On December 6, the Stockholm International Peace Research Institute (SIPRI), Sweden, issued a research report stating that it is no surprise that the United States ranks first in arms sales in the world; the runner-up is actually China, with arms sales accounting for about 16% of the world. .
Among the top 25 arms dealers in the world, there are 4 Chinese companies, of which 3 are in the top 10. They are: China Aviation Industry Corporation, China Electronics Technology Group, China North Industries Group, China South Industries Group. In addition, there are several Chinese companies that can advance to the top 25 because of lack of data and fail to count.
As soon as the conclusion came out, some brick makers in the West were surprised.
If you go back in time 40 years ago, who would say that China would become one of the world’s largest arms dealers, not only foreigners would not believe it, but even the Chinese themselves would not believe it—however, China’s first arms order was precisely what It was finalized in 1979.
When it comes to arms dealers, many people tend to think of the scenes in the famous movie "The King of War": the suit is stiff, the bullets fly across the board, the death of a lifetime, diamond payment...
In the history of the "first order of Chinese arms sales", all these cool movie elements are absent! The whole process was full of rudimentary, hasty, and shabby: Before selling weapons, I didn’t know how high the unit price was, or how to write arms export contracts; when negotiating with foreign countries, even the country’s authorization letter was not included... even more miraculous Yes, when the entire military trade delegation departed, it only brought a mere US$5 in foreign exchange; when it returned, it finalized an arms order worth US$167 million.
Don't say that the Chinese are opening up, and don't laugh at them for stingy. The Chinese military workers of that year were too difficult.
In February 1979, the second year of China's reform and opening up, according to the results of the talks between the chief architect of reform and opening up and Hassan Tuhami, then Egyptian Deputy Prime Minister, China will export J-6 and J-7 fighter jets to the Egyptian Air Force. This is also the first time in decades to change the habit of free foreign aid, and become an "arms dealer" for an unprecedented time.
Want to be an arms dealer? It's really not that easy. AVIC, which is in charge of this business, was just established on March 3, 1979. From the third machine department of the superior unit to the company members, none of them have experience in foreign trade. According to Liu Guomin, the director of the AVIC Export Division and head of the delegation to Egypt, recalled:
“Because AVIC has just been established, there is no experience, no channels, and the construction of export business is almost blank. It is not only unfamiliar with basic export links such as drafting contracts, business negotiations, customs clearance, handling transportation insurance, and delivery of foreign exchange. The money for the flight tickets for Egypt to return to the country was not available; besides, Egypt was not ready to develop military business with my country at that time..."
Starting from nothing, knowing nothing, pits everywhere, uncertain about the future-what should I do? In order to complete the task of creating (earning) foreign exchange (money) in the country, the entire company has entered an open state from top to bottom.
To sell fighter jets, there must be a contract! Never did it, it doesn't matter. They borrowed two passenger aircraft import contracts from the General Administration of Civil Aviation, adopted a reverse operation method, changed their role as an exporter, and drafted a fighter export contract.
To engage in arms negotiations, you have to make a price! No reference, it doesn't matter. With the help of the Aeronautical Information Institute, they compared the performance of the J-6 fighter with the quotations of foreign aircraft, and on the basis of ensuring that they did not suffer a loss, they temporarily estimated the unit price of 1.2 million US dollars.
If you want to sell airplanes abroad, you have to pay for it! No money, it doesn't matter. They first went to the Ministry of Foreign Trade to borrow, but they were rejected: the country is tight on foreign exchange, want to borrow several thousand dollars? no way! After hitting a nail, they didn’t get discouraged, and they calculated the cost of going abroad: airfare abroad only cost renminbi; foreign board and lodging expenses need to be spent in US dollars, and try to get Egypt to entertain them. It is really impossible to ask the Chinese Embassy in Egypt for help; If you spend it, don't spend it. Who makes us poor?
Gives AVIC a chance to sell J-6 abroad
To go through the procedures of going abroad, you must have a foreign invitation letter! It doesn't matter if there is no letter. It happened that the Civil Aviation of Egypt sent an invitation letter requesting China to send a delegation to help repair the Soviet-made An-24 passenger aircraft. They seized this opportunity, in the name of negotiating to repair civil aircraft, obtained passports for going abroad, and sold fighter jets in other countries.
In this way, under the leadership of the head of the delegation, Liu Guomin, went to Cairo, the capital of Egypt, thousands of miles away, and embarked on a completely strange journey of military trade negotiations. Before departure, the comrades of Wailian gave Liu Guomin 5 US dollars in foreign exchange as temporary emergency funds. That's right, only 5 dollars.
Nowadays, the money for ordering a meal abroad is probably more than $5. However, at that time, there was really no way. At that time, the foreign exchange reserves of the whole country were running rats. The 5 US dollars was still the miscellaneous expenses saved by the overseas team of the Three Ministry of Machinery. In other words, it was pulled out between the teeth.
Not only that, at that time, Lu Dong, the Minister of the Three Aircraft Department, specially urged when the delegation went abroad to Egypt: "Insist on cash exchange. We need foreign exchange to develop the aviation industry, even one dollar is good." The main idea is two sentences: money! Want cash!
Going abroad for $5, still want to make a lot of money? These details may seem a little funny today. But at that time, our country was really poor! Special need for small foreign exchange money! ! !
Egypt is in a window of arms control
Little money, really sweet. But the small money from the first order of arms sales is really hard to make. When the AVIC delegation arrived in Egypt, this country had just signed the "Camp David Agreement" with Israel and was rejected by the entire Arab world. The Soviet-made arms channels had been cut off, and American arms had not yet come in. The Egyptian Air Force consumed a large number of aircraft in the Fourth Middle East War, and the number of fighters was very scarce. However, there are different opinions among the Egyptians on the question of whether to introduce Chinese aircraft for "temporary transition".
It is the Egyptian Air Force training department that most hopes to introduce the Chinese J-6 aircraft for emergency. Although the performance of this aircraft is not advanced, it is the spot that the Egyptians can get with the least money and the shortest time, and can meet the Egyptian Air Force pilot training needs in the shortest time. Soviet aircraft cannot be bought; the US and European aircraft are expensive and have to wait.
Even so, the Egyptians who are accustomed to "handling" from China still play the "feeling drama" and "emotional card" as soon as they come up, crying out that they have suffered heavy losses in the last war, and demanding that China continue to provide free assistance to Egypt. Change to paid trade again.
Want to empty the glove white wolf! Don't look at how poor the Chinese become? In order to earn foreign exchange, the Chinese at that time probably even had green eyes.
Regarding the small ninety-nine of the Egyptians, the Chinese negotiator Liu Guomin argued for reasons: From the perspective of gross national economic output, China's per capita is less than US$300, while Egypt has exceeded US$1,000; it is obviously that China is poor and Egypt is rich. For a long time, the Chinese people have been saving food and clothing, and have given a lot of assistance to friendly countries without compensation, and have done their utmost. Now, the Chinese government has changed free aid to equal and mutually beneficial paid trade. This is a reasonable and reasonable move.
This also has to pay tolls!
In order to persuade the Egyptian side, Liu Guomin also used the Suez Canal familiar to the Egyptians as an analogy: "The Egyptian people have regained control of the Suez Canal through a heroic struggle. The current annual income has reached more than 1 billion U.S. dollars. If there are developing countries, It is of course unbelievable to ask Egypt for the free passage of the canal.” This remark made it impossible for the Minister of Equipment of the Ethiopian Air Force to refute, and the issue of free assistance will no longer be discussed.
After going through twists and turns in Egypt, this is the scene after the negotiation
Even with a good beginning, the negotiation of China's first arms sale still took a lot of effort. Since the delegation arrived in Egypt on March 15th, it has gone through many twists and turns, and has talked about it for 50 days.
In order to win this precious foreign exchange for military trade, all the Chinese Embassy in Egypt mobilized. Envoy Yao Guangda personally led the AVIC delegation to deliberate the negotiation plan 13 times. The Chinese Deputy Military Attache in Egypt also enthusiastically joined and helped Delegation members who are familiar with foreign languages type; in order to ensure confidentiality for delegation meetings, the embassy’s charge d'affaires personally handles the door.
Later Chinese Vice Minister of Foreign Affairs
When the Egyptian side wavered and announced the suspension of negotiations, Ambassador Yao took Liu Guomin and an interpreter and tried every means to meet with the then Egyptian Vice President Mubarak (former Egyptian Air Force Commander), playing the "emotional card" of China-Egypt diplomacy. Playing the "technical card" of Chinese weapons, I hope he will come forward to facilitate this military trade order.
Mubarak quickly summoned my ambassador and delegation and asked in detail about the technical status of the aircraft available to China. Liu Guomin said: "The J-6 is equivalent to the MiG-19. It is available in stock and can be delivered that year; the price is low, the quality is reliable, and it is suitable for training."
After the assassination of President Sadat (right), he took over as President of Egypt
The friendship between China and Egypt and the sincerity of the Chinese side finally moved Mubarak. He said on the spot: "The situation of the aircraft is clear. I heard that the negotiation has encountered some difficulties. It doesn't matter. I let the Air Force resume negotiations immediately. Looking back, Egypt and China The friendship between China and China has a long history. After we recovered the sovereignty of the East Canal in 1956, China sent a large number of navigators to support the resumption of the canal. After that, we purchased a large number of our long-staple cotton to support China’s economic development. This time we sent a delegation. Talking about air force equipment, we welcome it!...I read your draft contract, and I can sign with you even if I close my eyes!"
Under the personal intervention of the Vice President, China-Egypt military trade negotiations have entered a fast lane. The most dramatic thing was that during the China-Egypt meeting that day, the commander of the Egyptian Air Force, who had not participated in the negotiations, appeared for the first time. He mistakenly thought that the Chinese interpreter was not present and had a confident and bold conversation in Arabic. The Egyptian negotiators also reported to him on the spot in Arabic: "The Chinese fighter's offer is still acceptable." After hearing this sentence, the interpreter of the Chinese embassy didn't show up on the surface, and turned around and informed the delegation of the unexpected gain.
After grasping the true intentions of the Egyptian side and the bottom line of the offer, the Chinese delegation took the initiative in the subsequent arms sales price negotiations, and did not compromise on the offer. In the end, the two parties agreed that China will export 44 J-6 and 6 J-6 aircraft to Egypt, and provide 220 turbojet-6 and 28 turbojet-8 backup engines; in addition, a contract has been signed for the supply of spare parts and engine repairs. And other ancillary contracts.
When the two parties were preparing to sign the contract, there was another episode. The head of the Egyptian negotiating team presented the "Credentials" (the government authorization letter), and I hope Liu Guomin will also produce the Chinese "Credentials" equally. AVIC, which lacks military trade signing experience, is unprepared for this. At that time, the Chinese Embassy in Egypt was unable to act as an agent, and it was too late for domestic reorganization. What should I do if I am so swollen?
What an eager and intelligent Liu Guomin, he took out a seat card he received at the State Banquet in the Great Hall of the People, with his name and national emblem printed on it, to indicate to the Egyptian side that this is the Chinese "Credentials." Since Egypt could not figure out the format of China's certificate, it approved it smoothly.
After the vicissitudes of the poor and the bright future, China's first arms export order was finally finalized, with a total value of 167 million US dollars! Chinese arms finally got its first pot of gold. Equivalent to 14% of the country's foreign exchange reserves in 1979! ! !
Soon after, AVIC received an advance payment of US$27.69 million from Egypt. This is the first foreign exchange income of the new China Aviation Industry in 28 years. As a result, China’s aviation technology introduction project was quickly launched, and the improvement of aviation products will not be ashamed...
As for the 5 dollars before going abroad, Liu Guomin was not willing to spend it, but brought it back intact and returned it to the organization. This is the Chinese aviation people of that era! In the most difficult days of China's foreign exchange, they used the least price to win the country's first pot of gold in arms exports.
Starting from the first "zero breakthrough" in arms sales in 1979, Liu Guomin and his team continued to fight in Vietnam, and signed a number of aircraft and engine export contracts with Zambia, Bangladesh, Egypt, Pakistan and other countries.
From the 1980s to the 1990s, Liu Guomin became a “leading player” with outstanding achievements in China’s military trade. He successively made the export of the J-7 series fighters, K-8 trainers, and Xiaolong fighters. Important contribution. According to incomplete statistics, during his work, he personally signed export contracts with a total value of approximately US$1.15 billion, and directed and participated in decision-making export contracts totaling approximately US$6.7 billion.
According to statistics from the SIPRI report, in the mid-1980s, China once jumped to become the world's fourth largest arms exporter after the Soviet Union, the United States, and France. From 1984 to 1987, China’s arms sales peaked, bringing China 8.2 billion US dollars in revenue, equivalent to 7% of China’s total exports during this period! ! !
The large amount of foreign exchange won by China's military trade has injected vitality and vitality into the development of the national economy and technological upgrading of the defense industry. Today, with the successive installation of advanced weapons such as the J-20, Y-20, and domestic aircraft carriers, the Chinese army has become a decisive military force in the world.
The more brilliant we are, the more we must not forget that those Chinese who dared to go abroad and won the "first order of China's arms sales" with only 5 dollars back then did not admire vanity or vanity. , Regardless of self-interest, it has become an integral part of the history of China’s defense industry. Those legendary opening stories will be passed on forever...
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