What the hell is a private enterprise?

Chapter 672 Even Luo Luo has to offer a toast.
The Bund, Peace Hotel

Tang Wengang took the menu from the waiter and then returned it:

"Recycle one book."

waiter:"……"

"Just bring me the whole menu, okay?"

"Excuse me, sir..."

The waiter, of course, had no doubt about the customer's wealth, but out of professional ethics, he still wanted to offer some advice. At that moment, Zhao Hande spoke up:

"Stop, stop, stop! Mr. Tang, have you eaten honey today? You're so happy you don't care about money at all?"

Tang Wenchao winked at him:

"Shanghai's semiconductor industry has cultivated a chip R&D team that keeps up with international cutting-edge technology. Is it really good news that the M550 has reached the mainstream level?"

He was telling the truth. After the M550 sample was cut, Ni Zhenhai also showed him the progress of the GPU and the S1 mobile chip, and the results were quite gratifying.

After making up their minds to abandon all pretense and adopt reverse engineering, they not only solved the problem of the M550 chip, but also cultivated a design team, making it much easier to work on other chips.

GPU chips are not yet in the highly specialized era. Most computers don't even have graphics cards and rely on the CPU to perform graphics calculations. The development of GPUs is limited, but Shanghai's semiconductor industry is confident that it can catch up.

The S1 mobile chip used for MDA has a lower requirement for computing power and transistor count, and four months is enough time for the S1 team to develop a prototype.

One step behind leads to another... But after taking a giant leap with massive resources, SSE got on the right track. As long as you keep investing, you will eventually catch up.

"Really? That's really good news."

Zhao Hande was also quite excited, but he still stopped the absurd act of "speculating on a single book":

"You can cook one dish yourself, but bringing me along would be extravagant and wasteful. I can't afford to eat it... Just bring a few dishes, enough to eat, and no alcohol."

The last sentence was spoken to the waiter, who quickly took the menu and hurried away, afraid that Tang Wen would call him back.

Fortunately, the latter had already forgotten about it and brought up the matter that Zhao Hande wanted to ask:
"The order for the two battleships from Art cannot be made public. They will be paying in cash, and we'll need your help to handle the transfer. Just name your fee."

"Cash again? These big spenders!"

Zhao Hande couldn't help but click his tongue in amazement; he was familiar with this payment method!
This is what Art did when he bought firecrackers a few years ago. To prevent large transactions from being detected, he directly used a C130 to airlift cash, bypassing the banking system.

Yes, that's over 30 tons of banknotes, which truly opened the country's eyes.

Come again?

Of course, this was the only way. Tang Wen said it wasn't a military purchase or trade, but in practice, it was done entirely according to military purchase standards, requiring a 50% deposit to be paid in advance before starting the business, which was an exaggerated figure of 15 billion US dollars.

However, the system provides a 50% subsidy for the sale of warships. Once the $15 billion worth of silver coins (approximately 2.7 million silver coins) arrives, his total silver coin count will reach an astonishing 9.4 million.

Tang Wen's actual total profit was as high as $45 billion, while how many silver coins did it cost to build two Iowa ships?

In reality, he only needed to build one ship. The "Wisconsin" ship he got from opening crates could be used to offset the cost of one ship, resulting in a pitifully low cost and a profit margin of over 1000%.

That should roughly settle the funding for buying Rolls-Royce engines.

And just in time to complete the M-series battleship I line through the trade, the tech tree progress reached 70%, with about 90 experience points remaining. One tech tree is more than enough, but two are not quite enough.

But with just another million experience points, the basic upgrade requirements will be met.

Business must be done, and war must be fought!
Seeing Tang Wen's crazed eyes, Zhao Hande knew that this deal couldn't be stopped... Let's sell it, stirring up chaos might even benefit our side—he thought irresponsibly to himself.

All his well-prepared, earnest advice failed him; in the end, he only revealed his bottom line:
"Aircraft carriers cannot be sold."

Tang Wen gave an OK sign. No matter how strong a battleship is, it can no longer keep up with the current fleet battles. But an antique aircraft carrier paired with advanced carrier-based aircraft is a force to be reckoned with. Don't you see that the Type 013 aircraft carrier is based on the United States-class aircraft carrier from the late 40s? Once it is built and equipped with domestically produced F-14s, it may not be much worse than the Nimitz-class.

The Malta was treasured by the British, making Charles de Gaulle, who had painstakingly built the ship with all his savings, extremely envious. The maritime advantage that they had painstakingly established was wiped out in the blink of an eye.

At least until the battlefield is elevated to space-based, aircraft carriers remain the true core weapon of mass destruction.

……

Yangcheng
Because Eric informed Tang Wen that Rollo had officially planned to contact Geiger for a large order of 500 engines, Tang Wen arrived at the First Aircraft Manufacturing Plant ahead of time to make preparations.

As June arrives, the typhoon season begins to fully impact Gaikin.

Not only have people been completely evacuated from the Nansha Islands, but coastal areas have also begun to make preventative preparations, especially given that this year's major floods have had a significant impact on Guangdong Province.

The No. 1 Aircraft Manufacturing Plant in Guangzhou gradually ceased operations. Under Chang Busi's command, the ground was cleared and protective measures were implemented to prevent the low-lying Nansha District from being flooded as well.

The shutdown will last for about 40 days, but the impact will be minimal.

After hastily assembling two MD.11G aircraft in November 1997, the First Aircraft Manufacturing Plant only assembled two more aircraft between December and January. Most of the time was spent inspecting the production line to prevent errors, and gradually replacing foreign technicians with domestic technicians, which slowed things down.

After assembling two more aircraft in February, McDonnell Douglas's engineering team concluded that the assembly line at the First Aircraft Plant was up to standard and could continue production.

Theoretically, an assembly line can produce 5 to 6 aircraft per month. However, due to the dismal sales of the MD.11G, McDonnell Douglas could only assemble 4 aircraft per month at its peak. After moving to China, the situation was completely different.

With a production target of 100 aircraft set, Changbus and his team were so afraid of delaying the completion that they studied desperately, working overtime every day to devour McDormand's technical manuals, and constantly asking foreign engineers questions in broken English, trying to squeeze every last drop out of them.

McDonnell Douglas, on the other hand, was worried that the deal would be interrupted because of Geigin's precarious relationship with the West. It should be noted that the agreement between McDonnell Douglas and Geigin stipulated that once the production line was established, they would be paid according to the amount of parts delivered each month. If Congress banned exports, the order would be cut off.

This is monthly settlement trade, which places a heavy financial burden on the buyer but is entirely beneficial to the seller.

Another reason is that this order of 100 aircraft is a one-off transaction, and after the order is completed, the replicas will be made in China.

Therefore, McDonnell Douglas also put a lot of effort into producing machine parts for the Empire, and major suppliers also provided various subsystems without hesitation, for fear that the deal would fall through. General Dynamics and Pratt & Whitney even went so far as to intercept other orders, determined to complete the delivery of 200 CF6 and 200 PW4462 units ahead of schedule in 98 (100 units in redundant inventory).

Thanks to the tireless efforts of all parties, by June, the First Aircraft Manufacturing Plant had completed test flights, passed acceptance tests, and delivered five passenger planes. Eleven more were assembled but had not yet completed test flights. The high frequency of test flights caused considerable hardship for the residents of eastern Guangzhou. "It's not hard, it's not hard! That's noise! ​​That's the elegant music of this industrial gem!"

The leaders of Nansha District scoffed at the claim of noise pollution, even though the First Aircraft Manufacturing Plant produced three passenger planes in May.

The plan was to increase monthly production capacity to 4.5 aircraft by August, and directly reach McDonnell Douglas's maximum monthly production capacity of 6 aircraft by December, with a maximum production capacity of 42 aircraft by 1998. However, considering the need for transoceanic transportation of parts and insufficient space, the actual production capacity was around 32 aircraft.

算上97年生产的5架，总共14个月能共生产37架MD.11G客机。

After the production capacity plan was announced to the shareholders, not only was Nansha District stunned, but the Shanghai Aircraft Manufacturing Plant also questioned its existence. In seven years, they had only assembled 35 MD.82s—although a large part of the reason was not due to assembly efficiency.

The shareholders (in addition to Gaikin, there are local governments, state-owned enterprises and supply chain companies) certainly have their own questions: who will buy so many planes?

At present, domestic airlines do not have much trust in the MD.11G. After quickly reaching 35 pre-orders, they have reached their limit and have no further demand. They all plan to get their hands on it and use it for a while before making any further decisions.

However, Tang Wen then stepped forward and stated that he had obtained internal approval and that private airlines would be officially opened in China in 2000. Gaijin Airlines had already registered the number 001 and would operate the unsold MD.11G itself as a safety net.

From then on, all doubts vanished, especially as the supply chain worked overtime to prepare for the localization of the MD.11G subsystem.

"What aspects of our supply chain might be unable to keep up with the schedule?"

In front of the leaders of Nansha District, Tang Wen asked Chang Busi.

"There are basically no technical problems; the main issues are in quality stability control. Most of what we purchase from abroad are mechanical parts, wings, service components, and actuators, etc. Domestic aircraft institutes can provide qualified products, leaving the difficult problems to Gaijin himself."

However, we possess all the technology licenses and patent information for the MD.11G, and we can begin replacing the avionics and landing gear within a year. We lack composite materials for the airframe, but our invested research institute is already showing promise.

That's the advantage of having a teacher to instruct you. It's much easier for McDonnell Douglas to personally teach the technology than to memorize dozens of tons of blueprints. Except for avionics and engines, Gaines learned everything else very quickly.

"There are no concerns about the engine either."

Tang Wen then added:
“我们多买了100台CF6和PW4462，接下来还要买几百台罗·罗的发动机，全国产MD.11G再生产个100架都够用。”

The Nansha District leaders, who had been listening intently, felt reassured and were already considering other preferential policies they could negotiate for in the future.

……

The day after Tang Wen arrived at the First Aircraft Manufacturing Plant, John Ruth, the global president of Rolls-Royce, and Mike Torretto, the president of the aircraft engine business, came to visit him.

Mike Torretto was originally focused on business in the East, and John Ruth's main focus was on promoting the Trent 800 to Boeing 777, but he rushed over immediately for Gagkin's big order.

Ruth had never met Tang Wen, but Torretto had seen him a few times at Dongda University, though this was their first formal meeting.

"Hello, Tang, this feels like a dream come true."

To Ruth, this was indeed a bit unbelievable. Just two months ago, Britain and Geigin were secretly competing, but in the blink of an eye, they broke the ice and were going to start a large-scale trade.

In reality, Roy was worried that Guy would hold a grudge, and he wasn't very confident. Fortunately, Tang Wen seemed to have no ill feelings towards him, and the meeting between the two was very harmonious.

But Russ and Torreto soon changed their minds.

Tang Wen and Chang Bus first took them on a tour of the assembly line and the passenger planes awaiting delivery. Both of them were full of praise—there was a certain amount of flattery involved, but in reality, Geigen's assembly line standards were indeed very high, and even by the highest standards, it was very good, giving them a new understanding of Geigen.

But these things only made Ruth admire Geigin's technical and financial strength. Next, Changbus led them to a large warehouse that looked deliberately reinforced from the outside, and before opening the door, he didn't forget to say:

"These are all precious treasures that Gaijin cannot produce on its own, so we take special care to protect them from floods."

The two were immediately intrigued and peeked inside as soon as the door opened. They were horrified when they saw the goods inside:
Wooden crates, some disassembled and some intact, were densely packed on sturdy shelves high off the ground, and divided into two distinct sections based on their labels:

On the left is the General Dynamics CF6-80, and on the right is the Pratt & Whitney PW4462.

After using up 48 assembled passenger planes, there are still nearly 200 in stock in the warehouse, all of which were products shipped from the Empire Express.

The workers in the warehouse are inspecting the engines one by one; there are countless engines everywhere!
Ruth disregarded his own interests and hurriedly stepped forward. Upon closer inspection, he discovered that almost every row of wooden crates contained goods. He found it hard to believe that he could see so much stock available outside the engine factory.

Tang Wen then stepped forward and calmly introduced:
"This is an order for 100 MD.11G engines, 3 engines per aircraft, totaling 300 engines, with an additional 100 ordered. Our American friends are quite fast; they have already delivered nearly 220 engines, and the quality is very stable. So far, only one engine has a defect and needs to be disassembled for repair."

However, Russ and Torreto felt a chill run down their spines and their hair stood on end.

These damned Yankees keep talking about embargoes and sanctions, but when it comes to making money, they work harder than anyone else. This warehouse of goods in front of us is probably worth $10 billion.

The MD.11G is clearly an unreliable and outdated competitor, but now it has allowed the competitors to make a fortune. This whole warehouse could have been a huge profit for Rolls-Royce!

A terrible reality is looming before us:

Both General Dynamics and Pratt & Whitney dared to take turns selling, and if Rolls-Royce had entered the fray later, Geiger would have already made his fortune, and even if their three-rotor engine technology was better, they wouldn't have bought it.

Changbus didn't forget to fan the flames:

"In addition to the C919, we are also planning the C929, a twin-engine large ocean passenger aircraft developed for the MD.11G. General Dynamics has been recommending the use of the GE90, which is more compatible with avionics systems."

Rusmin knew that everything in front of him was intentional, but he also deeply felt the crisis of competition from his peers.

Under normal circumstances, in monopolistic industries like aero-engine manufacturing, leading manufacturers would collude to raise or lower prices and bully buyers. However, this is not the case when there are extremely high profits to be made. With orders exceeding $50 billion in the pipeline, any tacit understanding is meaningless.

They were determined to get the money out of Tang Wen's pocket no matter what!
The tour ended amidst Russ and Toretto's anxiety. That evening, the two arrived at the hotel very early, almost before their host, Geigin.

Upon meeting, the two first presented each other with a gift—a set of imperial brush washers from the Qing Dynasty, in excellent condition. As for its origin… Ruth only said it was a family heirloom.

After the gift was presented, the reception arranged by Changbus was supposed to introduce the local famous dishes and special culture as usual, but Ruth was completely distracted and was just reviewing the Dongda General Etiquette that she had memorized in the afternoon.

After the annoying receptionist finished speaking, Ruth pulled Toretto to his feet, filled their glasses, and, under Tang Wen's astonished gaze, said in broken Chinese:

"The rice dumplings are so delicious, may your heart be filled with joy (Mr. Tang, your sentiments are all in this wine)!"

Tang Wen: "..."

(End of this chapter)