Chapter 560 Modernization (10)
Volume 5: International Relations · Chapter 90
After speaking with He Rui, Rockefeller thought Chinese government officials would sound him out again, but they didn't. Instead, the other tycoons listened every night to Prescott Bush's exchanges with the Chinese government. Three days later, railway tycoon Samuel announced he would set up a business office in China.
Hearing this suggestion, Rockefeller felt he might have been thinking too far ahead; given the current situation, setting up a China office first was a very pragmatic choice. But understanding was one thing; Rockefeller still wasn't very interested. His industries were basically concentrated in heavy industry; setting up even ten offices wouldn't help reduce the risk of investment in China.
Over these few days, Rockefeller chatted with young Coolidge several times, trying to understand China's political and cultural traditions through him. Rockefeller concluded that if what young Coolidge said was indeed Chinese cultural tradition, then this was an enlightened and responsible absolute monarchy. Based on Rockefeller's impression of He Rui, He Rui was an outstanding statesman, the leader of a modern industrial nation, bearing no resemblance to a monarch.
He Rui's understanding of politics and economics was profound; he knew well the priority issues of the nation at different stages, understood very well the negative consequences his policies would trigger, and had made deployments in advance.
Overall, his understanding of He Rui made Rockefeller very conflicted. If Rockefeller invested in China, he would definitely make money, and very substantial profits at that. However, Rockefeller could only make money in the fields He Rui permitted. If Rockefeller had other ideas, He Rui had countless ways to make the Rockefeller consortium's investments in China vanish into thin air.
Rockefeller didn't dislike making money, but he strongly disliked this feeling. Although the US government could exert huge pressure on the Rockefeller consortium, it still had to rely on them in the end. But no matter how much Rockefeller invested in China, as long as He Rui was there, the Rockefeller family couldn't get more. Rockefeller found he had never detested a centralized system so much. This aversion wasn't political, but personal emotion.
Even President (Theodore) Roosevelt, who had split the oil company through antitrust laws, made Rockefeller realize after the fact that the US President was nothing more than that. But the He Rui government was a different kind of existence; its power was much stronger than the US federal government, and its use of power was inevitably much more effective.
"Gentlemen, I have completed my diplomatic mission and am ready to return home."
Prescott Bush's words interrupted Rockefeller's thoughts. The first thought that popped into Rockefeller's head was whether to return with Bush.
The group of tycoons, however, was more interested in Bush's diplomatic objective this time and asked how his mission had gone. Bush answered with a sense of relief, "President Coolidge expressed appreciation for China's actions to liberate the colonies. The US government will continue to pay attention to China's development in the process of obtaining governance rights in the colonies. At the same time, we hope to sign investment agreements regarding the Assam and Upper Burma regions."
Hearing this, many tycoons smiled, some with a hint of mockery. This mockery wasn't directed at China. China had recognized the sovereignty of the Assam and Upper Burma regions; from a legal perspective, the US could establish diplomatic relations with these two regions. China now controlled the administration and diplomacy of these two regions, and the US naturally hoped to gain the power to enter these regions. At least create some influence first.
Sure enough, as these tycoons expected, Bush replied, "The Chinese government stated that after China and the US sign agreements on various relationships, China will arrange for the US to establish equal and mutually beneficial diplomatic relations with these two regions in accordance with the Sino-US agreements."
"That seems like a pretty good answer. Mr. Bush, did China mention the Philippines issue?" Samuel asked with interest.
Bush shook his head. "The Chinese government didn't actively mention the Philippines issue at all. When I asked what kind of relationship China hopes to establish with the Philippines, the Chinese side stated that this would be part of the Sino-US investment agreement."
Samuel had thought China would take the opportunity to say something. Hearing the Chinese government's attitude was so cautious, Samuel didn't know how to evaluate it. After thinking for a while, Samuel probed, "Does this mean the Chinese side isn't in a hurry to sign a comprehensive relationship agreement with the US?"
Prescott Bush had the same feeling. But no matter how he probed, the Chinese departments he met with all stated that 'agreements between China and the US are a very serious matter.' Prescott Bush later tried to determine how the Chinese government prepared to advance negotiations with the US, and the Chinese side stated, 'We will continue to push forward after the US election ends.' This part of the exchange couldn't be shared with the tycoons; if it got out, Prescott Bush would be in deep trouble.
After the chat, Prescott Bush stood up and took his leave. Back in his room, Prescott Bush opened the liquor cabinet, took out brandy, and poured himself a glass. The US election results would come out in November, and current Secretary of Commerce Hoover would undoubtedly win. Hoover attached great importance to opening the Chinese market. It was indeed a very suitable time for Bush to return to Washington with the Chinese promise to 'continue pushing Sino-US relations after the US election.'
Sipping the brandy, Prescott Bush felt a golden avenue waiting for him ahead. Although a steel tycoon was an extremely high existence for ordinary Americans, compared to the powerful in Washington, it was nothing. If the Bush family wanted to go further, they had to first become Senators or Ministers. Only with political accumulation could they open the door to core power.
Thinking that his child might become Governor Bush, or even President Bush, Prescott Bush raised his glass, drained the brandy in one gulp, and poured another. Just as he was about to raise the glass, he heard a knock on the door. Prescott Bush didn't even let the servant open it; his excited mood made him stand up and walk to the door with brisk steps.
The visitor was Rockefeller. Entering the room, Rockefeller closed the door and said, "Dear Prescott, you will meet with Chinese officials one more time, right?"
"Yes." Bush became alert.
Rockefeller took out a letter. "Could I ask you to hand this letter to the Chinese officials? I want to see Chairman He Rui one more time."
Bush didn't accept the letter immediately. Although this request wasn't excessive, Rockefeller asking Bush to deliver a letter was proof enough that Rockefeller hadn't established a friendly private relationship with He Rui.
Rockefeller saw through Bush's thoughts at a glance. He smiled, "Please rest assured, I will also submit a meeting request to Chairman He's office. The reason I'm asking you to help me carry the message is that I haven't decided whether to invest on the scale Chairman He expects. But I still want to see the Chairman one more time to make a final confirmation of my own thoughts."
Prescott Bush brought this group of tycoons to China naturally expecting them to invest in China and make a fortune. If their cooperation succeeded, the Bush family would establish a good relationship with China, the dominant power in East Asia, which would have long-term benefits for the Bush family. Although Bush felt Rockefeller was too arrogant, he still took the letter and indicated he would pass it to the Chinese officials.
When Rockefeller returned to his room, he intuitively felt that He Rui would see him again. But this time, Rockefeller had to make up his mind. Either invest heavily in China or never consider investing in China again in his lifetime.
Of course, if He Rui refused to see Rockefeller again, Rockefeller could leave China immediately, which would be no loss to him.
Foreign Minister Li Shiguang was obviously very angry when he took the letter to see He Rui. After He Rui finished reading the letter, Li Shiguang said indignantly, "This Rockefeller is too arrogant and conceited!"
He Rui didn't care. Historically, the evaluation of the Rockefeller consortium in the US was quite negative, but this didn't affect the Rockefeller consortium still standing tall in the 21st century. Moreover, He Rui didn't view Rockefeller as some incredible figure. If meeting him one more time could pull in tens of millions of dollars in investment and get investment from the world's best oil company in the heavy industry sector, He Rui felt it was completely worthwhile to spend some time chatting with this man who was currently feeling uneasy.
Looking at the fuming Li Shiguang, He Rui advised, "Minister Li, if Rockefeller came to see me in a personal capacity, I wouldn't have time to provide psychological counseling to an old foreign man. But Rockefeller is now a 'walking representative of capital and technology.' What does it matter to see him again?"
Hearing He Rui view Rockefeller this way, Li Shiguang's mood improved immediately. Thinking about He Rui's words again, he realized He Rui completely disregarded the American tycoon as a person of status. If Rockefeller was just a tool, this magnanimity and composure were truly extraordinary. Realizing the gap in breadth of mind between himself and He Rui, Li Shiguang couldn't help but smile bitterly.
Rockefeller met He Rui again in a teahouse. The faint scent of tea made Rockefeller relax involuntarily. He Rui drank a round of Kung Fu tea with Rockefeller before asking, "I wonder what other questions Mr. Rockefeller has?"
"Mr. Chairman, are you really a Communist?" Rockefeller asked straightforwardly.
He Rui's secretary's hand paused over the teapot. Only after hearing He Rui answer as a matter of course, "Of course I am a Communist," did the secretary continue brewing tea as if receiving a signal.
"According to the Communist philosophy I've heard, what you pursue, Mr. Chairman, is the dictatorship of the proletariat. Correct?"
"Of course. How could a Communist not pursue the dictatorship of the proletariat?"
"Then are your current actions aimed at accumulating strength to destroy representatives of evil capitalism like me?" Rockefeller finished and stared at He Rui. If it were another leader, Rockefeller probably wouldn't ask this, but facing He Rui, Rockefeller wasn't afraid. A man like He Rui should be able to withstand such sharp questions.
Sure enough, He Rui didn't look angry at all. Rockefeller saw He Rui's gaze lower slightly for a moment before looking back. "Mr. Rockefeller, you say you are a representative of capitalism. Then I have to ask first, is the capitalism you represent authentic? Is it ripe?"
Rockefeller was stunned. All these years, he had been cursed as an evil capitalist, a representative of the evil side of capitalism. This was the first time someone asked if Rockefeller was qualified to be a representative of capitalism. Various emotions intertwined in Rockefeller's heart; one of them was actually... grievance.
Rockefeller felt that what he cared about was only 'freedom.' As for capitalism or socialism, Rockefeller didn't actually care. So Rockefeller never expected that a self-proclaimed Communist would seemingly see through this point; this feeling even gave Rockefeller a sense of incongruity.
Before Rockefeller could sort out his thoughts, he heard He Rui continue, "In my view, what you need is the freedom to make money and the protection of private property. The capitalist system recognizes the legitimacy of private property; does the socialist system not recognize it? If you invest in China, you only need to consider two things. First, abide by Chinese laws. In China, whether rich or poor, anyone who commits a crime will be judged by the law; everyone is equal before the law. Second, business is business. Buyers and sellers determine commercial contracts through commercial negotiation, and both parties faithfully fulfill the contract. If illegal issues arise during the execution of the contract, the courts will naturally resolve them. This is true not only for foreign enterprises but also for Chinese enterprises."
"...This doesn't explain why you call yourself a Communist." Rockefeller found the most explicit question from his slightly chaotic thoughts.
"The core concept of Communism is that the development of productive forces is the fundamental driving force for social progress. Marxism is a science of economics, and the socialist system is a tool to promote social progress. At this stage, China's goal is to develop productive forces, guarantee the bottom line of society, and continuously raise this bottom line."
"This seems no different from the platform of a US presidential campaign." Rockefeller felt he had caught a logical problem in He Rui's argument.
"The US presidential campaign platform is just talk, but the socialist system intends to really implement these things. Let me give you an example. Have you seen beggars on the streets of China?"
"I don't seem to have seen any." Rockefeller had only toured the capital in a car during his spare time these past few days, skimming the surface, and hadn't paid attention to these details.
"There are no beggars at this stage, but there will be in the future. However, future beggars will be professional beggars, using begging as a means to make a living. The income of such professional beggars might be even higher than that of ordinary people. The beggars I'm talking about are the kind who beg for food to survive. Through land reform, our people have been allocated means of production and can obtain enough food not to starve through farming. So the beggars of the past have disappeared."
"...Are you boasting about the superiority of the socialist system?" Rockefeller felt He Rui wouldn't be so superficial.
"At this stage, we can only guarantee that people won't starve to death. When natural disasters strike, people in the disaster areas can get free relief grain. After the disaster ends, if people in the disaster areas have lost their production tools in the disaster, they can also receive production tools to ensure they still have the ability to continue labor and production. The people have also obtained the right to education. China's compulsory education mandates that school-age children receive 5 years of basic education. If adults want to continue schooling, they will also have the right to continued education. We are cooperating with Germany in the field of education; Germany's institutional construction in this regard is very valuable for reference."
"Then what role can foreign investment play for China?" Rockefeller asked with interest.
"Foreign investment can allow China's industrial level to rise rapidly. We will have money to build a pension system and medical security system covering China. Although the early coverage range will certainly not be high, and the security level will be limited. But with the development of China's industry, the pension system and medical security system will definitely cover all people in China."
Hearing such a national security system, Rockefeller felt very resistant in his heart. However, Rockefeller didn't use the sarcasm popular in Europe and America regarding social security. He thought for a moment before saying, "Then you need to establish a highly professional government."
"Correct. We must establish a highly professional and efficient government. To build such a government, we must develop productive forces and create more effective equipment to improve efficiency and accuracy. Otherwise, with current technology, establishing such a social management system would consume so much manpower and resources that it would directly crush society."
"...Mr. Chairman, among the scholars leaning toward socialism I've met, no one dared to admit that the current level of social productive forces is fundamentally insufficient to realize a comprehensive social security system." Speaking of this, a thought suddenly popped up, making Rockefeller smile. "I'm actually somewhat willing to believe you are truly a Communist now. If I had to imagine what a Communist should look like, it would probably be like you."
He Rui didn't care if this old man Rockefeller was complimenting him or sighing. Some things had to be made clear first. "Mr. Rockefeller, after you hear what I have to say next, you will probably change your view."
Rockefeller looked at He Rui's expression and prepared himself mentally to face terrible conditions. In Rockefeller's life experience, the more scholarly someone was, the more they could plan out inhumane schemes. Although He Rui didn't have that unique show-offish feeling of scholars, Rockefeller believed He Rui's knowledge was deeper than those scholars who called themselves economists. That is to say, those scholars would propose inhumane opportunities, while He Rui might very well not be human.
"In China, competition must be sufficient. Our laws stipulate that monopolistic organizations like trusts, cartels, and syndicates are all illegal in China. Once such behavior appears, it will be punished as a crime of disrupting market rules. If Mr. Rockefeller decides to invest in China, a considerable part of the company operation methods you are accustomed to will likely violate Chinese law."
Rockefeller raised his eyebrows. He began to believe He Rui wasn't being alarmist. But having experienced (Theodore) Roosevelt's antitrust breakup, Rockefeller didn't think the antitrust measures proposed by He Rui were anything terrifying. However, Rockefeller still asked, "Why would a socialist country accept sufficient competition? Isn't this a characteristic of the so-called capitalist system?"
"That's why I asked you earlier, is the capitalism you believe in decent? Is it ripe?" He Rui smiled as he repeated the earlier question.
"...I remember you asked earlier if it was 'authentic,' not 'decent'." Rockefeller's memory was very good.
"I personally prefer the word 'decent'," He Rui replied, still smiling.
Rockefeller didn't want to joke. The old man said with a serious expression, "Do you believe sufficient competition can promote the development of productive forces? Disordered competition will greatly increase the risks for enterprises."
"Is the competitiveness of the enterprise more important, or are the interests of the shareholders more important? Capitalists naturally hope shareholder interests are the highest priority. But in the view of the Chinese government, the competitiveness of the enterprise is more important. In a fully competitive market environment, competitive enterprises will naturally survive better. This is the market operation mode we expect. I seem to have heard an American saying: No matter how great a bandit is, when he starts distributing the loot, even if he only distributes one copper coin, he is no different from a common petty thief. Mr. Rockefeller, the socialist system does not respect rent-seekers."
Since He Rui put it this way, Rockefeller didn't back down. "Mr. Chairman, China has many monopolistic state-owned enterprises."
"Yes. In fields concerning the national economy and people's livelihood, we must limit profits to reduce the cost of living for the people. This is the purpose of allowing state-owned enterprises in these fields. But this is not absolute. If private enterprises can accept the same profit margins, we will also agree to private enterprises entering these fields."
Based on the Rockefeller consortium's investigation of China, this seemed to be the case. China had carried out massive infrastructure construction with huge government investment, but the fees were not high. The US was an old player in toll projects like roads. They were experienced with the content of these fees.
Chatting to this point, Rockefeller felt he roughly understood He Rui's governing philosophy. So Rockefeller asked what he considered the last question. "Your cabinet members must all firmly support your policies, right?"
He Rui smiled and replied, "I am not the only one formulating these policies. All policies are passed only after full discussion in meetings."
Seeing He Rui's expression, Rockefeller felt a bit like he was looking at a smiling big bad wolf; that confidence and composure couldn't be faked. Draining his teacup, Rockefeller stood up and replied, "This was truly a very good conversation. Thank you for giving me this time. Mr. Chairman, this is the most memorable conversation of my life."
He Rui also stood up and extended his hand to Rockefeller. "I also gained many insights from Mr. Rockefeller that I had never thought of."
Rockefeller got into his rented car. His secretary and driver asked, "Sir, do we return to the hotel?"
Rockefeller wanted to say return to the hotel, but recalling He Rui's description of beggars, he said, "Drive around the streets, especially places where beggars are likely to be. I want to see if China has really eliminated beggars."
The secretary was puzzled, but he didn't refuse. The car started and drove onto the street. Since China, like the US, had the steering wheel on the left and drove on the right, Rockefeller's secretary didn't feel unaccustomed to driving in a foreign land. In this state, the car didn't drive fast, and the secretary even had some leisure to look around, searching for beggars on the street.
After driving for over an hour, the car's dashboard showed it needed gas, yet they still hadn't seen a single beggar. The secretary asked in confusion, "Sir, did China drive all the beggars away?"
Rockefeller didn't answer. Driving all the beggars away was impossible. It seemed He Rui wasn't joking; with China's land reform solving the hunger problem for Chinese people, beggars had temporarily disappeared.
Lighting a cigar and rolling down the window, Rockefeller thought that if he invested in China, he might even play a role in promoting the emergence of professional beggars.