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Chapter 3351

~7 min read 1,302 words

Fang Zhonglin was a man from Jiangnan, not tall, slightly fat, often with a smile on his face, looking approachable.

However, Su Xinghui knew that Fang Zhonglin was a very pragmatic leader, and sometimes very serious. He had heard several times that leaders of relevant functional departments who reported work to him had been scolded by him until they could not get off the stage.

Of course, today Fang Zhonglin did not show a serious side in front of Su Xinghui. As soon as Su Xinghui arrived, he smiled and asked Su Xinghui to sit down, and Gong Jian made a cup of tea for Su Xinghui.

It was the first time Fang Zhonglin summoned Su Xinghui alone. He looked at Su Xinghui, and after a moment, he nodded and said, "Comrade Xinghui, you are indeed young and promising! Compared with you, we are all old men."

Su Xinghui smiled and said, "Governor, you are not old, you are in your prime."

Fang Zhonglin was in his fifties, which was considered an old man compared to Su Xinghui, but for a provincial-level cadre, he was indeed in his prime.

Fang Zhonglin laughed after hearing this and said, "Comrade Xinghui, this is our first time meeting alone, but I have been in office for less than a year, and my ears have been calloused from hearing your name."

Su Xinghui said, "Then it is a disgrace to your ears."

Fang Zhonglin said, "Where, where? What I heard are all good news about you and Baozhou, which makes me feel comfortable, so I still have to thank you."

Su Xinghui said, "Governor, you overstate it!"

Fang Zhonglin said, "By the way, Comrade Xinghui, I heard that you set up a Nanchang River Basin Economic Cooperation Zone, right?"

Su Xinghui nodded and said, "There is indeed such an economic cooperation zone."

Fang Zhonglin said, "Your proposal is very good. I see that the economic growth rate of the cities in your economic cooperation zone is higher than the provincial average. How do you cooperate economically? Can you tell me about it?"

Su Xinghui then understood the meaning of Fang Zhonglin looking for him today. It turned out that he was interested in this economic cooperation zone. However, this was also a normal thing. Baozhou and Xihe, the two cities with the top two economic growth rates in the province, were both in this economic cooperation zone, and the economic growth rate of other cities in the economic cooperation zone was also higher than the provincial average. It would be strange if he was not interested.

Su Xinghui then told Fang Zhonglin how this economic cooperation zone operated specifically, what kind of cooperation projects these cities had, and what kind of cooperation methods they had. Fang Zhonglin listened with great interest and nodded from time to time.

The economic cooperation method of the Nanchang River Basin Economic Cooperation Zone was mainly that each city carried out division of labor and cooperation with each other and carried out industrial complementarity, so that their economic ties could be closer and promote each other. In this way, their economic growth rate naturally accelerated.

This method was a bit like a planned economy, and Fang Zhonglin also raised this question.

Su Xinghui said that this method was indeed a bit like a planned economy, but it was also a planned economy under market guidance. The role of the government was to carry out macro industrial layout guidance and did not directly interfere with the specific operation and management of enterprises.

The benefit of doing this was to avoid blind repeated investment and to realize industrial complementarity in such an area, realizing a good situation where industries between cities complemented each other.

Fang Zhonglin of course knew that there were quite a few examples of excessive investment and repeated investment in various places in recent years. This was because investment had no plan, and investment projects were launched in a swarm. If an industry looked good, all regions would invest in this project, and suddenly the production capacity was oversupplied.

Fang Zhonglin once had such a lesson. When he was the mayor of a city, there was a medium-density fiberboard product that had a very good prospect. There were only a few production lines in the country, and the price was very considerable. Therefore, their city was preparing to launch this project.

At that time, they had done cost accounting, and the profit of each cubic meter of medium-density fiberboard could reach two or three thousand yuan. The total investment could be recovered within two years of production. Therefore, Fang Zhonglin made the final decision to agree to launch this project.

At that time, in order to prepare for the construction of this factory, Fang Zhonglin personally went to the ministry to run down the approval, and applied for a foreign currency loan of tens of millions of dollars from the Bank of China, and introduced production equipment from abroad.

In order to install the equipment, the medium-density fiberboard factory also invited a batch of technicians from abroad at the cost of tens of thousands of dollars per month. However, who knew that when the medium-density fiberboard factory was about to be built and put into production, the market price of medium-density fiberboard fell by two or three thousand yuan per cubic meter.

This meant that for every cubic meter of medium-density fiberboard produced, not only was there no profit, but it had to lose two or three hundred, which made the newly built medium-density fiberboard factory suddenly fall into an awkward situation.

And what was the reason for this situation? This was because in the two years that their medium-density fiberboard factory was being prepared, more than 100 production lines of the same type were launched in the country, and the production capacity was suddenly oversupplied.

Everyone saw that the prospect of this product was very good, so they all wanted to launch this project. The feasibility report of the project was also very exciting. However, when their project was launched, the production capacity was not oversupplied?

At that time, that kind of production line could not be manufactured in China and could only be imported. More than 100 production lines were launched in the country at the same time. I don't know how much hard-earned foreign exchange was wasted.

That was still the nineties. How difficult was it for China to earn some foreign exchange? A shirt or bed sheet of a few dollars exported abroad, it would take hundreds of millions or even billions of pieces to earn back this precious foreign exchange, but it was all wasted.

What a painful lesson this was! Fang Zhonglin remembered this lesson for a lifetime. In his later governing experience, he had always been very cautious about such things.

Now hearing Su Xinghui's words, Fang Zhonglin nodded with deep feeling and said, "Yes, the problem of repeated investment is indeed quite serious now, and it is quite serious in the whole country. It is not easy for you to solve this problem. It seems that your experience is worth promoting!"

Su Xinghui said, "Governor, adjacent areas with similar natural conditions in all aspects can indeed implement closer economic cooperation and become an economic cooperation zone like the cities in our Nanchang River Basin. This must be a good promotion for their economic development, even if it is an area in a different province, such cooperation can be carried out."

Fang Zhonglin nodded slowly and said, "Your experience is indeed worth promoting. If the cities in our province can cooperate with each other like your Nanchang River Basin Economic Cooperation Zone instead of tearing each other down, then the economic development of our Yanbei Province will definitely have a more beautiful prospect."

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End of Chapter

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