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Chapter 517: China’s Ambition (3)

“China has historically been trampled on by minorities who lived nearby, even though it’s a country of a huge population. There are a number of factors, but they’re weak people in the war. That’s a relief to surrounding countries. What would you do if that huge headcount was good at war?”

Youngho was meeting Kim Joo-hyuk, President of H Corporation, who came to visit the royal palace with a group of representatives of South Korean defense companies. He was sharing his opinion on China. He sipped on water and continued to talk.

“They were ambushed and conquered by the nations of Goguryeo and Mongolia in the past. The reason that China is trying to pressure small states and minorities is that it doesn’t want to repeat the shameful past again.”

“So, according to your logic, China is suppressing Uyghurs because it fears them?”

“That’s what I think. Or maybe it’s afraid of Kazakhstan behind Uyghurs.”

“Do you think China might be afraid of Kazakhstan?”

“China has been thinking that it’s the center of the world with its rapid economic growth. But would you accept a country that opposes to you directly? It would seem as a potential threat.”

“I see. Then, I won’t have to worry about China too much. What a relief.”

It was close to sophistry, but Youngho felt good after hearing Kim Joo-hyuk. He was very excited about the Kazakh government’s disciplinary action against the Chinese oil company this time.

His logic was as follows: China was never going to give up communism because the system determined leaders who represented the country through compromise and mudslinging among those in power. And that was why it could not be on top of the world.

“Mr. Kim, I understand what you’re saying, but the future of China doesn’t matter at the moment when we’ll have a lot of Uyghurs coming into Kazakhstan soon. China is still a threat to us.”

Jong-il, who was listening to Kim Joo-hyuk, interrupted.

“You must be very frustrated by the Uyghur issue, but don’t hate Chinese people just because the Chinese political system is bad.”

No matter how China changed in the future, the fact that it was an enemy to Uyghurs and Kazakhstan right now remained the same.

Kazakhstan needed strength to protect itself. That was why Youngho invited Korea’s leading defense companies.

“We invited you to join using Kazakhstan as a forward base for exploring the world market. From now on, the defense markets of Europe, Central Asia, and the Caucasus will grow bigger than we can imagine. Of course, Kazakhstan will be the biggest client. The factory site will be provided at no cost and the tax benefits will be exceptional.”

“Do you want a technology partnership?”

“Right now, we’re not at the stage to accept Korea’s technology. But within a few years, we’ll have a very good workforce. And if your company can help us, we’ll save you more time to achieve that.”

“Your Highness, it’s hard to find the parts we need here. We have to bring most of them from Korea, but if we have a good logistics supply, it’ll be an attractive place.”

A representative of a defense company carefully cited the reality of Kazakhstan.

“We’re an inland country, but with shipping companies, we won’t have to worry about logistics. We’re going to sail through the North Sea route soon. And the labor cost of Kazakhstan is one-third that of Korea. Moreover, we have inexhaustible raw materials available here. Another advantage of having Koryoin people around is that they can speak Korean and the local language.”

Setting up a local factory was not very exciting from the perspective of a foreign company.

It was more economical to send completed goods, but building a factory in Kazakhstan was a different story. It was an outpost to penetrate a market in Central Asia and Europe because it was a stopover on the Silk Road.

“We’ve already decided to build a local factory here even if you don’t offer such a breakthrough. But I’m worried that Korean engineers will be reluctant to come here.”

“It’s true that Kazakhstan is not an appealing place to live for many foreigners. If necessary, we’ll consider building the factory at the Arirang royal territory.”

The Arirang state was developed enough to match provincial cities in Korea. It was better than the big cities of Kazakhstan in all aspects, including housing, medical care, education, security, and cultural facilities.

For the balanced development of the country, the government planned to disperse Korean companies in many places. However, there was no reason to do so by force when conditions were not favorable to Korean companies.

The Arirang royal territory which had a port and railroad was the best place to make an outpost for foreign exports.

***

The Greek shipping company had been completely transferred to the Kazakh royal family.

Now Arirang Shipping would have three 50,000-ton regular cargo ships, five 80,000-ton bulk carriers, five 100,000-ton dry bulk carriers, and 13 container ships.

However, Arirang Shipping was not immediately able to operate all of the vessels at its disposal yet. Most of the ships were signed for long-term cargo contracts, so only a few container ships were available for now.

Choi Sun-kil, the president of Arirang Shipping, visited Youngho’s office.

“Your Highness, tankers must be put into the Middle East and European routes until the end of next year. The bulk carrier should be kept for the Africa-Europe route. There are only three container ships that we can use right now.”

“Are the three ships enough to digest the industrial products for use in Kazakhstan?”

“The container ships have to go through several ports, so it’s inefficient to use them only as our own. It’s perfect to use all the ships going to and from the Black Sea, regardless of shipment. There’s plenty of ships going to the Southeast Asian and Indian routes.”

“Really? I thought I’d use it as a private boat.”

“We also have to make a regular line to the Indian Ocean and seek profits. The priority is to take advantage of all the ships that are in service for the countries where we do business with, so we can move cargo in the shortest possible time.”

Though the shipping industry was said to be in recession, ships from large shipping companies were still actively sailing around the five oceans. Only small shipping companies were struggling in the midst of the recession.

The economy of scale was also being applied to the shipping industry.

The market share of shipping companies, which ranked among the world’s top five, was high enough to account for 64 percent of the total. If a successful company accounted for nearly one-fifth of Kazakhstan’s total GDP, Arirang Shipping could also do the same.

“Your Highness, the world economy is not booming, but the shipping industry seems to be heading out of recession and back to normal. We need to continue to buy small gifts for that time and grow in size.”

“Then keep an eye on Greek shipping companies. Let’s buy as soon as the sale comes out.”

“Not only Greece but also most Mediterranean countries have shipping companies struggling with financial difficulties. Now, governments have put in public funds and managed to stay in the limelight, but they’re going to be sold out. Nationals are the pride of the country. Would you give it to them easily?”

“It’s like watering a bottomless pit. We can’t revive it, but we have no choice but to sell it.” Talk to Earl all night and buy it at a reasonable price.”

“Buy it before it comes out for sale, is one way. It’s also an opportunity for Woo to make a strong relationship with the government.”

“That’s a good idea. Create an opportunity. I’ll step up to the royal court.”

Most of the countries facing the Mediterranean had joined the European Union, but they were not highly benefited by it.

For this reason, far-right parties had pledged to leave the European Union. With the European Central Bank implementing low-interest rates and quantitative easing policies, the level of real estate, stocks and bonds rose sharply, benefiting only the middle class and the high-income class who had financial assets. On the other hand, low-income families, which used to make a living by relying on wage income, could not even afford increased house prices and living costs.

With such reasons, the voice demanding to leave the European Union was increasing all over Europe because many people opposed it.

“I frequently use the Atlantic route, so I have a general feeling about the regions I travel to, but Southern Europe now is on the verge of having a revolution now. People whose jobs were taken away by refugees and immigrants have been staging a series of demonstrations to pull out from the Eurozone. We need to carefully examine whether that will be an opportunity for us.”

“If the European Union loses power, it’s probably the nationalists will gain power, which will bring confusion. The economy might hit the bottom once again.”

“Wouldn’t that be an opportunity for us?”

“Well, they say a crisis is an opportunity, but...”

The global economy was finally being pulled out of recession, but economic instability from Europe was growing.

“Then the shipping business will go down again. Is aggressive management really a good thing?”

“The shipping business has nothing to do with it. We’ve been in a terrible slump and now restructuring is complete. Thanks to this, even old ships have been replaced, making the shipping market more vital. Also, shipping orders are slowly rising in number. It’s a good sign.”

“Then there will be more ships going through the Arctic Ocean.”

“Your foresight in the icebreaker business will lead it to success. I’m really looking forward to next year.”

Youngho had prepared icebreakers in a desire to explore the Arctic route, which was the idea sparked by the Siberian development business.

A total of six icebreakers were currently being built at the Danish shipyard. It was because Yaniv and the wealthiest businessmen in Krasnoyarsk, Nikolay—had joined in Youngho’s idea and ordered more icebreakers.

Youngho could not help but smile to imagine the mere sight of the icebreaker breaking through the ice at the North Pole.