After a brief chat about the project of the Xiaoyangshan Deepwater Port, Zhou Kunlin talked about the main purpose of calling Bao Feiyang over this time.

"The construction of the new Pudong Iron and Steel is progressing smoothly, and it is expected that the construction will start at the end of the year, and the resettlement work of the old Pudong Iron and Steel should be stepped up!" Zhou Kunlin said: "In addition, the three-year reform of state-owned enterprises formulated by the central government, this year is the last year, and it is also a year of tackling tough problems. ”

According to the data, at the end of '97, more than 6,000 of the country's state-owned enterprises, including the 16,874 large and medium-sized industrial enterprises in the state-controlled enterprises, were losing money, with losses as high as 39 percent, close to 40 percent, and losses as high as 66.5 billion yuan, and the average asset-liability ratio of these loss-making enterprises was as high as 80 percent, and many enterprises were already insolvent.

According to another statistic, among the 238,000 state-owned non-financial enterprises in '98, only half were profitable, including those with small profits, and the losses of the loss-making enterprises were as high as more than 300 billion yuan, an increase of 30 percent over the 97 years, of which 214,000 wholly state-owned enterprises realized negative profits of more than 60 billion yuan, an increase of 59.6 billion yuan over the previous year.

The increasingly serious losses of state-owned enterprises have caused many problems, and the large-scale suspension of production and semi-suspension has made it difficult to maintain the normal business activities and capital turnover of enterprises, a large number of enterprise workers have been laid off and unemployed, and many families who have lost their income are in trouble in their livelihoods. According to the statistics bureau at that time, the total number of laid-off workers in the country was as high as 12 million at the end of '97, and by the end of the third quarter of '98, the total number of laid-off workers in the country had reached 15.67 million.

In fact, there are still many hidden laid-off personnel, and even on-the-job employees, there has been a sharp decline in the income of sons, a large number of employees can not receive their wages in time, and retired employees cannot receive pensions...... The livelihood of laid-off workers and employees of struggling enterprises has become a top priority for local governments.

In view of this grim situation, the central authorities proposed at that time that it would take about three years to extricate the majority of large and medium-sized loss-making state-owned enterprises from their predicament, and that the majority of large and medium-sized backbone state-owned enterprises should initially establish a modern enterprise system. To this end, a specific target has been set, that is, by the end of this year, the loss-making area of large and medium-sized state-owned and state-controlled industrial enterprises will be reduced from 39.1 percent at the end of '97 to about 20 percent, so that most of the 6,599 loss-making enterprises in key state-owned enterprises will be able to turn around their losses.

In order to achieve the "two goals in three years" in three years, the state has introduced a series of important policies, such as the implementation of expansionary fiscal and monetary policies, increasing the intensity of infrastructure construction, expanding the scale of investment in fixed assets, and promoting reforms in education, medical care, real estate and other industries, in order to stimulate effective domestic demand and create good external conditions for reform.

In the first two years of reform, to the textile industry and the coal industry as a breakthrough, the textile industry has carried out large-scale ingoting, reduction, adjustment and efficiency, the coal industry is the implementation of decentralization, shut-off, supervision and other work, and this year's focus in addition to the coal industry, including metallurgy and sugar, metallurgical industry also includes the steel industry.

Bao Feiyang has always been very concerned about the reform of state-owned enterprises, in addition to the problems of Pudong Iron and Steel, Fangxia Group is also constantly looking for development opportunities in China. As far as this year is concerned, in addition to the reform of the three major industries and the textile industry, the focus is also on increasing the intensity of shutting down the five small cigarettes, shutting down a number of small tobacco factories step by step, cleaning up and rectifying small refineries, shutting down small thermal power, small cement, small glass, and small papermaking enterprises, while controlling the total amount and eliminating backward production capacity, encourage large enterprises to speed up technological transformation and equipment renewal, promote the adjustment of product structure and process optimization, and obtain a new life on the basis of technological progress.

In the past two years, the central authorities have also frequently dealt heavy blows to the issue of the reform of state-owned enterprises; for example, a large number of enterprises that have been losing money for a long time, are insolvent, have no hope of reversing their losses, and have no value for survival have withdrawn from the market through mergers and bankruptcy.

In addition, in view of the problem of enterprise debt burden, the state has carried out pilot projects in more than 100 cities to optimize the capital structure, and implemented the loan to investment, that is, the loan has been turned into investment. To this end, asset management companies have been set up in the four major banks to deal with bad loans and debt-to-equity swaps, and through debt-to-equity swaps, the financial structure of enterprises has been optimized and financial expenditures have been reduced; according to statistics, in the past three years, the state has converted 400 billion yuan of debts from more than 500 state-owned enterprises into equity, and the annual reduction in interest expenses has been as high as about 20 billion yuan.

In addition, the state has also set aside 9 billion yuan of the treasury bonds issued every year for the technological transformation and industrial upgrading of enterprises, and has taken out nearly 20 billion yuan in three years......

Through this series of actions, this year, the work of reforming state-owned enterprises and extricating them from difficulties has also achieved initial results, including the textile industry to reduce the backward spindles by more than 10 million spindles, the resettlement of more than 1 million laid-off workers, the coal industry to ban and close down more than 40,000 small coal mines, the petrochemical industry to ban more than 6,000 small refineries, the building materials industry to shut down more than 3,000 small cement kilns, and close down nearly 200 small glass production lines...... The living environment of the entire industry has been changed through the elimination of backward production capacity, and nearly 2,000 of the more than 6,000 loss-making large and medium-sized state-owned enterprises counted at the end of '97 have been deregistered through mergers, alliances, and bankruptcy.

What is particularly important is that in view of the heavy burden on state-owned enterprises and the problem of laid-off workers, the state has initially established a social security system that includes the basic subsistence guarantee for laid-off workers, unemployment insurance for the unemployed, and the minimum subsistence allowance for urban residents. The newly established Ministry of Labor and Social Security has focused on promoting the reemployment of laid-off workers, deepening the reform of the old-age insurance system, promoting the reform of the medical insurance system, and implementing unified management of social insurance.

Pujiang City as an economically developed area and the country's leader, state-owned enterprises are numerous, compared with other places, Pujiang City's state-owned enterprise reform is relatively smooth, after all, the economy is developed, on the one hand, the social demand is relatively large, the production and operation of enterprises are better, on the other hand, Pujiang's economic and technical force is also relatively strong, whether it is economic aid or technical support, as long as the management of the enterprise itself is in place, the enterprise has more opportunities to get out of the predicament and carry out normal business management activities.

For example, the operation of Lao Pugang is very unsatisfactory, and the company is in a dilemma of development, but the situation is much better than that of some enterprises in the old industrial area, after all, the local and surrounding demand is relatively strong. The reform of the old plant of Pudong Iron and Steel is also relatively smooth, the most important reason is the introduction of joint venture projects such as Krupp and Pohang, the joint venture project has introduced capital and technology, so that Pudong Iron and Steel has gained a new life, and the construction of new Pudong Iron and Steel is inseparable from the support of local funds, although the Pujiang Municipal Government does not directly allocate funds, the new Pugang is the construction funds obtained through loans, but the bank's loan amount itself is limited, even if the government is willing to support in some places, the bank can not come up with money to issue loans......

The reform of large and medium-sized state-owned enterprises in Pujiang City, including Pujiang Iron and Steel and Jiangnan Shipbuilding, is still relatively smooth, especially compared with some old industrial bases in the mainland, the reform of Pujiang's state-owned enterprises is very successful.

"The resettlement of Lao Pugang employees has been advancing, and it is currently being carried out according to the planned nodes, so there should be no problem!" Bao Feiyang said.

In fact, compared with a few large and medium-sized state-owned enterprises such as Pudong Iron and Steel Co., Ltd., Bao Feiyang is more concerned about the reform of some township collective enterprises and small state-owned enterprises in Huixun District, which have a larger number of enterprises and, in the case of Huixun District, a larger number of workers involved.

Pujiang City has a large number of state-owned enterprises, and the influence of township enterprises is not as good as that of the neighboring Jiangnan Province, which is a typical area for the development of township enterprises in China. Since the mid-90s, especially after the 97s, the township collective enterprises in Jiangnan Province have set off an upsurge of restructuring, and the restructuring mode of township enterprises at this time is mainly to change to the joint-stock cooperative system, that is, the managers and workers of the enterprises buy the shares of the enterprises according to their positions in the enterprises, the number of years of service, and other indicators, and at the same time, the local governments also maintain a certain number of shares. By '97, there were 520,000 rural collective enterprises in the country, accounting for more than 30 percent of the total, and most of them were joint-stock cooperatives. However, the proportion of restructuring in the eastern coastal areas is much higher than this figure, reaching 70 percent in Pujiang City and more than 80 percent in some counties and cities in Jiangnan Province.

That is to say, by the time Bao Feiyang came to Pujiang in '99 to take office, most of the township enterprises in Huixun District had already undergone the first reform and had become a joint-stock cooperative system. At that time, the academic circles generally believed that the joint-stock cooperative system absorbed the advantages and advantages of the joint-stock system and the cooperative system, overcame their respective shortcomings, and formed a unique new type of enterprise property rights system, realizing the so-called common ownership of the means of production and the unification of the individual ownership of workers, the unity of laborers and owners, the unification of distribution according to work and distribution according to shares, and the unity of risk sharing and profit sharing, which is a modern enterprise system of innovative significance.

However, there is also a view that the joint-stock system and the cooperative system are two different forms of enterprise property organization, and that an enterprise either implements the shareholding system or the cooperative system, and it is impossible to implement these two systems at the same time, nor can it be possible to combine the two systems.

Facts have proved that although the voices of the opponents are harsh, they are still justified, and since last year, some township enterprises have begun to carry out a second round of reforms......