Material Empire

"This is exactly where we hesitate." Wang Hongsheng said, pointing to the tea that the secretary just poured out, and said to Qin Hai with a smile: "Let's drink tea first, let's talk while drinking tea. I mainly want to hear Let me hear your opinion on the matter."

Affected by the long-term planned economy, China's product price system is seriously distorted. Since the reform, the country has gradually liberalized the prices of light industrial products, but has not dared to touch the prices of heavy industrial products that are related to the national economy and people's livelihood. Heavy industry is the upstream of light industry. Once the price of heavy industry products rises, it will drive the price of downstream light industry products to rise, which will affect the lives of ordinary people. In addition, once the prices of raw materials such as steel and cement get out of control, the construction of national key projects will face the threat of insufficient budget, which is also unbearable for the country.

Despite so many concerns, it is still necessary to straighten out the price system. If the prices of heavy industry products are not adjusted for a long time, the development of heavy industry will be affected, which will eventually drag down the development speed of the entire country. It is precisely because of this that the State Planning Commission has been planning a plan to liberalize the prices of heavy industry products. At this time, the entire price reform is already on the verge of launching and will start at any time.

Wang Hongsheng is well aware of the risks of starting the price reform of heavy industry products, and has been looking for ways to avoid risks. During this period of time, he had contacts with officials in many places to discuss the tolerance of various places for price fluctuations. When he came to Anhe this time, he and Chapeide also talked about this issue, but they only got a reluctant answer. However, Chai Peide suggested that Wang Hongsheng listen to Qin Hai's opinion. Although in the eyes of officials at their level, Qin Hai is just a private entrepreneur, Chai Peide believes that Qin Hai is a person with a lot of insight and may be able to Give Wang Hongsheng some alternative enlightenment.

As early as the last time Qin Hai went to Wang Hongsheng's house for a family dinner, Wang Hongsheng admired Qin Hai's vision. After hearing Chai Peide's recommendation, he decided to have an interview with Qin Hai on the issue of price reform, and to hear what this quick-thinking young man had to say.

Qin Hai picked up the small Gongfu teacup, admired the green tea in the cup, drank it in one gulp, praised "good tea", thanked Wang Hongsheng's secretary, and then returned to the topic, saying:

"Director Wang, I think price fluctuations are nothing more than an imbalance between supply and demand. Now the supply of means of production is planned and marketed in parallel. If we want to let go of the planned price, it will actually push the means of production within the plan to the market. Units that could not purchase these means of production due to planning constraints, are now eligible to purchase, and the market demand will increase significantly, thus creating a certain contradiction between supply and demand. Do you think this is the case?"

Wang Hongsheng nodded and said, "Exactly."

Qin Hai continued: "If the market supply of a product is insufficient, only those with the highest price can get it. This is why the market price rises. To avoid serious price rises, the country needs to plan ahead and prepare enough supplies in advance. Materials, so that when supply and demand are out of balance, they can be sold to stabilize prices. I think Director Wang and the researchers of the Planning Commission must understand this truth."

Wang Hongsheng said: "The truth is correct, but it is not an easy task for the country to prepare enough supplies. How much supplies do you think is enough?"

"I don't have such a concept. Director Wang should know this better than me, right?" Qin Hai said frankly. He is just a material expert, not an economist, so how can he calculate how big the national material gap will be.

Wang Hongsheng also knew that Qin Hai could not answer his own question. He said, "We have organized no less than ten expert seminars on this issue. The opinions of the experts are also very different. Some people think that the country does not need to prepare any materials. It’s going to go up, it’s good to go up to a certain level.”

"Hehe, this kind of view is not new." Qin Hai commented in a somewhat mocking tone.

"It's really not new. Western scholars call it shock therapy, and the Soviet Union is preparing to adopt such a policy." Wang Hongsheng said.

Qin Hai smiled and said: "The big brother of the Soviet Union is very conscious, and is always willing to give us a test field. Let's wait for the Soviets to finish the trial and see how it works before deciding whether we want to adopt such a policy. What do you think? What? According to my guess, within two years, the Soviet Union will tell us with bloody facts: this road is dead."

"You little Qin, you have too many wisecracks." Wang Hongsheng pointed Qin Hai helplessly and criticized. However, he agrees with Qin Hai's statement in his heart. As an old planning committee cadre, he knows that shock therapy is actually drinking poison to quench thirst, and it is impossible for China to try such a policy. Qin Hai is right, the Soviets are willing to be a test field, so let them try. When they hit the south wall, they knew that this road would not work.

"In any case, if prices fluctuate too much, the damage to the national economy will definitely be very significant. Many enterprises will be in trouble, and the lives of ordinary people will be seriously affected. I think our country will carry out price reforms. Price fluctuations to a certain extent can be tolerated, but there must be sufficient means to ensure that prices will not soar to a level that endangers the stability of the country, which is the bottom line that the country should have." Qin Hai put away his teasing face and said to Wang Hongsheng .

Wang Hongsheng said: "You are right. This is also the common opinion of several veteran comrades of our planning committee. The products that need to be built include coal, pig iron, steel, cement, copper, aluminum, caustic soda, soda ash, heavy oil, gasoline, etc. Taking steel as an example, we consider that we need to have at least 20 million tons of steel reserves in order to be able to not panic."

"20 million tons..." Qin Hai calculated silently in his heart, then nodded. At present, the country's annual steel output is about 70 million tons, and 20 million tons is equivalent to one-third of the output. If the State Planning Commission can hold such a large batch of reserves in its hands, it can stabilize the fluctuations by releasing materials when the market fluctuates, thereby reducing the risks brought about by price reforms.

However, 20 million tons of steel is not a small amount. Based on the ex-factory price of 950 yuan per ton of carbon structural billets, 20 million tons will occupy 19 billion yuan of working capital. What's more, there are many kinds of steel products, and the price of some steel products is much higher than that of carbon structural steel, so 20 million tons of steel products need to occupy at least more than 20 billion yuan.

Considering that steel is only one of the reserve products that Wang Hongsheng said, if other products are included, the state must spend at least 100 billion or more. Given the current state of the country's economy, the pressure to spend such a large amount of money is very high.

Looking at the change in Qin Hai's face, Wang Hongsheng knew that he had already understood the difficulty of this reserve system. He smiled and asked, "How about it, Xiao Qin, is it possible for your company to help the country share a little pressure?"

"Among the materials you just mentioned, our Daqin Group only produces cement and steel. Our Qujiang Cement Plant has limited output, which has no impact on the country's macro economy. In terms of steel, our current production capacity is 1 million tons, and we plan to expand in the future To 5 million tons. This capacity expansion plan was originally planned to be completed in five years. Now that the country has demand, we can consider speeding up the progress and complete the capacity expansion in two years. What do you think?" Qin Hai said. Since Wang Hongsheng had already asked him the question, there was no need for him to haggle any more, and he directly showed his trump card to Wang Hongsheng.

"Is it possible to complete capacity expansion within 2 years?" Wang Hongsheng asked.

Qin Haidao: "It's not difficult. We have obtained some equipment from the Soviet Union, and we have also contacted some second-hand equipment in Europe. We can purchase them at any time to form our production capacity. Of course, we may need some support from the state in this regard, such as foreign trade. rights, and the right to use foreign exchange.”

Wang Hongsheng replied bluntly: "If you make a report, within the range that the country can bear, we will deal with special matters for you and give you the green light."

"That would be great." Qin Hai said happily. It seems that it is beneficial to share the country's worries. The country's casual policy opening is enough to make up for his efforts.

"If you go all out, how much steel reserves can you provide to the Planning Commission before 1994?" Wang Hongsheng asked eagerly.

Qin Hai thought for a while and said: "Our working capital is also limited. It is basically unrealistic to build up reserves for the Planning Commission in the form of inventory. However, I can guarantee that by 1994, we will provide 10 million yuan at any time. What do you think of the emergency supply of more than tons?"

"10 million tons? What are you going to do?" Wang Hongsheng was a little surprised. He never thought that Qin Hai would dare to say such a thing. In his original plan, Qin Hai could provide one or two million tons of support, and he was already very satisfied. If Qin Hai can really provide 10 million tons, it will be a surprise for the planning committee. The planning committee can transfer the working capital originally planned to be used for steel reserves to accumulate other materials. Go live.

Qin Hai said something to Wang Hongsheng in a low voice, Wang Hongsheng nodded his head repeatedly, and his face showed joy. He could tell that Qin Hai's plan was indeed feasible, and if it worked properly, Qin Hai's promised 10 million tons of steel could be fully supplied, which would be a strong support for the upcoming price reform.

At the same time, he also thought that Qin Hai's approach could also be extended to other enterprises. The planning committee has hundreds of large state-owned enterprises in its hands. If these companies can also learn from Qin Hai's approach, even if they undertake fewer obligations, the pressure on the planning committee can be greatly reduced.

"Xiao Qin, this matter is very important. I hope you can do it well. Don't worry, the country will not forget the companies that have made contributions. At the right time in the future, the country will reward you." Wang Hongsheng looked at Qin Hai said meaningfully.