Twenty years of cold chain

The significance of Yuncheng is not only to connect the two major cold chain parks into a line, but also to view the whole situation as three ellipses, with Tongxing, Yuncheng and Nanjiao as the centers respectively. The smooth operation of this hub is the most important expansion measure for both parties.

Therefore, after entering 2008, the Yuncheng Transfer Center has always been a major focus for both the southern suburbs and Tongxing, with both sides sending elite forces to oversee the work in Yuncheng.

Undoubtedly, Nanjiao played a major role in the construction of Yuncheng, but Tongxing did not simply send a team to negotiate with others. The technical drawings, temperature control technologies, and even project funds for the transfer center all came from Tongxing. It was the sincere cooperation between the two parties that led to the project's success.

Qi Zhendong originally planned to inspect Yuncheng Center first and then meet Hu Shutong in Tongxing, but he changed his itinerary the day before departure and instead headed north, arriving in Tongxing first.

This was Qi Zhendong's first visit to Tongxing. After meeting, he first praised Tongxing extensively, and then spoke of his confidence in Yuncheng. But to Hu Shutong, these words sounded rather perfunctory. Clearly, Qi Zhendong did not want to talk about Tongxing or Yuncheng, but rather came with great expectations.

As for what Qi Zhendong was so eager to discuss, Hu Shutong had a pretty good idea.

"Have you heard about the four trillion yuan stimulus plan, Mr. Hu? What are your thoughts on it?"

"Everyone is worried that this is just a slogan. It's said that it will be fully implemented by 2010, but the amount is too large. Related industries are all watching and waiting. It seems that General Manager Qi is very optimistic about it?"

Qi Zhendong nodded and said, "It's unrealistic to expect the US economy to recover in one or two years and quickly drive global industries. Our country's difficulties are mostly due to imported cases, but our biggest difference is that our banks are all state-owned. Previously, major banks were hesitant and timid because they were really scared by the past two years. Now that the policy window has opened, the banks will definitely cooperate actively. This four trillion yuan is both a national investment and an injection of confidence into the banks. I think it will definitely be implemented."

The widely circulated 4 trillion yuan stimulus package actually emerged alongside the "Ten Measures," which are ten measures recently issued by the State Council to expand domestic demand. The financial crisis sounded the alarm for a bubble economy, making it imperative to strengthen the domestic real economy, reduce over-reliance on exports, and expand domestic demand to enhance internal vitality.

The exact amount of the four trillion yuan stimulus package is still uncertain, but the path the Americans are heading is not hard to guess. To escape the economic crisis, the US government will inevitably print a large amount of money sooner or later. If, after Sino-US consultations, China takes the lead in using its existing foreign exchange reserves to purchase a massive amount of US Treasury bonds, then it will need to issue RMB within China to match the value of the purchased US Treasury bonds. This equivalent amount is the four trillion yuan stimulus package that has become a hot topic across the country these days.

Hu Shutong remained cautious, consulting not only on his own but also with many industry professionals. This four trillion yuan stimulus package will be used for domestic infrastructure investment, inevitably driving capacity expansion. Given the less-than-optimistic outlook for foreign trade after the economic crisis, this could easily lead to domestic overcapacity, potentially necessitating supply-side reforms in the future. The consequences of these causes will be far-reaching, and the government will undoubtedly proceed with extreme caution.

Seeing Hu Shutong's hesitation, Qi Zhendong immediately took a step closer in his words.

"Mr. Hu, although the four trillion yuan stimulus package is still just on paper, I've learned from various industries that the market has already reacted. We've started receiving inquiries in the machinery manufacturing industry, and many factories are starting to test their machines. This shows that people have reached a consensus on the 'Ten Measures.' Moreover, the more thoroughly a company understands and interprets the policy, the more likely it is to act before the detailed policies are released. Do you think we might also be able to ride this unprecedented wave?"

Hu Shutong slowly nodded. Aside from adjustments to the financial industry, it's no exaggeration to say that the "Ten Measures" will usher China into an era of massive infrastructure development. The measures cover improving railways, highways, and airports; accelerating urban and rural housing construction; improving rural power grids; and expediting the South-to-North Water Diversion Project.

Hu Shutong is paying close attention to this because the "Ten Measures" mention supporting the service industry. These measures are a comprehensive policy to expand domestic demand and represent a leading national policy. In the future, each measure will inevitably be further subdivided, with more detailed and targeted policies on the way. The revitalization of the service industry is inextricably linked to the logistics industry, and whenever the logistics industry is mentioned, the weak link of cold chain logistics cannot be ignored.

Qi Zhendong looked eager, "I would like to hear your insightful opinion, Mr. Hu."

"Last year's data showed that 80% of China's cold chain logistics market share was concentrated in just over 200 companies. In other industries, the top three companies typically hold more than half of the market share. Mr. Qi, can we really call this concentration? Poor concentration means that everyone's strength is weak, and there are no giants in this industry yet. Even if financial policies are relaxed in the future, it won't have much impact on us. Those who don't meet the qualifications for loans still won't get loans, and the caution brought about by high operating costs will continue."

Hu Shutong then added, "Cold chain logistics is heavily reliant on geographical location and has a high cost dependence on physical infrastructure. Unlike chain restaurants, which can expand rapidly by paying franchise fees, cold chain logistics requires extraordinary measures to revitalize this industry."

Qi Zhendong suddenly narrowed his eyes. Some thoughts had been lingering in his mind, but upon hearing Hu Shutong's words, his heart immediately warmed. "That's right, cold chain logistics needs support. Old Hu, since we started in this industry, this is an unprecedented environment!"

Qi Zhendong, concealing his excitement, felt even more confident after Hu Shutong's assessment. The importance of distribution in expanding domestic demand is self-evident. Compared to other industry giants that boast national and international reputations, cold chain logistics is like a village-to-village road construction project—a statement that is by no means an exaggeration.

My dear reader, there's more to this chapter! Please click the next page to continue reading—even more exciting content awaits!

Therefore, some industry talents have thought of the word "support". Under the current background of expanding domestic demand, there is a lot of reason to believe that cold chain logistics will usher in the train to spring with the largest scale and the fastest speed!

This idea had been brewing in Hu Shutong's mind for a long time, and he had discussed similar thoughts with his teachers and industry figures, and no one disagreed with him. This is because many people, like Hu Shutong, saw a clear line drawn.

In fact, the direction has always been the same. From the Opinions on the Development of Modern Logistics in 04, the Green Channel for Agricultural Products in 05, to the Eleventh Five-Year Plan for the Food Industry in 07, as well as the various standards issued around the cold chain and the efforts to improve food safety by starting with the cold chain, the country has been paying attention to and reforming the cold chain logistics.

The "Ten Measures" supporting the service industry can be understood as a means to revitalize it. Qi Zhendong aptly put it: acting before the detailed policies are released is crucial to catching the strong tailwind. To paraphrase a common saying, opportunities are for those who are prepared.

"Old Qi, besides improving our qualifications, shouldn't we make some other plans?"

"you mean?"

"Compared to what we have now, what we will do in the future is more likely to grab the attention of those in power."

Qi Zhendong smiled and said, "It seems we still need to talk more about Yuncheng."

"The southern suburbs contributed more to the affairs of Yuncheng, so I'd better not meddle."

"No, no, it would be better if you said it. I'd rather think about how to make the southern suburbs sound sexually frustrated."

"That's incredibly cunning!"

Qi Zhendong laughed out loud, "Old Hu, I'm different from you. You've probably been planning what you'll do for the next three to five years. As for me, I'm just a commoner from a factory. My vision is far beyond yours."

How to keep this essential industry thriving, how to revitalize it in this environment—things that were unthinkable before are now possible, and something highly probable is brewing.

That is, the logistics industry's free funds for expanding domestic demand!

……

I've loved cold chain logistics for twenty years.