Qin State Xianyang. At a small meeting in the prime minister's mansion.

"If taxes are imposed on weapons, this will definitely affect Qin's arms exports. This will be a huge blow to our military trade in Qin, I think. This is not a problem for us. Good news." Wei Liao said with a pen.

Shang Wen didn't say anything, just nodded to agree with Wei Liao's point of view.

"In fact, the sale of weapons is very beneficial to us. Our military expenditures are not only expenditures, but also a considerable part of income from the arms trade. Moreover, a considerable part of Qin’s industrial production still depends on military production. If military exports are restricted, However, I am worried that this will cause a great cause. Although I know very little economic theory, I know that this will inevitably cause great troubles to Qin’s military production. I just hope that the prime minister can be here. It can be considered carefully." Wei Liao said to Shang Wen.

In fact, Qin’s military expenditure is not only fiscal expenditure, but also a part of gray income. This income comes from exports of military industrial enterprises. A large number of weapons and equipment exports are also a major feature of Qin, such as bullets, landmines, and All kinds of explosives and explosive weapons, these are all military foreign exchange obtained from Qin's export. These military equipment exchanged for Qin a large amount of gold reserves, and some of the military expenditures can also be drawn from it. At the same time, Qin will deal with it in another way. The surplus materials, such as a large number of tents, cans, ammunition reserves and so on ordered on the Liaodong battlefield, were sold to the Goguryeo people in large quantities. Although several of them were resold, the military expenses of the Qin State did get part of it. Income, this is true.

But if taxes are really imposed on Qin’s military industrial enterprises, it will restrict Qin’s military production, which is disastrous for Qin’s military production, because too much tax will restrict Qin’s military production, because of production. If the cost is very high, there is no cost advantage, and the price will be in a desperate situation. This is definitely not what Wei Liao hopes to see. Qin’s military industry enterprises partly rely on their own operations, and the other part depends on exports. The imported weapons and equipment of the State of Qin are an important source of income for maintaining Qin’s military production. Once taxes are imposed, the profits of Qin’s military enterprises will be cut off in a disguised form, which is extremely unfavorable.

"I know this very well, but what we have to pay attention to is the characteristics of the weapons and equipment we export." Shang Wen said to Wei Liao.

"At present, Qin’s largest export volume is the flintlock rifle. This is an old-fashioned rifle with very low efficiency. It can be produced in various countries. According to our investigation, Chu can make it by hand, despite their workshops. It looks very rudimentary, but they can imitate it on a large scale. In coastal areas, because of the rampant pirates, many people will buy such imitation flintlocks to defend themselves. South Korea, Zhao Guo, they don’t need to say, just from Qin imported part of the gun barrels, and they could assemble them on a large scale. In Wei, their arsenal became the largest assembly arsenal. They imported various parts from Qin, South Korea, and Zhao, and then assembled them in a unified manner. Come up, among them, there is our best arsenal in Qin. The Wenyang arsenal and the Li’s arsenal are all involved. And these arsenals change hands to take orders, and then change hands to manufacture large quantities of weapons and ammunition, and then export them from here, Qin China only needs to set up an office in Xianyang to complete the arms trade in the Western Regions. Not only flintlocks, but also a large number of barbed wire, grenades, of course. If the price is reasonable, front-mounted smoothbore guns and landmines can be purchased. Come." Shang Wen said.

"These are all low-end weapons and equipment. It can be said that as long as they have certain mechanical equipment or mature craftsmen, they can manufacture them on a large scale. In this regard, Qin has no competitive advantage because their costs are very low. In Wei, if a worker can earn five and a half two dollars a day, they are willing to take over the job, but the same, Qin workers think that five and a half two dollars can’t do anything. For Qin, The cost is here, but the things are the same. Therefore, in such equipment, Qin State does not have a competitive advantage." Shang Wen said.

Wei Liao heard a little nervous here.

"But on the other hand, countries have to spend a considerable price to purchase our high-tech equipment. This price is a great asset for us. If we can encourage our technical equipment to upgrade, For example, for the arms trade, we adopt low-end taxation to restrict Qin’s internal exports. At the same time, if we encourage the export of high-tech equipment and weapons, we will be able to levy more taxes because of high-tech equipment. The profit is considerable. For the low-end technology, because of the fierce competition, Qin State actually has no profit." Shang Wen said. On the side, Meng Yi looked at Shang Wen. The original plan was to levy a tax on high-tech equipment. Meng Yi didn't know why Shang Wen changed suddenly. Did Shang Wen think of something.

In fact, Shang Wen suddenly realized that the export of high-tech equipment can also do the same thing. Qin currently has a large amount of technical reserves, but these technical reserves cannot be transformed into a large amount of funds in disguise, but countries need such technology. In this way, a demand and a demand are formed. Why can't Qin State stimulate in this respect?

On the other hand, Qin already has a great advantage in traditional manufacturing, but with the retiring of time, especially the transfer of this technological advantage, such as the assembly of arms and weapons, the labor cost of Qin is already very high, and It is not conducive to the continued development of such military assembly. Qin State has not made much profit. That being the case, why didn't Qin give up such military production and instead produce more high-tech equipment, such as engines, and various advanced weapon technologies. This is a large-scale technological upgrade.

"We have advantages in this area, so we should continue to give full play to such advantages. Taxation is not the goal, but to further encourage us to do so." Shang Wen said.

"If this happens, our production will stop. What about the arms trade?" Wei Liao said to Shangwen worriedly.

"Switch to orders. As long as Qin holds the order, we can do a lot of business. All countries can produce such weapons and equipment. What Qin needs is for them to compete and lower the price. That's it." Shang Wen was right. Wei Liao said.