Dreaming back to 1949, the great powers were there to deceive us

Hu Zhenhua thought about it again and again and decided to try to trick Carter further.

"My friend, the world's industrial nations can be divided into three tiers. The first tier, of course, includes the United States and the polar bears. These nations are characterized by strong national power, advanced technology, and strong innovation capabilities. The second tier consists of established capitalist nations, such as the Gentleman's Country and the Romantic Country. These nations possess a strong industrial base and strong innovation capabilities. The third tier consists of once-powerful nations, such as Japan and the United States. Although their industries have been destroyed, their foundations remain, and they will recover quickly. Following these three tiers are the agricultural nations."

Hu Zhenhua was so thirsty that he stopped to drink some water and continued to talk nonsense.

"These four tiers are a gradual progression. You can't jump directly from an agricultural country to the first tier!"

Carter nodded in agreement.

"Yes!"

"Correspondingly, industrial upgrading also proceeds gradually. In a year or two, many rural enterprises in Jiangbei will face the issue of industrial upgrading. Carter, who do you think will be their preferred supplier for industrial upgrading?"

Carter suddenly realized something, slammed the table and said excitedly,

"Of course it's TA company!"

"That's right, because they use the Mi standard. Furthermore, I will invest all my earnings into research and development, and then provide them with upgrade solutions and production lines. This way, we'll be like a tree and a vine, inseparable from each other! Continuous investment in research and development will ensure we always stay ahead, one, two, or even three generations ahead in technology!"

Carter was attracted by this beautiful vision.

Seeing that he was fooled, Hu Zhenhua continued,

"That's why I've been tirelessly supporting rural enterprises in Jiangbei. When most of the country's industrial equipment uses metric standards, they won't be able to do without us because the cost of changing standards is too high and they can't afford it! Even if one day they introduce Soviet-made equipment on a large scale, it's impossible for them to eliminate ours. The worst-case scenario is: the coexistence of metric and Soviet equipment!"

Hu Zhenhua knocked on the table and continued,

"That's one reason. Second, society has divisions of labor, and so should nations. The U.S. has a population of only 1.5 million, while the world's population is 24 billion. So, how can a small population govern the world? The answer is division of labor. The U.S. should dominate the most technologically advanced industries. For example, in the clothing industry, which link should the U.S. occupy?"

Carter had been put into Lao Hu's rhythm and answered subconsciously,

“Style design!”

"That's right! American-funded companies only need to occupy the brand and consumer terminals to take away the most lucrative profits in this industry chain. Another benefit of doing so is that it will allow more countries to join the American dollar family!"

Hu Zhenhua suddenly stopped, waved his hand, and said awkwardly,

"That's getting off topic! That's getting off topic!"

Carter grabbed Fu Zhenhua's arm, looking unsatisfied, and said,

"Keep talking about the global division of labor. I'm very interested in this topic!"

Hu Zhenhua ignored him and said to himself,

"Some things can't be rushed. You have to be patient. When the time is right, everything will fall into place naturally! For example, when we provided equipment for coal mining, they were very wary of us in the beginning. Later, when they couldn't operate the equipment, they gradually allowed American engineers in. Now, look at us, many engineers can come and go freely!"

Carter was quite disappointed to see that Hu Zhenhua had changed the subject.

"Hu, you're such a bummer, you only say half the words and leave the other half, like a eunuch!"

"roll!"

Carter thought for a moment and asked,

"What role does China play in your division of labor, and how can you guarantee that they will follow your plan?"

Hu Zhenhua suddenly stared into Carter's eyes and said seriously,

"If you treat others as fools, one day you will find that you are the fool!"

He paused and continued,

"I just gave the people here another choice. If they agree, I, Hu Zhenhua, will be honored. If they don't agree, I won't force them! Because I don't have the power to force them."

After Hu Zhenhua finished speaking, he suddenly grinned and said confidently,

"I believe they will eventually agree with me, because the market economy has stood the test of time."

Carter was a little anxious and emphasized again,

"What is your division of labor here?"

This time, Hu Zhenhua finally gave a positive response and said,

“The world’s factory!”

"The world's factory?"

Carter kept repeating these four words in his mouth. He seemed to have figured it out, but he also felt that something was wrong, but he just couldn't figure out the key point.

In the capitalist world, there is a golden rule: the end of the enterprise is finance!

Because finance is the fastest-growing industry, for example, if a listed company's corporate profits suddenly increase by 30%, then the stock price may double. At this time, major shareholders will have the motivation to reduce their holdings.

For example, a man worked hard for a year in a garment factory, but suddenly found out that he had spent tens of millions of dollars and only made a profit of one or two million.

If he uses these tens of millions to buy a building, he can not only enjoy the appreciation of rising housing prices, but also collect one or two million in rent each year.

If you were the boss, what would you choose?

Most people will choose the second option. In a country, if the vast majority of people make this choice, then a large number of workers will be unemployed, ordinary people will lose their income, consumption will be weak, and housing prices will fall. The value of the properties hoarded by bosses will also shrink significantly!

Therefore, the invisible hand of the market sometimes fails. At this time, macro-control by the state is necessary.

In a country that pursues profits, the historical trend is to move away from reality and towards virtuality.

Carter finally figured out the key point and asked,

"If all the factories are moved here, won't American workers lose their jobs?"

Hu Zhenhua rolled his eyes when he heard this.

"I'm talking about selectively relocating factories, such as those in the labor-intensive clothing industry. This way, the American people can enjoy high-quality, low-cost industrial products. Take protective clothing, for example. The labor cost in Chongming is at least 2 million yuan per set cheaper than in the United States!"

"I see!"

Hu Zhenhua suddenly thought of something and decisively ended the topic. He originally wanted to deindustrialize the United States in advance, but suddenly realized that this idea might be too advanced.

The deindustrialization of the United States has a profound historical background. It began in the 20s, when technological advancements led to the increasing prominence of the service and high-tech industries in the economy. These industries, with their high added value and lucrative profits, attracted a large amount of capital and talent.

In contrast, traditional manufacturing is facing problems such as rising costs and shrinking profit margins. In order to pursue higher economic benefits, companies have transferred resources to the service industry and high-tech fields. As for the production links, they have been transferred abroad, especially to Asia.

Now, the United States is the world's number one manufacturing power with a complete domestic supply chain.

History has proven that a complete industrial system can significantly reduce costs. Although labor costs in the United States are relatively high, the overall production costs are not much more expensive than those in other countries.

Under such circumstances, there is not much motivation for manufacturing to relocate!

Hu Zhenhua didn't want to talk anymore, but Carter kept pestering him and asking questions non-stop.

Hu Zhenhua had no choice but to continue fooling people. As to whether it would be effective, it depended on fate!

"Carter, if the United States wants to become a world hegemon, it must know how to make trade-offs. Within an industrial chain, we must learn to distribute resources. It's best to let each country take responsibility for a portion. When everyone makes money, they will all work together with the United States. Of course, the most profitable part of the industrial chain will be managed by the United States..."

Lao Hu's trick lasted for more than an hour until their stomachs started to protest.