Chapter 395: Magnificent
After Qingming Festival, the earth warms up.

The spring rain has stopped, but the spring breeze, the spring spirit, and the spring tide of reform are surging across the land of southern Hunan.

On the Monday after Qingming Festival, the front page headline of the Xiangnan Daily published the news that Hu Xianxun visited Yunxi Village.

At the same time, a magnificent article appeared on the second page of the largest newspaper in the Shonan region, and appeared in the streets and alleys of various areas in Shonan along with the morning sunlight.

While the news of Hu Xianxun's inspection of Yunxi Village and the article attracted attention throughout the province, in Jiangchuan City, no one knew how many people fell into endless despair because of it.

The title of the article is: "The Concept of Public Enterprise System Reform and Rural Land System Reform in the Context of China's Urban-Rural Integration Development."

The article is signed by: Zhang Yunqi, Chairman of Liansheng Group.

At the beginning of the article, Zhang Yunqi wrote: "It is recorded in Lüshi Chunqiu: 'Nowadays, when there are many lands, the public works are slow, because there is something to hide their efforts; when the land is divided, it is fast, because there is nothing to hide and delay.' Two thousand three hundred years ago, our ancestors pointed out a simple truth. Under the well-field system, farmers were not enthusiastic about cultivating public land, but after abolishing the well-field system and implementing the system of taxing per mu, farmers' enthusiasm for production was significantly improved.

In the process of reform and opening up that China has been carrying out since 1978, and in the process of democratization and legalization, in order to liberate productivity, we have called for "state retreat and private advancement", the establishment and expansion of private property rights, and the integration of urban and rural economic and social development. Promoting the reform of the property rights system of public enterprises and the reform of the rural collective land system, revitalizing state-owned industrial land and rural cultivated land, optimizing the allocation of urban and rural resources, accelerating the two-way flow of urban and rural factor resources, and breaking the urban-rural dual structure are the core ways to achieve this goal. "

Based on this general point, Zhang Yunqi pointed out: "From the perspective of promoting the integrated development of urban and rural areas, as far as the reform of the property rights system of public enterprises is concerned, we must admit that the current reform of the property rights system of public enterprises in China is basically expanding in the process of competition in the domestic market. Not only does it not have a ready-made theoretical framework and successful experience as a reference, it even lacks a clear and operational program, policy or legal basis. However, under the big policy background and the screening pressure of market competition, there are always some effective methods that deserve attention."

"Just last year, my country introduced the tax-sharing reform. This is of epoch-making significance and is very important for ensuring the implementation of reform and opening up. However, we cannot ignore the drawbacks of the tax-sharing system because it has brought about the problem of mismatch between local financial power and administrative power. In order to improve people's livelihood and promote infrastructure construction, local governments need to open up a second fiscal source, that is, land finance. The establishment of land finance requires the effective activation of the core assets of the city - industrial land owned by state-owned enterprises. This is the true connotation of the 'Jiangchuan' model."

Zhang Yunqi did not shy away from the "Jiangchuan Model" that has been pushed to the forefront recently. In his article, he pointed out: "In Professor Hu Haobo's article, the core of his several arguments is that the 'Jiangchuan Model' is contrary to 'state retreat and private advancement'. He believes that the reform of China's state-owned enterprises should basically follow the idea of ​​'state retreat and private advancement', which is in line with the property rights system reform in the sense of modern economics. However, I always believe that in terms of our country's national conditions, the state can retreat, but it cannot retreat completely, or even greatly. China is a country where the people are the masters of the country. Industries involving the economic lifeline must be firmly controlled in the hands of state-owned enterprises. Therefore, a reform idea that can be used as a reference is to 'grasp the big and let go of the small', letting go of the small and firmly grasp the big."

The reform idea of ​​"grasping the big and letting go of the small" for state-owned enterprises was not proposed until two years later, in 1997. Zhang Yunqi directly gave the specific implementation path: "In terms of the implementation of the 'grasping the big' strategy, there are four paths for reference: first, directly transforming into a joint-stock company with diversified holding entities; second, transforming into a wholly state-owned company, and then using the wholly state-owned company as the investment entity to transform the production entity into a limited liability company or a joint-stock company with diversified investment entities; third, transforming from the original industry supervisory department into a pure holding-type wholly state-owned company; fourth, carrying out structural adjustments and implementing asset restructuring in accordance with the principle of reorganization first and then reform."

"In terms of the implementation of the 'small-scale' strategy, it is mainly driven by local governments and platform companies. The reform of 'small-scale' can be taken in a bigger step. The method is mainly to rely on platform companies such as Jiangchuan State Investment Corporation to target state-owned small and medium-sized enterprises below, and through various reform forms such as bankruptcy, auction, leasing, contracting and shareholding cooperative system, to achieve the 'privatization' of state-owned property rights in a short period of time.

The core of the SOE reform has always been the issue of incentive mechanism. The reform of "letting small" can transfer the offset state-owned assets to private enterprises that can establish a good incentive mechanism to operate, thereby turning losses into profits for state-owned SMEs, solving debt problems, freeing up industrial land for platform companies, and laying the foundation for building land finance, which has great economic rationality.

In this regard, we can refer to the 46 canning factories entrusted and contracted by Jiangchuan State Investment and Liansheng Group. The project freed up 28 industrial land and old factory areas for the city's state investment. Based on these industrial land and old factory areas, the city's state investment can convert them into commercial and residential land through bidding and auction to develop commercial real estate and real estate industries, attract investment to build key manufacturing industries, and use industrial land and old factory areas to develop professional markets for efficient activation, thereby enriching the fiscal revenue, promoting large-scale infrastructure construction, serving citizens, optimizing the business environment, and developing the industrial economy. "

Having written this, Zhang Yunqi has basically finished explaining what he believes are the problems facing the current reform of state-owned enterprises and the core essence of the "Jiangchuan" model.

Then, he changed his tone and pointed directly to the profound problems in China's current agricultural and rural development.

Zhang Yunqi pointed out in the article: "Rural collective land system reform has always been the forerunner of my country's reform and opening up and the main content throughout the entire process. my country needs to break the highly centralized planned economic system and the solidified urban-rural division of labor. In the late 70s, the basic management system of farmland under family contract management was established, which effectively liberated the labor force and ushered in the recovery of the small peasant economy. However, with the acceleration of the reform and opening up process, a large number of young and strong rural laborers rushed to the city to work, and the small peasant economy with fragmented farmland was unsustainable. Urban and rural factors flowed in one direction, and the urban-rural dual structure intensified. Traditional rural China is facing a structural dilemma!"

At this point, Zhang Yunqi pointed out from three deeper perspectives the core problems facing the "three rural issues" under the current urban-rural dual structure:

First, we should think about the land system from the perspective of the relationship between industry and agriculture: in the planned economy era, agriculture and industry have always been in a complementary position. Land itself has the dual functions of ensuring survival and construction. Before the establishment of China's modern industrial infrastructure system, a large number of agricultural population made great sacrifices for industrial construction. Second, from the perspective of historical justice, agriculture is the "creditor" of industry. There is reason to demand that after the initial establishment of the modern industrial system, a certain amount of institutional dividend compensation should be made to the vast rural areas, providing more industrial employment opportunities for farmers and reverse industrial resource delivery for agricultural construction. The problem is that market-oriented reforms follow the logic of capital proliferation that is biased towards cities, causing a large number of industrial resources and production factors to gather in cities. Rural areas and agriculture have lost the explicit or implicit distribution and allocation relationship with state-owned industrial resources, leaving only market transaction relationships. Due to the restrictions of the household registration system and the land system, self-employed farmers have lost the same social welfare security opportunities as urban citizens. The organic connection between rural development and urban development has been cut off, and urban-rural contradictions have gradually become prominent.

Third, from the perspective of historical logic, the urban-rural dual division left over from the planned economy era should have been broken and reversed as soon as possible through institutional design. However, due to institutional ruptures, market rules have gradually begun to play a decisive role in the land system and agricultural production, and the liberal market logic has instead further strengthened the urban-rural dual structure!
In response to these three issues, Zhang Yunqi pointed out without any ambiguity: "In recent years, the great reform and opening up has promoted the great strides of social and economic development, but the peasant group should not be quickly submerged by the huge waves of history. Over-emphasis on marketization and super-strong industrial strength has the hidden danger of commodity accumulation. How to effectively break the urban-rural dual structure will determine the consumption capacity and food security capacity of my country's rural reservoir in the next 30 years."

Zhang Yunqi wrote: "Here, there is a 'Yunxi experience' that can be used as a reference, which is to promote the reform of the 'three-rights separation' of rural collective land, establish a rural property rights transfer and transaction platform, promote the two-way flow of urban and rural factors, strengthen the collective economy, develop modern agriculture, and promote farmers' income growth."

Zhang Yunqi wrote: "At present, market-oriented economic reforms are constantly advancing. Future external market conditions determine that 'agricultural production' must be upgraded to the level of 'agricultural management', and capital must be introduced to transform the traditional small-scale agricultural production model into a modern large-scale agricultural production model. Whether it is urban capital going to the countryside or the original agricultural producers making large-scale investments through capital aggregation, it means accelerating the circulation and concentration of land resources. Larger-scale land use and development will become an inevitable trend in my country's agricultural development!"

Zhang Yunqi wrote: "In reality, farmers' land management rights can be transferred through leasing and other means. However, in the existing rural land policy system, the identities of these agricultural operators are awkward. How do they obtain management rights? What powers do they have? How do they get legal protection? There is a lack of clear definition! There is also a lack of sufficient space to assert their rights!"

Zhang Yunqi wrote: "In view of the gradually accelerating separation of land ownership, in order to protect and confirm the rights and interests of actual land operators, promote the free flow of urban and rural factors, strengthen the collective economy, and develop modern agricultural industries, we should consider promoting the reform of the 'three-rights separation' of rural collective land, confirm the rights of farmers who have land contracting and management rights, split rural land contracting and management rights into contracting rights and management rights, and allow the transfer of agricultural land management rights, thereby empowering and issuing certificates to business entities, fully protecting the rights and interests of business entities, and clarifying the property rights attributes of the land being operated, and superimposing financial attributes to obtain market liquidity. This is crucial for rural resource elements to rely on rural property rights trading centers and other urban and rural factor docking platforms, allowing farmers to work in cities while introducing funds, technology, and talents to the countryside, forming a free flow of urban and rural factors, and breaking the urban-rural dual structure."

Zhang Yunqi continued: "Of course, whether it is promoting the reform of the 'three-rights separation' of rural collective land or building rural property rights trading centers and other urban-rural factor docking platforms, the core purpose is to rely on farmland, strengthen village collective economic organizations such as village-run cooperatives, vigorously promote the construction of village-run enterprises, develop village collective economy, and develop intensive, large-scale, and modern agricultural industries."

Zhang Yunqi wrote: "In a sense, the so-called village-run enterprises are the rural version of Jiangchuan City's state-owned investment. Of course, there can be many variations that are adapted to local conditions, such as Huafeng Agricultural Company in Yunxi Village. This village-run company is wholly owned by Yunxi Village Cooperative, which is jointly owned by Liansheng Group and all Yunxi villagers. Why introduce Liansheng Group? Because the farmers in Yunxi Village only have land, no funds, no technology, no agricultural raw material processing and sales channels, Liansheng Group can solve these problems. This is the true connotation of rural land reform that relies on the reform of the 'three-rights separation' of rural collective land, attracting urban funds, talents, technology and other production factors to the countryside, liberating farmers to work in cities, promoting the two-way flow of various urban and rural factors, and breaking the urban-rural dual structure!"

Zhang Yunqi wrote at the end: "From the evolution of my country's land system, it is obvious that the land system in different historical periods more or less reflects the will of the top level and is related to the characteristics of social and economic forms. Accelerating the promotion of urban-rural integration and carrying out land system reform in the new era is not only to respond to the interests of current workers and farmers and meet the urgent needs of reality, but also to focus on resolving the contradictions of the gradually intensified urban-rural dual structure, thereby activating China's future economic development potential. The so-called "Jiangchuan Model" and "Yunxi Experience", one focuses on the revitalization of industrial land, replenishing finances, promoting large-scale infrastructure construction, and developing industrial industries; the other focuses on the revitalization of rural cultivated land, relieving farmers' worries about moving to cities, and revitalizing the agricultural industry, thus forming a new pattern of urban-rural integrated development."

At the end of the article, Zhang Yunqi wrote a heartfelt closing statement: "As a young man with little experience, I have been able to feel the impact of market reforms on this society and myself in all aspects during these years of running a business. Of course, I have also experienced many setbacks, but no matter what, when writing this article, I always firmly believe that China's reform and opening-up movement since 1978 will be the most successful economic reform movement in human history after World War II. I can also find a lot of detailed data to support my belief, but I don't need to, because my belief is a simple belief, which comes from Sima Qian, Du Fu, Su Shi, Lu Xun, from a big river with wide waves, and from admiration for the hard work of the Chinese people!
I was born in a poor family, and for many years, I struggled on the edge of survival; for many years, I went to school and did small business at the same time. Later, I made some money and my life became better, but I never had any grand blueprint. If I write this article at this moment, if I have any intention or want to do anything, it is to make the people around me live a better life. This is more grand than most. "

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PS:

This chapter is written very capriciously.

I know no one likes to read this, it's as dry as a turtle chanting sutras, but I still wrote it. But if there are readers who really read it seriously, I will still be very happy. After all, these are all written by me to the leaders of xx unit (you can think of it in a bigger way). You are the readers who are older than the leaders!

Why write like this?

From the author's perspective: Because this is what I do, I write about this every day, but my writing is also very messy, and I have never systematically summarized my underlying logic, so I want to write about some of the logic of land operation in my mind (so the results are poor, it doesn't cater to readers, and this is such a tragic ending. I accept it, it's fate.)
In addition, due to time constraints, the writing is not so perfect, it is very rough, and many things are not clear. Usually, when I write this for my boss, it takes at least a week to think about it and write. I will revise it when I have time.

From the perspective of this book: Zhang Yunqi is about to graduate from the college entrance examination and leave Jiangchuan City. This is a summary of what he has done in Jiangchuan. He has not been in vain in Jiangchuan these years, and he has indeed done something. After writing this volume, I may not cover this aspect in such detail in the future.

Take it easy and live your daily life.

(End of this chapter)