Bao Feiyang continued: " In the past two years, the domestic economy has been in a cycle of adjustment, and the GDP growth rate has declined for many years, and it has been lower than 10 percent for two consecutive years, but even last year, the GDP growth rate has reached 7.8 percent, even if the situation this year is still not optimistic, but there is no problem in reaching more than 7 percent, and with the reform and adjustment in place, China's economic growth potential will explode again, and it is foreseeable that the national economy will soon stabilize and recover, and after two to three years of adjustment, it will return to a double-digit growth rate again……”

In the past two years, China's domestic economic growth rate has declined, many problems have arisen in economic development, and there have been voices of decline at home and abroad, believing that the rapid growth of the next 20 years after China's reform and opening up will come to an end, especially the losses in the whole industry and in a large area, the state-owned economy is in a predicament in an all-round way, and the emergence of a large number of laid-off workers threatens not only the economic situation, but also the security of the entire country.

However, Bao Feiyang, as a person from the past, is naturally very confident in the future development prospects of China's economy.

He smiled and said: "This is the macroeconomic situation, the prospect of a good future will not change, and specific to the steel industry, on the one hand, we still have a shortage of some high-tech and high value-added steel products, which is our market opportunity." In addition, with the economic recovery and sustainable development, the demand for steel products will continue to increase, such as large-scale infrastructure construction, the demand for high-quality steel for the development of the automobile industry, and the ongoing reform of the housing system, which will promote the rise of the residential housing industry......"

Bao Feiyang analyzed the development trend and prospects of the steel industry from two aspects: the steel industry and the macro economy.

Some people regard oil as the blood of industry, then steel can be called the bone of industry, is the most important basic industrial sector of a country, is the material basis for the development of national economy and national defense construction, in economics, usually steel output or per capita steel output as an important indicator to measure a country's economic strength.

In terms of total steel production, Huaxia has become the world's first, but in terms of per capita steel production, the ranking is still very low. Although there is now overcapacity in the domestic steel industry, the central government has been guiding the local government to limit the production of steel, and eliminate backward production capacity, but overcapacity is only relative, short-term, with the end of the reform and adjustment of the national economy, and once again entered the stage of rapid growth, the demand for steel will increase rapidly again.

In Bao Feiyang's memory, the steel industry after two or three years of adjustment, after the new millennium, in addition to next year is still adjusting, and then will enter a high-speed growth cycle of about 20 percent, the highest time even reached 30 percent, in just a few years, the domestic steel output has doubled compared with now, in 2003 exceeded 200 million tons, in 2005 exceeded 300 million tons, reached 350 million tons, in 2006 exceeded 400 million tons, reached 418 million tons, after the economic crisis in 2007, the growth rate of steel production has declined, but still maintains a rapid growth, to 2008 again to break through the threshold of 500 million tonsThen, at a rate of 100 million tons in two to three years, crude steel output exceeded 800 million tons by 2014, reaching 820 million tons......

Since 2005, Huaxia steel products as a whole have also changed from a net importer to a net exporter.

The outbreak of the steel industry stems from the rapid development of the national economy, including the rapid development of downstream industries such as construction, machinery, automobiles, and ships. However, in the process of rapid development of the steel industry, the internal adjustment of the steel industry is not in place, the transformation and upgrading efforts are not enough, resulting in the blind expansion of production capacity and even overcapacity, in 2015, the highest steel production capacity in 2015 as an example, the country's steel production capacity is as high as 1.2 billion tons, the output reached 800 million tons, the actual demand is 500 million to 600 million tons, overcapacity, underutilization, oversupply problems are very serious.

In addition to overcapacity, while the explosive increase in steel production capacity, the steel production process has not been improved at the same time. In particular, excessive energy consumption and serious pollution have not been curbed, according to later statistics, the energy consumption of the steel industry accounted for 23% of the country's total industrial energy consumption, accounting for 16% of the country's total energy consumption, which also shows that the steel industry has a great impact on the country.

These future development of the steel industry, Bao Feiyang is naturally not good and discernment, but it can help him sort out his thoughts and determine the correct direction and route. Bao Feiyang emphasized two points through analysis, one is that the future of the steel industry is optimistic, there is still a lot of space, and the other is that we must be in place in one step, using advanced technology, to build a world-class iron and steel enterprise.

Bao Feiyang hopes that through the construction of Xinpu Steel, it will set an example for the rapid growth of the steel industry in the future, so that everyone will not blindly expand production capacity, but pay more attention to the improvement of technology while expanding production capacity, so as to avoid a large amount of energy consumption and pollution while expanding production capacity, and there will be a serious surplus of low-end products, and even go to the international price war and kill each other.

According to Bao Feiyang's estimation (memory), it will take two years for the reform and adjustment of the national economy, and it will not be until 2001 that the demand and output of steel will increase explosively.

According to Bao Feiyang's plan, the new plant of Pudong Iron and Steel Co., Ltd. can be built this year and next year, and will be initially completed and put into operation in 2001, just in time for the market explosion that began in 2001.

Although the production capacity of the new plant may not be able to determine the market, as long as the government guides and controls more, Xinpu Steel can become a benchmark and affect the development of the entire steel industry, so that the new steel production capacity starts higher and the capacity expansion is more orderly.

"Comrade Feiyang, it seems that you have worked the steel industry......

Mayor Yang Chenglin raised his wrist and looked at the time: "Today is a bit rushed, I have an important meeting later, so I can only talk about it here first......"

Yang Chenglin said: "In general, the city and Huixun District, Pujiang Iron and Steel ideas are generally the same, our direction is to let Pujiang Iron and Steel get rid of the current development predicament, have a better future, but in the method path, and specific steps, there are some different ideas......

"There are different ideas...... It doesn't matter, the key is that we find a way to achieve our goals and develop a scientific and reasonable plan......"

Yang Chenglin looked up at Bao Feiyang: "Comrade Feiyang's analysis just now is very in place, I also believe that after this round of reform and adjustment, the domestic economy will usher in another round of rapid development, specific to the steel industry, eliminate backward production capacity, improve advanced production technology, this is not only the central policy, but also what we have to do, the key is...... How to do it!"

"Comrade Bihong, Comrade Feiyang, after you go back, you can refine what you just said and come up with a specific plan, Bai Zongyi, you are the same, Pugang's previous plans are too conservative, you can study it again and see how to make more fuss about cutting backward production capacity and developing advanced production capacity!" Yang Chenglin said.

Because he was going to a meeting, Yang Chenglin said it very simply, but his summary was also in place. Yang Chenglin finally asked Bao Feiyang and Bai Zongyi to go back to get the plan, Yang Chenglin obviously still had doubts about Bao Feiyang's plan, but he was not satisfied with Bai Zongyi's overly conservative plan.

Leaving Yang Chenglin's office, Bao Feiyang and Xiong Bihong separated, Xiong Bihong went to the municipal party committee, and Bao Feiyang went to the office of executive vice mayor Zhou Kunlin. There were also many people waiting outside Zhou Kunlin's office to meet him, but after knowing that Bao Feiyang was coming, Zhou Kunlin did not let him wait for a long time, but met with Bao Feiyang in advance.

It's not that Zhou Kunlin has a blue eye for Bao Feiyang, but he knows that Bao Feiyang has just come over from Mayor Yang Chenglin, not only that, but Zhou Kunlin also knows that Xiong Bihong and Bai Zongyi, the general manager of Pugang, are both present, and he is very curious about what Bao Feiyang and Yang Chenglin talked about!

"Something happened to Pugang, Mayor Yang asked us to explain...... "Bao Feiyang and Zhou Kunlin are not very familiar with each other, but when Bao Feiyang came to Pujiang to report, the city was not optimistic about him, the first city leader he saw was Zhou Kunlin, Zhou Kunlin left a good impression on him, and on some development issues, the two also had the same views, and then Bao Feiyang also found an opportunity to report to Zhou Kunlin twice. After meeting Zhou Kunlin this time, Bao Feiyang quickly said what the other party wanted to know, and briefly introduced the cause and effect of the matter.

"You're really bold about it......"

Zhou Kunlin smiled and said: "The scale of Pugang is not as good as that of Beijing Iron and Steel, Pugang has an annual output of 800,000 tons of steel, which is about one-tenth of that of Beijing Iron and Steel, and the annual output value is 200 million ......."

Pujiang Iron and Steel is one of the oldest iron and steel enterprises in Pujiang City, but Pujiang Iron and Steel is not the largest steel plant in Pujiang, the largest steel enterprise in Pujiang is Chunshan Iron and Steel, with an annual output of 1.5 million tons of steel, and the output of more than 500,000 tons, less than 1 million steel enterprises are Pubei Iron and Steel and Jiangnan Iron and Steel.

Unlike the scale of the annual output of 6 million tons of steel of the Beijing Iron and Steel Group, the total steel output of Pujiang is about the same as that of the capital, but it does not form a large steel group, and the steel production capacity is relatively scattered, except for the output of Chungang Iron and Steel Co., Ltd., which exceeds one million tons, and the production capacity of several other steel plants is about 500,000 to 1 million tons.

Pujiang City also once thought of integrating these enterprises to form a large iron and steel group, but these iron and steel plants are municipal enterprises except for Pujiang Iron and Steel and Jiangnan Iron and Steel, Chunshan Iron and Steel and Pubei Iron and Steel are district enterprises in Chunshan District, and township enterprises in Qiaokou Town, Pubei District.

Due to the different ownership, the integration of enterprises involves the transfer of assets, and after the integration, there will inevitably be primary and secondary problems, resulting in great resistance to integration.