Zhao Xiaohai and Fu Runzhi reached a private agreement and then talked about more detailed things, such as what goods the Soviet Union needed, what goods Zhao Xiaohai could provide, and what Zhao Xiaohai needed from the Soviet Union.
"We need light industrial products. Honestly, our light industry is lagging behind and completely unable to meet people's needs. As soon as something becomes available domestically, people start lining up in the middle of the night to grab it. To meet domestic demand, we have to find ways to import large quantities every year from Japan, South Korea, and Southeast Asia. I'm just one of many trade managers. As for what's needed, there's so much."
"Wool products, clothing, shoes and hats, canned food, lighters, matches, toothpaste and toothbrushes, soap, laundry detergent, sugar, liquor, cigarettes, etc. I can name hundreds of things."
"Then how do we settle the bill?" Zhao Xiaohai asked.
"The US dollar and the Soviet ruble do not have international settlement functions, and you can't buy goods outside with them." Frunze said helplessly.
Zhao Xiaohai thought to himself that RMB is all the same.
They are all used in their own country.
"Do you have sufficient funds?"
Frunze shrugged and spoke.
"No one has enough money to spend, let alone a country like ours. Our country's ability to earn foreign exchange is not strong. We have to find ways to save money when we earn foreign exchange. We have to be frugal."
Zhao Xiaohai suddenly thought of something and had a bold idea, so he asked.
"Frunze, are you also responsible for exporting goods?"
Frunze paused, then continued, "That's natural."
"Since it is not easy for our country to earn foreign exchange, why don't we exchange goods? As for the settlement, we can just go through the accounts of our two companies." Zhao Xiaohai put forward his bold idea.
Simply put, it is barter.
If neither side has US dollars, then there is no need to use US dollars.
It also saves trouble.
Both parties set a price that they both agree on, and then exchange goods of equal value. The value is recorded on the books, and in the end both parties get what they want.
Among them,
Zhao Xiaohai has a lot of room to maneuver.
"Frunze, can you get some fertilizer?"
China is currently facing a severe shortage of fertilizers. There are very few domestic fertilizer production companies, and a lot of fertilizers rely on imports. Every year, China needs to import large quantities of fertilizers from Japan, Canada, Australia, and Southeast Asian countries, which also consumes a lot of foreign exchange.
So not only is there no problem selling fertilizers, but people are rushing to buy them and begging to buy them.
"Fertilizer, no problem. Fertilizer is one of our major export commodities. In fact, I have a batch in hand now and I am looking for buyers. The goods are stored in Vladivostok and can be shipped to Hong Kong at any time, at most in half a month." Frunze said.
Zhao Xiaohai was overjoyed.
"What kind of fertilizer is it and how much is it?"
"Urea, 5,000 tons."
"What's the price?" Zhao Xiaohai asked.
"The export price is $120 per ton, which is already a subsidized price," Frunze added.
Since it is a subsidized price, it is lower than the normal price. Domestic export commodities are also subsidized. The main purpose is to find a market after the price reduction. Only when they are sold can they make money. If they cannot be sold, it is nothing.
Zhao Xiaohai is not very clear about the domestic urea price, so he decides to make a long-distance call tomorrow to ask, but he believes there must be profit in it.
"Furunzhi, besides towels and socks, is there anything else you want to order? I'll give you a product list later." Zhao Xiaohai said.
"There are indeed many commodities, but the main problem is that the international prices are too high. You know, the country is actually in a difficult situation. We should think more about the country, right?" said Frunze.
The two smiled at each other and drank together.
"Call two girls?" Zhao Xiaohai suggested.
"Okay." Frunze agreed happily.
Hugging girls, drinking, singing and dancing, the friendship between men quickly grows under such circumstances.
…
The next day.
Zhao Xiaohai made a long-distance call to China to inquire about the price of fertilizer, and the answer he got was that urea imported from Japan and Canada cost about 320 yuan per ton.
During this period, China was a major importer of fertilizers. From the 1980s to the 1990s, China imported millions of tons of urea every year. It was not until the late 1990s that China achieved self-sufficiency and began to export.
After the implementation of the household contract responsibility system, farmers are eager to increase their income and assets and are extremely eager for chemical fertilizers. Without chemical fertilizers, the yield per mu is only 200 to 300 kilograms, but with chemical fertilizers, the yield can reach 400 to 500 kilograms. Do you decide whether to use it or not?
Sometimes food is not just money, it is life.
People are really scared of being hungry.
We cherish food very much. A good harvest can ensure that the whole family has enough food to eat, which is extremely important.
Zhao Xiaohai thought about it,
Call Mayor Yang.
The communication quality is very poor at this time and the operator needs to transfer the call back and forth.
After a long struggle, the call was finally connected. Zhao Xiaohai started shouting at the top of his lungs. There was no other way; the other party wouldn't be able to hear him otherwise.
"Leader, do I have something to report to you?"
Mayor Yang was also shouting at the top of his lungs in his office.
"Xiao Zhao, what are you talking about?"
"A trading company in Hong Kong contacted another trading company. They had a batch of Soviet fertilizers for sale. Later I learned that the other party was also buying daily necessities. I took the opportunity to promote our products, and later discussed whether we could barter." Zhao Xiaohai said.
"How does barter work?" Mayor Yang still didn't quite understand.
"Simply put, it depends on how much their fertilizer is priced at, and we use the trading company's accounts to sell goods of equal value, all priced in US dollars," said Zhao Xiaohai.
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