"I understand!" At this time, Sophia, who had been quietly listening to Zhao Xiaohai, suddenly clapped her hands excitedly and said loudly, "You mean me? We can ship a batch of goods from China, send it to North Korea first, and then send it to us. In this way, after a simple process, we can use the two most-favored-nation treatments to avoid most of the tariffs."
"The Major is right." Zhao Xiaohai glanced at the enthusiastic Sophia with amusement. This is how the world is. The charm of money is always infinite. No matter how strong a person's willpower is, they will lose their original composure in the face of staggering amounts of money.
"If the generals want a stable and long-term way to make money, then they should consider this aspect," Zhao Xiaohai said, clearing his throat. "What you need to do is simple. First, find an agent in North Korea. This agent must be reliable and preferably have a military background. At the very least, he must be able to handle the Sino-North Korean military trade independently. I think this will not be difficult for you generals, because I know that your Far East Military Region has always had close ties with the North Korean garrison on the Qingjiang front line. At least the Communist Youth League Shipyard in your hands has always maintained close trade relations with them."
Zyuganov and Sofia exchanged a glance, nodded silently, and then Zyuganov said, "That's not a problem."
"That's good. The second step will be even easier," Zhao Xiaohai continued. "I'll have you find a good agent to open a shell trade transit station in Qingjiang in the name of the military, and then open a shell trading company in my name. I believe that if the agent you find has enough power, then this won't be a problem for him."
"Why open two?" Zyuganov asked puzzledly.
"This is just for insurance purposes. We must avoid any possibility of attracting the attention of customs. Therefore, in all transactions, destroying real accounts and creating false accounts is a must."
Zhao Xiaohai said, "For example, if we only set up one company in North Korea, then the entire process of importing goods from China to North Korea and then forwarding them to the Soviet Union becomes one link. When we export a batch of goods from China to North Korea, the customs of both China and North Korea will have transaction records between the importing and exporting companies. This is the first-hand information for them to trace the whereabouts of the goods and the tax.
Because this information is exchanged directly between customs and the bank, we can't tamper with it, let alone destroy genuine accounts or create false ones. Therefore, if customs officials in any country become suspicious of our trade, they can easily trace the final destination of our goods by directly tracing our trade records in North Korea. If we set up two companies, we can use one company as the final destination for imported goods and falsify the accounts to block customs investigations.
At the same time, we can complete secret transactions between the two shell companies. There is no public account for this part of the transaction, and the trade with the Soviet Union will be completed by a second shell company opened in the name of the North Korean military.
With just this simple turn of events, we were able to cut off most of the Customs' leads. Of course, this turn of events isn't a 100% surefire way to stop us, but it does buy us time to plan our response. Imagine if Chinese Customs were tracking us down and first found the shell company I had established in North Korea, then if they continued their pursuit and successfully tracked down our second company, what would the outcome be?
It's undoubtedly a complex undertaking for Chinese customs to investigate a trading post operating under the name of the North Korean military. By the time they applied to North Korea for tracing authority, we would have been informed, giving us ample time to formulate countermeasures.
On the other hand, if North Korea were to investigate from the export side, they would likely target the second trading post first. Once they track me down, they would need to request assistance from China, giving us ample time to respond. Even if all our measures prove ineffective, I could easily escape to a safe place anywhere in the world while they're coordinating their investigation. You, on the other hand, can simply push the blame and deny it. I'm confident no one will have evidence to accuse you.
"Great!" Zhao Xiaohai's explanation made Zyuganov and Sofia burst into applause. Indeed, according to his arrangement, a smuggling group with huge profits and yet extremely secretive operations had emerged without a trace. This kind of meticulous planning and far-sighted economic acumen was definitely not something that soldiers like them could match.
"Hello, to be honest, Mr. Zhao," Sophia sighed, standing behind Zhao Xiaohai. "In my opinion, you really don't need to be such a despicable smuggler. With your talent, even if you become a legitimate businessman, you will definitely have a chance to succeed."
Perhaps due to her lack of comprehension, Sofia wasn't solely focused on profit, like Zyuganov. Therefore, she could discern more from Zhao Xiaohai's strategy. From the young Chinese man's words and that simple plan alone, she could tell he was incredibly knowledgeable. He possessed a thorough understanding of the economic conditions and social realities of the Soviet Union, China, and North Korea. This alone was truly commendable. But wasn't it a shame that such a shrewd and knowledgeable man chose to become a despised smuggler?
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