"In fact, the problem of fine casting factories is also the problem of embroidery cities and even the vast majority of local state-owned enterprises in China. That is, they are just 'factories', not enterprises."

Zhou Shuo looked around and simply sat down on the curb. He Xi and Zhao Peide were like elementary school students listening to the class. Naturally, he was focused on squatting opposite him.

"Factory is a thinking in the era of planned economy, so it is naturally unable to adapt to the rules of the market economy. It is not surprising that there are general operating difficulties. You see, many township enterprises in the south can make money and grow and grow. So are there any shortcomings in our Northeast enterprises?"

"No, I want me to say that they are all Chinese, with one mouth and one eye. Why can people make money? Our state-owned enterprises will go bankrupt and go bankrupt in batches? It's not a human problem, that's a system problem. Modern enterprises are not just a product production, but a market economy is a commodity-based economy. If products are to become commodities, it takes a process. Our state-owned enterprises lack this process. The competitiveness is not as good as those small enterprises. It's not that our products are not good, but that our products are not good."

Zhou Shuo looked at the two people opposite him in search of searching, saw them bowing their heads and thinking deeply, and nodding and said.

"Do they have better skills than us or are the quality of workers higher than us? No, I want to say, the difference is only two points. First, private enterprises do not have heavy burdens, private enterprises in the south do not have retired workers, and they do not have to deal with workers' welfare expenses, so the cost is naturally a lot less. Even if they are not as good as us in technology, they can completely defeat state-owned enterprises in terms of cost."

The burden of state-owned enterprises is a recognized problem for state-owned enterprises. Neither of them nodded in any opinion. He looked at him and said the second point.

"The second is that the property rights of state-owned enterprises are unclear, and the government can withdraw profits at will. The management will not treat the enterprise as its own business. The final result is that the enterprise's profits are drained. The management will destroy the enterprise, pat the enterprise, transfer it elsewhere, or even get promoted and make a fortune-teller-"

Zhou Shuo said, looking at Wang Tiejun who was hesitating not far away, and then looking at He Xi, which made him feel embarrassed. If such a thing had not happened today, Wang Tiejun might have taken this path. In the end, he might have gone one or two steps because of open minds, active thinking, and understanding the economy.

Of course, these two points were some of the consensus on studying the problems of state-owned enterprises at that time. The key here is not to discover problems, but to solve them.

State-owned enterprises have problems in China, but this process of finding answers has been throughout the entire early stage of reform and opening up.

Even if the situation of state-owned enterprises has improved twenty years later, and they are even called the state advancement and the people retreat, these two problems cannot be solved just by saying it.

State-owned enterprises themselves belong to the state and the public nature of the whole people, and are in conflict with the essence of their pursuit of profits as enterprises themselves. This makes them biased towards public services. Profits cannot be guaranteed. If profitability is biased towards public services, public services cannot be guaranteed. The heavy burden is not just about getting rid of redundant officials and retired employees.

"So, if you want to solve the problem of state-owned enterprises from the root, you must understand one problem, that is, in the field of perfect competition, state-owned enterprises cannot compare to private enterprises." Zhou Shuo's eyes were bright and he looked at He Xi and said, "How to change the reform of state-owned enterprises? Now it is also a way to cross the river and allow mistakes to be made. But are state-owned enterprises only disadvantages and no advantages? I don't think so, at least state-owned enterprises have one of the biggest advantages. That is, they are huge in scale. A fine casting factory may be worth only a few million, but how much is the total value of state-owned enterprises in Xiongcheng? Can't stop it from billions, right?"

"Don't underestimate this scale advantage!" Zhou Shuo saw He Xi's disapproval and said seriously: "To be honest, a large multinational enterprise like Ford and Toyota has no lower burden and bureaucracy than state-owned enterprises, but why can it be invincible in the international market? It's just that there is an economies of scale here."

He Xi was a little surprised. Zhou Shuo’s Fanhan Group has always won by technology. But obviously, he is also making up for the shortcomings in management. He heard what he said is so well-informed, but he really believes that Zhou Shuo has indeed studied these issues. He is really accumulating his personal abilities for Fanhan Group to grow into such an organization.

Originally, he was worried that the rapid expansion of the Panhan Group might lead to unstable foundations and the possibility of impetuous atmosphere within the organization. Now, seeing that Zhou Shuo himself has a clear and profound understanding of this, he was somewhat relieved.

"So, if state-owned enterprises want to get rid of the current dilemma, they must first understand the principle that when they are in harmony, they will benefit from each other and harm two people."

"If you want to be a good state-owned enterprise, I think two things need to be done. First, strengthen the scale, encourage mergers between state-owned enterprises, improve their scale and scale advantages through mergers, and improve the operating functions of modern enterprises. Second, establish property rights and management rights. The government cannot regard state-owned enterprises as cash machines. After the property rights are clarified, the relationship between managers and enterprises must be standardized. State-owned enterprise managers are linked to the status of the enterprise, or their income is linked to the enterprise. Only in this way can they share the same breath with the enterprise..."

"I, Old Man Zhao, understand what Mr. Zhou said." Zhao Peide inserted and interrupted Zhou Shuo and said, "But these big principles are just big principles after all. I would like to ask what should we do in the current situation of our fine casting factory?"

Zhou Shuo smiled slightly. In the early years of reform, state-owned enterprises generally had a move to sell it. Later, after the reform methods were explored, in order to avoid the loss of state-owned assets, he had long given up the practice of selling it in the mid-1990s.

He said confidently: "In addition to building new factories and introducing new equipment, if the city can merge other enterprises with difficulties in operation, the capital can be obtained by replacing factory land. These funds can be combined to do some big things - such as introducing automobile production lines."

Zhou Shuo's words scared He Xi, "Go on the automobile production line? Can anyone get on the automobile production line? A automobile production line can reach at least a few billion, and it can match the entire output value of Xiucheng in one year!"

"Mr. Zhou is just kidding this? If we don't say where we get the money to go to the production line, even if we take the technology, where will the production license come from? What should we do with talents and systems?" He Xi smiled bitterly: "Although our Xiucheng is the foundation of an industrial city, we have never built cars, and we don't even have trucks! The only thing that is involved is Xiucheng Heavy Machinery Factory, which can build cranes, forklifts and engineering vehicles."

Zhou Shuo waved his hand quickly and said, "Mayor He misunderstood. I didn't mean to let us get it in one go. Now the conditions are not met, but we can also do it step by step! For example, if the fine casting factory is updated, I can contact Toyota to see if I can make some accessories for them. If other companies in the city also have similar production capabilities, I can also help pull some red lines. After our Xiucheng Automobile Industry has some foundation, we can try to do assembly business and develop an automobile industry base within ten years. At that time, we can introduce Toyota to build a joint venture factory..."

Zhou Shuo has actually been thinking about making some breakthroughs in cars. The profits of electronic products in cars will become higher and higher in the future. If these technologies are all cheaper, it would be a pity. And don’t forget that South Korea’s hot industries are not only electronics and shipbuilding, but also one of the mainstream pillars. If you want to kill South Korea’s development, you have to cut off every leg. Korean cars are not as technical as German cars, not as famous as American cars, and not as Japanese cars in terms of cost. They are taking the low-end route based on their styling and price.

This road is actually the same path that Chinese automobile companies need to take, so we will naturally go first to squeeze them to death.

“It turned out to be a long-term plan…”

He Xi couldn't say whether he was relieved or disappointed. Although he rationally knew that it was impossible to eat a fat man in one bite, he still couldn't help but pin his hopes on Zhou Shuo.

After all, he has witnessed Zhou Shuo countless times how to create miracles in the electronics industry. Even a lithography machine production line directly attracted the inspection of Chief No. 1. Such a gold finger will eventually make people look beyond their actual expectations.

"I think this path is a good development direction." He Xi was excited again and nodded: "The economy of Xiucheng is constantly developing, and the land prices in the urban area will continue to rise in the future. It is a general trend to move factories out of the urban area. This way, after changing the cage and changing birds, it may be a way out!"

Zhou Shuohan nodded with a smile, agreeing with He Xi.

The reform path of state-owned enterprises in the next twenty years has long proved that the feasible path is to grow bigger and stronger by joining forces with state-owned enterprises and withdrawing from a perfectly competitive industry.

"But there is another most important issue. We must choose a suitable operator for the company!" Zhou Shuo pointed out incisively: "At present, the development of state-owned enterprises is obviously in a dilemma, and it has a lot to do with the quality of the operators themselves! Whether the enterprise is good or bad has no impact on their individuals. How can we have the motivation to develop a good enterprise in this way? Therefore, we must clean up and manage the operator team and implement a system of survival of the fittest and accountability!"

"I agree with this!" Before He Xi could speak, Zhao Peide, who was squatting aside, started to look up and said: "You see, our fine casting factory is just? After handing it to Wang Tiejun, it was a good factory, and at least it could reimburse some medical expenses and pensions to the old employees, but now the backbone of the business has been laid off. Isn't it relying on institutional indulgence?"
Chapter completed!