After Hu Zhenhua had a big quarrel with the customers who came to place orders, he raised the ex-factory price of protective clothing by 60 yuan per set!

His reasons were very sufficient: the price of raw materials and labor costs had increased!

Everything is rising, why shouldn’t I?

The customer cursed Lao Hu for being heartless, saying that you have stockpiled the raw materials a long time ago, so what does the price increase have to do with you!

However, they still compromised. Judging from the current trend, this black-hearted capitalist will raise the ex-factory price in the future!

After a wave of price increases, Hu Zhenhua felt much better. He lay on the rocking chair in his villa, swaying and humming a little tune!

Carter came and lay in his exclusive rocking chair, feeling very good, and said,

"I just received a report from Jimla that our strategic deception has worked. The Russians are afraid of a surprise attack and have begun relocating some of their factories. Although the number is small, it's a good start!"

Hu Zhenhua is in a better mood!

For any industry, the cluster effect can significantly reduce costs. In the past, for the sake of national security, my country proposed to move good people and good horses to the third line, and a large number of factories and talents were transferred to the central and western regions. Later, as the international environment gradually improved, most of these factories gave up. Why?

Because the cost is too high!

You can ignore costs in wartime, but not in peacetime.

In the third line, not to mention other things, the transportation cost alone is an astronomical figure.

You produce a bicycle and transport it thousands of miles from the west to the coastal areas. How do you compete with local manufacturers?

Hu Zhenhua laughed and exclaimed,

“Thumbs up for Director Jimla’s plan!”

“Like?”

Hu Zhenhua quickly raised his thumb and waved to Carter, explaining,

"That's what I mean!"

Polar Bears operate under a planned economy. With a single order from above, factories in the mountains can be built vigorously. Precisely because it's a planned economy, they can't see how much costs will increase in the short term!

In fact, as long as it is handled well, it can still drive economic growth. Due to ideological confrontation, the scale of Russia's imports and exports is very small, and about half of its foreign trade is completed with member countries of the Council for Mutual Economic Assistance (CMEA).

Most of the members of CMEA are from the socialist camp and are relatively poor. Therefore, the economy of the Russian bear is mainly based on internal circulation!

Polar Bear is rich in underground mineral resources. Although he moved the factory to a remote area and transportation costs increased significantly, as long as he can mobilize the enthusiasm of the people, the oil industry chain alone can create countless jobs. After all, there is plenty of oil underground, and digging it out will bring wealth!

In addition, the transportation industry, road infrastructure, hotels, etc. can all flourish.

Here, we need to introduce some market economy concepts.

The advantage of a market economy is that it can allocate resources rationally and mobilize the enthusiasm of the people!

Unfortunately, Uncle Steel is prejudiced against the market economy. Those factories that have moved away are destined to become ruins in a few decades!

Carter was in a good mood and said,

"One more thing. The polar bears have increased their investment in military factories. They're going further and further down the path of heavy industry, while neglecting light industry, which is closely related to people's livelihoods. I really feel sorry for their people!"

Hu Zhenhua immediately looked at Carter with a higher regard. This guy could actually see the imbalance in the polar bear industry!

There was a cartoon in later generations showing a tall giant with one leg extremely thick and the other leg as thin as a bamboo pole!

Thick legs represent heavy industry, and thin legs represent light industry!

Hu Zhenhua did not intend to go into depth on this topic. It would not be in China's interests to make the Russian bear too weak.

After all, we will still have to rely on them to assist in industrial development in the future!

"Carter, so far, Polar Bear has only bought 5 sets of protective suits. That's too few! I'm thinking of changing the strategy and asking them to pay in kind. What do you think?"

There are two reasons why Kaspersky buys less. First, because the price is high, Russia has limited foreign exchange and will not invest too much in protective clothing. Second, Russia has already started large-scale production of protective clothing.

The power of the planned economy is not to be underestimated. When they mobilize state power to do something, the speed is extremely fast!

Capitalists have to consider input and output, but Russia does not. With just one order from above, thousands of people are mobilized regardless of cost.

Carter stopped the rocking chair, sat up straight, stared at Lao Hu's face, and asked,

"You're finally going to put your hand on the polar bear's plate and tell us your plan!"

Hu Zhenhua's expression did not change at all, and he responded,

"What's the point of a plan? You know whoever enters the Mao Bear market will die. I plan to find a third party to handle this!"

"Third party?"

Carter immediately lost interest. Who else could the third party be? The red side.

He lay down in the rocking chair and began to rock again.

"Hu, you're as cunning as a fox. Is there really no way I can get in?"

Hu Zhenhua rolled his eyes and said,

"Carter, you look so smart, how could you ask such a stupid question!"

Polar bears are the typical stupid and rough type, and they never use their brains when they can take action!

There is only one way to deal with this kind of person, and that is to knock him down!

The Americans are just too "smart" that they don't dare to take action!

Carter was ridiculed by Lao Hu, but he didn't mind. Instead, he said with a smile,

"I have confidence in you!"

Hu Zhenhua just laughed. How could he not see through this little trick of flattery and killing? However, he really pretended not to see through it and said lightly,

"History tells us that a fortress is always breached from within. If there are no internal problems in Zhao, even if Qin wins, it will be a pyrrhic victory!"

Carter stopped the rocking chair again, sat up straight, and asked anxiously,

"So, there's still a plan, right?"

"It can't be considered a plan, it's just an attempt!"

"How to try?"

Hu Zhenhua raised his eyelids and glanced at the cigarettes on the table. Carter noticed it, quickly took out a cigarette, and lit it for Hu himself.

Hu Zhenhua took a puff and said with a smile,

"I plan to trade my protective suit for wood! The entire Siberian region is extremely rich in wood resources. It can be said that it is everywhere. Because there is so much, polar bears don't care!"

"Buying wood? There's plenty of that stuff in Southeast Asia. You must have other intentions."

"I'm really drawn to Siberian wood. Due to the cold climate in Siberia, trees grow slowly, which makes the wood's texture denser and harder, with higher strength and durability. For example, Siberian larch has increased density and is more water- and fire-resistant, making it a high-quality building material.

The cold climate also reduces wood pests and diseases, making the wood quality more reliable and able to meet various demanding wood processing and use needs."

Carter listened to Hu Zhenhua's babble and shouted impatiently,

"Nonsense! If you really want to buy wood, there's plenty in Canada. I can recommend some for you!"

……

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