In this situation, the Federal Republic of Germany placed great importance on economic and trade cooperation with China, and when exporting equipment to China, they rarely held anything back—this was very different from both the United States and Japan. From the American perspective, China was, after all, a member of the Eastern bloc, so there needed to be some restraint when exporting technology. From the Japanese perspective, China was a potentially competitive neighbor, and they certainly didn’t want to teach the apprentice only to starve the master. By comparison, the Federal Republic of Germany’s approach was truly commendable.
Germany’s relationship with China soured only after German reunification. Ironically, those who harbored the most hostility toward China were precisely the citizens from the former East Germany. The reasons for this are best left to criminal psychology experts to study.
In the early 1980s, China and Germany were still in the initial stages of contact. On one hand, Germans didn’t understand China well and didn’t dare to play tricks like the Japanese; on the other hand, they were motivated by the desire to establish good relations with China. Ethan Franklin’s proposal to shift imports toward the Federal Republic of Germany was absolutely correct.
For an official at Samuel Lawson’s level, this reasoning was really just like a thin paper window—before it’s pierced, things are hazy and unclear, but once it’s broken through, everyone suddenly sees the light.
The key point is, the person who pierced this paper window wasn’t a seasoned veteran at the negotiating table, but rather a temporary worker responsible for serving tea during the talks. How could this not leave Samuel Lawson both surprised and embarrassed?
“We had previously dealt with West German manufacturers, but their quotes were much higher than the Japanese, and they were somewhat hesitant about providing complete sets of equipment. They preferred us to adopt an à la carte approach to importing, which is different from the package services offered by Japanese companies,” Samuel Lawson recalled the decision-making process of the Metallurgical Bureau, explaining to Ethan Franklin.
Ethan Franklin said, “That’s exactly the second strategic mistake I wanted to point out. In fact, the à la carte approach proposed by the Germans is actually the most suitable for us. Package services may sound simple, but the general contractor won’t consider things from our perspective and won’t choose the most cost-effective equipment for us. Not to mention the disgusting practice of bundling in things like toilets— even if the contract only includes equipment, what we get is never the best value for money.”
“Value for money?” Samuel Lawson didn’t immediately understand Ethan Franklin’s term.
“The ratio of performance to price,” Ethan Franklin explained.
“Got it.” Samuel Lawson nodded, then said, “Little Franklin, your idea is correct in principle. But when it comes to the 1780 project specifically, you’re being a bit idealistic. The last time we imported rolling mills from abroad, Jiangcheng Steel Plant brought in a 1700mm hot rolling mill from Japan and a 1700mm cold tandem rolling mill from West Germany, and we used the package import method. At the time, we didn’t even consider manufacturing them ourselves, and we didn’t purchase the manufacturing blueprints, so we didn’t gain any experience in building rolling mills. This time, we’re approaching the Nanjing Steel 1780 rolling mill project with the intention of combining import and learning. We hope to gain experience in building rolling mills through this import, so that next time, we’ll be able to order à la carte. Let’s put it this way: we’ve never eaten in a restaurant before, and this is our first time. If you don’t let the chef provide a set menu and insist on ordering à la carte yourself, do you even know how to order?”
“I don’t, but I can bring a friend who does,” Ethan Franklin said.
“A friend who knows how to order? Who?” Samuel Lawson didn’t catch on right away and asked instinctively.
Ethan Franklin said, “We don’t have experience in building, but there are many companies abroad that do. Right now, we’re letting Sanli Steelworks choose the items for us, and whether they do a good job or not is entirely up to them. That’s like letting them be both the player and the referee—can you guarantee they won’t cheat?”
“Both the player and the referee… that’s an interesting way to put it.” Samuel Lawson began to grasp Ethan Franklin’s line of thinking. He picked up his notebook and solemnly wrote down Ethan Franklin’s words. Then, still in note-taking posture, he said to Ethan Franklin, “Little Franklin, go on, I think your idea is quite interesting.”
It’s more than just interesting—this is the kind of lesson China only learned after paying a huge tuition fee. Since I’ve come to this era, I should at least help the country save that tuition fee, Ethan Franklin thought silently.
“As far as I know, in Western countries, there are specialized consulting firms that help clients design and procure complete sets of equipment. They tailor suitable solutions for clients based on their actual needs, helping them spend the least money for the best equipment performance. If needed, they can help clients request quotes and even negotiate to get the lowest price. These companies are the ‘friends who know how to order’ that I’m talking about. Their fees may sound high, but compared to the savings they bring, it’s absolutely worth it—a real bargain,” Ethan Franklin said.
“Where did you hear about this?” Samuel Lawson asked.