industrial overlord

Chapter 608 Agricultural Association
"Ford, how do you think about the issue of the trade deficit?" Lin Zhenhua asked Ford.

"The long-term existence of the trade deficit is harmful to the U.S. economy. As a large number of Chinese goods occupy the U.S. market, American workers are deprived of job opportunities, causing a lot of social problems. Therefore, we must change this This is the purpose of my friends and I coming to China this time." Ford pointed to the other Americans who accompanied him, and those Americans nodded desperately to show their agreement. .

"You mean to say that the import of Chinese goods will be restricted in the future to reduce the trade deficit, is that true?" Lin Zhenhua asked Ford and others.

Ford said: "Lin, don't misunderstand, this is not our idea, but the proposal of some other members of Congress. For example, we have a member named Chrisel who strongly criticized the current foreign trade policy of the United States in Congress and proposed To strictly restrict Chinese products, he also called on all members of Congress to boycott Chinese products in their daily lives and choose products that are not made in China."

"I bet, not only can he not convince others, but he can't even do it himself." Lin Zhenhua said with a chuckle and disapproval.

Lin Zhenhua is not at all worried about Americans boycotting Chinese goods in their daily lives.He remembered that there was such a thing in later generations. It was in 2004 that an American reporter decided to conduct an experiment of "rejecting Chinese products" on a whim, and asked his family members not to buy any Chinese products throughout 2005. Products of.

As a result, this experiment plunged her family into unprecedented chaos. The children could not buy shoes and toys, and her husband could not afford sunglasses. imported.After a year of near-darkness, they finally ushered in the day when the experiment ended. It was a feeling of heaven coming from hell.Later, she wrote her experience into a book called "The Year of Leaving Made in China", which caused a great sensation.

"That's right, in fact he couldn't do it himself." Ford admitted, pointing at himself, and said to Lin Zhenhua and Huang Gang: "To be honest, the penetration of Chinese products into American society is already pervasive. Take a look. My whole body, leather shoes, socks, pants, belt, wallet... are all made in China, if I try to change them to American or Italian, it will cost at least 5 times more, and the quality is not necessarily better .”

"Mr. Ford, you should know that cheap Chinese goods have helped countless poor Americans improve their quality of life. If you boycott Chinese goods out of political considerations, at least for poor Americans, it is very unfair." Huang Gang interjected.

"You are right, Mr. Huang." Ford said, "However, we have to consider the demands of interest groups. Therefore, I made a special trip to China to discuss with my Chinese friends how to solve this problem." Questions are good."

"I think, you should have some plans, right? Otherwise, you wouldn't bring this gentleman from the Agricultural Association to China." Lin Zhenhua pointed to a person named Radka next to Ford.As Ford has just introduced, Radka is the vice chairman of the North American Agricultural Association and a large farmer, owning tens of thousands of hectares of land.The intention of such a person accompanying Ford to China is naturally very clear.

Radka smiled cautiously, and said: "Mr. Lin, you are very smart. Ford and I have been old friends for many years. This time he came to China for a visit, and I specially asked him to bring me to China. I also want to provide some ideas on how to solve the US-China trade deficit. As this Mr. Huang said, boycotting Chinese goods is an unpopular thing. I think most poor people in the United States...of course, including people like me The middle class will not support it.

However, without reducing imports of Chinese goods, I think it is entirely possible to solve the problem of foreign trade deficit. The solution is to ask China to also increase imports of goods from the United States. As long as the import and export volumes of both sides reach a balance, the deficit will naturally decrease no longer exists. "

"Mr. Radkar, I think your subtext should be to say that you want China to increase its imports of agricultural products from the United States?" Lin Zhenhua said with a smile what Radkar was embarrassed to say for him.

Radka said: "Of course, I am the vice chairman of the Agricultural Association. Naturally, when considering issues, I should think more about agriculture."

"How many agricultural products does China currently import from the United States?" Lin Zhenhua turned to Huang Gang and asked.Lin Zhenhua is obviously not as clear as Huang Gang about macroeconomic data like this.

Huang Gang said: "I don't remember clearly, but I have some general impressions. The largest agricultural product China imports from the United States is soybeans. Last year, China imported about 500 million tons of soybeans from the United States. The amount should be around 10 billion to 11 billion US dollars. In addition to soybeans, China also imports citrus, wheat, corn, etc. from the United States, but the quantity is not too much.”

"Yes, yes." Radkar took Huang Gang's words and said, "China's import of soybeans from the United States is a matter of great celebration for American soybean farmers. Therefore, every time when the society Soybean farmers were against it when there were voices on the Internet to contain China. I think that if China can import soybeans and increase imports of wheat and corn from the United States, then wheat farmers and corn farmers will also strongly support it. In China, their voice is much louder than soybean farm owners.”

"It is impossible to increase the import of wheat and corn." Huang Gang explained, "China can guarantee self-sufficiency in wheat and corn, so it will not import too much from abroad. At present, we import hundreds of thousands of tons from abroad every year. Wheat is mainly used for some special purposes, such as some wheat flour for baking bread, and the desired effect cannot be achieved with China’s own wheat, so some foreign wheat needs to be imported.”

A look of disappointment appeared on Radkar's face. Lin Zhenhua waved his hand to Huang Gang, then turned to Radkar and asked, "Mr. Radkar, according to your idea, how much wheat do you want China to import from the United States?" ?”

"Of course, the more the better." Radka said, "If it can reach 300 million or 500 million tons, it will be a boon for American wheat farmers."

"How much does it cost?" Lin Zhenhua asked again. He is engaged in industry and doesn't know much about the prices of agricultural products.

Radka is very familiar with this. He replied: "The current price of wheat in the United States is 140 US dollars per ton. If it is calculated on the basis of 500 million tons, it will cost about 7 million US dollars."

"That's all?" Lin Zhenhua felt very surprised.Today, 7 million US dollars is not a big figure even for Hanhua, let alone for the whole of China.According to China's own calculations, in 2000, China's trade surplus with the US alone reached US$300 billion, so spending a mere US$7 million to buy 500 million tons of wheat from the US doesn't seem like a big deal, does it?

Lin Zhenhua remembers that in the next few years, China's foreign trade surplus will continue to increase, leading to a sharp increase in foreign exchange reserves, and by 2011, it reached a terrifying figure of 3 trillion US dollars.Out of the 3 trillion US dollars, 7 million a year is spent, no, even if 70 billion is used to buy some imported wheat, it is a trivial matter, right?
"Mr. Radkar, if China really buys 500 million tons of wheat from the United States a year, can you guarantee that the American Agricultural Association will support China on all occasions?" Lin Zhenhua began to ask nakedly. He knew the character of the Americans. It is relatively straightforward, especially when interests are involved, it is meaningless to beat around the bush.

Radkar hesitated for a moment, and replied cautiously: "In all occasions... it may be a bit difficult. However, I think I can at least guarantee that the Agricultural Association will adopt a relatively neutral attitude on issues related to China."

Damn, the order of 500 million tons of wheat is in exchange for a "relatively neutral" attitude?Lin Zhenhua was quite dissatisfied, and he continued to ask: "Then what if we buy not 500 million tons, but 1000 million tons?"

"My_God, if there is really a purchase of 1000 million tons, then the Agricultural Association will definitely stand firmly on the side of China. I can guarantee that we will work hard to speak for the Chinese." Radka became emotional , 1000 million tons of wheat, and an order of more than one billion US dollars, this is enough to drive the directors of the Agricultural Association crazy.If he can really facilitate this matter, it is estimated that he will be the next chairman of the board.

"Hehe, then, what if this amount increases to 2000 million tons? Can you use your influence to persuade other interest groups to support China?" Lin Zhenhua continued to ask.According to Radka's quotation, 2000 million tons of wheat, or 30 billion U.S. dollars, is equivalent to one-thousandth of the future 3 trillion foreign exchange reserves, which is really too cheap.

"This..." Radka didn't have the excitement that Lin Zhenhua expected on his face. Instead, he looked distressed: "Mr. Lin, I think this amount is a bit too much...the annual wheat production in the United States is not enough." But it’s about 5000 million tons, it’s impossible for us to export 2000 million tons.”

"How is it impossible?" A man named Slit sitting next to Radka was in a hurry. His identity was Radka's assistant, but he was also a farmer. of interest.

"Radkar, you should know that American agriculture has not been used to its full potential. If we take part of the fallow land to grow wheat, it is not a problem to increase the production of 1000 million or even 2000 million tons a year. The reason we didn't do this before is simply because the market can't digest so much wheat. If what Mr. Lin said is true, then we can persuade the government to relax the policy on fallow land and increase wheat output. ’” Slitter said anxiously.

(End of this chapter)