Traveling through the sword to engage in military industry.

Chapter 393: Half-open Window and the Rise of the First Industrial Wave

Due to reasons from the outside world, the entire foreign trade structure of Dongda is now mainly labor-intensive, with food and clothing as the leading industries and has been developing steadily.

Unlike the starting point of opening up in the main world's historical time and space, due to the gradual nature of the previous social changes and a lot of social capital investment, the development of labor-intensive industries was not initially driven by overseas capital like the main world, but naturally developed from clothing to peripheral industries in the process of Ren Zhong's initial promotion of the development of the clothing industry.

The food industry is similar. After being driven by several leading enterprises, smart capital began to follow this general direction and take a differentiated and diversified path under the influence and demonstration of these leading enterprises, becoming a supplement to the product matrix of backbone leading enterprises.

With the promulgation of product quality standards, the basic quality of these products needs to be subject to random inspection and control by local quality supervision departments. In this way, the overall quality control of the products will be maintained at a fairly high level.

It is difficult for counterfeit and shoddy products to find room to survive, even if there are not so many information means in this time and space, but the most basic management such as grid management makes it impossible for all factories to escape and they all fall under the management of the local quality supervision system.

As a result, a coastal industrial belt of low-end labor-intensive products emerged in a very strange way. It became the main force of early inland exports and absorbed the first batch of labor force to work in the coastal area.

Together with the large-scale infrastructure construction of the First Five-Year Plan and the Second Five-Year Plan, the first large number of labor forces after liberation found their place to use their talents.

This was not entirely something that Ren Zhong could have planned, but today, as the Second Five-Year Plan is coming to an end, the entire society is filled with the atmosphere of working hard for two years and setting a new record.

Four hundred million compatriots are either in school, on construction sites, in the fields, or in factories!

Without the constraints of internal friction and outdated customs and practices, the implementation of the supervision and auditing system has enabled the main enterprises and factories at all levels to operate successfully under transparent third-party supervision, maintaining the openness of currency autonomy and quota-based limited exchange, just like opening half of the window.

However, after the university opened its doors, the first batch of technical college students began to graduate. A large number of vocational and technical college students first filled the relevant positions of major domestic companies, becoming the fresh blood of large state-owned enterprises such as aviation, steel, machinery, electronics, chemicals, and shipbuilding, supporting the development of these pillar enterprises.

At the same time, some manpower can be deployed to start improving the structure of domestic and foreign trade industries, starting with the electronics industry. With the support of the many achievements of the Dawn Research Institute, the main task is to promote the initial integration and demonstration of the Qianlong Plan with the upgrading of foreign trade. With the success of Vision, subsequent seeds such as Goldenstar and CoCo Digital also found Dongda respectively, using the same cooperation model, and obtained a new batch of technology from the Dawn Research Institute to embark on the road to take-off again. This immediately attracted a lot of Western capital that smelled the scent and was foresighted to come in and test it out.

The diesel engine industry and machine tool industry took the lead.

Sulzer, a neutral country in the mountains, brought out its unique skills and reached an agreement with the Power Research Institute of the Liming Research Institute on a comprehensive diesel engine development plan, focusing mainly on the development of the power diesel engine market. The two sides signed cooperation projects for more than a dozen models of automotive and marine diesel engines.

In addition, in terms of centrifuges and industrial pumps, Sulzer has also brought out its flagship products for cooperation, mainly targeting the Asia-Pacific market.

A large part of them are aimed at Dongda’s now booming marine diesel engines.

Of course, Ren Zhong didn't care. With Sulzer, the power could be updated faster. Since the model under research was relatively mature, the time for updating to a practical state was very short, allowing small transport ships of 3000 tons and below to have a better power package all of a sudden.

Because the new power pack has similar power, but the fuel consumption is much lower. Relatively speaking, for the same journey, the fuel consumption may be about 10% lower. This makes the competitiveness of the transport ship more prominent.

In addition to being cheap, reliable and durable, it now has the advantages of low fuel consumption and low operating costs.

Such cooperation is a win-win situation for both parties, so they are running on the road to success at a speed visible to the naked eye.

Soon after, the Austro-Hungarian EMCO Group also began to cooperate with the Machine Tool Research Center of the Liming Research Institute through the introduction of some middlemen. In the face of our absolutely superior CNC machine tool technology, EMCO became our bridgehead to break into the European market.

The machine tool production line we established in the EMCO Group with our exported technology soon emerged as a dark horse thanks to its amazing performance at the European Brussels Electrical and Mechanical Exhibition. From a third-rate machine tool company in Europe, we received huge orders and directly monopolized the current highest-end CNC machine tool market in Europe, becoming a new European machine tool elite.

In order to realize these machine tool orders as quickly as possible, it was obviously unrealistic to rely solely on EMCO's production line, so most of these orders were produced in Dongda on an OEM basis and then shipped to the world. This made Hardinge in North America unable to sit still. They brought out their signature turning center and reached a technical cooperation with the Machine Tool Center of the Liming Research Institute, producing CNC turning centers and new CNC machine tools in North America and Dongda respectively, directly swallowing up the huge development space of the North American machine tool market.

The more successful projects like this there are, the more attractive it will be for foreign capital.

In this way, without providing any preferential policies, Dongda achieved the integration and mutual achievement of some industries with the West.

Of course, all of this did not come out of thin air. From Vision to Goldenstar, CoCo Digital to Sulzer, success was not based on someone's bragging or connections. Even the seeds released by the Qianlong Project, they actually went with the flow during the cooperation process and did not deliberately promote it at all.

It is precisely because of the leading technologies produced by the Liming Research Institute system that after the flowers bloom, they will naturally attract bees and butterflies and make capital bow down to them.

Only by continuously innovating technology and sparing no effort to develop new products can we have the ability to open up new markets. However, at this stage, Dongda has just re-emerged from a century of weakness on Blue Star, and many things cannot be done directly, so it has to cooperate with the capital of the major powers to open up their markets.

However, as the global influence of Dongda's technology gradually increases, these labels now clearly state that the new products of the research center under the Liming Research Institute are gradually penetrating into all aspects of the major powers. After a period of fermentation, Dongda will also begin to accumulate and output strongly in terms of brand. At this stage, it is better to survive for a while and get through the first round of comprehensive development of industrialization.

Today, Dongda is much stronger than the main world during the reform and opening up period. Not only does it have cheap land prices and factory construction costs, but it also has its own unique technological innovation capabilities and qualified technical workers. The efficient construction speed directly reduces the cost of building a new factory by about half. In addition, labor costs are also 20% lower than in China (the bulk of this is collected by local governments, which is equivalent to compensatory income as part of the land rent). If you calculate all these factors, if the scale is large enough, development in Dongda will be much better than in other places.

Now, the two camps are competing, and Dongda does not rely on anyone, and has become a third force on its own. The discourse of the leaders of the three worlds has not changed. In this way, opening the door to the first world market is actually equivalent to opening the door to the whole world, maintaining our finance to prevent the free flow of funds, and ensuring that the early weak finance is not interfered with too much by the outside world. It is equivalent to opening the window of product import and export trade, but locking the safety fence of financial foreign exchange on the window.

It has guided industries to go global and bring in, gradually forming a virtuous cycle. Although some electronic consumer products do not have great domestic demand now, this is only for the time being. With economic development, Ren Zhong believes that it will not take many five-year plans, and once the first wave of industrialization has passed, the first batch of workers will become the first to get rich.

But these industries do not have the potential to become big businesses now.

Ren Zhong was clear that under the condition that the world economy had not yet developed, the consumer product market could never compete with the production product market.

According to this simple logic, the first wave of industrialization in the country was mainly based on equipment for small factories.

Since the approval and construction authority for most local factories has been relaxed, except for small steel mills, small chemical plants, small cement plants, small thermal power plants and other industries with high pollution, which are not allowed to develop, the rest, such as textile mills, food factories, repair factories, agricultural machinery factories, wineries, and other small and medium-sized enterprises related to people's food, clothing, housing and transportation, are not prohibited, and each place develops according to demand.

As a result, the production lines and machine tools needed by factories built by public-private joint capital in various places formed a huge domestic demand market, allowing the domestic machine tool industry to begin large-scale explosive development.

In this regard, Ren Zhong was well prepared and formed five major machine tool groups by dividing and merging its subsidiaries, each of which developed these production lines targeting specific industries.

In addition to the main force of these five major machine tool groups, there are hundreds of peripheral private machine tool companies that fill the machine tool needs of some relatively niche markets. In terms of technology, they can conduct joint research with the Machine Tool Research Center of the Liming Research Institute, and rely on and utilize the research strength of this leading technology center in China and even the world to quickly complete the research work of certain special machine tools and even production lines to open up the market.

In this way, the machine tool industry soon became a world-class new machine tool center, and was known as one of the three major machine tool research centers along with Europe and North America, and began to export machine tool products and technologies abroad.

It has even cooperated with European and American machine tool companies to enter the two major high-end machine tool markets in North America and Europe.

However, this is not the most profitable thing for machine tool factories. Their most valuable thing is the complete set of production lines of five small factories exported to the vast third world countries! Due to the experience of large-scale production and practice in a large number of domestic factories, the price of a complete set of production lines in China is at least half of the price of the same production line in the West.

In this way, domestic production lines have unrivaled competitiveness in the third world with unified pricing that is 20% lower than that of international competitors!
After the powerful demonstration of strength by defeating the Rogue Eagle and being the first to send a satellite into space, domestic media cooperated in widely publicizing it around the world, forming a huge propaganda effect for the rise of Dongda. After entering these countries, products claiming to be of Dongda origin have been verified to be of good quality and low price.

In terms of publicity, Ren Zhong proposed to avoid duplication and instead set aside a portion of the tax revenue from exported goods as publicity funds for Dongda's industries, and to promote Dongda's products globally through a unified organization.

First, we need to create concepts such as great brand, great quality, and great technology, so that customers in these countries will think that products produced by Dongda are definitely high-quality.

In addition, the quality inspection and punishment measures for export products are strictly implemented, and the product control has several real checkpoints. The overall product quality is very reliable. If there are defective products, they will be recalled, replaced or destroyed. In this way, over a few years, word of mouth has been established through the process of publicity and product demonstration.

Instead of dumping products at low prices, Ren Zhong won by winning with cost-effectiveness. He directly grasped the key points of laying the foundation for the first wave of industrial boom. By exporting production-related products, he not only enhanced the production and development capabilities of the importing countries, but also began to create a group of relatively wealthy factory owners in these countries, while also gaining confidence in Dongda products.

Under these conditions, when the second wave of consumer electronics products such as televisions, microwave ovens, tape recorders, and VCRs were introduced, these factory owners who had become wealthy first were very receptive to them. For things like televisions, even if there were no TV stations in the area and the TVs could not receive TV programs, but there were VCRs, these people would buy them and use videotapes to play programs.

Some smart people even use this combination of things as a video studio!
In this way, the TV dramas produced by entertainment companies that had been deployed in Hong Kong and Taiwan in the early stage found another market. Action films, martial arts films and anti-Japanese war films were the first to be filmed. These were themes that the oriental giant could not take lightly. Justice will surely defeat evil. Those with thick eyebrows and big eyes must be oriental heroes, and those with rat-like faces are mostly Japanese devils and pirates.

This has been unabashedly implanted into Eastern culture.

If these things were placed in the 21st century in the main world, there was no way they would be approved locally.

But in the 50s in the world of Bright Sword, not many people had the concept of cultural invasion. Everyone just thought that such TV series were fun to watch.

Especially in the Asian circle, the acceptance is very high. Even in the Japanese, action movies and martial arts movies are all the rage. The entertainment company deployed by Ren Zhong has really reaped the benefits of this wave of industrial expansion.

In exchange for these things, most of the raw material resources such as various ores that are urgently needed in the country are obtained. With a know-it-all like Ren Zhong, he knows almost every location of minerals in these countries. Although domestic capital will not go to plunder, it is normal for investors to participate in infrastructure construction and bring domestically produced excavation machinery and mining machinery over. Relying on technological and financial advantages, it is almost impossible for domestic investment in mineral development in these places to fail, which has also secured a batch of high-quality mineral resources for the domestic metallurgical industry.

Even though those minerals are available in China now, the current international prices are so low that even Ren Zhong feels embarrassed. In many places, the pit price of iron ore is less than $10 in mining costs. The grade of these large open-pit mines is not low, and most of them have an iron content of more than 50%.

This led to Ren's expansion of steel production capacity starting with overseas iron ore, and it successively opened several steel mills with an annual output of more than 300 million tons on the southern coast, mainly using iron ore and coal from Australia and Southeast Asia.

If nothing unexpected happens, by the end of the Second Five-Year Plan, steel production capacity will increase to more than 2000 million tons! Steel will begin to change from a shortage to a bulk product that can be exported.

It can be said that in addition to the continuous breakthroughs in the military industry, other basic industries have also made great progress. (End of this chapter)

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