The rise of a great power: starting with military industry

Chapter 784 Calculation
GDP is actually very misleading.

Different countries calculate GDP in different ways.

For example, China mainly adopts the "production method", which is to calculate the total output of each national economic sector separately, then deduct the intermediate consumption of each sector accordingly, and finally summarize the output added value of all sectors.

This algorithm is a combination of the MPS (material product accounting system) used by the Soviet Union and the SNA (developed from the system of national accounts) used by the West.

Because China mainly uses the "production method" to calculate GDP, the advantage of this calculation method is that it avoids repeated calculations and pays more attention to the calculation of the value of social products. However, the disadvantage is also obvious, that is, the statistics are relatively complex and not comprehensive enough, and often ignore the auxiliary contributions of non-productive sectors, such as education, medical care, culture and other service industries, including the financial industry to the economy.

Those who set up stalls are not qualified to be included in the GDP statistics; and those who are self-employed are also not qualified to be included in the GDP statistics.

Even private enterprises are not eligible to be included in GDP statistics if they are too small.

In recent years, when cities calculate GDP, they have to squeeze the data themselves, and when provinces compile the data, they have to cut it again.

When it comes to the National Bureau of Statistics, the GDP statistics of each province are further suppressed, and the GDP growth rate is almost controlled at 12.5%.

GDP like China's is actually hard-earned money, with very low profits. Oil-producing countries like Saudi Arabia are different, they have high profits, the cost may be only a few dollars per barrel, and the rest is profit.

Saudi Arabia's GDP is currently around 1500 billion US dollars, but its profits are definitely higher than those economies with a GDP of over 5000 billion US dollars, so it lives a very comfortable life.

At least in terms of wealth, China cannot compare with Saudi Arabia now.

Saudi Arabia spends 20 to 30 billion US dollars every year just like playing, and it does not affect the living standards of the people and the enjoyment of the royal family. China cannot spend 20 to 30 billion US dollars every year just for fun.

Liu Tao is very positive about strengthening exchanges between the two sides, especially cooperation.

Saudi Arabia has money, China has all kinds of goods, and China also needs Saudi Arabia's oil.

There are no fundamental contradictions or conflicts between the two sides. On the contrary, there is great complementarity between them.

The Middle East is good, but it is too far away from China.

Even if Saudi Arabia becomes the leader of the Arab world, commanding and integrating the entire Arab world, that would not be unacceptable.

After Liu Tao arrived in the capital, he took out a notebook and started writing in his study that night.

"Huaxia Automobile After-sales Service Center, this is very important. Only a perfect after-sales service center can firmly occupy the automobile market in the Middle East!" The first line Liu Tao wrote was Huaxia Automobile After-sales Service Center.

In recent years, Huaxia automobiles and Huaxia motorcycles have also been exported to the Middle East, and after-sales service centers have been established in major cities such as Riyadh, Kuwait, and Baghdad.

But obviously, this is not enough. It would be better if every city had an after-sales service center. In this way, Huaxia Automobile and Huaxia Motorcycle would have a solid base in the Middle East market.

As for setting up a production plant in the Middle East, Liu Tao has not considered it at this time. The reason is very simple. The industrial system in the Middle East is not enough to support it. At the same time, he also wants to produce more motorcycles and cars in China.

Producing more in China can provide more jobs for China.

Even in after-sales service centers that repair motorcycles and cars, people from countries like Saudi Arabia and Kuwait who don't want to do the hard work of mechanics can do it. After all, the salary of car mechanics is not low, and many people want to do this job.

"There is also a tank and armored vehicle repair factory, which can also be built in Saudi Arabia!" Liu Tao wrote it down again on the second line.

Panshan Group exports a large number of tanks and armored vehicles to the Middle East. Although these tanks and armored vehicles are qualified when they leave the factory, it does not mean that they will not be damaged during use. It is normal to have some problems.

The Middle Eastern countries are not very good at repairing tanks and armored vehicles.

In addition to creating a large number of jobs, Liu Tao estimates that this business can generate at least tens of millions of dollars or even hundreds of millions of dollars in profits each year.

"Besides that, there is also cooperation in imports!" Liu Tao thought of the vast market for Saudi Arabian imported goods. China can provide almost all the goods Saudi Arabia needs.

Sometimes Liu Tao has to admit that the globalized market does have its good side, as it can form a huge global market.

So far, China has been a beneficiary of globalization.

If we talk about countries that benefit from globalization, China is not likely to be ranked first, but it is likely to be in the top ten.

Liu Tao listed more than a dozen items in total, covering all aspects.

He wrote down almost everything he could think of.

After closing the notebook, Liu Tao stretched and yawned.

I looked at the time and it was already past nine o'clock in the evening.

When Liu Tao walked out of the study, he saw Chen Fang and the others watching TV.

There are fewer entertainment options nowadays, either watching a movie or watching TV.

As for shopping, it is not very popular yet.

Besides, shopping is not suitable for people of Chen Fang’s age.

"Mom, I heard from Linlin that you are planning to retire early?" Liu Tao sat down.

Chen Fang is 58 years old this year. According to the relevant regulations on cadre retirement, she can retire at the age of 55. However, considering the needs of work, the unit retained Chen Fang and postponed her retirement appropriately. In theory, in this case, Chen Fang can work until she is 60 and then retire.

Chen Fang said: "Retire early and enjoy life early, make room for young people, and respond to the call of the country at the same time."

Chen Fang was quite open-minded about this.

If her previous company hadn't tried to keep her, she would have wanted to retire.

Anyway, after she retires, she can enjoy the treatment of a full-time department head and doesn't have to worry about her retirement.

"It's good to retire. I can travel around the country. The country has changed a lot now." Liu Tao nodded and said, "It's also nice to see the beautiful mountains and rivers and magnificent landscapes of the country. Let my dad retire."

"He doesn't want to retire. He wants to work until he's 65 before retiring!" Chen Fang said unhappily. "I don't know what he's thinking."

Liu Tao smiled.

According to relevant regulations, Liu Zhenbang can retire at the age of 65. Now Liu Zhenbang is 61 years old, which means he can still work for another 4 years.

In Liu Tao's opinion, this is also the difference between men and women. Women are eager to retire as soon as possible so that they can enjoy a comfortable retirement life, while men are eager to work until they die and then retire, because power is at work there.

Therefore, women will live a better life after retirement than before retirement, while men will age particularly quickly once they retire.

Liu Tao had no objection to Liu Zhenbang's choice.

Liu Zhenbang is now a deputy, roughly equivalent to Wang Baoguo's position back then. There are still many things to deal with every day, but Liu Zhenbang enjoys it.

(End of this chapter)