Rebirth: I am in Jin-Cha-Ji

"Tell me more specifically."

Wei Hongjun was very interested in this.

The most important aspect of the Soviet model is its focus on developing heavy industry, concentrating the majority of resources. Other socialist countries in the socialist camp learned nothing else but heavy industry. As a result, these countries experienced serious problems in light industry and agriculture.

The same is true in China.

Since cooperating with the Soviet Union in 1947, China's major financial investments have flowed into heavy industry, a money-eating beast that can swallow up any amount of money invested.

However, the output in a short period of time is limited. In other words, the early development of heavy industry only consumes money but does not make money.

This will cause problems.

However, the fact that all the other countries in the socialist camp were emulating the Soviet Union presented a huge opportunity for China. Heavy industry developed rapidly, while light industry and agriculture were underdeveloped, leading to a shortage of daily necessities in the socialist camp.

Were the Soviet Union and some Eastern European countries poor?

Actually, not poor.

Their accumulated assets are still sufficient. Is it like the Soviet workers are short of money?

Not missing at all.

Soviet workers earned high wages and were actually quite wealthy. After their wages provided them with enough to eat and live comfortably, they still had plenty left to improve their lives. The problem was that even with their money, they couldn't buy the necessities they needed to improve their lives. This was the real problem. While this was a problem for the Soviet Union, it was an opportunity for China.

That's why Wei Hongjun is so looking forward to it.

"Coffee. All the coffee currently on the Soviet market is imported from Brazil. And this coffee is mainly for a specific group of people. Ordinary people who want to buy coffee need connections to be able to buy it."

"I've only heard that Soviet people like to drink Coke. Do they like coffee too?"

"Ah."

Mao Zemin nodded.

He said, "Scarcity makes things valuable. People are like that. The more in-demand a product is, the more curious people become about it. Coffee is currently hard to find in the Soviet market, so many ordinary Soviet citizens are very eager to try it. Even many Soviet technicians, with their high salaries and connections, buy imported coffee and try it; it's become a way of life for them."

"What is the current market price of coffee in the Soviet Union?"

"Coffee beans are 75 rubles a kilogram."

“So expensive?”

"With so little supply on the market, prices are naturally high. If the amount of imported coffee beans increases, the price will inevitably fall. But even if the price falls, the Soviet Union has a large population and high incomes for its workers, so it's not a small market. Currently, the lowest-paid intern in the Soviet Union earns 50 rubles a month. Miners and steelworkers earn over 500 rubles a month. Junior engineers who have just graduated easily earn over 1000 rubles a month. As for some university professors and senior technicians, their monthly salaries exceed 10000 rubles. So even ordinary workers in the Soviet Union could afford coffee."

Before Khrushchev's currency reform in 1961, Soviet workers' wages were very high.

Life is really good.

In the USSR, a kilogram of black bread cost three rubles, a kilogram of sugar cost 15 rubles, and a dozen eggs (12 eggs) cost about 12 rubles. Even trainee workers could easily make ends meet.

As the Soviet economy recovered, the prices of these items continued to fall. For example, black bread, which cost five rubles around 1946, has since fallen to just three rubles. But this isn't the final price; the Soviet government is considering further price cuts. The price of black bread is projected to drop to 3 ruble and 1 kopecks per kilogram (30 kopecks equals 100 ruble). Prices of sugar and eggs are also falling.

It can be seen that the Soviet Union was still wealthy at this time.

The only problem is that the daily necessities are too monotonous and the variety is too limited. Any slightly better supplies will be snatched up by others. "I want to learn about the coffee cultivation situation in our country."

"I've already looked into it. Coffee is grown in Yunnan and Hainan. Based on current coffee production, if we can cultivate over 500,000 mu (approximately 1,000 acres) of coffee plantations in Yunnan and other places, we could produce 10,000 to 20,000 tons of coffee beans."

Mao Zemin would report to Wei Hongjun only after he had gained some understanding of the situation.

Otherwise, Wei Hongjun would be so busy that he wouldn't have the time to confirm them one by one.

"Five hundred thousand mu? It's not impossible to grow this kind of cash crop. But if we grow coffee, will the Soviet Union be willing to import our coffee beans?"

"We've discussed this with officials from the Soviet Ministry of Trade, and they don't have any objections. Many are even supportive. If they can import coffee beans from us at a low price and sell them domestically at a high price, the Soviet government will definitely be willing to do so, as it can both make money and recover the currency held by the people, while also improving the living standards of the Soviet people. Comrade Ye Jizhuang and I have done the math together with comrades from the Ministry of Foreign Trade. If we can sell 10,000 tons of coffee beans, we can easily earn 60 to 70 million rubles a year for the government. Even if we lower the price, we can still earn 40 to 50 million rubles."

Wei Hongjun nodded.

Mao Zemin has always worked very hard.

In addition to dealing with domestic financial issues, he focused his main efforts on expanding foreign trade. China's debt to the Soviet Union was increasing, and when it came time to repay the debt, the pressure on China's finances would inevitably be great.

Therefore, Mao Zemin has always hoped to increase international trade with the Soviet Union and Eastern Europe.

"Apart from the Soviet Union, Eastern European countries also have a history of drinking coffee. Their annual coffee consumption is quite high. However, their coffee beans are all imported from abroad."

Wei Hongjun nodded.

Although selling minerals and agricultural products is low-priced and low-profit, this is unavoidable for a country like China. It can only use this method to obtain rubles and repay the Soviet loan.

Therefore, Wei Hongjun said, "I will discuss this matter with the Ministry of Agriculture. However, I need a detailed research report from the Ministry of Foreign Trade."

"no problem."

"continue."

"What Soviet people love most right now is furniture, but there is a severe shortage of furniture on the Soviet market."

"Are you short of furniture?"

868 Soviet Market 2

Wei Hongjun didn't understand.

Wei Hongjun could understand the Soviet Union's poor light industry development and limited light industrial products. But was there a shortage of furniture? Even Wei Hongjun, if he had the time, could have made a few simple sets of furniture for his own home. So, the claim that the Soviet Union lacked furniture was truly incomprehensible.

Mao Zemin nodded and said, "Old Wei, the furniture shortage in the Soviet Union is not just ordinary. After the end of World War II, the Soviet economy recovered rapidly. The Soviet Union began to rebuild the destroyed houses, and many workers began to be allocated houses. However, the new houses were built, but there was a serious shortage of furniture to match them. According to our investigation, it is currently very difficult for workers in Soviet shopping malls to obtain the qualification to purchase furniture. It takes several months or even half a year to obtain the qualification to purchase furniture. Even if you get the qualification to purchase furniture, you still have to wait for more than half a year to get the furniture. Moreover, the furniture purchased is all of the same style, and they have no room for selection. They are satisfied with just having a piece of furniture."

Houses destroyed by the war were rebuilt, and more houses were allocated to workers.

As a result, there was a severe shortage of furniture. What Wei Hongjun didn't realize was that this situation persisted throughout the Soviet furniture industry, not just in the 1950s, but well into the 1980s. This was especially true for complete sets of furniture for new homes, which had always been a high-end product in the Soviet Union.

The Soviet furniture market has been in short supply since the end of World War II.

This problem was not solved until the large-scale import of foreign furniture. Of course, when large-scale import of foreign furniture took place, the Soviet and Russian people began to lack money again.

On the contrary, at this time, Soviet workers had money but not enough furniture to choose from. If an ordinary worker wanted to buy a set of furniture, it would take a year from the time of registration to the time of receipt.

"It's too long."

“But that’s the reality.”

In the past, when people mentioned the Soviet Union, they would think of it as a wealthy socialist country. They were filled with envy, jealousy, and hatred.

However, after a deeper understanding of the Soviet economy, I discovered many unexpected things. For example, in the Soviet Union, many workers had the money and wanted to buy ordinary furniture, but the goods were not available.

It really shocked a lot of people.

This is especially true of Mao Zemin.

Mao Zemin also visited the Soviet Union. However, this was after the founding of the People's Republic of China. As a senior official in the People's Republic of China, his time in the Soviet Union was arranged by someone else. Therefore, he certainly didn't have a deep understanding of the lives of Soviet citizens, nor did he discover such things.

This time, he mobilized everyone he could to understand the market situation in the Soviet Union, and only then did he discover these problems.

"I know the Soviet Union shouldn't be short of wood or machinery for furniture processing. Could it be that Soviet furniture factories, facing such a favorable situation, are simply not making any moves? And given the current situation, shouldn't the Soviet government build more furniture factories?"

Wei Hongjun somewhat did not understand the Soviet Union.

China currently struggles to meet basic needs, so there's little time for furniture. Consequently, most furniture in rural towns and villages is handmade by carpenters, and even furniture in smaller cities is made this way. While there are some woodworking factories that supply furniture to larger cities, they are often small.

But China was poor, and there was no other way. It wasn't the time for them to enjoy life and be picky about furniture. But the Soviet Union didn't have such worries.

The Soviet economy was now recovering, and it had sufficient funds and strength. Even timber was abundant in the Soviet Union, so there was no obstacle to building large-scale furniture factories.

"The Soviet Union had a large population, but most of them had jobs, including workers who worked in their own factories. The Soviet Union had developed heavy industry, and most workers were employed in heavy industry factories. If we wanted to develop other light industries, we would have to draw workers from heavy industry."

Mao Zemin had a deep understanding of the Soviet Union's economic situation.

Explain to Wei Hongjun immediately.

Mao Zedong had already begun to consider the relationship between industrial population and industrial development. The Soviet Union suffered heavy casualties during World War II, leaving it with a shortage of industrial workers. After World War II, the Soviet Union focused on developing heavy industry, including the military industry, which resulted in the industrial population being diverted to heavy industrial factories.

Therefore, if the Soviet Union wanted to develop other industries, it first had to face the problem of insufficient industrial population. "Or perhaps the Soviet Union's guiding ideology did not attach much importance to this aspect."

"But is the price of furniture worth transporting over long distances?" Wei Hongjun asked about the cost.

How much does furniture cost? Shipping it from China to the Soviet Union would take so long and be so expensive. And furniture isn't a small item; if the price isn't high, shipping it to the Soviet Union would actually result in a loss.

"Old Wei, you're underestimating the price of furniture. Currently in the Soviet Union, a complete set of furniture for a house of approximately 100 square meters—the most basic set, meaning tables, chairs, benches, and bookshelves—costs several thousand rubles. If furniture can be imported, the basic set can cost tens of thousands of rubles. Many workers would have to work for a year without food or drink to afford a decent set. Even better, more modern pieces would cost tens of thousands of rubles, affordable only for high-ranking Soviet officials, professors, and highly skilled technicians. We've analyzed the current demand for furniture in the Soviet market, and based on that, three to four million sets of furniture a year are easily produced. Besides complete sets, the Soviet Union also needs tens of millions of individual pieces of furniture annually. Soviet citizens have money, and the market is huge."

Mao Zemin was quite excited when talking about this.

Without a comprehensive investigation of the Soviet market, such a discovery wouldn't have been made. Indeed, many markets are present in everyday life. Regarding furniture, the most detailed intelligence came from technicians sent to factories for training. This was because they had the most contact with Soviet technicians and workers, and could hear their daily complaints.

This is a huge market involving hundreds of millions or even billions of rubles.

"That is, if we export furniture, the Soviet Union is willing to accept it."

"Correct."

Mao Zemin nodded.

He said, "I've been in contact with quite a few Soviet economic officials recently. The Soviets are actually very willing to see us develop light industry to supplement the material shortages in their market. They are willing to export airplanes, artillery, and automobiles in exchange for Chinese-produced daily necessities."

Wei Hongjun suddenly understood something.

It is not necessarily true that Soviet cadres did not notice the problems with the Soviet model.

But after most of the Soviet Union's resources were invested in heavy industry, a large number of vested interests in heavy industry emerged. After they occupied the country's main resources,

I don't want other fields to come and grab it.

Take away their interests.

So, even though they clearly see the problem, they consciously or unconsciously suppress the voices calling for the development of light industry and agriculture. This is a classic case of the head following the buttocks. They are all worried that the development of light industry will affect their own interests.

But that didn't mean they didn't realize the Soviet Union was currently short of supplies. So, if a country offered to fill this gap, Soviet officials wouldn't object. After all, the weapons and machinery the Soviets exported were very expensive. Exporting a few aircraft to China could yield an untold amount of supplies. So, in their view, the Soviets were taking advantage of this trade.

The Soviet Union was the leader of socialism.

The Soviet Union would not open its market to China, allowing it to freely sell goods in the USSR. All goods entering the Soviet market had to first pass through Soviet trading companies. This allowed the USSR to control the flow of goods into the USSR and reap staggering profits from imports. For example, imported furniture might cost 5000 rubles to a Soviet worker in the USSR, but might only cost 1000 rubles when imported. Soviet foreign trade departments profited by a meager 3500 rubles, leaving the remaining 500 rubles for travel expenses.

In other words, the Soviet foreign trade department was also a privileged department with huge profits. Even if China did not want to do business with them, they would "cry" and "whine" to do business with China. This is how many compradors came into being.

"This shouldn't be a big problem. We can establish a woodworking factory in northern Heilongjiang and cooperate with the Soviet Union to use wood from the Greater Khingan Range to make solid wood furniture. We can tailor furniture to Soviet tastes. We can also create some unique, carved furniture and sell it to the Soviets as high-end goods. We'll test the market first to see how Soviet workers react. If the market responds well and we make some money, we can import the necessary machinery and equipment from Europe and the United States to mechanize our woodworking factory and increase furniture production. Have the Ministry of Foreign Trade and the Ministry of Light Industry coordinate on this matter."

China's furniture industry experienced rapid development in the 1980s.

The furniture industry can only develop when people have money. But if we can use the Soviet market to develop China's furniture industry, that would also be a good thing. "And then what else?"

Wei Hongjun became more and more curious.

By mastering the goods needed by the Soviet market, China could develop industries in this area in a targeted manner, earn rubles from the Soviet Union, and use these rubles to purchase Soviet machinery and equipment to develop China's heavy industry.

Mao Zemin said: "Of course it's clothing."

"The Soviet Union is short of clothing? Tell me more."