Folk Economist 052

  Lin Zhenhua stayed in Tanzhou for one night, and He Haifeng helped him open a room at the reception office and even paid the room fee. Lin Zhenhua didn't refuse either; what he gave to He Haifeng was worth several hundred yuan, so this eight-mao room fee wasn't anything, letting He Haifeng pay this eight mao would make him feel better in his heart.

  The small gift given to Mrs. He won the favor of the hostess, this set of Shiseido skincare products, on the Japanese market is worth tens of thousands of yen, even if converted to RMB at the list price, it would be several hundred yuan. Although Mr. He's family life was considered upper-middle class among people at that time, they also dared not to hope for such high-end skincare products and could only admire from afar.

  It's unclear whether it was because he felt uneasy after receiving the gift or if he was interested in Lin Zhenhua's miraculous creation, but the next day, He Haifeng unexpectedly took a leave of absence from work and accompanied Lin Zhenhua on a leisurely stroll around Tanzhou City. At noon, the two of them bought some takeout food and beer and sat down by the Tan River to eat and chat.

  Lin Zhenhua briefly told He Haifeng about the MK800 incident, but he naturally wouldn't reveal any secrets related to the Spieshel company. He Haifeng was also a clever person and basically understood 80-90% of what had happened, knowing that Lin Zhenhua had grasped the Spieshel company's weakness, which is why they had no choice but to pay a large sum of hush money.

  As for the benefits he gained personally in this process, Lin Zhenhua also simply told He Haifeng a few words. Of course, he greatly discounted the total amount of his gains and revealed an amount equivalent to what he had told his sister Xiaofang, about $2,000. Even so, He Haifeng was shocked.

  "Kobayashi, your ambition is indeed very grand, but have you thought about it? What if there's a change in policy, the wealth you've accumulated might bring you trouble." Hei Feng reminded.

  "Lao He, I think the country's policy can't be turned back. The door has been opened and everyone has seen the outside world. No one can deceive the people by saying that capitalist countries have people freezing to death on the streets. In fact, ordinary people in those countries live more luxuriously than you, a department head."

  He Haifeng nodded and said, "I'm very clear about this. Last year, I went to Japan and Europe with a delegation from the Provincial Economic Commission, and I felt deeply stimulated. In an ordinary worker's home, they have large color TVs, refrigerators, air conditioners, and many families even have cars. We're really far behind."

  "So our country cannot return to the old path, only by adhering to the open policy and increasing the intensity of reform can we achieve prosperity for the people and strength for the nation."

  "This road is still very long, Xiao Lin. You may have a chance to see the outcome, but I reckon there's no hope." He Hai Feng said.

  Lin Zhenhua said: "Old He, in fact, as long as the road is chosen correctly, development will be very rapid. The development history of Asia's Four Little Dragons is only about 20 years or so. Japan was also a wasteland after the war, but it rose from the 1950s and is now the world's second-largest economic power. The Japanese claim they can buy out the entire United States. We Chinese are no worse than others, there's no reason we will always be left behind."

  "I hope so," said He Haifeng. "However, sometimes when I see the current situation of domestic enterprises, it's still very depressing. Employees are apathetic, leaders' thinking is rigid, and the profits of a state-owned large factory are not even comparable to those of a small town factory. This year, many enterprises in our Hunan Province are facing policy-related losses and can only rely on bank loans to sustain themselves, it's really embarrassing."

  Lin Zhenhua said: "If it were just one state-owned enterprise, we could say it's a leadership problem. But if most state-owned enterprises are like this, then it's probably not a leadership problem. Are the leaders of state-owned enterprises all stupid and the leaders of township enterprises all smart?"

  He Haifeng said: "Of course not, I have studied this issue, in fact many state-owned enterprise leaders are very experienced in production and other aspects. The key to the problem is that state-owned enterprises are not as flexible as township enterprises. In township enterprises, they can autonomously give bonuses to employees, and those who do well can get more money. But our state-owned enterprises are the same whether you work hard or not. Leaders are also the same, if a township enterprise makes money, the factory director can get a high bonus. If our state-owned enterprise directors take one more cent, it's considered corruption. In the long run, who is willing to continue?"

  "Then according to your view, what should be done?"

  "In my opinion?" He Haifeng said with a bitter smile, "Xiaolin, you're not trying to get me to make a mistake, are you?"

  Lin Zhenhua waved his hand: "Old He, I didn't bring a recorder. What you said, only I heard it. What mistake can you make?"

  He Hai Feng said: "Well, I've thought about this problem for a long time, and it's no harm to tell you. If I were to say it, I think many small enterprises can be contracted out to capable factory directors, just like the current rural contract responsibility system. The enterprise's profits, after paying enough to the state and leaving enough for the collective, are left to the factory director and workers. As long as the workers are satisfied, the factory director can take more money. Aren't we now advocating for some people to get rich first? As long as you make contributions to the country, no matter what your identity is, you should be allowed to get rich."

  "Lao He, you have such a good idea, why don't you reflect it to your superiors?" Lin Zhenhua sighed.

  He Haifeng said, "Xiaolin, there are many people who have this idea. Those who really work at the grassroots level all understand this point. But who dares to say such things? This is a matter of dismantling the foundation of socialism. If I speak out, not to mention my official position, I may even lose my personal freedom."

  "It's like this..." Lin Zhenhua somewhat understood a bit more.

  China's reform and opening up has always been advancing in exploration. Comrade Deng had a saying, "crossing the river by feeling for stones", which means that there is no experience to refer to, and we can only try and walk at the same time. In the 30 years of reform and opening up, many famous economists have emerged on this land, their contributions are to put forward key theories at critical moments. However, an economist once revealed the mystery, he said that all economic theories emerging in the reform were not invented by economists, but were repeatedly experimented and tried out by grassroots cadres and masses in practice, and the only contribution of economists was to summarize these experiences and make them public.

  He Hai Feng is such a grassroots cadre, he has never read Kos's "The Nature of the Firm", nor has he read Hayek's "The Road to Serfdom", but he is very clear about China's practice and very clear about the drawbacks existing in state-owned enterprises. His thinking actually coincides with the future policy direction, if someone had discovered him at that time, summarized his views, maybe he would have become a so-called prophet in China's reform.

  Lin Zhenhua wanted to suggest that He Haifeng write out his views and submit them to the party newspaper or send them directly to the Party Central Committee. But He Haifeng's next words reminded him that life is not a game, and the first person to claim that the Earth revolves around the Sun did not step onto the podium of glory, but was instead tied to the stake of the religious tribunal. He Haifeng has a family to support and a good position with great prospects, so it would be inappropriate for him to risk losing all this by engaging in theoretical innovation.

  "Lao He, if I were to start a private business, would you support me?" Lin Zhenhua asked, this was another purpose of his trip to Changsha. Although he hadn't thought it through yet, he really wanted to hear He Haifeng's opinion.

  He Haifeng fell silent for a moment before saying, "Little Lin, I don't dare answer your question."

  "Why?"

  "Your mind is very active, I'm afraid my ideas are too conservative and will delay your decision-making."

  "Old He, it's alright, I'm not a blind follower."

  "Alright, I'll share my opinion," said He Haifeng. "Xiaolin, you're very talented, and this time the foreign company's gift of CNC machine tools has given you an unprecedented position at Hanhua Machinery Factory. I think you should make full use of this platform to do what you want to do. Although Hanhua Machinery Factory has its problems, it is after all a state-owned medium-sized enterprise. If you can make good use of this company, your development speed will likely be much faster. In this sense, I don't agree with you leaving Hanhua Factory to go solo."

  "Anything else?"

  "Moreover, from another perspective, being self-employed also has its own advantages. When working for a state-owned enterprise, no matter what achievements you make, it's hard to get personal returns. But if you're self-employed, all the benefits are yours alone. So, I'm also hesitant about making up my mind."

  Lin Zhenhua said: "I understand, last question: Old He, if one day I really want to go solo, can you help me out without violating the principles?"

  "He Haifeng smiled and said: 'As long as it doesn't violate principles, I will definitely go all out to help you.'"

  "In that case, thank you in advance."

  "Come on, down this beer and wish you success."

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