestic market is How many?"

"180 yuan." Lin Zhenhua said.

Xie Chunyan said: "Well, no problem. As long as the sales price of your export fans can be above 40 US dollars, after the export settlement is completed, the part that is less than 180 yuan will be subsidized by the Department of Light and Chemical Industry."

This time it was Lin Zhenhua's turn to stare: "Director Xie, are you joking?"

"Nonsense, why would I be joking with you?" Xie Chunyan scolded.

Lin Zhenhua still didn't believe it, and he asked, "You mean, as long as we can sell for 40 US dollars, the Department of Light and Chemical Industry will make up the difference for us at 180 yuan?"

Xie Chunyan replied casually: "That's right, the craft woodcarving factory has always done this. It's been so many years, and they haven't lost a penny in the hall."

"Let me do the math, 40 dollars, based on the exchange rate of 2.8, is 112 yuan, that is to say, can the hall give us a subsidy of 68 yuan for each export fan?" Lin Zhenhua's mind was spinning like a computer, He must give Xie Chunyan the number to figure it out, and don't let Xie Chunyan renege on it later.

Xie Chunyan almost made Lin Zhenhua angry: "Xiaolin, how many times do I have to tell you? Export subsidies are a consistent policy of the state. Go and find out which province's export enterprises do not receive state subsidies. Take them well. There are several million. The more subsidies you get, the more foreign exchange you earn from exports, the more glorious you are. If you Xiaolin can get 100 million subsidies from the Department of Light and Chemical Industry a year, I will give you a provincial evaluation A model worker. Do you dare to ask for it?"

"Of course I dare!" Lin Zhenhua felt relaxed, and the dark clouds in the sky turned into a sunny sky.

It seems that lack of culture is really killing people. If he had known that the country had such a big killer as export subsidies, would he still need to be depressed for so many days?

That's right, the overvaluation of the renminbi is indeed enough to cheat the father, but it is the father of the national finance who cheated.If an export enterprise makes a loss based on the exchange rate settlement, the finance will make up the full amount, and the finance will ultimately pay the bill.

At that time, the value of one dollar of foreign exchange to the country was definitely not measured by 1.7 yuan. If possible, the country would not hesitate to exchange 10 yuan for one dollar.However, due to various considerations, the exchange rate cannot be lowered.So there is such a scene of overvaluation of the currency, cheap products, and high financial subsidies.

Lin Zhenhua didn't know why the people who made the policy back then didn't simply lower the value of the renminbi, and adjusted the cheating exchange rate to a reasonable price of 4:1 or 6:1.

Come to think of it, this might be a matter of face. In 1980, China's GDP was 4500 billion yuan calculated in RMB. If calculated at an exchange rate of 1.5, it was equivalent to 3000 billion U.S. dollars, or 300 U.S. dollars per capita.If the exchange rate drops to 6, it will only be equivalent to 750 billion U.S. dollars, or 75 U.S. dollars per capita. How embarrassing are people in charge of policy?

Face, kill people.

(End of this chapter)