1988: Back to the human world for a few years

Chapter 656 Two-way choice
It was obvious that Li Tiezhi came here "on behalf of someone", so when Yang Mo saw him take out a piece of letter paper from his pocket without any hesitation, his heart suddenly tightened.

As expected, Li Tiezhi glanced at the letterhead and asked the first question: "Comrade Yang Mo, since you took office as the general manager of Dezhou Urban Real Estate Company in December 1990, responsible for the management and operation of the industrial fund established in Dezhou, you have been responsible for promoting the upgrading of industrial manufacturing in Dezhou for a year and a half;"

“But what makes us curious is that your use of the capital and power of the large industrial fund seems to be very different from the current industrial guidance funds in various places;”

"Compared with the industrial guidance funds in other regions, it seems that you are more inclined to invest funds and policies in the creation of distribution channels and various commercial activities, and even spend a huge amount of money to undertake the transfer of foreign manufacturing industries, rather than directly investing funds in those backbone enterprises to promote their accelerated technology research and development and equipment upgrades."

After a slight pause, Li Tiezhi glanced at Yang Mo and said with a smile: "Since the time is too short and we haven't even crossed a small industrial cycle, we won't judge heroes by their achievements for now... We just want to know, Comrade Yang Mo, what were your original thoughts and starting points on this matter?"

After that, as if afraid that Yang Mo would be frugal with words again, Li Tiezhi added: "The organization is very interested in this, but Comrade Yang Mo, you are very busy with work and rarely go to the capital to report on your work, so I hope you can elaborate on this issue."

Interested in organization?
I’m afraid that some newly appointed leader is very interested in it?
Yang Mo immediately heard the clue from Li Tiezhi's words.

Because he had argued with You Yakun several times in the past and even rejected several of You Yakun's "industrial revitalization plans" at one point, a former secretary who was so frustrated that he complained to his superiors in anger, so when facing inquiries from the organization, Yang Mo also roughly expressed his thoughts and considerations on this issue.

Yang Mo was not sure whether the leader of the organization who was in charge of the inquiry believed it or not, or whether he believed it completely.
But it is obvious that the leader who asked Li Tiezhi to ask this question certainly did not know the content of his original answer.

This is interesting...

After vaguely realizing something, Yang Mo thought about it, but he didn't intend to hide it: "As far as I understand, the current mainstream view of [industrial upgrading = technological innovation], and summarizing it as a simple technological catch-up, actually has internal logic that is not logical."

After saying these shocking words, Yang Mo looked at Li Tiezhi in front of him calmly: "From my point of view, industrial upgrading is indeed related to technological catch-up and innovation, but technological innovation is superficially a science and engineering problem, but in fact it is an accounting problem!"

"Most people now believe that the logic of industrial upgrading is: great craftsmen, great equipment, overcoming difficulties, and a spirit of research, and accumulating strength for a breakthrough."

"But in fact, I understand the logic of industrial upgrading: break-even point, cost dilution, scale effect, and cost advantage."

"Take the automobile industry, which has been on everyone's mind in recent years, as an example."

"The domestic automobile industry used to be completely blank. Even if our country built cars behind closed doors and mobilized the whole country, the automobile industry would still be in a mess. "

"This situation is just like what happened in South Korea. Kia, the earliest and largest automobile company in the country, had 90% of its spare parts from Europe and the United States in the s. Not only was the quality extremely poor, but no matter how much support their country gave them, even if they gathered the smartest science and engineering talents in the country, they could not develop the automobile industry well, and their products could not be exported to South Korea. They could only make losses."

"why?"

“There is no market!”

“No skills!”

“There is no upstream supply chain!”

“There are no downstream distributors!”

"For products like cars that require collaboration from many parties, it's extremely difficult to build an entire industry chain with your bare hands."

"We need to purchase engines, gearboxes, chassis, steel plates, onboard chips, and even industrial robots for vehicle manufacturers."

"Even if you find a few dealers to sell your car, it's hard as hell... No dealer will take the risk of your car manufacturing, and in the end you can only make a loss and gain publicity."

"So after entering the 1970s, South Korea changed its mindset... In that case, why not let the market exchange for technology? If I can't make money alone, then let the foreigners make money together."

"So they came up with their automobile localization policy, and various automobile companies began to introduce foreign production technology on a large scale... Even from the island countries they hated the most, Hyundai Motor introduced Mitsubishi's engine, sensor system and chassis technology in 1973."

"As for European and American brands such as Ford, Chevrolet, BMW, and Mercedes-Benz, not to mention that they have not only introduced relevant technologies, but some brands have also established joint ventures with South Korea and started to increase production capacity."

"Once production capacity increases, demand for upstream components will rise."

"As we all know, cost-sensitive manufacturing industries need to increase the proportion of local procurement."

"Then foreign upstream parts manufacturers will also come and set up shop... and eventually form a whole automotive industry chain."

At this point, Yang Mo smiled and said, "Many people will ask a question... What does a foreign-funded factory have to do with you? All the money is earned by foreigners."

"However, the process of creating an industrial chain from scratch is actually very important."

"Because the upstream foreign-funded parts manufacturers also have to purchase parts from further upstream... In order to continue to reduce costs, these upstream parts manufacturers will outsource their work, which will support a bunch of small factories."

"They have very low technological content, but they have a completely symbiotic relationship with upstream parts manufacturers. Gradually, the localization rate of parts of joint venture automakers will become higher and higher, and more and more local parts manufacturers will be supported. Eventually, in the internal competition among thousands of small factories, the parts manufacturers that exist because of downstream demand will finally give birth to leaders with leading technology and costs."

"At this time, because domestic small factories, international large factories and joint venture automakers have developed a low-cost, safe and complete industrial chain, the cost of car manufacturing in South Korea has begun to decrease as the industrial chain improves, and local car companies will finally no longer lose money."

“Because they won’t lose money, car companies have the cash flow to invest in research and development.”

“Because of research and development, market competitiveness has increased.”

"Because of the increased market competitiveness, the international market has been opened up and market demand has increased."

"Because market demand has increased, companies have expanded production."

"Because the company has expanded its production, its profit margin has increased after the fixed costs have been diluted."

"Because the profit margin of the enterprise has increased, the enterprise has cash flow to invest in research and development...so it has entered a positive cycle."

"So what you see now, whether it's South Korea's Hyundai or Kia, they all fought their way out of the domestic market with those imported cars and joint venture cars, and only then did they gain a firm foothold in the international market and appear in our field of vision... If the joint venture cars didn't enter at that time, the industrial ecology wasn't established, and there wasn't enough catfish effect, their cars wouldn't be able to go abroad in another hundred years!"

After a slight pause, Yang Mo added: "In fact, a similar phenomenon has also occurred in Dezhou. With the rapid development of the automobile assembly and RV modification industries over the past year or so, many village collective parts factories have grown up relying on orders from Bosch, Continental, ZF, Denso and Faurecia... At least, now, some upstream parts industries in the automotive industry in Dezhou have taken shape. (As mentioned earlier, the main export market for low-end RVs is Australia. Therefore, in order to avoid trade risks, a certain proportion of foreign parts and components need to be used, and these parts and components are processed domestically)."

"Similarly, the consumer electronics industry, which is now on the rise, is the same as the automotive industry. It needs to start from small upstream suppliers, slowly accumulate original capital, technology, experience and cash flow due to the existence of demand, and begin to move downstream. The supply chain begins to erode and grow, and eventually eats up the entire industrial chain, forming a series of industry clusters with sufficient voice and competitiveness!"

At this point, Yang Mo concluded: "So it is clear, in my opinion, if we want to promote industrial upgrading, simply pursuing technological innovation is just wishful thinking. The real key lies in the three points of [demand], [competition], and [restraint]."

"The purpose of what I have done in the past year and a half is to create demand, to expand the use scenarios of various manufactured products, and then to promote the industrial upgrading of the region through scale, market-oriented mechanisms, interest guidance, and moderate competition;"

"I have always believed that the first step to establish a manufacturing cluster of an industrial industry in a region is not to focus energy and funds on those manufacturing companies, but to allow the downstream consumer market to form a scale and form sufficient demand and profit space on the C-end... In fact, leaders also know that our country is not without innovative technologies, but the biggest reason why it has not been widely used and developed is because there is a lack of sufficient market base to support it."

........................

Although Yang Mo's answer sounded comprehensive, it was also very official.

At least except for the first sentence at the beginning, the rest of the content is not very new.

Since the beginning of reform and opening up, the country has put forward the slogan of "market for technology", and the internal logic is actually very similar to what Yang Mo said... It's just that the example Yang Mo gave is more specific.

In other words, although Yang Mo said so much, he was actually dealing with Li Tiezhi's questions in a very smooth way... Although it cannot be called nonsense literature, it is not much different in essence.

Li Tiezhi was naturally well aware of this.

He looked at Yang Mo deeply. It was widely rumored that Yang Mo was willful, ignorant of the ways of the world, and as sharp as a knife. But now it seemed that was not necessarily true... Obviously, the other party must have sensed something, so he gave such a nonsense answer. Although these cryptic words could not fool those thousand-year-old foxes, they were enough to deal with most of the cadres who did not understand economics.

You are very good at using technical official language!

Not bad, not bad, he is a talented person!

Li Tiezhi was not disappointed when he did not get the answer he wanted. Instead, he looked at Yang Mo with a smile and asked, "Comrade Yang Mo, we have observed that the biggest difference between you and other places in promoting the industrial upgrading of Dezhou is that you have gradually transferred most of the production capacity demand you created to enterprises at the village and town level;"

"This transfer is very different from the southern regions represented by Chengde... that is, the production capacity and demand are transferred to township enterprises in a broad sense, while in Dezhou, almost all of it is transferred to village collective enterprises in the form of cooperatives."

After a brief pause, Li Tiezhi's eyes flashed with a gleam of brilliance: "What are Comrade Yang Mo's considerations for this?"

Like all major policies, the basic logic is consistent, but in the process of implementation and execution, slight differences may lead to drastically different results.

Therefore, what Li Tiezhi said just now undoubtedly pointed out the biggest difference between Yang Mo and other people in his past work...even a difference that was almost essential.

Such a small difference that ordinary people can easily overlook is extremely important to the members of the middle group evaluation team. Therefore, his last look was undoubtedly a warning to Yang Mo that although the organization admired you very much, on this occasion and on this issue, it would be better for you not to have the intention of muddling through.

Yang Mo naturally understood the other party's implication. While cursing in his heart, he could only sigh: "Actually, there is not much to consider;"

"On the one hand, I always believe that the internality of the regional economy is more important than the externality of the regional economy. As the rural areas with the largest population in Texas are not only close to the first-line market, but also have more real and effective feedback and perception information. By transferring part of the production capacity to the grassroots rural areas, the conversion rate of M1~M2 currency is also higher."

After a brief pause, Yang Mo glanced at Li Tiezhi and said, "On the other hand, we all know that wealth will not disappear, it will only be transferred from one group to another... and the collective economy is also a public ownership economy."

As soon as these words were spoken, not only Li Tiezhi, but even Pan Qingshan who was listening quietly at the side changed his expression.

Although Yang Mo's tone was calm, it undoubtedly sounded like a silent thunderclap at the scene.

This short sentence contains so much sensitive information that countless people dare not speak out.

Li Tiezhi looked at Pan Qingshan with a serious expression, took a deep breath, and asked, "But state-owned enterprises are still the main economic entities of the country, and ordinary workers still make up the majority of state-owned enterprises."

Now that he had said it, Yang Mo had nothing to worry about. He smiled and said, "The designer said that if we take the capitalist road, we can make a few percent of China rich, but it will definitely not solve the problem of making 90% of the people live a rich life (Selected Works of Deng Xiaoping, Volume 64, page )."

Li Tiezhi was startled.

Li Tiezhi folded the letter paper and crossed his hands on the conference table. He was silent for a moment with a serious expression and looked at Yang Mo with burning eyes: "But for a long time,"

(Some parts deleted in the middle)
Yang Mo looked at him expressionlessly: "...You can't even turn out the Book of Lord Shang!"

As he spoke, Yang Mo's eyes became sharper: "Besides, if I remember correctly, the designer once said: If our policies lead to polarization, then we have really gone astray and have really failed. (Selected Works of Deng Xiaoping, page 111)"

"The designer also said that if we keep the basic means of production owned by the state and collectively, then according to the current opening-up approach, when the per capita GDP reaches several thousand US dollars, we will not produce a new bourgeoisie. (Selected Works of Deng Xiaoping, Volume 91, page )"

He leaned forward slightly out of habit, and there was a sense of oppression with a bit of hostility on his body: "So, leaders... do you think there is something wrong with my approach?"

Although they were the examiners, Li Tiezhi and Pan Qingshan swallowed their saliva and shook their heads... Are you kidding me? You can't question a matter of principle! ?
It was said that Yang Mo was a strong person, but he didn't expect him to be strong in this way. It was the first time that Li Tiezhi felt the powerless oppression from Yang Mo. While he felt deeply sympathetic for his subordinates, he still insisted on asking the most critical question on the letter: "But Comrade Yang Mo, although the collective economy is also a public economy, the rural areas have a poor industrial foundation, poor transportation foundation, poor education foundation, and even more scarce talent;"

“It may be okay to transfer some low-tech industries in the early stage, but in the future…whether it is the first or second comprehensive upgrade of the industry, or the revitalization of the domestic economy to a greater extent, can they really take on this responsibility?”

Urban or rural, in fact, has always been a point of contention in strategic discussions in the 1980s and 1990s.

Since it involves the strategic level, the importance of this issue is beyond doubt.

Although with the rise of township enterprises, the volume of "urbanization" once approached that of "urbanization"; but it is obvious that with the end of the golden decade of township enterprises, "urbanization" finally had the last laugh, and the urban-rural dualism became a thing of the past that all rural people do not want to recall.

In fact, the rural-focused strategic theory has been considered by many people to have inherent deficiencies since its inception. For example, the poor industrial base, poor transportation, and low cultural level have become commonplace.

(Some parts deleted in the middle)
Yang Mo was naturally very clear about what the other party was asking. He glanced at him and said with a hint of confusion in his tone: "It is undeniable that although there are indeed various shortcomings and deficiencies at the grassroots level in rural areas;"

"But from my personal experience, Chinese farmers are probably the most special and simple group of people in the world;"

"He also said that we came from the masses and we must go back to the masses."

"Therefore, I personally believe that we can quickly make up for the lack of industrial hardware infrastructure such as water, electricity, and roads at the grassroots level in rural areas through the redistribution of industrial profits, through corporate and administrative power;"

"At the same time, we can also make up for problems such as talent shortage through education, training, and redistribution of industrial profits;"

"As for the low level of education at the grassroots level in rural areas and their low understanding of industry, economy, commerce, and business management... the work of Dahua Company and Xialiu Sales Agency over the past three years has proved that as long as we pay attention to the methods, these problems can be avoided. If that doesn't work, we can use a semi-soft and semi-hard method to give them an external brain!"

"As for the frequent deviations in policy understanding and even the lack of cooperation... that can only mean that we haven't done our job well enough, or that there are problems with policy formulation."

"The current Chinese farmers, at least the vast majority of the rural Chinese, are probably the most humble, simple, and most compliant people in the world. If we can't even do their job, then we really should reflect on ourselves!"

At this point, Yang Mo pondered for a moment and continued, "As for whether the rural area will be able to bear the heavy responsibility of the first and second comprehensive industrial upgrades and large-scale industrialization strategy in the future, I can't make my own judgment, nor can I give a convincing reason."

"But China has always been a country that believes that man can conquer nature. The establishment of New China is also a case of man conquering nature... The fact that this country has been able to last for five thousand years is a miracle that is difficult to replicate. So, I always think that there are some things that we just need to do with all our strength, and there is no need to hesitate at the beginning."

After a slight pause, Yang Mo's eyes were somewhat dead: "Besides, even if it fails, what's the problem?"

“I know that the situation in rural areas where morality is more important than the rule of law is very common and is a headache for all places;”

"But precisely because of this, I think it is the best choice to shift the strategic focus to the grassroots level in rural areas after being prepared to provide external brain services;"

“Even if it ultimately fails, with the current cultural and moral ecology in rural areas (collectively, not individually), and as education becomes more widespread, at least… the morality and values ​​of this society will not sink to a hopeless level.”

With a self-deprecating smile, Yang Mo stared at Li Tiezhi in front of him with scrutiny: "Designers have said that if the atmosphere continues to deteriorate, then what is the point of our economic success? It will eventually deteriorate in other ways, which in turn affects the essence of the entire economy. If we let it develop... (Selected Works of Deng Xiaoping, Volume 154, Page )"

Feeling a little uneasy under Yang Mo's sharp eyes, Li Tiezhi couldn't help but smile bitterly.

Well, it seems that because of some bad things that happened in the past two years and some of his own experiences, this young man doesn’t trust others very much.

No wonder this guy's style of doing things is so domineering and arbitrary.

But... this is actually better!

Having gotten the answer he wanted, Li Tiezhi exchanged a glance with Pan Qingshan beside him and said, "Comrade Yang Mo, I'm sure you've noticed that today's conversation is a little unusual."

"In fact, the organization is having a hard time deciding on your promotion this time... To be more precise, there are several departments that want to transfer you, and the organization doesn't know how to arrange it for the time being."

"However, after two months of discussion, and taking into account Comrade Yang Mo's expertise and previous work experience, the organization has screened out several positions that may not be particularly suitable for you, leaving only two positions for your reference."

At this point, Li Tiezhi sat up straight and his voice became more formal: "Now I am only representing the Economic Reform Commission..."

Pan Qingshan's voice rang out at the same time, not wanting to be outdone: "I am under the jurisdiction of Qilu Province..."

The two had just started talking when Yang Mo, who was already terrified, quickly raised his hand to stop them from continuing: "Two leaders, pause, pause!"

Being interrupted midway, both of them had a flash of displeasure in their eyes.

Seeing this, Yang Mo smiled bitterly and said, "Two leaders, although today is a conversation session, the final appointment still needs to be reported to the organization, and it will take some time to make a decision, right?"

Pan Qingshan frowned, "That's true. After all, the organization has to follow procedures. However, the organization will fully respect your personal wishes, Comrade Yang Mo... If you are not very satisfied with the new position selected for you by the organization, you can also choose your favorite position from the remaining candidate list."

Yang Mo shook his head: "The two leaders misunderstood, that's not what I meant."

is not what it means?
Pan Qingshan and Li Tiezhi looked at each other with confusion.

Seeing this, Yang Mo hesitated for a moment: "Two leaders, what I mean is..."

"Since there is still a process to go through, if possible, I hope that the two leaders can reflect to the organization that my subsequent appointment can be decided on later... Wait a little longer, it doesn't take long, at most until mid-August, maybe the organization will have new considerations?"

what! ?

We've already come to the conversation stage, and you tell me you want to be pushed back?

Who do you think you are? You can change the rules however you want! ?

but……

Mid-August?

Maybe the organization has new considerations?
What does it mean?
Looking at Yang Mo's bitter smile, Pan Qingshan pondered the meaning of this sentence, and then thought of the big move this guy made against the Wei family this year. After looking at Li Tiezhi, he couldn't help but feel nervous...

(End of this chapter)