Rebirth 1991: My Financial Era

Chapter 10 Please be considerate of the separation

"However, when we get U.S. dollars, we can make purchases internationally, which is in line with the rules of international trade."

"Dear Mr. Minister, you are an expert in international trade. International trade is based on comparative advantages. Is there any other country whose light industrial products have such a low price, such a large production capacity, and such a high cost performance that China exports? Both of you. It’s a completely complementary relationship.”

“Since our advantages are complementary, why hasn’t there been large-scale trade in the past few decades?” Sergey asked.

"Dear Mr. Minister, I think that in the past, there was no basis for international trade between you and us. If we want to purchase your military equipment, we probably won't get approval, right?" Sun Chen said.

"You are right, my friend." Sergey stopped entangled and finally determined the basic transaction framework.

"So, dear friend, how do you determine the price of the light industrial products you export, and why is there such a big gap with the price we investigated before." Sergey continued to ask, and this was what he should ask.

Mou Zhongzhi signaled for his answer, and Xia Zongwei translated.

"Dear Mr. Minister, the pricing of export products is determined with reference to domestic prices, tariffs and transportation costs, which are far lower than the current market end prices."

"No, no, my friend, you cannot refer to the current terminal market price. This is only temporary, and our prices will drop steadily soon." Sergey continued to object.

"Dear Mr. Minister, we will be very grateful if you can settle the settlement at FOB price, because we have no influence on your country's transportation and tariffs. For this, we are willing to reduce the price by 20% and settle it in RMB Price Settlement.”

The plan discussed by Mou Zhongzhi and Sun Chen was to insist on offshore settlement and RMB settlement, because they could not control the transportation within Russia, and they had to lock in the RMB settlement price to avoid exchange rate losses caused by ruble settlement.

"Thank you for your generosity, my friend. I think we are honored to settle at your FOB price, but the specific price requires further negotiation." Sergey signaled that he had finished asking the question, but the price did not relent.

"My friend, I am concerned about two issues. One is how to price our aircraft, and the other is how to deliver our aircraft?" Antonov asked.

"My dear Davari, we respect the great design and manufacturing process of your country's aircraft, and we can make transactions based on the cost of acquiring the aircraft." Mou answered.

"No, my friend, we are a planned economy. The cost for us to acquire the aircraft is quite low, which does not reflect its due value at all. This is not in line with international practice. We have experience in external sales." Big-nosed Ivano The husband is not easy to fool at all, and he obviously exploits Eastern European countries no less.

"Dear Dawali, our country has reopened permission to buy Boeing and Airbus aircraft, which are more popular among airlines. Frankly speaking, your aircraft are quite uncompetitive in terms of noise and economy .”

It was the buyer who found fault. Mou Zhongzhi's speech made Su Hang very angry and helpless.

"Dear Davari, as for the delivery time, I propose that you and I send a supervision team and both parties deliver the goods at the same time. After we start the shipping train at the port, you take off from the airport. What do you think?"

Mou Zhongzhi proposed a concept of substituting a day for a day. Trains are slow to ship and have limited capacity. The plane can arrive on the same day. Of course, he takes advantage.

"Dear friends, I have no doubts about the delivery time, but the price must be clear. How about 1800 million US dollars? This is based on our transaction price with Eastern European countries."

Ivanov is obviously more concerned about price, and this is his performance. As for the delivery time, that is a problem of the Ministry of Industry. Anyway, it is a planned economy and internal settlement.

"Dear Davari, we cannot accept the price of 1800 million US dollars. It is not competitive in the world. Eastern Europe and you are Warsaw Pact countries. It is not a fair trade price. We cannot accept it." Mou Zhongzhi was determined. If you object, there will be no profit.

Negotiations reached an impasse.

"Dear Mr. Ivanov, I have a small suggestion. As a great country, why do we mention the U.S. dollar? Now the two parties in the transaction are your country and we can completely settle the transaction in rubles and RMB. , right? It has nothing to do with the U.S. dollar, right? So, we don’t want to use U.S. dollars to price our exports. Your exports are priced in rubles, and our exports are priced in RMB. Isn’t this better?" Sun Chen wants to drag himself down in the negotiation. Come on track.

"Dear friends, using US dollars is in line with international trade practices." Ivanov still insisted. He knew that the US dollar was strong, but the actual purchasing power of the ruble was seriously insufficient, and the official price was just a number.

"Historical transactions between you and us were settled in rubles and renminbi, right? This is in line with the positioning of a great country." Sun Chen continued to lie. He also knew that this was difficult, so he said, "If you If the two sides cannot reach an agreement on this issue, why don't we temporarily adjourn the meeting and reaffirm our friendship together, okay?"

Since we can't talk at the negotiation table, let's talk over the wine table.

The meeting adjourned in the afternoon, and there was a banquet hosted by Su Hang in the evening.

The splendid reception hall of Airline Soviet Union is filled with all kinds of delicious food, including foie gras from France, caviar from Northern Europe, hamburger steaks, borscht, Turkish barbecue, and all kinds of bread... Airline Jiangsu has planes and supplies outside. The shortage will not affect Jiangsu Airlines’ supply.

Ivanov raised his glass: "Dear friends, welcome to charming Moscow, enjoy it, Ulla!"

Ivanov drank a glass or two of vodka in one gulp. Mou Zhongzhi and Sun Chen also drank it all.

The band played Tchaikovsky's music, cheerful and lively. Blonde, blue-eyed, super-fit waiters shuttled through the banquet hall, pouring wine and serving dishes.

"Davari, here's to you!" Ivanov gestured to Sun Chen to propose a toast. He still vividly remembered the scene of drinking in the bar.

"For our friendship, Ula!" Sun Chen was unambiguous. He took a sip and toasted three more glasses.

Come on, the wine table is the battlefield. The motherland needs your stomach.

The banquet went on until eleven o'clock, and everyone was almost drunk. They were singing songs, laughing, and bursting into tears.

"Brother Mou, let's find a chance to talk to Ivanov alone." Sun Chen looked at the situation.

Teacher Ma whispered something to Ivanov. Ivanov nodded and brought Mou Zhongzhong, Teacher Ma and Sun Chen to his office.

The office is not small, beautifully decorated, and has an oil painting hanging on it.

"Davari, I heard that you are Ukrainian?" Sun Chenxin said that the atmosphere has been heightened to this point, so don't beat around the bush and go straight to the point.

"Yes, my friend, my hometown is in the beautiful Crimea." Ivanov remained calm.

"The Russian people have begun to settle and separate their families with the Northern Giant. Davari family, where will you go? The top management of Aeroflot, or the Ukrainian airline?" Sun Chen was not polite at all.

Tap the screen to use advanced tools Tip: You can use left and right keyboard keys to browse between chapters.

You'll Also Like