Chapter 889: Chaotic Times, Chaotic State-owned Enterprises

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The executives sat together. Naturally, the things discussed will not be trivial, but some things that are closely related to the country's economy.

For example, some people mentioned some policies proposed by the State Administration for Industry and Commerce recently, after the State Administration for Industry and Commerce suddenly issued a policy, announcing that if state-owned enterprises want to advertise, their investment amount must be controlled at 2% of the pre-tax proportion of the enterprise's sales revenue. The ban is purportedly intended to prevent state-owned enterprises from indiscriminately advertising and wasting state property.

In the last two years, the advertising superstar of China's consumer goods market has been a state-owned pharmaceutical company in northeastern China called Harbin Pharmaceutical Group. Before last year, it was a little-known medium-sized pharmaceutical factory, with total assets of only 100 million yuan, and its annual scientific research and development expenses never exceeded 2.5 million yuan.

However, since last year, it has suddenly implemented an advertising bombing strategy, spending 700 million yuan last year, and the advertising budget in the first five months of this year has exceeded 600 million yuan, becoming China's largest advertising advertiser in one fell swoop. Harbin Pharmaceutical's popularity and sales have also risen sharply, and under its demonstration effect, state-owned pharmaceutical factories and electrical appliance factories in various places have also started advertising wars, and the advertising revenue of CCTV and local media has risen sharply, and everyone is happy to keep their mouths shut.

As soon as the advertising quota was ordered, the company was in a mess, and the media was even more complaining. The Industrial and Commercial Bureau had no choice but to make additional provisions, announcing that the pharmaceutical, food, daily chemical, and household appliance industries, which are the industries with the greatest impulse to place advertisements, could increase the proportion of advertisements to 8 percent.

But even if it's eight percent, that's not a lot of money. It still can't meet the ambitions of pharmaceutical manufacturers who want to obtain curative effects through advertising, nor can it meet the requirements of other companies who want to quickly enter the market in this industry. Soon, the order was never mentioned again.

In order to prevent state-owned pharmacies from competing with each other for business, the drug regulatory departments in some places have issued a special policy stipulating that no second retail pharmacy is allowed to open within 500 meters. It is to open 5 stores within 50 meters, whether it is to make money or lose its own pharmacy operators to bear the consequences, why bother the government?

Despite his powerful questioning, some people still raised a cross-examination, saying that if those state-owned pharmacies lose money, shouldn't the government wipe their butts?

These two problems have brought the contradictions that have lasted for more than 20 years to the system.

The regulatory thinking of the drug regulatory department seems ridiculous, however, its internal logic is very clear, that is, to prevent monopoly or semi-monopoly industries, state-owned enterprises from slashing each other, for the regulators, the palms of the hands are meat, the result of competition is the loss of state-owned assets, the best state is of course friendship first, competition second.

Since the 90s, the enthusiasm for building airlines has soared, and more than 30 state-owned airlines, large and small, have emerged, becoming the country with the largest number of airlines in the world.

These companies are trying to grab customers. In 1998 alone, the major airlines made a total profit of more than 5 billion yuan, and by the beginning of last year, the entire industry was in a loss, and the Civil Aviation Administration finally could not bear it any longer; on the grounds that the practice of competing for discounts had led to the loss of huge amounts of state-owned assets, and it had to stop it, it issued a ban on discounts in February last year, strictly ordering all companies not to discount any more.

As soon as this order came out, it was naturally an uproar in public opinion, and they accused the Civil Aviation Administration of China of putting the interests of the industry above consumers and interfering with market competition by relying on administrative techniques. Only half a year later, the Civil Aviation Administration announced that the whole industry had achieved a turnaround in six months, with a cumulative profit of 260 million yuan, a year-on-year reduction of nearly 500 million yuan, that is, 700 million yuan of state-owned assets had been recovered without discounting.

However, the ban will not change the competitive landscape that has already emerged in the aviation industry.

It didn't take long for airlines to turn the explicit fold into a dark fold in order to grab business. Gradually, it returned to its original state, but the Civil Aviation Administration repeatedly ordered and reaffirmed that it could not stop the pace of business laws, and in the first two months of this year, the whole industry reported a loss of more than 2 billion yuan.

At the same time that the civil war of state-owned airlines is not going on, some private owners have quietly come in. Shanghai's Spring and Autumn International Travel Service is a private company engaged in the tourism business, and it has entered this industry since 1994, and the chairman of the board of directors, who was a pilot, has entered the air charter business since 1997, and he has relied on his own business resources for tour groups to boldly charter the planes of some small and medium-sized airlines, and the fares of which are of course much lower than those of state-owned companies on the same route.

In order to circumvent the ban policy, they deliberately blur the price and package the tourist's tour guide fee, accommodation fee and plane ticket into one package. The authorities, as angry as they were, could do nothing about him. Later, he admitted that in fact, their internal pricing is very low, for example, the ticket price from Shanghai to Xiamen is lower than the train hard sleeper fare.

Compared with the old-fashioned aviation industry, the anti-monopoly of the telecommunications industry has come to the forefront.

As the saying goes, ** brings efficiency, and monopoly produces benefits. In fact, from the very beginning, people questioned the phenomenon of profiteering in the monopoly industry. The first to be targeted were telecommunications companies related to every household.

Last year, China Telecom's revenue reached 229.5 billion yuan, an annual growth of 25 percent. Some experts raised questions about the charging system for telecommunications. According to the regulations on telecommunications charges at that time, consumers had to pay for making calls for less than three minutes, and some people calculated that telecommunications companies were overcharged by more than 26 billion yuan a year.

Under the pressure of public opinion, the telecommunications department held a tariff hearing, and CCTV specially filmed and broadcast. Under the aggressive questions of media reporters, the telecom official replied impatiently that he really did not have the energy to explain the details of the adjustment.

This is obviously very sad, and the atmosphere. The media, including the media, is criticizing the bureaucracy of the telecommunications sector, but unfortunately they are thick-skinned and don't care about this at all.

In March of that year, 107 professors from Zhejiang University sent a joint letter to the government and the media complaining about another charging system of telecommunications companies, which states that hourly charges begin when the other party answers the phone.

The initiator of the joint letter said that there were many calls that were made but no one answered, and they were all hung up by themselves, but they were charged by the telecommunications bureau. They provided a thick stack of bills, and on a list of 50 long-distance calls, there were five calls shorter than 30 seconds. There was also a page of detail that appeared ten times in the twenty-three phone calls.

The attentive professors also did a special test, and they made long-distance calls that rang several times but did not actually connect, and the results were charged on the long call list printed by the telecommunications office.

A simple calculation shows that there were more than 2 million telephone users in Hangzhou at that time, and the ringing fee charged amounted to 1.2 million yuan, or more than 10 million yuan a year, based on the calculation of making a long call that was not answered once a month.

The professors want to give an explanation for the money that is not paid for nothing.

The Hangzhou Telecommunications Bureau finally made a little progress and sent someone to have a dialogue with the professor's representative.

In the face of his teacher back then, the explanation given by the person in charge of the telecommunications bureau was that the ultra-short time charge was caused by the fact that there were fax machines, recording telephones, servers, etc. on the other party's line. It may also be that the other party's hand slipped, and the phone fell off as soon as it was picked up, and Hangzhou Telecom definitely had no problem.

Of course, such a conversation was unpleasant, and one professor ridiculed that among us are computer experts, automatic control experts, and communication system experts, why didn't the students give the answers they taught?

Tariff adjustments and ringing news were all buzzing for a while, but in the end, they were over. In the end, the price loosening of telecom companies will depend on market competition.

In order to support the declining railway transportation sector, the State Council approved the establishment of the China Railway Communication and Information Co., Ltd. by the Ministry of Railways, and authorized it to carry out fixed-line telecommunications services.

As soon as Tietong was established, the first move to open the door was to announce that the initial installation fee of the telephone was 600 yuan.

Over the past few years. The initial telephone installation fee has always been the most stable and lucrative part of the telecom company's profits, and after years of appeals from consumers, the fee has been reduced from 5,500 yuan to 1,250 yuan, but it will not go down again.

This time, Tietong rushed in, and the strategy naturally had to be adjusted, and China Telecom reacted quickly and announced the cancellation of the initial installation fee. Tietong's attempt to snatch a big deal from the bowl of monopoly failed, but it unexpectedly gave benefits to consumers all over China.

"The monopoly industry will eventually be defeated, and uncompetitive enterprises will eventually go bankrupt, just like the domestic telecommunications industry, if there is no monopoly, there will definitely be no competition with private enterprises." Wang Xuyun said.

The main direction of the PCFANS club is the IT industry, including computer software and hardware, as well as some communication products, so Wang Xuyun is very familiar with the situation in this area, especially for the situation of the domestic telecommunications industry.

In the past, there have been many computer network failures due to the telecommunications department, and when encountering this kind of problem, users always have to call the computer vendor and ask what is going on?

"We didn't take the blame for them." Wang Xuyun said helplessly, "In the places where our optical fiber network is not covered, most users are still using dial-up Internet access, so when they encounter trouble, when they call the telecommunications department to ask for a solution, they always put the responsibility on us for the first time, saying that it is a computer failure that causes the inability to access the Internet, in fact, there are ten ** are their network faults." ”

Everyone nodded, in fact, the scourge of monopoly is very great, it seems that the government has made money from it, but this kind of money is not caused by the competitiveness of the industry, but in exchange for sacrificing the interests of ordinary consumers, that is, ordinary people, which is very sad.

From housing, medical care and education to communication and telecommunications, the common people all scold their mothers and say that they are too expensive, which is the lack of supply and the price is too high, so it shows that the demand is very strong, why do you not see capital coming in. It's because the government won't let you in.

In the face of an uncertain future, the people dare not spend money, and capital does not dare to invest casually, so is it effective for the government to spend money for the people? It works, but it's temporary.

In this regard, Fan believes that the reason why China's economy was able to come out of the shadow of the financial turmoil in 1998 was mainly due to the housing reform that triggered real estate investment, and the other was that the expectation of joining the TO triggered the expansion of external demand.

However, if we want to solve this problem completely, we can only break the industry regulation and allow private capital to enter the fields of medical care, education, communications, railways, culture, entertainment, and even finance.

"In fact, looking back on China's economic growth since the reform and opening up, the driving force behind it is the institutional reform that breaks the monopoly of the industry, and makes the full flow of various factors of production such as people, finance, and materials in various sectors, and finally has today's achievements." Fan Wuxian said to everyone, "But since the beginning of this year, the signs we have observed are not that the industry is becoming more and more open, but that the industry access threshold is getting higher and higher." Many industries are not the advance of the people and the retreat of the country, but the advance of the country and the retreat of the people. For example, in some industries such as iron and steel, in order to pursue the so-called concentration, they do not hesitate to rely on administrative means to suppress private capital, and rely on the administrative methods of pulling and matching to carry out enterprise combinations. Major ministries and commissions are also willing to engage in so-called industrial combinations and intervene in the market in the name of industrial upgrading. The efficiency of resource allocation in the economic system has actually regressed. ”

Seeing that everyone was listening very seriously, Fan Wuxian said in an aggravated tone, "If we don't open the industry entry threshold, don't speed up the pace of market-oriented reform, and don't break the government's monopoly in the industry, China's economy will have no future!" However, these changes, there are too many people who have been offended, it is better to burn money to stimulate the economy first, it is more convenient, anyway, now we have a high savings rate, there is money to burn, and system reform is a long-term thing, and in this long-term, we have already died! ”

Everyone immediately burst into laughter, and said that what Mr. Fan said certainly sounded very reasonable, but the ability to be alarmist is also first-class, and the ability to demagogue is even higher, if you want to be a cult leader, it is estimated that it will be more difficult to deal with than a sect leader who circles and circles, as for Japan's Asahara Sapporo or something, it is scum.

In fact, Fan believes that monopoly in economics is only an option in property management, which is not the same as monopoly in politics, that is, the use of violent political means to eliminate competitors.

In the absence of administrative intervention, monopoly is only a choice of property management, not necessarily a good choice, not necessarily a bad choice, that is, a legal choice, for example, Microsoft's monopoly, is completely a choice of the market, in fact, there is no second company to compete with.

The monopoly under administrative intervention, like the monopoly of the domestic telecommunications or aviation industry, is actually to use the cost of administrative input to supply consumers with high-quality products or services, and this administrative cost is still borne by the taxpayers themselves, which is ideal for those who have privileges and property rights.

In other words, although the current monopoly can make state-owned enterprises survive, it harms the interests of the whole people.

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