Chapter 15

Hu Wenhai, knowing the political climate of the coming years, had no interest in becoming a private "entrepreneur" at this time. It was necessary to use the guise of a high-tech joint venture with Pakistani or other European and American companies to operate in China.

In the 1980s, it was not a good time for the development of private economies. Although the country had officially opened up and reformed, private economies were still just a supplement to the public sector. In society, the question of whether one was capitalist or socialist was not a trivial matter but a matter of life and death.

To put it simply, in 1984, private economies were not even considered legitimate. According to Zhou Yaoting, the chairman of the Hongdou Group, state-owned enterprises were the big brothers, township enterprises were not little brothers, but illegitimate children.

Yes, throughout the 1980s, private enterprises, township enterprises, and small collective enterprises in China were not even considered little brothers but were nameless and illegitimate "illegitimate children."

Business licenses were not issued, loans were hard to come by, and all production materials were controlled by the state. There was no way to acquire raw materials, which basically shut the door to the development of enterprises.

Not to mention the economic winter brought by macroeconomic regulation after 1989, during which many private business owners were arrested, imprisoned, or even lost everything they had created due to property rights issues.

The mainstream of China's reform in the 1980s was still the exploration of the management and operation of state-owned enterprises, not a true decision to abandon all political issues and follow the "good cat" route.

Knowing the political climate of the coming years, Hu Wenhai had no interest in becoming a private "entrepreneur" at this time. It was necessary to use the guise of a high-tech joint venture with Pakistani or other European and American companies to operate in China.

At that time, China's attitude towards foreign investment was not as indiscriminate as it would be in later years; instead, it was quite selective. For consumer goods aimed at making money from the Chinese, such as Coca-Cola and KFC, obtaining licenses and land was very difficult. Unilever and Band-Aid had to promise to export and form joint ventures with domestic state-owned enterprises to invest.

On the other hand, investments in high-tech export enterprises were very welcome in China. Although the technology of the red dot sight did not seem particularly advanced, it was something the domestic military could not afford. If this could be invested in domestically, most of the production capacity would likely be exported. For the Chinese government, which was suffering from a severe shortage of foreign investment, this was a project that seemed to fall from the sky.

Spending half a day at the Air Force base of the 501st Regiment, Hu Wenhai was even allowed to sit in the cockpit of a J-7 fighter. However, to be honest, for a hardcore player of flight simulation games like "Microsoft Flight Simulator" and "Modern Air Combat," the cockpit of this fighter was still too simple.

In any case, Hu Wenhai's trip to Shengjing was a great success.

Si Xingu was also very pleased. He had obtained a batch of imported camera tubes from Japan through old connections, which, although expensive, were of high quality. He had entrusted the director of the 601st Institute, Mr. Wang, to continue working on the simulation performance of the simulator. The two then boarded the train back to Xiucheng.

Although the 501st Factory had been transferred to local management and had become a military-to-civilian project, it still had military representatives and undertook certain military production tasks. This brought considerable convenience to Hu Jiefang's application for project development funds. The Machinery Industry Bureau, hearing that the project involved foreign military cooperation and used the 501st Factory's own funds, did not make too much trouble and approved it.

In the 1980s, factory managers were in a tragic situation. They had no control over personnel or finances. Regardless of the daily expenses of the factory, any unplanned expenditure required convincing the various superiors.

This made it extremely difficult for state-owned factory managers to accomplish anything, while salary thieves and parasites were everywhere.

Fortunately, Hu Shiwu had some influence in the industrial system of Xiucheng, and Hu Jiefang himself was very capable, which allowed the simulator project to proceed.

"601st Institute is unwilling to provide the J-7's center of gravity, thrust direction, and structural strength diagrams, but they have agreed to take over the design of the simulator's body. What do you think, Xiao Hu?"

Si Xingu sat in the meeting room of the 501st Factory, discussing the details of the simulator project with Hu Jiefang. The news brought back from Shengjing was not all good. The J-7's body data was classified, and neither Hu Jiefang nor Hu Wenhai had the necessary clearance.

Hu Wenhai sat in his father's chair, nodding like a little adult: "Then let's leave it to the 601st Institute. I think they have a clear advantage in this area. However, I hope they can leave some room for the onboard data system."

"Jiefang, what about your side? What are the 501st Factory's plans?" Si Xingu turned to ask Hu Jiefang, who was sitting at the head of the table.

"Our 501st Factory's technical department has formed a task force, but..." Hu Jiefang shook his head awkwardly, smiling bitterly: "The task force has no understanding of the entire simulator project and is currently at a loss. The head of the technical department, Hong Yijue, has some concerns about the project, and I am still working on him."

"Dad, let me handle it," Hu Wenhai volunteered.

"What do you mean by 'handle it'?" Hu Jiefang was taken aback, looking at Hu Wenhai.

"Lead the task force. My job is to develop the control panel and the mechanical and electrical control systems of the simulator. I can't do it all by myself."

Hu Jiefang, hearing this, scowled and asked: "Do you mean to have the technical department, a group of uncles and aunts, work under you? Where did you get this idea?"

"Dad!" Hu Wenhai sighed, speaking firmly: "With the 501st Factory's technical department's level, do they even have the right to be picky? Think about it, how many years has the 501st Factory not had any technological innovation or upgrades? What technological improvements have been made to the factory's equipment, or what technological development work has been done in recent years? The technical department just sets unrealistic regulations and checks technical documents. I would consider them a burden!"

"How can you talk like that, they are all your uncles and aunts!" Hu Jiefang was furious, slamming the table to scold him.

Hu Wenhai also became impatient, slamming the table in response: "Dad, I'll say something that might sound disrespectful, but without the simulator project, can the 501st Factory find another promising project in the short term? From top to bottom, including you, if we don't change this warm and fuzzy attitude, we'll all end up starving! When people are hungry, they won't remember the face you saved today!"

"Hey, hey, what are you two doing, let's talk it out calmly," Si Xingu quickly stood up to mediate. Hu Jiefang, who was about to get angry, found himself unable to do so.

Hu Jiefang was a good factory manager, having worked diligently for over twenty years, treating people kindly and strictly disciplining himself. Otherwise, he wouldn't have become the factory manager. However, his image in the factory was more of a mediator than an authoritative manager. This role might have been fine in a steadily developing organization, but the current economic situation in the country was not optimistic, and all state-owned enterprises, large and small, were facing operational difficulties.

No matter how anxious he was, seeking help from superiors, begging the bank, and delaying payments to upstream and downstream partners...

He had tried all these methods, but the operational difficulties had not improved. The simulator project was his last desperate effort. The project had clear profit prospects, and there was even foreign interest in purchasing it. In the face of such unprecedented good news, it could be said that this was the 501st Factory's last lifeline.

"Dad, your management style won't work. Look at Bu Xinsheng of the Haiyan Shirt Factory in Zhejiang Province. Without breaking the old system and the warm and fuzzy management style, the end result will be all workers going to beg! Who will remember your kindness then? Strict management and results-oriented policies will certainly cause complaints, but at least the factory can continue to operate, and everyone can eat meat. Workers may not be used to it and may complain, but they will understand that the factory can't function without you. If you still want to be this kind of factory manager, then I don't think we should even start the simulator project, because the 501st Factory will eventually fail!"

...

Hu Jiefang silently took out a cigarette, struck a match, and took a deep puff.

Bu Xinsheng was the focus of news in 1984. After widespread social discussion, the People's Daily published a front-page editorial, "A Factory Manager with Original Spirit—Bu Xinsheng," defining him as a reform pioneer. Before him, only Lei Feng and Jiao Yulu had received such national promotion. He was the third.

And what had Bu Xinsheng done before he became almost forgotten? Nothing more than strictly enforcing production discipline in a state-owned enterprise where everything was warm and fuzzy.

These things, which seem ordinary to later generations, were genuine reform pioneers at the time.

First, he implemented piece-rate wages in the workshop, paying for the number of shirts produced. Second, he enforced quality management, fining two shirts for each defective one. Third, he did not pay for leave and required sick leave to be approved by him...

In addition, there were many other regulations, but they were essentially of this nature. Ten or twenty years later, people would be surprised that these things required central approval and promotion. Aren't these things natural and self-evident?

No, at least before Bu Xinsheng's Haiyan Shirt Factory became a model in the 1980s, state-owned enterprises were not like this.