Chapter 1760: Report to the City

Facing Mayor Yang Chenglin, Bao Feiyang said: "In the face of the intensifying turbulence of the international financial market and the shrinking steel market, the competition in the world steel industry is becoming more intense. Lowering prices, and trying to reform marketing strategies, such as e-commerce, self-reinforcement and redemption, it can be said that in the past nine or eight years, the life of global steel companies has not been easy, and this is also a year of transformation for the global steel industry, a year of struggle to survive......"

Bao Feiyang said: "Europe, as the center of steel production in the world, has also been greatly affected. Many steel companies in Europe are carrying out joint restructuring to try to get out of the predicament......"

"Affected by the financial crisis, the economic contraction of Southeast Asian countries, its domestic demand for steel has dropped significantly, down more than 20 million tons, Japan, South Korea and other Asian countries are also very weak, although the situation in China in the past two years is not very good, but the central government launched the economic reform, resumption of negotiations, as well as housing reform and promote the development of the real estate industry policy, the industry is still more optimistic about the prospects of China's steel industry, especially in stainless steel, seamless steel pipes, For products with high added value such as automobile steel plates, we also import five or six million tons every year......"

"During this multi-country trip, we had a dialogue with these big steel groups, and they also agreed with our judgment. For European steel groups, Europe is the center of the world's steel production, but Europe's steel demand is relatively stable - at least there is little room for growth, this is the consensus of everyone, and in terms of exports, the situation in the Americas is similar to Europe, Asia is very sluggish, in contrast, our market prospects in China are still promising!"

Bao Feiyang said: "It is based on this judgment that we were able to persuade several European steel groups to invest and build factories in China. By building our factory in China, our labor costs are lower than those in Europe, and we can also keep up with the market and enjoy tax exemptions, so that their products are more competitive in price and can also be adjusted at any time in response to market changes......"

"The situation in Europe is like this, for South Korea's steel companies, their domestic financial crisis is relatively hard, and the domestic market has shrunk very much. And the Southeast Asian market, which was mainly exported to Southeast Asia, has also been hit the hardest, so they are having a harder time now!"

Hearing Bao Feiyang's report, Yang Chenglin couldn't help but nod again and again.

After the outbreak of the financial crisis in '97, the countries of Southeast Asia and South Korea that had the greatest impact were naturally affected by the direct outbreak of the economic crisis, but in today's globalization, the Southeast Asian financial crisis has also affected the whole world, and Europe and the United States have also been affected.

Southeast Asian economies are sluggish, a large number of enterprises have closed down, infrastructure projects have basically stopped, and years of economic development gains have been wiped out, and even in the next decade, development has almost come to a standstill.

On the one hand, the financial crisis is like a fuse, and after the outbreak of the financial crisis, various problems covered by the rapid development of Southeast Asian countries over the past years have erupted. Indonesia, Thailand, Malaysia, and other countries have all undergone regime changes, and many problems have erupted.

On the other hand, Southeast Asian countries have developed rapidly in the past, but their industrial systems are not complete, and after the outbreak of the financial crisis, their self-regulation and recovery ability is relatively poor, and they have not been able to recover for a long time.

There is another very important reason, that is, the rise of the Huaxia Kingdom. The economic development of Southeast Asia, mainly to the labor-intensive export processing economy, and the reform and development of Huaxia, has also adopted the policy orientation of export-oriented economy, with the deepening of the reform of state-owned enterprises, the economic vitality and potential of the full stimulation, Huaxia's huge labor resources began to exert amazing energy, Huaxia's manufacturing industry began to gradually occupy the world, Huaxia manufacturing swept the world.

In fact, before ninety-seven years, Southeast Asian countries have felt the pressure of China's manufacturing industry, and the center of gravity of the world's manufacturing industry has shown signs of shifting to China. However, since China embarked on the road of reform and opening up in seven or eight years, it has been difficult to break the original economic model, compared with Southeast Asian countries, which still has the advantage of being a first-mover. However, the financial crisis has wiped out this advantage, and compared with the slow pace of adjustment in Southeast Asian countries, Huaxia has decisively deepened the reform of state-owned enterprises, stimulated economic vitality, and soon entered a new growth channel. When Southeast Asian countries finally healed the trauma suffered by the financial crisis, they found that Huaxia had become a giant elephant on the run, and the two sides were no longer on the same order of magnitude. It wasn't until 20 years later that Southeast Asia changed from a leader to a need to undertake the industrial transfer of Huaxia to seek new development opportunities.

In a sense, the financial crisis that broke out in Southeast Asia has put Southeast Asian countries in a development dilemma, and it has also given China an opportunity for development. Of course, even without this financial crisis, the problems in the industrial structure and economic structure of Southeast Asian countries themselves also determine the competition between them and Huaxia, which will still rely on its own advantages to catch up and become a world manufacturing power, and even an economic power.

After the outbreak of the financial crisis in '97, all countries in the world were looking for ways to get out of the economic downturn, and Huaxia promoted the reform of state-owned enterprises, the reform of housing and the development of real estate, the reform of education, and the gradual marketization of higher education. In particular, the development of the real estate and automobile markets has directly caused the demand for steel and oil to expand rapidly.

In contrast, the pace of adjustment in Southeast Asian countries has been much slower, and the economic downturn and political turmoil have made people of insight realize that it may be difficult for the economies of Southeast Asian countries to get out of the impact of the financial crisis in a short period of time.

For European and American enterprises, the European and American markets are relatively stable at the same time, but also lack of new growth space, in the case of the downturn in the Southeast Asian market, we must find new growth points, and the stable political situation in China, active economic policies, and stable performance in the financial crisis have impressed everyone. Huaxia has a population of 1.2 billion, once this market is launched, the potential is amazing, so Bao Feiyang in the communication with major iron and steel enterprises, it is easy to grasp the problem they are most concerned about, that is, the huge market of Huaxia.

Of course, this is easy to say, but it is not easy to convince European steel giants to invest in China. After all, the market has always been there, and the only one who can convince the giants to invest is Bao Feiyang.

"We are confident in the development of the domestic economy......"

Yang Chenglin nodded and said: "The huge population and backward development level also represent the potential for our development. In the past, we were subject to all kinds of restrictions, and so was our development. Reform and opening up is to break down all kinds of restrictions......"

"The reform of state-owned enterprises is to break the rules and regulations that restrict the development of state-owned enterprises, open up to the outside world, introduce capital, technology, products, and export our commodities, and a very important point is to break our restrictions on capital, technology, management, and market, as long as we break these restrictions, we will definitely be able to develop!"

Yang Chenglin's words made Bao Feiyang impressed. Yang Chenglin's summary is very in place, unlike Southeast Asian countries, Southeast Asian countries' economic take-off stage, the dependence on the international market is too strong, the government's control is not enough, Huaxia has a huge market of 1.2 billion people, the potential is huge, no one can ignore it. Yang Chenglin's words are simply put, that is, as long as we do not mess up and stabilize ourselves, such a big market, no matter how big the wind and waves, can rush over and develop.

"There are many people in the world who can see this!"

Yang Chenglin smiled and said, "Therefore, some people advocate the Huaxia threat theory and don't want us to develop. There are also people who know that this trend is irreversible, so they want to come in and get a piece of the pie. If they want to come in, they must bring capital, bring technology, bring advanced management concepts, they come to China to develop, but also to help us develop, for such countries and enterprises, we have to welcome. ”

"Comrade Feiyang, you have done a good job, you have successfully persuaded these enterprises to invest in China, and the investment projects are currently lacking in China, and they are all projects we need, which is of great significance!"

Yang Chenglin said: "However, in the process of development, we must also insist on focusing on ourselves and cannot blindly rely on others. That's what I appreciate most about you......"

"In these letters of intent to invest, we have emphasized the participation of our own enterprises, although it is not the dominant power, but participation is also very important, only with participation, we can learn in participation, and grow in learning......

The city attaches great importance to these projects, because it is not only a matter of a few projects, but also involves the relocation of Pujiang Iron and Steel Plant, the construction of a new 10-million-ton steel base, and even the restructuring of Pujiang Iron and Steel Industry.

Bao Feiyang submitted a plan to the city to "build a 10 million tons of steel production base along the coast of Huixun District", and reported to Tang Xingbang, the leader of the municipal party committee, Yang Chenglin, the mayor, and Zhou Kunlin, the executive vice mayor.

The city's action is also very fast, the municipal party committee soon convened a standing committee to discuss the "10 million tons of steel production base" project submitted by Huixun District, Bao Feiyang attended the meeting, and reported on the project.

In addition to members of the Standing Committee of the Municipal Party Committee, responsible persons of functional departments such as the Municipal Economic and Trade Commission, the Development and Reform Commission, the Industrial Bureau, and the Finance Bureau also attended the meeting as observers.

"In the past 20 years of reform and opening up, China's economy has achieved very great development, but there is still a huge gap between us and the developed countries in the West......