Chapter 28

Three million, even if in US dollars, might not even get you a district chief in Xiucheng thirty years later.

But if it were 1984, let alone the mayor of Xiucheng, it might even be enough to have a casual chat with the mayor of Shanghai.

Therefore, Wang Yichun showed no sign of surprise on his face at the late arrival of Hu Wenhai and Hu Jiefang. This was not surprising, as although he had only proposed what seemed to be a currency exchange agreement, converting the three million US dollars in Hu Wenhai's hands to the municipal government at the official exchange rate, it was important to remember that China at the time was implementing a fixed exchange rate system. This meant that the exchange rate was not determined by market supply and demand, but by the foreign exchange management authorities.

This system undoubtedly ensured the state's control over foreign exchange and the centralized approach to major projects. However, it also created an inevitable problem: the disconnection from market demand.

The US dollars earned from exporting goods had to be fully repatriated to the country under the foreign exchange management system. Various import and export companies and specialized import and export companies for different products were established to ensure the implementation of this policy. Any act of exporting goods without repatriating the foreign exchange to the country was considered illegal, even criminal, known as "capital flight."

The state held foreign exchange obtained through fixed exchange rates but could not convert it back at the official rate. Otherwise, the foreign exchange reserves might be depleted overnight due to the actual value of the renminbi at the time.

Therefore, in 1980s China, it was extremely rare to be able to exchange foreign currency at the official fixed exchange rate through the foreign exchange management authorities.

However, after the reform and opening up, China's demand for imported products increased day by day. This led to the existence of a black market for foreign exchange, where in some alleys outside the local People's Bank, people might be seen, like CD vendors a decade later, pulling at every passerby, asking, "Comrade, do you have any foreign exchange?"

Although the state's management of foreign exchange was so strict, the magic of wealth and profit was boundless. Given the huge, multiple-fold difference between the exchange rate and the actual purchasing power, some people naturally turned their attention to this area.

In the 1980s, import and export companies were known for their financial strength because they had the right to import. They held the US dollars earned from other enterprises' exports, part of which they handed over to the state, and the rest they used to import foreign goods.

For example, a textile factory might export goods worth $100 through an import and export company, which would pay the factory the renminbi equivalent at the official exchange rate. Then, part of the $100 would be sent to the national treasury as foreign exchange reserves, and the remaining dollars would be used to import goods such as cars, electronics, and luxury items, which could be resold domestically for a profit of several times the original amount.

Even in 1984, Qionghai Province was taking advantage of its special economic zone status to import over 100,000 cars, using $570 million in foreign exchange reserves from various regions. At the cost of a provincial party secretary, this foreign exchange trading frenzy completed the initial accumulation of capital for Hainan's reform and opening up.

Wang Yichun, of course, had the same idea. Xiucheng did not have the special economic zone advantages of Hainan, and he did not have the resolve of Lei Yu to give up his official position, but he could still play it close to the line.

However, in 1980s China, there were no opportunities to exchange foreign currency for technology; it was always for raw materials, agricultural products, handicrafts, or light industrial goods.

In 1984, it's worth noting that the Patent Law had not yet been implemented. So, how should the foreign exchange earned by Chinese citizens transferring foreign patent rights be handled? There was a lot of room for maneuver here.

If the three million US dollars could be put into the municipal government's pocket and converted into various imported goods, it might turn into over 30 million renminbi when resold.

And if one had a bit of foresight, importing advanced production equipment from abroad might revive some of the city's key enterprises that were in trouble.

"Factory Director Hu is back!"

When Hu Jiefang pushed open the door to his home, he saw a familiar yet unfamiliar face. He had seen Wang Yichun a few times from a distance at city meetings, but never so close up to appreciate his smile.

"Factory Director Hu has raised a very excellent son!" Wang Yichun, disregarding his status as mayor, warmly grabbed Hu Jiefang's hand and shook it.

"Where, he's just a child, what can he do..."

Hu Jiefang was somewhat flattered. Being called by his name behind his back was one thing, but being greeted by a city mayor in person was quite another.

"Come, come, sit down. This is a family matter, and you need to make your own decision." Wang Yichun took charge, pressing Hu Jiefang into his chair, and then patiently repeated his proposal to exchange foreign currency on behalf of Hu Wenhai.

"Of course, if the city has made arrangements, we will follow the organization's requirements!" Hu Jiefang's awareness was commendable. As soon as Wang Yichun finished his proposal, he was ready to make a decision without further discussion.

But Xiao Yeqin was upset. She grabbed Hu Jiefang's ear and said angrily, "Well, Hu Jiefang, no one in our family dares to make a decision alone, and we were waiting for you to come back and discuss it. You, however, decide on your own about several million US dollars? Did you ask me, your father, or Wenhai? If you can earn three million US dollars, we have no objections to how you spend it, but do you have that ability?"

"You, ah—light, light!" Hu Jiefang immediately realized his mistake. Xiao Yeqin was right; no one in the family had made a decision alone, and they had been waiting for him to return.

But this did not mean that Hu Jiefang had the final say in such a significant matter. In the 1980s, in dual-income families, women truly held their own.

This era had no feminist activists, and no women would hold up signs in the subway saying "I can be sexy." In these ordinary dual-income families, women simply fulfilled their duty to earn and support the family, and thus naturally enjoyed equal status with men.

Even the most stringent observers and commentators could not deny that in 1980s urban China, female workers held the highest social status in Chinese history.

Xiao Yeqin respected him, respecting Hu Jiefang as a member of the family, which was why she had urgently called Hu Wenhai to bring him back.

"Wife, I'm wrong, let go, let go—"

Sizzle—

"Xiao Qian, let go first." Hu Shiwu struck a match and took out a cigarette, lighting it for himself.

Hearing her father-in-law's words, Xiao Yeqin huffed and released his ear, then sat back down in a huff. Hu Jiefang exhaled, about to sit back down, but suddenly heard Hu Shiwu slap the table and coldly say, "Brat, did I tell you to sit? Do you have this family in your eyes, or me as your father? Do you think I'm old and about to die, so you don't need to listen to my advice anymore?"

"Father!" Hu Jiefang was startled, almost in tears: "I didn't mean that—"

"Enough, stand aside, you're just a bother." Hu Shiwu turned away from him and instead focused on Hu Wenhai at the door.

The Hu family's house was not large, especially the room where Hu Jiefang and his wife lived. A bed was placed by the window, followed by a row of cabinets. The remaining space was barely enough for a sofa and a coffee table, making it difficult to sit when the family gathered.

Today, the entire Hu family, plus Wang Yichun, was crammed into this room, leaving no place for Hu Wenhai to sit, so he stood at the door.

"Wenhai, this money is yours, so you should make the decision. What do you think?"

"Father, he's just a child, how can he decide on three million US dollars?!" Hu Jiefang was shocked and immediately objected.

"So what? At least he respects his mother and grandfather. I think he's more sensible than you!" Hu Shiwu's glare silenced Hu Jiefang.

Hu Wenhai glanced at Wang Yichun, whose face still showed disappointment at Hu Jiefang being overpowered by Hu Shiwu and Xiao Yeqin.

This wouldn't do.

Hu Jiefang could not afford to leave a bad impression on the mayor. Factory 501 had been transferred to local management, and a significant portion of its jurisdiction was under the Xiucheng Industrial Bureau. In the long run, the position of Factory 501 director could provide Hu Wenhai with far more benefits and protection than three million US dollars.

Of course, this did not mean that Xiao Yeqin or Hu Shiwu lacked a sense of the bigger picture; it was a matter of historical limitations. Normally, Xiao Yeqin would be very mindful of maintaining Hu Jiefang's image in front of outsiders.

But this was three million US dollars, and perhaps the entire Factory 501 was not worth as much. Hu Jiefang's act of handing over the decision on three million US dollars could not be allowed to solidify in Wang Yichun's mind. If Xiao Yeqin had not acted quickly, Wang Yichun might have taken advantage of the situation to solidify Hu Jiefang's commitment—this would have been a disaster for the Hu family.

From Wang Yichun's actions in this matter, it was clear that once he gained the upper hand, he would not consider the Hu family's interests.

Therefore, this matter required both struggle and unity.

Hu Wenhai thought for a moment and said, "Mayor Wang wants these three million US dollars, and I believe there must be considerations from the city's perspective. Both my grandfather and my father have received a lot of support from the organization, and I am willing to do my best to repay the organization's care. However, I do have a personal wish. I originally wanted to keep a portion to support my father's comrade, Uncle Heng, who is going to the front. Mayor Wang might know that Elkan Company, or rather, the company in Canada, has some military connections and can import some advanced military equipment from abroad..."