industrial overlord

Chapter 229 Compensation Trade
Compensation trade, as explained in textbooks, is a trade method in which products are used to pay for imported equipment and technology.

The Siya tribe has oil, but the oil cannot be sold or turned into dollars.For a set of 50-ton oil refining equipment, the Chinese offer was 2.5 million US dollars, but Vasir could not even offer 250 million US dollars.However, there is always a way to solve the problem, and that is to buy the equipment back on credit first.With the equipment, products can be produced, and then the products can be used to offset the price of the equipment.

Gao Zuxing and Lin Zhenhua are no strangers to compensation trade.At that time, many imported projects in China adopted the method of compensation trade.In a large copper mine in Jiangnan Province, the entire set of mining equipment was imported from Japan, and the mined ore was shipped to Japan to pay for the equipment.Someone once pessimistically assessed that by the time the loan for this equipment was fully repaid, the copper mine would have no more copper to mine.

Although Gao Zuxing was familiar with this method, he was not familiar with the role that Vasil wanted him to play.As a country with a shortage of foreign exchange, China has always been a debtor rather than a creditor in compensation trade.But this time, Vahir wants China to become a creditor.

"Compensation trade?" Gao Zuxing frowned, "I'm afraid it's a bit difficult. Mr. Vasil, as you know, we are also very short of foreign exchange in China."

Lin Zhenhua winked at Gao Zuxing, and whispered in Chinese, "Minister Gao, I think it's feasible."

"Why?" Gao Zuxing asked.

"We provide them with equipment, which does not involve foreign exchange." Lin Zhenhua reminded.

It was only then that Gao Zuxing realized that this was an export product from China, and it did not involve foreign exchange. On the contrary, after the project was completed, a large amount of foreign exchange could be recovered.According to Wei Dongqi's quotation just now, a set of equipment is 2.5 million U.S. dollars, plus interest and so on. In the end, almost 3 million U.S. dollars will be recovered. This is an amazing big deal.

"However, there is still a problem." Gao Zuxing remembered something again, and he said to Lin Zhenhua, "Although foreign exchange is not involved, how can we recover the payment? The product they produce is refined oil, which has to be shipped back to China from South Sudan Come on, the costs and risks are very high. In addition, our domestic demand for refined oil is not great, so it doesn’t make sense for us to use refined oil to pay off debts.”

Lin Zhenhua said: "This question is also very simple. We don't need refined oil domestically, so we can sell it in the international market. Are you worried about not finding a buyer if you have oil?"

"What you said is also reasonable, so there is another problem." Gao Zuxing continued, "The situation in southern Sudan is very unstable. Although the Siya tribe is a large tribe, it is not absolutely safe. If our equipment is put into production, This tribe has been attacked, and even completely controlled by the government, so don't we lose money and goods?"

Lin Zhenhua said: "This is indeed a big problem, but wealth and wealth are found in insurance. If this is not the case, how could this project fall into our hands? I think, after we go back, we will have an in-depth understanding of the foreign affairs department. Get the opinion of the military and hear how they evaluate it. If they think it's feasible, it's worth taking the gamble."

Gao Zuxing pondered for a moment, nodded and said: "Forget it, after all, we are only talking about intentions and policy matters, let's go back and learn more about it."

After discussing with Lin Zhenhua, Gao Zuxing turned around and said to Vasir: "Mr. Vasir, we have just discussed the issue of compensation trade, we can consider it as a way. Since this project involves your country Regarding domestic political and security issues, we need to invite diplomatic and military personnel to participate. If possible, we will send people to your tribe to conduct field inspections at the right time, what do you think?"

"Thank you very much." Vahir said, "We are very eager to get your support. I will report this situation to our tribal leaders when I go back. We welcome the visit of your delegation at any time."

The negotiation is over at this level. Vasil left his contact information and promised to send information such as the local security situation and oil resources to Lin Zhenhua as soon as possible after returning home, so that Lin Zhenhua can understand the project. Conduct an in-depth assessment.

After Vasil left, Gao Zuxing closed the door of the conference room, and asked Lin Zhenhua solemnly: "Xiao Lin, can you tell me now, if this project is to start construction, how much will your total cost be?"

Lin Zhenhua pointed to Wei Dongqi, and said, "I don't know about this. Let Director Wei explain it."

Wei Dongqi said embarrassingly: "Minister Gao, I have done the calculation just now. If a set of 50 tons of oil refining equipment is produced by my original factory, the cost will not exceed 8000 million yuan, which still includes dispatch The price of workers going to Africa to install."

"Only 8000 million?" Gao Zuxing counted with his fingers, "With an investment of 8000 million yuan, you can get back 2.5 million U.S. dollars in foreign exchange. This profit is really too high. Xiaolin, I understand now, why are you so eager to ask for money?" contributed to this project."

Lin Zhenhua said: "Minister Gao, I have more thoughts than this. I think that no matter how high the profit of this project is, it is limited after all. But if we can pass this project, we can deepen our influence into the interior of Africa , then we have more than that. I just learned from Vasir that the United States, the United Kingdom, the Soviet Union, Egypt and other countries are all involved in the affairs of South Sudan. If we can establish a relationship with The connection with the Siya tribe will be very beneficial for us to fight for a voice in this region in the future."

Gao Zuxing was taken aback: "Xiao Lin, your thinking is very dangerous. What do you mean by fighting for the right to speak? Are you trying to engage in colonialism in Africa? This is absolutely unacceptable."

"Well..." Lin Zhenhua was depressed.People back then were really innocent, they only thought about peaceful coexistence, did not interfere in internal affairs, and did not participate in political disputes.In fact, the world is not so clean. Europe, America, Japan, and the Soviet Union are not fuel-efficient lamps. They all cultivate their own spokespersons in Asia, Africa and Latin America. If China does not do this, it would be a fool.

"Let's discuss this matter in the long term." Lin Zhenhua retreated in defeat.He thought, let's talk about this matter with He Haifeng when we go back. After all, Gao Zuxing is from the previous generation and has enough experience in foreign trade, but he is still too conservative in international politics.Lin Zhenhua also didn't want to debate too much with him at this time.

"Well, it's not urgent, let's go back and study it in detail." Gao Zuxing no longer entangled in this matter, "However, whether this project can be completed or not, it is a very good start. It means that our high-end There is also the possibility of exporting equipment.”

"Minister Gao, this 50-ton oil refining equipment is an obsolete technology." Wei Dongqi reminded seriously.

Gao Zuxing smiled and said: "I don't understand this. I am engaged in foreign trade. I only see a lot of money, so I think it is high-end. Good guy, a project is 2.5 million yuan. If you do more than a dozen a year With such a project, we don’t need to export oil at all. Do you know that our country only earns 40 billion yuan a year from exporting oil.”

"This is the wealth of our children and grandchildren." Lin Zhenhua said sadly, "Minister Gao, I really hope that one day our country will stop selling oil. We don't even mine. We seal up Daqing's oil and use other people's oil." Oil."

Gao Zuxing said: "Okay, I think so too. This requires more efforts from you industrialists. When our mechanical and electrical products can export 200 billion yuan, we don't need to sell oil."

Lin Zhenhua said to Wei Dongqi: "Old Wei, did you hear that? Minister Gao has given us a task. Let's hurry up and build an 80-ton ethylene plant. Export a set of that thing, and 200 billion will come back."

While talking lively, Zhu Jinwen came in with a smile on his face.As soon as he came in, he shouted at Gao Zuxing: "Minister Gao, it's a big harvest! It's a big harvest!"

"What's the matter?" Lin Zhenhua and Wei Dongqi asked together.

Zhu Jinwen looked at Lin Zhenhua and said with a smile: "Xiao Lin, this time it's all thanks to your idea. After I go back, I will give you credit. I dare not say anything else. A national model worker with a mechanical system will definitely not be able to escape. .”

"Okay, then I will thank Director Zhu first." Lin Zhenhua replied happily.

After making the promise to Lin Zhenhua, Zhu Jinwen turned back to Gao Zuxing and said, "Minister Gao, guess how many cooperation intentions we have discussed just now?"

"How much? Is it over [-] million?" Gao Zuxing said with a smile.Now his psychological expectations have been greatly improved. He knows that this exhibition will definitely be the result of a bumper harvest. The only suspense is the quantity of harvest.

Zhu Jinwen pretended to be dissatisfied, and said, "Minister Gao, you are too unconfident. With you, Minister Gao, sitting here, how can a mere 2.4 million yuan survive? Let me tell you, just now, Let's talk about [-] million yuan."

"2.4 million?" Even though Gao Zuxing was mentally prepared, he was still shocked by the number reported by Zhu Jinwen, "No way, you guys are selling such a good price for such a piece of scrap metal?"

Zhu Jinwen laughed loudly: "What is broken copper and rotten iron? At any rate, this is the result of our mechanical system accumulated over the past 30 years. Let me tell you, our Chinese products have no other characteristics, but two, one is cheap, The second is solidity. Don’t underestimate this solidity. In developing countries, various conditions are relatively harsh, and people still need this kind of special solid equipment. Like those European equipment, they are afraid of tides and dust, which is harmful to the stability of the power grid. The requirements are so high that they really can't afford to serve them."

Gao Zuxing said: "Great, the intention of 2.4 million yuan, even if half of it can be succeeded in the end, it will be more than 1 million yuan. It is worthwhile for us to go to Frankfurt. What's more rare is that it fully proves the strength of our China. Equipment products are capable of exporting. In the future, we will organize more enterprises to participate in more similar exhibitions, so as to completely change the situation that our foreign exchange earning relies heavily on resource exports.”

(End of this chapter)