The rise of a great power: starting with military industry

Chapter 616: Are you also making military aircraft?
Local tycoon!

Big tycoon!
Liu Tao was amazed!

However, it is understandable that Kuwait’s behavior is that of a tycoon, because they have the confidence of a tycoon.

Like Saudi Arabia, Kuwait has abundant oil and follows the same path, which is to continuously acquire British Petroleum and Gulf Oil's shares in Kuwait Petroleum Company.

In 1975, Kuwait signed an agreement to regain 100% of its oil operating rights, becoming the first Persian Gulf oil-producing country to successfully nationalize a major international oil company.

After that, the relationship between the Kuwaiti government and foreign oil companies changed into that between crude oil buyers and oil business operators.

Compared with before the government participated in equity and management rights, the primary and secondary positions have been reversed. Kuwaitis have become the masters of their country's oil industry, and Kuwait has ushered in a new historical period.

After the first oil crisis, the supply of oil was in short supply, causing oil prices to soar. At that time, Kuwait produced 1 million tons of oil each year, of which 80% of the crude oil was directly exported, and the remaining 20% ​​was refined into petroleum products for export. The annual income from the two exports was about US$200 billion, and the per capita income exceeded US$1.

After the outbreak of the Iran-Iraq War, oil prices soared again. In recent years, Kuwait could earn at least 450 billion US dollars each year, and as much as 600 billion US dollars in some years.

Thanks to oil revenue, Kuwait's per capita income exceeds US$3.

The abundant income from oil has enabled Kuwait to implement high social welfare, including free medical care, free education, and free housing. The welfare is so good that even developed countries such as Europe, the United States, and the Soviet Union would be envious.

Kuwait currently has 945.45 billion barrels of proven oil reserves, ranking fourth in the world. Kuwait also has abundant natural gas reserves, with proven reserves of 1.37 trillion cubic meters.

It can be said that in the next thirty or forty years, Kuwait will have no worries and can count money without any effort.

Kuwait is also very smart. Although it has abundant oil reserves, it has not spent all its money. On the one hand, it has kept a large amount of funds as future reserves to be used when the oil is exhausted. At the same time, Kuwait has also made a lot of investments overseas, with investments in Europe, America and Asia exceeding US$2000 billion.

The United States, Canada, Britain, France, Germany, Italy, Japan, China and other countries have investments in Kuwait.

Other countries will increase their foreign exchange reserves as much as possible.

But Kuwait doesn't need that. Kuwait earns too many US dollars every year, and they invest the US dollars.

In addition to buying U.S. bonds and investing in U.S. companies, Kuwait also invests in European companies. In Asia, as a rapidly developing country, China is also a key investment focus for Kuwait.

Panshan Group has a close cooperative relationship with Kuwait.

Kuwait purchased weapons from Panshan Group, hired technicians, hired mercenaries, and even asked Panshan Group's shipping group to transport oil.

After the outbreak of the "Iran-Iraq Ship Raid War", Kuwait was also affected, but this impact was controllable. One very important reason was that the oil was transported through the shipping group under the Panshan Group, and the freight paid was simply higher.

"Jasim, this time we have developed two advanced trainer aircraft, which are very suitable for your air force." Liu Tao took the opportunity to talk about the advanced trainer aircraft, "Believe me, you will not regret choosing our advanced trainer aircraft."

Jasim asked curiously, "You are also making airplanes now?"

"Well, we have developed two advanced trainer aircraft, and an advanced fighter aircraft is about to be successfully developed." Liu Tao smiled faintly, "There are two advanced trainer aircraft in Beijing now. If you place an order first, not only will there be some discounts on the price, but you can also get it delivered first."

Kuwait’s air force is now almost negligible.

Although Iraq is eyeing Kuwait, it is not keen on building its national defense. The total strength of the army, navy and air force is more than 4 people, but the navy and air force are negligible. The main force is still in the army, which has brigades, an assault battalion and an Emir Guard.

Some people may find it hard to believe, but Kuwait is one of the few countries in the world that has achieved mechanized army forces.

Liu Tao has his eyes on the Kuwaiti Air Force. As long as he can convince Kuwait, given Kuwait's situation, he can at least equip it with 70 J-10s, 20 J-7s and Eagle advanced trainer aircraft.

If it can be achieved, there will be a lot of orders. Liu Tao treated Jasim to hot pot at noon, beef hot pot.

In the afternoon, Liu Tao, Jasim and others arrived at the air force base.

The 'J-7' and 'Eagle' advanced trainer aircraft were placed in front of Jasim, and he went up to watch with great interest. After he became a little familiar with them, Jasim flew the plane himself accompanied by the pilot.

Jasim was a former pilot and a flying enthusiast.

After having a good experience, Jasim's face was full of excitement.

"Liu, my friend, your two advanced trainer aircraft are amazing." Jasim said excitedly, "But I have to be honest with you, the authorization I got is only for warships, not for aircraft."

"But I will report to the king. The king will visit China in a week and I believe we will have an answer by then," said Jasim.

Liu Tao was a little surprised. He didn't expect that Kuwaiti King Jaber Al Sabah would visit China again.

But this is just fine, if we can get this deal done, it would be great.

According to the agreement, after the successful development of the J-10, Chengfei and others will mainly deliver it to domestic troops, while foreign trade will be mainly through Guizhou Aircraft.

Therefore, Liu Tao is very positive about foreign trade and has enough motivation.

Liu Tao had a deep impression of Kuwaiti King Jaber Al Sabah, who was an extraordinary person. It was during his time as crown prince that he completed the nationalization of Kuwait's oil step by step. It was also after he became the King of Kuwait that he did not rely purely on oil, but invested overseas.

Moreover, he has always advocated a neutral and non-aligned policy, emphasizing not to ally with any international camp.

This is also why Kuwait’s overseas investments are not all concentrated in the United States, but rather dispersed.

"Jasim, my friend, I'll leave it to you from now on!" Liu Tao said with a smile.

He did not mention the remuneration. Commission is something that can only be asked of some people, but it is different for Jassim. Jassim is a member of the Kuwaiti royal family and has a net worth of hundreds of millions of dollars. It is better not to mention commission, because if he does, it will most likely lead to bad things.

It would be better to give Jasim a luxury car specially built by Huaxia Automobile, or a luxury yacht specially built by Yangcheng Shipyard. Even giving an advanced training aircraft or a fighter jet is more reliable than asking for commission.

The two left the air force base and returned to the city.

Liu Tao is already preparing to meet his next good friend. He has a lot of things to do when he returns to Beijing this time, which is related to the future development of Panshan Group.

He had a premonition that the Iran-Iraq War might not last much longer.

The Soviet Union was happy to see the war between Iran and Iraq continue because the relatively high oil prices were beneficial to the Soviet Union. Oil was the main export of the Soviet Union, far exceeding arms.

However, the other four permanent members of the UN Security Council were unwilling to see Iran and Iraq continue to fight.

High oil prices have already caused great suffering to Europe and the United States, and they are stuck in an economic quagmire and cannot extricate themselves.

Europe and the United States have cut social welfare time and again, but the economy remains sluggish and shows no sign of improvement.

One very important reason for this is that oil prices are much higher than before.

(End of this chapter)