Spring Breeze Twenty Years

Chapter 1305 The Cost of Change

It wasn't a big deal to begin with, and since things calmed down on their own, Xiao Wei wouldn't go looking for trouble. He just pretended it never happened.

Now that they were back, Xiaowei and Chen Hui quickly held several meetings with the lower-level companies and departments. They listened to verbal reports and learned about and provided feedback on the current operating conditions and development plans of each company.

All companies are now fully equipped and have vast markets waiting to be explored and developed, entering a virtuous cycle and showing a thriving scene.

It was mainly because we caught a good time.

The private sector was fully unlocked, and policies were completely liberalized. The whole country was booming from top to bottom. Moreover, during this period, neither the national nor local governments had much experience, and everyone was figuring things out as they went. The degree of market freedom was unimaginable to later generations.

Moreover, the group is controlled by Xiaowei within the scope of people's daily lives, including clothing, food, housing, and transportation. In terms of food and housing, production and sales are integrated, and development is supported by physical entities. In terms of clothing and transportation, the group is making every effort to expand its channels, and the sales terminals covering the entire Northeast have become an insurmountable barrier for manufacturers.

At this moment, the wave of state-owned enterprise reform is sweeping across the country, with countless heroes throwing themselves into it, each using their own methods in a chaotic frenzy. Whether rich or poor, everyone is racking their brains and exhausting all their schemes and tricks to try and get a share of this feast.

In this environment, the entire state-owned commercial, industrial, and mining sectors were in turmoil, production was declining, markets were shrinking, and a culture of petty corruption prevailed. Those in positions of power exploited their superiors and oppressed those below them to line their own pockets, while those without positions were unemployed, waiting for work, and suffering from hunger and cold.

It can be said that the entire state-owned system is collapsing, and it has reluctantly withdrawn from the market, paving the way for private enterprises.

It was the best of times and the worst of times.

Some factories collapsed, and that was it—they truly collapsed, completely disappearing into the surging tide.

Some factories went out of business, but they enriched a large number of people who then moved on to other businesses with smiles on their faces and continued their comfortable lives.

Some factories went out of business, but then rebranded and re-entered the market, showing no signs of fatigue. A large number of entrepreneurs emerged from here.

Some of these were naturally eliminated by the market, but many more were deliberately manipulated by people. After a series of operations, they changed their appearance and entered the private sector, immediately becoming energetic and rapidly increasing their production and operations.

The so-called inability to produce, poor management, and weak market are merely deliberate means to suppress production and reduce costs.

The helplessness of unemployed workers is merely a growing pain under these reforms. At the celebration banquet, amidst the clinking of glasses and beaming smiles, the successful ones, dressed in fine clothes and riding spirited horses, pontificate and write passionately. No one cares about the silent tears and sobs shed in the dim light.

Every change inevitably brings various problems and situations, but regardless, the overall trend of change is steadily upward, the market is booming, the number of wealthy people is increasing, and the overall quality of life and income of ordinary people are constantly improving. This is a good thing.

After a brief period of hardship, many unemployed people are forced by life to change their mindset and find direction. They have to struggle out of their original circles and enter a wider world, where they constantly discover wonderful things and embark on different paths in life.

In one respect, it is the unemployed and migrant workers who have accelerated the development and economic prosperity of cities.

……

Upon their return, the two realized that their trip to Kyoto to learn how to expand into the North China market had been a lucky accident, saving them from many troubles.

The offices of the companies, including theirs, were piled high with invitations, promotional materials, introduction letters, and business plans.

Reform, reform, in a world of calm and tranquility, most people cannot see the whirlpools and undercurrents beneath the surface.

At the district, city, and provincial levels, as well as within the enterprises themselves, all the issues concern enterprise restructuring. There are too many large and small state-owned industrial, commercial, and mining enterprises in Liaodong. Aside from those like Angang Steel, Beigang Heavy Machinery, lathe manufacturers, military enterprises, and mints—which are unlikely to be opened up—all are facing restructuring.

The large number of unemployed workers awaiting childbirth has put enormous pressure on governments at all levels.

Solving the problem of feeding the people and maintaining basic social stability have once again become the government's top priorities and challenges.

Provincial, municipal, and district governments at all levels have established special reform task forces and resettlement offices, actively seeking methods and directions. Everything revolves around food.

Some small businesses are being auctioned off, medium-sized enterprises are transforming, and large enterprises are preparing to implement shareholding systems—all of this revolves around money. It's estimated that all well-developed, sizable private entities are constantly receiving these kinds of letters and official correspondence.

The government hopes that these well-run companies will carry forward this spirit, be concerned about society, actively participate, and help the government solve practical problems. For example, they could expand their operations to hire more laid-off workers for re-employment, donate money to help citizens in need, and auction off closed small and medium-sized enterprises.

Alternatively, one could invest in medium to large-sized enterprises to become a shareholder and jointly develop the business. Xiao Wei glanced through the list and found that he couldn't obtain controlling stakes in several industrial and commercial enterprises that were slated for restructuring into joint-stock companies. The chairmen and general managers were still appointed by the government, but the required funds were substantial.

Ha ha.

The auctioned companies have basically lost their good assets, which means they still have a piece of land, and a large number of employees who are still working, retired, or on sick leave, and their benefits cannot be reduced.

Ha ha.

To be honest, if there were suitable options, such as the large food factories, shops, breweries, or hotels in Fengtian, Xiaowei would definitely consider it seriously, considering the feelings of his superiors and subordinates. Taking them on wouldn't be out of the question.

But what about you? Shutting down bearings, construction projects without any projects, valves with a mountain of debt, and manufacturing without any products? Are you just throwing money away and buying some rich old men to support?

The government's direction and attitude are certainly good; they want to solve the problems and address the concerns of these ordinary people. However, their strategy is flawed. They need to consider the local production and operational structure, right?

Chen Hui laughed and tossed a business plan in front of Xiao Wei: "Hey, take a look at this. Take a look."

Xiao Wei picked it up and flipped through it. It was a restructuring plan for a battery factory. "A battery factory? What does its restructuring have to do with us? Why are they giving us this plan?"

Chen Hui raised his chin: "Take a look first."

Xiao Wei glanced down and looked through the documents. It seemed the factory's products were famous domestically, even a well-known trademark, and had once held a market share as high as 60%. Now, restructuring was needed.

The factory has already sold its trademark and raised a portion of the funds, amounting to two million. Now it needs to raise another twenty million to resume full production and repay some of the debts. If any party can provide funds, family members and relatives can be given priority to work in the factory and enjoy up to ten percent of the shares.

Xiao Wei looked at Chen Hui: "Why are you showing me this? It's obvious the management is out of their minds. Do you think I'd use them to assign tasks when I have 20 million? They've already sold the trademark for only 2 million, yet they dare to price it at 200 million?"

(End of this chapter)