In 1978, I was admitted to Harbin Institute of Technology
Chapter 252: You can only fleece people for 10 years; while being ruthless, you also need to prepare
Chapter 252: You can only fleece people for 10 years; while being ruthless, you also need to prepare a "surprise" for the moldy ones.
"General, our offer is in US dollars!!!"
Zhang Mingqiu reminded the other party in a dry voice that this was US dollars, not RMB.
It means you should at least ask the other party to haggle over the price.
Xie Wei's price was definitely not cheap. The core explosives and propellant fuel used in the warhead were all provided by the Chinese side. The other party only bought some production technology. It cost $1720 million!
The original selling price of $800 and $1200 was already several times the cost price.
"Principal Zhang, the General understands." Xie Wei rolled his eyes at Zhang Mingqiu. Turning to Abdullah with a smile, he asked, "General, was I right?"
"Yes! I understand it's US dollars. We don't have any RMB!"
Abdullah didn't quite understand what Zhang Mingqiu meant. Could it be that he felt Xie Wei's offer was too low and wanted to back out because he agreed too readily?
This is not possible!
A rocket launcher capable of destroying a T-72 in one shot would definitely not be cheap, and its production technology must be even more valuable.
Once the technology is acquired and digested, it can even serve as a basis for developing even more powerful anti-tank rocket launchers.
Moreover, the Soviet KGB was willing to pay $800 million to acquire the technology for this anti-tank rocket launcher.
"The armor-piercing version is $1800 per unit, and the explosive fragmentation version is $1200 per unit, right? We have no objection to these prices."
To avoid the other party reneging, Abdullah stated the price he had found out directly, since that was the price he was selling to Pakistan for, and there were no additional conditions.
The other party can't possibly assume that the same man-portable rocket launcher is sold at different prices to different customers, can they?
Fortunately, China's weapons and equipment have little market in the international market, and have always been cheap and outdated equipment exported.
Otherwise, how could such a low price be quoted?
If it can destroy a T-72 that costs more than two million US dollars with a single shot, it would have a huge market internationally, let alone $1800.
"what?"
Zhang Mingqiu was completely shocked.
The armor-piercing model isn't $1200?
The explosive type isn't $800?
Since ancient times, it has always been the buyers who haggle. What's wrong with these guys?
There's even reverse bargaining?
Not to mention the school leaders, even Xie Wei, who was well-informed, was taken aback by Abdullah's words.
Major General Izvestia, who has $370 billion in foreign exchange reserves, is so extravagant when he buys things?
Xie Wei knew that the wealthy tycoons in the Middle East who could easily churn out oil by digging a few shovels of sand were rich, and he thought he was ready to fleece them. But when the time came, he realized that what he knew about them was far from the reality he had encountered.
The other party was probably worried that they wouldn't sell in China, so they quoted $1800 and $1200 respectively, proactively raising the price by 50% on each side, trying to use money to pressure them.
The price they thought they quoted was too high, but for these big players who make their living by selling oil, it was still too low.
Next time I encounter this, I must quote a higher price!
"General, please rest assured, we treat all customers equally!"
Although he didn't know why the other party had proposed such a price, Xie Wei spoke very cautiously.
It seems that from now on, rocket launchers will be sold at this price.
"When can we receive the goods? When can we transfer the technical data? When can we transfer the production technology?"
Abdullah breathed a sigh of relief when he saw that the other party did not raise any objections.
The two parties then began discussing the details of the contract.
In the evening, the school hosted a banquet for General Abdullah and his entourage at the Northern Building. Since no reservation had been made in advance, the school had no intention of hosting the general and his entourage at the Northern Building, which was the most prestigious building in Northeast China. They also could not ask the hotel to help them set up a special reception banquet. Even the usual Dragon Treasure Banquet and Flying Dragon Banquet could only be made with the hotel's existing ingredients because no reservation had been made.
The lavish banquet dazzled General Abdullah and his entourage, who ate with great relish.
Not to mention them, even the well-traveled Xie Wei was attracted by dishes made from birds and beasts he had never heard of before. If it weren't for the presence of foreign guests and the fear of tarnishing the country's image, he probably would have eaten without a care in the world.
"I wish Xie Rou had come back sooner."
Xie Wei ate while thinking to himself.
If I were to bring Xie Rou here alone, given my current administrative rank, I doubt I could possibly get the hotel to prepare such a banquet.
It was this banquet that made Xie Wei realize what authentic Northeastern cuisine was.
This also explains why, decades later, many people say that Northeastern cuisine disappeared after the implementation of the national Wildlife Protection Law.
After agreeing to accompany the general and his entourage on a visit to the school the next day, Zhang Mingqiu and Li Rui did not let Xie Wei go back to rest after settling Abdullah and his party into the Northern Building.
The group went straight back to the school's conference room.
To Xie Wei's surprise, the officials in charge of accompanying him, arranged by the Ministry of Commerce and the military, were also present.
"This cooperation has exceeded expectations. Is there some information we don't know that makes them so eager? Or is it because our export prices are indeed too low?"
Xu Mingsheng, who was in his forties, spoke first.
He was the person in charge of accompanying the group, as assigned by the military.
Xie Wei wasn't sure what level it was, but he knew that since it involved foreign clients, it couldn't be low-level.
"The price is not low."
Liu Debao shook his head, not believing that the school's export prices were too low. The explosive fragmentation rocket launcher, with a production cost of less than 200, was sold for 1200 US dollars, which, according to the exchange rate, was almost eight times the cost price; the armor-piercing type, with a cost of more than 400, was about the same.
"If we had quoted a higher price, perhaps they would have accepted it."
The head of the Ministry of Commerce looked annoyed.
The country is short of foreign exchange.
"What we should be worried about now is delivery. The delivery period agreed upon for the previous order from Thailand was too short... Although we can provide spare parts to Iraq for them to assemble themselves, it will take a considerable amount of time to increase production capacity."
Xie Wei didn't dwell on the reasons.
Ultimately, this is due to the lack of experience in exporting advanced weaponry and insufficient understanding of international customers.
"How about we postpone the delivery over there a bit?"
Zhang Mingqiu made the suggestion.
In his view, the demand from Thailand is not that urgent. They can deliver part of the goods first and then deliver the rest gradually. Anyway, their prices are low, so it should be acceptable.
"Although international arms trade differs from ordinary international trade and can be suspended at any time due to various factors, we cannot do that... China's arms exports are too small in the international arms market. If we don't even have a reputation, how can we compete with Europe, the United States, and the Soviet Union, which occupy the vast majority of the international arms trade market?"
Xie Wei disagreed.
In his view, although the Iraqi side offered a higher price, the delivery to customers who made the initial purchase should not be delayed simply because of the higher price.
"Pakistan also needs the technology, should we follow this approach?"
Xu Mingsheng glanced at Zhang Mingqiu and asked Xie Wei, "I doubt it will work. Pakistan isn't as wealthy as them, and negotiations are likely to take a long time..."
Xie Wei shook his head and sighed.
Customers are afraid of comparisons.
If it weren't for the fact that after the Iran-Iraq War, Saddam Hussein, burdened by excessive foreign debt and inflated ambitions, directly invaded Kuwait, leading to the Gulf War, and that Saddam, which considered itself the world's third-strongest military power, was rendered almost ineffective by the relentless bombing of the US military and was crippled in a short time, followed by more than a decade of sanctions that left the Iraqi military with virtually no purchasing power.
Weapons and equipment will be sold to Iraq within the next ten years.
With such customers, it's impossible for Xie Wei to make long-term purchases like those from Pakistan. How could he not be worried?
Throughout the Middle East, those capable of large-scale purchases either cannot sell openly, such as Khomeini, who has always been at odds with the West; or their domestic weapons cannot meet customer requirements in the short term, such as Saudi Arabia, the top dog on the list.
"If that's the case, why don't you just ask them to give you more money?"
Xu Mingsheng asked Xie Wei, puzzled.
If you ask for a few million more, they should be willing to pay.
"This is different. Providing products and then paying extra is a completely different matter from directly asking for money. At the current rate, the total contract value exceeds $2000 million, which significantly increases the cost of the 5000 rocket launchers they receive... If they're trying to lower costs by selling products, how can they compete with us?"
Everyone was deeply shocked upon hearing this.
I never imagined that the young Xie Wei had such a far-reaching plan.
Little did they know that Xie Wei hadn't even considered this aspect at first; it was just a random excuse.
The reason for providing such a large number of rocket launchers to the other side was to prepare for the Gulf War ten years later—the Soviet T-72s had been destroyed, would the American M60 tanks still dare to go to the battlefield?
As for the M1 series, Xie Wei will definitely sell it to the other party without any hesitation if there is an opportunity later.
Only by using the most advanced weapons can we gain a larger market for our equipment!
But I can't tell anyone this.
"Then how do we deliver it?"
"First, contact the Jiangbei Machinery Factory and ask them to fly over... We'll discuss it then; the Iraqis won't be leaving in the next couple of days..."
Xie Wei thought about it and realized that completing such a large-scale delivery of rocket launchers within a year would be too difficult.
If production capacity is increased frantically now, and there are no more production orders, the capacity will be idle.
If this were decades from now, when all the necessary supporting facilities are in place and machine shops rely solely on the iron filings they process for profit, it would probably take less than three months to produce 5000 rocket launchers.
"Xie Wei, isn't it a bit inappropriate to bring clients directly to the school every time?"
The person in charge appointed by the Ministry of Commerce didn't seem to have any other intentions.
Schools are places for cultivating talent.
Now Xie Wei has turned it into something like an arms company.
"Yes, every time there's an order, we go to the school to discuss it and then visit the school... This is very beneficial for the school's development, but internationally..."
Xu Mingsheng also looked worried.
They weren't the only ones with such concerns; leaders from other departments also shared them.
Many leaders even believe that Harbin Institute of Technology's move is an attempt to obtain more funding from higher authorities.
"I don't want to either, and I'm helpless, but if we don't keep the negotiations in the school's hands, will we still be able to control the money we make from our business?"
Xie Wei shrugged, spread his hands, and looked helpless.
"..."
The group immediately fell silent.
Xie Wei's words were true, but they were extremely unpleasant to hear.
The insults were too vulgar.
"Hey Xie Wei, what exhibits will you be showing them around tomorrow?"
Seeing the awkward atmosphere, Zhang Mingqiu quickly changed the subject.
······
While the students were discussing the matter, Abdullah and his group did not rest at the hotel either.
He gathered his subordinates in the living room of his suite and assigned them tasks.
"...Don't assume that just because the other party verbally agrees, we've achieved our goal. We must sign the contract, and even acquire the technology and the rocket launchers..."
As a major general, Abdullah was well aware that international arms trade was not something that could be resolved simply by reaching a verbal agreement.
Even after a contract is signed, there is always the possibility of non-performance.
"General, we paid a high price to buy their technology, and we can manufacture it ourselves. Why did we agree to purchase so many rocket launchers?"
Lieutenant Colonel Faisal could no longer suppress his questions.
Wouldn't it be cheaper to buy the technology and produce it ourselves?
Not only the shaman, but also Yitzhak and other members of the delegation had the same question.
"How long do you think it will take us to successfully manufacture it? How fast can we manufacture it? His Majesty is preparing to expand the army. Do you think that simply equipping the troops with rifles will be enough to fight? Or do you think that all our troops can be equipped with the most advanced weapons and equipment like the Republican Guard? What will be used to improve the combat effectiveness of the newly expanded troops, as well as those troops without advanced weapons?"
Abdullah asked his subordinates with a serious expression.
For the first time, his men were aware that the army was about to be expanded, and many of them began to have their own ideas.
"Furthermore, we will inevitably have a war with Khorne sooner or later... Once war breaks out, relying entirely on the Soviet Union for weapons and equipment will put us in a very passive position... Moreover, the greedy Soviets not only charge high prices for weapons and equipment, but they also often come with many additional agreements... China's weapons and equipment are based on the Soviet Union's, so purchasing their equipment will not require the troops to spend a long time learning..."
I shouldn't have said these things to my subordinates.
However, a lot of the work that follows will need to be done by my subordinates.
Soon, the president will take action against Khomeini's army, and Abdullah is one of the people in the know.
Before the war, the president instructed that as many weapons and equipment as possible should be purchased.
Once war breaks out, regardless of who you buy from, the sellers of equipment will charge exorbitant prices because the buyers are at war.
Chinese rocket launchers are inexpensive, powerful, and incredibly easy to operate, making them very appealing to the Iraqi army, which has a limited level of education.
5000 rocket launchers can effectively enhance the combat effectiveness of front-line troops.
Otherwise, Abdullah wouldn't have agreed to Shewe's price without even haggling.
He did this not only because he urgently needed weapons that could quickly boost his combat effectiveness and demonstrate his wealth to sellers so they would supply more weapons and equipment, but also to gain new channels for weapons procurement!
(End of this chapter)
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