Nominal: Intercepting Zhong Xiaoai, Dominating Handong

Back at their lodgings, Zhong Xiaoai breastfed her baby while asking, "How did it feel to see so many people from my family today?"

"I'm under a lot of pressure," Gu Mingyuan joked.

"But more than anything, it's motivation. The Chung family members are all so outstanding, I have to work even harder."

Zhong Xiaoai smiled: "Don't feel pressured. My dad said you're the most promising one in the Zhong family."

"Dad really said that?"

"Hmm. He said that my brother-in-law is too conservative, and only you are calm yet sharp, you are good material."

Gu Mingyuan hugged his wife: "Then I can't let Dad down even more."

During his few days in Beijing, Gu Mingyuan spent time with Zhong Xiaoai and their child, and also took the time to visit several old classmates who worked in Beijing.

Among them was Li Ping, a college classmate who works at the National Development and Reform Commission.

The two arranged to meet at a teahouse.

Li Ping has gained some weight since he was in school, but he is in good spirits.

"Mingyuan! I heard you're doing very well in Pingzhou!" Li Ping gripped Gu Mingyuan's hand tightly.

"No, I'm just doing some specific work. You're in the key department at the National Development and Reform Commission," Gu Mingyuan said with a smile.

"Sigh, it's just routine work in the government," Li Ping waved his hand.

"By the way, our department has discussed your Pingzhou Airport project several times. Everyone says that we've made the right move and seized the right opportunity."

"We also want to thank the government for its supportive policies," Gu Mingyuan said.

"But old classmate, I've come to ask you a question."

"you say."

"Pingzhou is an old industrial city with a large proportion of state-owned enterprises."

"During my research, I found that many state-owned enterprises are experiencing declining profits and heavy burdens."

"What do you think is the best way to solve this problem?"

Li Ping pondered for a moment: "This is a nationwide problem, but recently there have been rumors from the top that a new round of state-owned enterprise reform may be promoted."

"The general direction is to focus on the big picture and let go of the small details, with both advancement and retreat."

He lowered his voice: "If you have specific ideas, you can start a pilot program in Pingzhou. If it succeeds, it will be valuable experience. If it fails, there will be room for maneuver."

Gu Mingyuan's eyes lit up: "Thank you for your guidance, old classmate!"

"Don't mention it. But Mingyuan, state-owned enterprise reform is a very complex issue, involving interests from all sides. If you want to do it, you must have the support of the top leaders, the plan must be thorough, and the steps must be taken carefully."

"I see."

This conversation pointed Gu Mingyuan in the right direction for his future work.

On the eighth day of the lunar new year, Gu Mingyuan and his family returned to Pingzhou.

Before leaving, Zhong Zhengguo gave him some more advice: "Mingyuan, in the new year, you must make new achievements. But remember, haste makes waste, and steady progress is the right way."

"Dad, I understand."

Upon returning to Pingzhou, Gu Mingyuan immediately threw himself into his work.

However, instead of rushing to propose ideas for state-owned enterprise reform, he began a new round of research.

Even after the Spring Festival, the weather in Pingzhou was still cold, but Gu Mingyuan's research footsteps had already covered more than a dozen key state-owned enterprises in the city.

Instead of going to the office to listen to reports, he went directly to the workshop, into the work groups, and to visit the employees.

In the rolling mill workshop of Pingzhou Steel Plant, he was wearing work clothes and a safety helmet, standing with the workers beside the high-temperature rolling mill, inquiring about the production situation.

"Master, how much do you earn a month these days?"

"Sigh, don't even mention it. We can still get our basic salary, but the bonuses are almost gone. The factory isn't doing well, and I heard they're going to delay payday again this month."

"What is the main problem?"

"Our products are too outdated and can't be sold. Everyone else is using new steel now, but ours is still an old variety from decades ago."

At the Pingzhou Textile Factory, he saw that half of the machines in the huge workshop were stopped, and the workers were chatting idly.

"Why aren't you working?"

"No orders. Everyone's wearing synthetic fibers and imported fabrics now; nobody wants our pure cotton anymore."

"Has the factory never considered transformation?"

"I've thought about it, but I don't have the money. The banks won't lend to us, saying our performance is too poor and the loan risk is too high."

At Pingzhou Machinery Factory, he saw that the warehouse was full of stockpiled products.

"Are these all unsold?"

"Yes, they're all old models, technologically outdated, and energy-intensive. Businesses are buying new equipment now, who wants these?"

The more Gu Mingyuan investigated, the heavier his mood became.

These once-glorious state-owned enterprises are now mostly in trouble: outdated equipment, obsolete products, heavy burdens, and rigid mechanisms.

Even more serious is the low morale of the employees, who are filled with uncertainty about the future.

That evening, he organized his research notes, which were filled with questions:

Pinggang: Its product structure is too simple, its technological upgrades are slow, and its debt ratio is 85%.

Pingfang Textile: Market shrinkage, lack of funds for transformation, average employee age 48;

Flat machine: Insufficient R&D investment, lagging new product development, and conservative management thinking;

Pinghua faces significant environmental pressure, high pollution control costs, and the risk of closure.

Pingyao: It has technological advantages, but its marketing is lagging behind, and its market share has been taken over by companies from other regions...

Where does the crux of the problem lie?

Gu Mingyuan pondered.

Is it a technical issue?

Yes, but not all.

Many companies don't lack technology; rather, they fail to translate that technology into market competitiveness.

Is it a funding issue?

Yes, but will providing funds solve the problem?

I'm afraid not.

Is it a human problem?

Partly yes.

Some companies lack entrepreneurial spirit in their management and their employees lack enthusiasm.

But the most fundamental problem is the system and mechanism.

State-owned enterprises (SOEs) bear too many social responsibilities, creating a heavy burden. Their decision-making chains are too long, leading to slow market response. Their incentive and constraint mechanisms are inadequate, resulting in little difference between good and bad performance…

Only by finding the root cause can we prescribe the right medicine.

Gu Mingyuan began to extensively consult materials and study domestic and international cases of state-owned enterprise reform.

He collected experience materials on state-owned enterprise reform in other regions and studied them until late at night every day.

In mid-March, a preliminary reform idea took shape in his mind.

He decided to write a report that systematically proposed his ideas for the reform of state-owned enterprises in Pingzhou.

This time, however, he did not go directly to Pei Yihong, but instead went to Zhao Zhigang, the vice mayor in charge of industry.

"Mayor Zhao, I have some preliminary thoughts on the reform of state-owned enterprises in our city, which I would like to report to you." Gu Mingyuan's attitude was sincere.

Zhao Zhigang is a veteran industrial cadre who has worked in Pingzhou for many years and has a thorough understanding of the situation of state-owned enterprises.

He took the report outline from Gu Mingyuan and put on his reading glasses to look at it carefully.

"Hmm... a differentiated approach is the right one. State-owned enterprises vary greatly, so a one-size-fits-all approach is not appropriate."

"Introducing strategic investors... employee stock ownership... these are very bold ideas!"

"Mayor Zhao, I think that the reform of state-owned enterprises cannot just focus on internal operations; we need to introduce external resources."

"Good companies can introduce strategic investors to achieve equity diversification."

"For most companies, employees can hold shares, thus aligning the interests of the company and its employees."