Chapter 555
Breaking the situation
Chapter 555 Breaking the situation
"Comrades, please sit down."
The deputy official looked up from the document, pointed to the chair opposite him, and saw a document spread out on the table with the cover titled "Request from Anning County for Pilot Counties for Trade with Russia".
County Chief Tian did not sit down, but handed over a list first.
“Leader, this is all the resources the county can offer. Twelve state-owned factories and eight decent private factories. I’ve had all the products checked, and the quality is top-notch.”
The deputy official took it and glanced at it.
The list included Changhong color TVs, woolen coats from Hongqi Garment Factory, agricultural water pumps from Shuguang Machinery Factory, canned luncheon meat from a food factory, as well as thermos flasks, down jackets, leather shoes... It filled two pages.
He put down the list and looked up at County Chief Tian: "Is someone in the city getting worked up?"
County Chief Tian nodded: "Yesterday afternoon, the municipal government office called and asked what we meant by submitting a report to the province without authorization. I didn't give a direct answer, only saying that it was a decision made collectively by the county and that the procedure was compliant."
The deputy official laughed: "Procedural compliance? You know perfectly well that if I don't approve this, you'll have to write a self-criticism when you get back."
County Chief Tian met his gaze: "Official Zhang, it's alright for me to write a self-criticism. But the Changhong factory matter can't be delayed any longer. Lin Xiaohe was blocked in Moscow for a month, blocked by customs, rejected by shopping malls, and his distributors were fed by the Japanese. He managed to carve out a path with a knife and secured a contract from the Far East Military Region for 5,000 units. When the people in the city heard about this, their eyes turned green with envy, and they held a meeting overnight to discuss the overall layout of the city's electronics industry."
The military order of 5000 units will not solve the immediate problem, but it will add another layer of uncertainty to the closure of Changhong's factory.
Those people really saw Changhong Factory as a duck that was already in their mouths, and they didn't want it to fly away.
The deputy official didn't reply, but instead looked down and flipped through the list: "What does that Shuguang Machinery Factory in your county do?"
"The agricultural water pumps are based on the Soviet-era aid, and the technology is excellent. A few years ago, the factory was on the verge of collapse, but Lin Xiaohe helped connect it with Changhong Factory to provide supporting products, which saved it. Now it can produce 800 water pumps a month, and the quality is better than the local products from Russia, while the price is 40% cheaper."
The deputy official nodded, then pointed to another name and asked, "What about the food factory?"
"For the past two years, we've been selling luncheon meat cans through border trade to Heilongjiang Province, with 2,000 cases sold annually. But then the supply chain dried up there, and the factory went under again. During the enterprise reform, the food factory replaced its management team. Lin Xiaohe facilitated a partnership between the food factory and Pang Donglai, where they produced Pang Donglai juice, instant noodles, and other products that sold well nationwide."
The deputy official put down the list and leaned back in his chair: "Comrade Tian, do you know what the biggest problem is in trade between our two countries right now?"
County Chief Tian waited for him to continue.
"Money." The deputy official held up two fingers. "First, the Russians don't have foreign exchange. After the collapse of the Soviet Union, the ruble became worthless; they can't open letters of credit or remit US dollars. If you want to do formal trade with Russia, what will they use to pay?"
He paused, then extended his second finger.
"Secondly, we've ruined our own brand. Now, when people from the Russian bear hear that something is from the East, they immediately shake their heads."
County Chief Tian was silent for a few seconds: "Sir, I am aware of all of this."
He took another document out of his briefcase and spread it out on the table.
"This is a plan that Lin Xiaohe sent back from Moscow. She said that what Russia lacks most right now is not money, but goods. Many factories have stopped production, workers are not paid, and warehouses are full of goods. Steel, timber, fertilizer, cement, heavy machinery, everything is available, but they just can't sell them. They can't come up with US dollars, but they have goods."
He pointed to the proposal.
"Lin Xiaohe suggested that the county should organize a delegation to go directly to Russia to negotiate barter trade. We would provide light industrial products, food, and daily necessities in exchange for their raw materials. The prices would be based on the international market and denominated in Swiss francs, but the actual payment would be made on a cash-on-delivery basis, without going through banks or touching US dollars."
The deputy official's eyes lit up.
He was all too familiar with the term "barter trade." A few years ago, the border between the two countries thrived on it. A boatload of watermelons for a boatload of fertilizer, a truckload of down jackets for a truckload of steel—simple, brutal, but effective. But why did it eventually fail? Because of disorder, because of chaos, because those middlemen had completely monopolized the trade.
"What are your county's plans?"
County Chief Tian was well-prepared: "First, establish a unified trading company, managed by the county. All participating enterprises will handle exports, negotiations, and settlements uniformly, with no individual efforts or price wars allowed. Second, all exported goods must undergo quality inspection; any substandard goods will not be allowed to leave the country. Anyone who damages their reputation will be held responsible. Third, utilize the channels Lin Xiaohe established in Moscow. She has already made connections with the Far Eastern Military Region; the military's reputation for procurement can help us penetrate the local market."
After listening, the deputy senior official remained silent for a moment, then asked a question: "Do you know how much trade Heilongjiang Province did with Russia in 1992?"
County Chief Tian shook his head.
“Three hundred and seventeen million US dollars. That was the historical high,” the deputy official said. “The following year, it dropped to two hundred and one hundred million. This year it’s only one hundred million. Why? Because the Russians have learned their lesson and are no longer playing with us.”
He stood up and walked to the window: "It's not that your county can't do barter trade. But there's one condition: we can't go down the old path again. We can't let those middlemen take advantage of loopholes, we can't dump counterfeit and shoddy goods, and we can't ruin our brand reputation to death."
He turned around and looked at County Chief Tian: "Are you confident? Is Lin Xiaohe confident?"
He didn't even need to think to know that the mastermind behind it all was Lin Xiaohe!
He bears a heavy responsibility for approving the Anning County matter. Trade with Russia has always been a privilege of Heilongjiang Province.
Tian stood up, his back ramrod straight: "Boss, that's exactly what I wanted to hear. We have confidence!"
The deputy official walked back to the table, picked up the request, and wrote a line in the upper right corner.
[It is agreed that Anning County will be designated as a pilot county for trade with Russia in the province, and implementation will be carried out according to the submitted plan. The Provincial Economic and Trade Commission, the Provincial Foreign Exchange Administration, and the Provincial Commodity Inspection Bureau are requested to provide their support.]
He signed his name and pushed the document to County Chief Tian: "Go back and tell your Lin Xiaohe that the province is backing her up. But also tell her that this is her only chance. If she can't make it work and bring down the Japan Color TV Association, she shouldn't talk about those unrealistic things anymore."
County Chief Tian took the document, his hands trembling slightly.
He steadied himself and said, "Thank you, sir."
The deputy official waved his hand: "Don't rush to thank me. If the pilot program is successful, that's your achievement. If it's a failure, you'll take the responsibility yourselves."
He paused, his gaze sharpening: "I'll put in a good word for things in the city, but you'd better be careful when you go back."
County Magistrate Tian was startled and nodded.
"Go ahead. Do a good job."
Stepping out of the office, the corridor was so quiet I could hear my own heartbeat.
County Chief Tian looked down at the document in his hand. It had the official seal of the provincial government, the signature of a deputy high-ranking official, and the line "[Organize and implement according to the reported plan]".
He recalled Lin Xiaohe's message from Moscow: "County Chief Tian, the path here has been paved, we're just waiting for our family to come. The Japanese blocked my way, but I managed to get around them. However, to widen this path further, we need to stick together as a team."
Now, the road is open.
He folded the document, put it in his inner pocket, and strode out.
Outside the window, the sun is shining brightly.