The War of Industrialized Nations (8)
Volume 2: War Preparation · Chapter 59
Xu Jia had been very gloomy for two consecutive days, so much so that his secretary entered the room with great caution, fearing any mistake might provoke him. Xu Jia noted all this, and in the past, he would have scolded the man. But at this moment, Xu Jia was immersed in his own thoughts—thoughts that left his heart oscillating between excitement, confusion, and apprehension.
Suppressing these emotions while completing his duties had already exhausted much of his self-control. In truth, it was Xu Jia himself who was most determined not to lose his composure over trivial matters.
That was, until Xu Jia saw a document whose contents immediately seized his attention. The White Russians had transported another fifty tons of gold. Previously, sixty-five percent of the payment for weapon purchases from the White Russians had been made in gold, while the remaining thirty-five percent had been shipped to Britain.
Xu Jia had little interest in money, and after seeing hundreds of tons of gold pass through his hands over the past few months, he had grown numb to its luster.
Aside from a meeting where he had scolded comrades who wanted to keep some of the gold—reminding them that business is built on integrity and that they must never cross certain lines—he had put the matter out of his mind.
According to the report, the White Russians wanted to deposit this batch of gold in the Northeast Bank and had simultaneously requested to sell goods to the Northeast. These commodities were not staples like grain, which the Northeast also required, but items like furs. He Rui had decisively ordered that industrial products could be exchanged for these consumer goods, or they could be paid for in Northeast currency. However, these goods could only be purchased by the department specifically responsible for imports; he refused the White Russians' proposal to sell freely on the Chinese market.
In the past, such details would have had little impact on Xu Jia, but now they set his mind racing. When addressing the shortage of meat, eggs, and milk, He Rui hadn't ordered rationing or other administrative measures. Instead, he had provided a comprehensive explanation of the consumer market—or at least a portion of it.
In this latest document from the White Russians, Xu Jia identified three key concepts: 'consumer goods,' 'market access,' and 'pricing power.' It was the concept of pricing power, in particular, that struck him the most.
The powerful merchant bullies the customer, and the powerful customer bullies the merchant. Xu Jia had always viewed this as an injustice, but now that the concept of 'pricing power' had been established in his mind, his perspective shifted entirely.
In the current grain exports to Europe, the selling price was higher than what merchants were paying for procurement. Although pricing power remained with the European buyers, the Northeast had at least gained some 'bargaining power.' This small measure of control over bulk commodity negotiations had significantly boosted the profits from grain exports.
Observing the restrictions placed on trade with the White Russians, Xu Jia felt a strange sense of identity crisis. In these transactions, the Northeast was occupying the dominant position typically held by Britain.
It was a difficult sensation to describe. The anger and humiliation of having one's pricing power and markets controlled by others were being offset by the thrill of dominating another nation. It reached the point where his internal anti-imperialist convictions began to show signs of wavering.
Xu Jia had never imagined he could be eroded by the very thing he considered evil. This realization triggered a wave of apprehension and a profound sense of shame. Setting the document aside, he reached for the telephone. When the line connected, he asked urgently, "This is Xu Jia. I was wondering if the Chairman is available?"
Winter nights in the Northeast arrived early. By the time it was merely dusk inside the Pass, the sky here was already pitch black. A local might not have given it a second thought, but Xu Jia was keenly aware of the geographical shift. Thanks to his sound education in geography, he understood the phenomena as a result of the Earth's rotation and the axial tilt relative to the sun.
The same Earth, yet different nights. This thought, which he had hoped would provide some relief, only plunged him into deeper confusion.
He Rui invited Xu Jia to dinner in the government cafeteria, where they were joined by Wu Youping and Zhuang Jiaxiong. Xu Jia, unable to contain himself, asked directly, "Chairman, is there actually anything redeeming about imperialism?"
"Imperialism is a result, not an innate state of existence," He Rui replied. "If we adopt an imperialist attitude toward Russia, we must accept the backlash that comes with that model. To maintain an advantage over Russia, we must sustain a posture of oppression. Some people find this perfectly acceptable, while others find it abhorrent. Still others are more complacent; they simply want to avoid trouble and hope the current situation lasts forever. In any case, I do not believe imperialism is the ultimate form of civilization."
Having finished, He Rui picked up his cup and took a sip of hot water.
Before Xu Jia could follow up, Wu Youping asked, "Chairman, you previously mentioned that we should deal with Russia through a non-imperialist model. Can that truly be achieved?"
"I believe the current Bolshevik leaders can grasp a non-imperialist model, so it is possible," He Rui said. "Of course, everyone wants the circumstances most beneficial to them to persist until the end of time, so I cannot be certain if Russia will truly hold to it. Overall, however, I believe there is hope. But that isn't what's important. What matters is how you all perceive industrial nations. Modern industrial nations, without exception, are in the business of creating markets, creating consumption, and creating prosperity. This is because, most of the time, markets and consumption are naturally weak. If we do not create and sustain them, there can be no prosperity to speak of. But if we possess the capacity to create them, prosperity is guaranteed. If you cannot understand this, you will never understand the reasons and objectives behind the military operations we will launch against Japan in the coming years."
Xu Jia felt he understood He Rui's words, but he struggled with the underlying implication: that all power—or at least the vast majority of it—stemmed solely from the economy.
The idea of waging war for the sake of economics and commerce ran entirely counter to his expectations.
And so, Xu Jia decided to voice his thoughts plainly.
After listening to Xu Jia's perspective, He Rui nodded. "Xu Jia, Youping, Comrade Zhuang Jiaxiong—you all possess a heroic streak and a sense of idealism. This is good; please hold onto them. Idealism will allow you to weather great trials with ease and prevent you from being tempted by vulgar interests. The principles of political economy I discuss are meant to help you understand the laws governing the nation and society at this stage. In a well-run organization, everyone gains the opportunity for promotion by completing their work. Those with the opportunity to reach the top are invariably capable. But how do we evaluate high-level officials? We look at whether they possess idealism and a strong inner drive. Take Comrade Xu Jia, for example. If you were to succumb to reality and become an imperialist, you would at most become a mid-level official, carrying out the directives of your superiors according to KPI assessments. I don't know if you can understand what I'm saying."
Xu Jia felt a surge of joy. The source of his unease and apprehension had been the fear that his hatred of imperialism would be seen as a weakness by He Rui. Hearing He Rui's requirements for high-level leadership, the majority of his anxiety vanished.
Before Xu Jia could say anything, Zhuang Jiaxiong chimed in. "Chairman, then what should we call it when we use imperialist methods against imperialism itself?"
He Rui chuckled. "I believe what you mean is adopting methods that imperialists can understand. Is that a fair interpretation of your question?"
"Exactly," Zhuang Jiaxiong said, nodding vigorously. "That's it. If we were to use more refined methods against them, I feel we would just be 'gentlemen open to deception.'"
"We call that 'seeking truth from facts,' and it is the fundamental methodology of our Civilization Party," He Rui explained. "Imperialism operates on the principle of strength, tailoring its actions to the status of its opponent. We do the same, but for nations willing to cooperate normally, we must reciprocate in kind rather than resorting to power politics. If we cannot do this, how can we prove that the civilization we promote is superior? The name 'Civilization Party' may have been chosen somewhat arbitrarily, but our attitude toward the world as Party members cannot be."
Xu Jia’s heart remained heavy, but he no longer felt the same sense of powerlessness and dejection. He shifted the conversation, asking He Rui to elaborate on the concepts of 'pricing power' and 'market access.'
They continued to eat and talk, and as they delved deeper into the subject, the atmosphere around the table naturally grew more harmonious.