Coquettish Rebirth

China's reforms are moving forward steadily. Jia Hongjian found that their previous policy of seven seeded teams hitting the top 7 has almost been abandoned. In fact, among the seven seeded teams, there are only The Huaxia Hi-Tech family has entered the world's top 500, and at the same time, the country has given various policy preferences and preferential policies. In this case, only one company is in the early stage. This does not prove the failure of such a policy in some way—if it succeeds Why should at least half of them enter the top 7?Although it was originally planned to have these 500 seeded teams enter the top 500 within 10 years, although only 7 years have passed now.But among the seven companies, only Huaxia Hi-Tech has developed relatively well. Among the other companies, Changhong, which has the best development, is still as far away as the Pacific Ocean from the top 500!So even if it takes another five or six years, it is estimated that the Huaxia Hi-Tech family will be able to break into the world's top 6 by then, and there is still no hope for the others.Doesn't that prove the policy's failure?

After this policy basically failed, seeing the division of telecommunications and oil companies, the next central reform line is obvious. Although we still focus on the big and let go of the small, this is more about leaving In the field of perfect competition, it has entered the capital-intensive industries that are almost monopolized—that is, a series of investments such as telecommunications and petroleum are huge. In a country like China that has no oligarchs for the time being, only state funding can cross borders. An industry with barriers to entry.Then, in this industry, various policies and regulations are being issued to protect the dominant position of state-owned funds.Then conduct internal competition to improve the vitality of state-owned funds.

In such a process, it is possible to cooperate with private capital or even foreign multinational oligarchy groups, or even to support shares. After it develops, it will directly become the world's top 500, and directly cooperate with foreign countries in such a large capital-intensive industry. Businesses compete!

From this perspective, the idea has at least played to its strengths and avoided its weaknesses.What are the advantages of Chinese state-owned enterprises?National funds can be used, and because it was invested and constructed by the state earlier, many infrastructures are very complete.And what about the disadvantages?The disadvantage is that there is no competition. If the competition is completely opened up, all state-owned enterprises may be ruined.In this way, state-owned enterprises can survive without too much competition.Naturally, it is necessary to get this kind of field that others can hardly enter!

Like the oil industry or the telecommunications industry.On the one hand, it is protected by national laws, even Jia Hongjian and the others cannot get in, and on the other hand, the country is open, and Jia Hongjian is unlikely to invest a lot of money to rush in.On the one hand, this stuff burns too much money.An oil field is an investment of several billion yuan.Although the output is good, the various oil industries that follow have to be built by themselves. This is really a huge demand for funds!It can be said that it is such an industry with a large return on investment and a slow return!

Take the telecommunications industry as an example.If Jia Hongjian and the others did not invest in China Railcom, but instead established a so-called China Communications company, how much would it cost to build base stations across the country?How many consumers can actively choose Huaxia Telecom's products when the base station construction is not comprehensive?So the construction of this base station is a hard threshold!If you want to start making money in this industry, the initial capital investment is really scary!Seriously, if Jia Hongjian really wanted to make money, wouldn't it be good for him to invest in other fields?Why do you have to spend so much money on such a field?

Although Li Ka-shing and others have invested in the communications industry, their communications industry is in Hong Kong, which is a city!Among other things, if Jia Hongjian's communication company only develops in Shanghai for a lifetime, then he can also invest in it-how much money does it cost to build all the base stations?And the most important thing is that Li's family has no rebirth, and they don't know the general trends in the future, and they don't know how to make a small investment and get a big return!If this matter were to be placed on Jia Hongjian, it would be hard to say that if he waited until the oil price started to rise, he would go abroad to speculate in oil futures, and he would definitely make a fortune!And it's still leveraged!If you come in with 100 million US dollars, you can directly borrow [-] billion US dollars to speculate!Even if the oil futures must be delivered when they expire, and he is given real oil products, this is still a big profit!Find a place to settle down, the price of this oil will soar in a few years, okay?Wouldn't it still make money if you sell it back?

This kind of national retreat and private advancement, this kind of grasping the large and letting go of the small, is actually formulated in response to the market opening timetable for entering the WTO to a certain extent.It can even be said that the reorganization of state-owned capital groups is even determined according to the pace of WTO—the internal competition of various state-owned monopoly groups, the division of telecommunications, the division of oil, and a series of things are actually for one The goal is to strengthen each other's strength as soon as possible, so that while they can survive, they can also resist the competition brought about by the entry of foreign capital!

In fact, there is another wonderful thing here. When foreign capital entered China, various "special cases" actually appeared. At least Jia Hongjian had to feel that China is really a magical place. To be localized, even if a foreign consortium comes to China, it will still be different from what it did in other countries.Now he is feeling emotional, writing such an article - not for publication, but for what he has realized, and he writes it out for his own reading.

What is this special case?That is, if you look up at other countries in the world, when foreign capital enters a country, it usually chooses resource-based industries at the beginning, or industries that are closely related to the government and capital-intensive, such as energy, In the fields of finance, telecommunications, etc., on the one hand, these things are just in line with the status of foreign giants - they have a lot of capital. If they enter these industries, they can block many competitors, and then control the economic lifeline of a country - such as Argentina. A country that once entered the threshold of developed countries, when it was once developed, various foreign companies controlled the lifeline of the country's economy. When Argentina wanted to drive out foreign giants, the next thing was the withdrawal of foreign capital, and then the country The economic lifeline suddenly collapsed, and the country was kicked back to a developing country!

On the Chinese side, even though China attaches great importance to the autonomy of the economic lifeline, when all the giants enter the Chinese market, they all start to make people's livelihood products and start fighting in the field of perfect competition. It never occurred to me that I would be in close contact with the government!How amazing is that?For example, Jack Welch's ge, General Electric, their giant crocodile group does a lot of things, from light bulbs to generators and even engines, especially engines for various fighter jets!They even make industrial lighting, fans, and hydroelectric equipment!

After such a huge group entered China, what was their first product?Energy-saving light bulbs!Is this funny?And the funniest thing is yet to come - the energy-saving light bulbs made by predators like ge have been smashed in China, and they can't compete with the energy-saving light bulbs made by small factories like small workshops in Jiangsu and Zhejiang provinces!It is almost impossible to sell in the market!Similarly, the Japanese home appliance companies that had taken the lead in China at the beginning were gradually reversed by Chinese companies after 93. Even if they mastered the core technology, the market share of Japanese brands was suppressed to about 10%. It was suppressed to such a low level in five or six years!Isn't this miraculous?

Does this seem like the situation where after Google's descendants entered China, they worked hard for years but couldn't compete with Baidu at all?At that time, some people said that Google did not cooperate with the government, that the government supported Baidu...that was all nonsense, and it was all because the eyes couldn't see clearly! Is ge not better than Google? When ge was beaten into tears by the energy-saving lamps of various small factories, why did no one say that those small factories are supported by the Chinese government?Why did no one say that ge did not cooperate with the government?What doesn't cooperate with the government? It's just that Google wants to find an excuse to step down after being unable to get along for many years!If you really don't do evil and really don't cooperate with the government, don't cooperate with the US government if you have the ability!If you have the ability, don't enter the Prism Project!

In fact, Jack Welch's successors finally understood what was going on in China - don't try to compete with local Chinese companies in the field of perfect competition on China's side!Because China has been one of the places with the highest density of human units since ancient times, it has paid attention to competition between everyone since ancient times, so the people here are experts in competition!If you have done well abroad, if you come to China to compete with these talented and struggling ancestors, you will really be hanged and beaten!Even if the opponent doesn't master the core technology at all, there is really no problem in beating the international giants!So later, ge simply and smartly transformed, and did not make civilian products in the field of complete competition at all, and directly cooperated with the Chinese government!Directly start to cooperate with various civil aircraft engines, various water conservancy projects, and various industrial power transmission projects!Then, because there are no private companies entering this industry, it is called a boom, okay?

It may even be overstated—up to now, how many foreign companies in the perfectly competitive field that can thrive in China dare not follow the regulations of the Chinese government?How many people don't embrace the Chinese government's thigh?Even for Coca-Cola, when it first entered China, it was restricted to establish bottling plants in cooperation with state-owned grain and oil companies in various places!Even Procter & Gamble didn't allow them to build their own factories at the beginning, and they had to form joint ventures with state-owned daily chemical companies in various places!

So having said that, if Google wants to be successful in the Chinese market, what it should do is not the so-called non-cooperation with the government. Instead, it should increase cooperation with the Chinese government like ge, and avoid directly competing with Baidu in the civilian market. The competition, because direct competition they just can't compete!Because the Chinese tradition of fighting for thousands of years makes people in this country more competitive than people in other countries! (To be continued..)