Section 8: Backward

"What did you say?" Although he was mentally prepared, Fu Quan was still surprised when he heard Zhao Guodong's suggestion. "Local governments do not intervene in the integration strategy, but are only responsible for coordination?"

"Yes, Director Fu, I considered this way. The steel industry involves too many interests and local governments have their difficulties. We also understand this point. However, now we need to establish a socialist market economic system and let the market economy rules speak. Even if administrative means take effect for a while, they will have to pay a greater price in the end. I tend to use enterprises with good efficiency, large scale, flexible and efficient mechanisms, and good ore sources as the integration body. *** The steel industry conducts strategic integration across regions and cross-ownership to completely break the boundaries of administrative regions. The central government can invite professional evaluation agencies to evaluate from several aspects such as economic security, merger benefits, and development prospects based on the strategic integration plan proposed by the enterprise to determine whether it is in line with the integration strategy. This means that I think it is more scientific."

Zhao Guodong's proposal of this opinion was also thoughtful for a long time. He also spent the most effort on the integration of the steel industry. Among them, he had held several rounds of discussions with the leaders of governments and enterprises in Jizhong and Qilu provinces, and his thoughts had been almost done. Especially when the central government revealed the idea of ​​throwing away the boundaries of administrative areas, Qilu had already realized that if he no longer made a decision on this issue, he would not only fall into a passive position, but also very likely would have an impact on the steel industry in Qilu Province.

"What does your coordination mean?" Fu Quan slowly calmed down and carefully pondered the meaning of Zhao Guodong's words.

"First, assume administrative responsibilities, resolutely reduce the blast furnace and clarify responsibilities. This is not vague. I believe that after realizing the determination of the central government's attitude towards integration and regulation in this round, local governments should make a decision." Zhao Guodong's speech was also loud and clear. "Second, coordinate financial institutions in administrative regions to provide financial support for industrial integration enterprises mergers. No matter who integrates whom, it is the same for the government. You must understand the truth that the palms and backs of hands are flesh. Don't be obsessed with ownership issues, and actively and steadily do a good job in the pain that may be caused by corporate mergers and integration."

"So what is the main responsibility of the committee?" Fu Quan said in a deep voice.

"Policy guidance also includes coordinating financial department support, providing industrial policy guidance to integrated enterprises, and helping local governments solve the problems that integrated enterprises may face, including technology, funds, policies, and personnel layoffs." Zhao Guodong replied quickly, obviously he was mentally prepared.

"Guodong, it seems that you have put a lot of effort into this issue. You may have already known the pilot preparations for the two provinces of Jizhong and Qilu, so just wait for the central government to make up their minds?" Fu Quan nodded.

"To be honest, since I arrived in the Commission, this matter has been my main job. In addition to daily work, most of my energy has been focused on this work. Local government leaders, heads of state-owned private steel enterprises and workers' representatives, economic personnel and experts and scholars in the industry, including comrades from the Policy Research Center of the State Council and the Research Institute of the Commission, and even relevant industries such as transportation, energy and steel industries upstream and downstream industries, I have invited them to hold discussions in different categories, and have twenty or thirty meetings, and I have recorded four or five minutes of the symposium, in order to understand the impact of industrial integration more carefully and reduce the fluctuations as much as possible."

Fu Quan was quite satisfied with Zhao Guodong's words. At least Zhao Guodong had already turned his back on this issue and had a somewhat impatient mentality. He held discussions and coordinated various aspects of work more steadily to make industrial integration smooth and smooth.

"Just be clear about it. Jizhong, Qilu, Liaodong, and Jinggang moved out of Beijing include the main steel production capacity in northern my country. This time the central government proposed that there will be no restrictions. As long as the industrial structure is optimized and the industrial scale is strengthened nationwide, it can be tried. Local governments can make connections, but they will never make a spoil!" Fu Quan said firmly: "This principle is certain, you can decide according to this principle."

CCTV News 30 and People's Daily published special issues of the State Council promoting the integration of the national steel industry in the past two days. CCTV focused on reporting on the development status of the domestic steel industry after the reform and opening up, while People's Daily focused on analyzing the challenges faced by the international and domestic steel industry, especially the adverse factors brought about by the dispersion of the domestic steel industry under the soaring iron ore prices. The significance and purpose of the country in promoting steel integration.

Hong Huangui patted the newspaper in his hand and said to Ren Weifeng with a wry smile: "Ren***, it seems that the central government has made up its mind. The offensive after wave after wave. If our province does not move anymore, we are afraid that we will not be able to pass the test."

"Lao Hong, isn't it said that our local government is only responsible for coordination? Enterprises can negotiate mergers independently." Ren Weifeng said casually as he looked at the documents in his hand: "The market economy is determined by market rules. I think this is also a good thing. Our province is only responsible for coordinating and compressing the shutdown of small blast furnaces, which can save us so much worry. Lao Hong, don't you?"

"Hehe, Ren***, you said it lightly. We cannot compare with Jizhong. The situation has become clear. Jinggang and Tanggang have been around for a long time. Baosteel and Handan Steel have long fought with their relatives. Even without the central government's promotion, I guess the merger of Jinggang and Tanggang, Baosteel and Handan Steel will be a matter of time sooner or later. The provincial government of Jizhong wants to force the province to reconcile steel enterprises together. Jinggang and Baosteel have to sue you for the case of Jizhong, saying that local protectionism is prevalent and administrative intervention in corporate decision-making, not to mention that the central government is now clear that local governments do not allow local governments to intervene in corporate mergers. Zhao Guodong is eyeing him. As far as I know, the two leaders of Jizhong also slapped the table and slapped the bench on the issue of integration. Hehe, a newborn calf is not afraid of tigers. Ren***, your old subordinate is not simple!"

Hong Huangui sighed, "If Jinggang, Bengang or Baosteel reached out to our Qilu steel companies, what should we do? If intervention is not allowed, isn't it Ren Yu Ren Cai? Who can't Chengzhang and Governor Guanglan have to peel my skin alive?"

Ren Weifeng put down the documents in his hand and thought for a while.

The province also had a fierce debate. Hong Huangui and Li Boming used to firmly support Qilu Steel's merger with Jugang to form a leader and then consider integrating other steel enterprises in the province to form a provincial steel group. However, Jugang firmly opposed it and even responded to the Development and Reform Commission, believing that Jugang is better than Qilu Steel in terms of benefits, transportation, iron ore channel resources and product structure. He believed that Jugang's merger with Qilu Steel was in line with the laws of the market economy. Moreover, the central integration plan also clearly stated that ownership was not used as a condition for the highest level, which was quite evident, which made the province very embarrassed.

When exchanging opinions, Zhao Guodong and Hong Huangui also clearly stated that the purpose of the central government to integrate the steel industry is to form industrial advantages. It is not as simple as welding a small sampan into a large ship. It is better to not integrate but not integrate but not strong. It may even cause greater problems. The prerequisite for integration is to use advantages and to make the advantages of the integrated enterprises complement each other and form all-round advantages of production scale, management mechanism, production and sales channels, product structure and raw material channels. This is the fundamental purpose.

Of course, Hong Huangui understood the central government's policy spirit thoroughly, but he always felt uncomfortable if he wanted Jugang to acquire Qilu Steel. Moreover, Jiyang Steel and Laishan Steel, the leader in Qilu Steel, have also achieved initial alliance and have surpassed Jugang in scale.

However, in his exchanges with him, Zhao Guodong pointed out quite sharply that Qilu Steel is now just a nominal alliance, and not only does not serve the purpose of alliance, but instead restricts their respective developments. This situation is unacceptable.

Hong Huangui also admitted that what Zhao Guodong said was true, but Jugang's merger of Qilu Steel was a bit like a snake swallowing an elephant. Since the central policy clearly proposed not to use ownership issues as an merger, it can be regarded as a solution to this system problem, so can it be eaten? After the merger, Jugang and Qilu Steel's system running-in can achieve the effect of one plus one greater than two, and how to solve the identity of Qilu Steel employees, these are all real problems before us.

However, the slow pace of Qilu has attracted the covetousness of some other domestic steel giants. In addition, the clearer central policies have also made the Qilu Provincial Government feel pressure. Hong Huangui also realized that it is time to make up his mind at present, otherwise it would be unpleasant for him.

Hong Huangui glanced at Ren Weifeng who was holding the pen and pondering, wanting to see the real thoughts of the provincial party committee deputy who has increasingly clear status.

Logically speaking, he did not need to communicate more with Ren Weifeng on this issue, but Daocheng *** told him to exchange more opinions with Ren Weifeng. The meaning of the words was also very obvious. After the reversal of the year, Daocheng *** was about to reach his age. Retirement was just waiting for the central government to approve it. Zhang Guanglan wanted to succeed the provincial party committee, and Ren Weifeng might be the acting governor. In the future, Ren Weifeng and himself would be a partner in the government work.
Chapter completed!