Courtyard House: Time Traveler Not Yet a Ghost
Chapter 144 Policy Balance
Morning light streamed through the dappled window frames of the municipal government building, casting dappled patterns of light and shadow on the terrazzo floor of the corridor. Yang Chengdong, briefcase tucked under his arm, climbed the stairs, his leather shoes clicking steadily on the floor. He had barely slept the night before; He Damin's "one-yuan rental" proposal weighed heavily on his heart like a stone.
On his way back from the northwestern suburbs, he repeatedly weighed the weight of the proposal. For the country, acquiring a modern industry worth millions at almost zero cost was like a windfall. For He Damin, retaining ownership and withdrawing completely was indeed a clean and efficient way to escape. It seemed like a win-win situation.
But he always felt that something was wrong.
It's all gone too smoothly. He Damin is the kind of person who never does anything that loses money. He built this premier auto city in Beijing from barren land, and in less than three years, his profits were astonishing, and his connections were extensive. Would someone like that willingly hand over his hard-earned business for just one yuan in rent?
Yang Chengdong was no longer a young man just starting his career. He vaguely sensed some profound calculation behind the plan—but that was He Damin's calculation, not his concern. His duty was to submit the plan verbatim for the higher-ups to decide.
On the second floor, on the east side, the door to the mayor's office was half-open, letting in a warm yellow light.
"Cheng Dong is here? Come in and speak." Mayor Li's voice came from inside, with his usual gentle tone.
Yang Chengdong pushed open the door and entered. Mayor Li was hunched over his large desk, reviewing documents, a half-cold cup of tea beside him. Several stacks of files were piled on the desk, the top one titled "Report on the Progress of the Transformation of Private Industrial and Commercial Enterprises in this City." He took off his reading glasses, rubbed his temples, and looked up.
"You're here so early, is something urgent?"
Yang Chengdong sat down opposite him without beating around the bush.
"Mayor, I went to 'Red Star' yesterday. Comrade He Damin formally put forward his idea of public-private partnership."
Mayor Li nodded, signaling him to continue.
"His plan is—not to engage in public-private partnership, but to lease." Yang Chengdong took out the written report he had prepared overnight from his briefcase and spread it on the table. "He proposed leasing all of 'Red Star's' current 1,300 mu of land, all buildings, equipment, and spare parts to the state for a symbolic rent of one yuan per year. He suggested a 30-year lease term, renewable. During the lease period, he and his family would completely withdraw from management, hold no positions, and not interfere in any decisions. The ownership of the assets would remain with him personally, but the right to use them would belong entirely to the state."
Mayor Li did not respond immediately. He picked up the report and read it carefully from beginning to end. His gaze lingered for a long time on the words "one yuan rent," "thirty-year lease term," and "complete withdrawal."
The locust trees outside the window rustled, and light and shadow moved slowly across the tabletop.
"This He Damin," Mayor Li put down the report, took off his glasses, and slowly wiped the lenses, "is a smart man."
Yang Chengdong couldn't tell whether the evaluation was praise or criticism, and cautiously waited for what would follow.
"He knew very well that public-private partnerships were an inevitable trend that couldn't be stopped. Rather than passively accepting a buyout, he decided to proactively propose a seemingly 'high-minded' solution." Mayor Li put his glasses back on, his gaze calm. "One yuan for thirty years sounds like a free gift. But he held the property rights firmly in his hands; after thirty years, the land would still be his."
Yang Chengdong's heart skipped a beat. This was precisely the hidden worry he had been pondering repeatedly last night but had been unable to articulate clearly.
"Mayor, you mean...?"
"My meaning is very clear," Mayor Li interrupted him, his tone calm but unquestionable, "This plan cannot be approved."
Yang Chengdong paused for a moment, then tentatively said, "However, He Damin's attitude is very sincere, and he is indeed considering the country's interests—no need for the state to spend money, no need for asset verification, seamless handover..."
"It is precisely because he is so 'sincere' that this door must not be opened."
Mayor Li stood up, walked to the window, turned his back to Yang Chengdong, and looked out at the old locust tree that had witnessed decades of wind and rain for this building.
"Cheng Dong, think about it. How many private enterprises are there in Beijing? How many are there nationwide? Aren't all those capitalists shrewd? What will they think if word gets out about He Damin's 'one-yuan rental' method?"
He didn't turn around, and his voice lowered.
"They would think: Oh, so we don't have to do public-private partnerships, we can retain ownership, and we can use this 'respectable' way to register assets under the state's name while they are still actually our own. They would think: Why can He Damin do this, but we can't? They won't investigate what special background He Damin has or how much he has contributed to the country; they will only see that someone has broken the rules."
Yang Chengdong's back was slightly damp with cold sweat.
"And then?" Mayor Li turned to look at him. "Then, a second, a third will make the same request. If we can criticize He Damin, we can criticize others. But if this precedent is set, how can the public-private partnership policy be implemented? How can the unified purchase and sales system be put into practice? We've put in so much effort to bring private industry and commerce into the national plan; are we going to let a 'special case' create a gap in the entire front?"
He paused, his tone softening slightly, but becoming even more somber.
"Cheng Dong, we are not trying to rob capitalists. On the contrary, we want to reassure them and make them believe that the country's policies are fair and treat everyone equally. Joint public-private ownership is not confiscation, but redemption; it is not extermination, but a peaceful transition. The Central Committee has made these principles very clear."
He walked back to the table, pulled out an official document from the pile of files, turned to a certain page, and pushed it in front of Yang Chengdong.
"In January 1954, the Central Financial and Economic Commission held a meeting to specifically discuss the issue of expanding joint state-private enterprises. The policy set at the meeting was to 'consolidate the position, expand in key areas, set an example, and strengthen preparations.' What does 'set an example' mean? It means to make the first batch of joint ventures successful, so that capitalists can see that after joint ventures, enterprises can develop, individuals can find a way out, they can still receive dividends, and their status will not be diminished."
His fingers tapped lightly on the table.
"In September, the State Council promulgated the 'Provisional Regulations on Joint Public-Private Industrial Enterprises,' which clearly stipulated the relationship between public and private entities, profit distribution, and enterprise management. This was not a decision made on a whim, but after repeated research and careful consideration. He Damin's 'Red Star' was a large-scale, influential, and technologically advanced enterprise, making it the most suitable to serve as a role model. Its successful joint venture can reassure other private business owners."
Yang Chengdong was so engrossed in listening that he forgot to respond for a moment.
Mayor Li sighed, his tone softening.
"Cheng Dong, I know you think He Damin's plan is beneficial to the country and to the smooth transition of 'Red Star'. But think about it from a higher perspective—policies are not made for just one company, but for millions of companies. He Damin is special, but he cannot be so special as to undermine the foundation of policy."
He sat down again, picked up the now-cold tea, took a sip, and frowned slightly.
"I've met He Damin. He's visionary, decisive, and knows how to assess situations. He proposed this plan not to make things difficult for us, but to leave himself a way out. That's understandable. Capitalists, who doesn't worry about their assets being confiscated or taken away? What we need to do is precisely to dispel their doubts and make them believe that the state keeps its word."
"A redemption is a redemption, a fixed interest rate is a fixed interest rate, and a peaceful transition is a peaceful transition," Mayor Li said, emphasizing each word. "It's not confiscation, it's not robbery, it's a fair and just transformation."
Yang Chengdong took a deep breath.
"I understand the mayor's meaning. I'll communicate with He Damin again. But..." He carefully chose his words, "His concerns aren't without merit. He himself said that if it becomes a public-private partnership, workers' wages will be adjusted uniformly according to the eight-grade work system. 'Red Star' currently offers significantly higher wages than state-owned factories. Will the workers feel a huge psychological gap and cause resentment? Also, how will he explain the source of his goods from special channels after the partnership? These are practical issues..."
Mayor Li waved his hand.
"These issues can be discussed. Regarding wages and benefits, a portion of subsidies can be retained during the transition period, with gradual integration. As for the source of goods, he doesn't have to disclose the source, and the state won't investigate—but after the joint venture, the company's production must be included in the national plan and can no longer rely on his 'special channels.' All of these can be clearly stated in the joint venture agreement."
He paused.
"Chengdong, go to 'Red Star' again and convey my message to He Damin exactly as I said it. It's not to deny his sincerity, but to ask him to understand the seriousness of national policy. The precedent of one-yuan leasing cannot be set. But the door to public-private partnerships will always remain open."
"He can set conditions and discuss details—asset verification, interest rate, personnel arrangements, and transitional wages can all be negotiated. The state will give him a fair and reasonable buyout price according to policy. Isn't he worried about workers causing trouble? The agreement can stipulate that within three years after the joint venture, the wages of the original workers of 'Red Star' will not be lower than the pre-joint venture level. Isn't he afraid that the new leaders don't understand the business? He can recommend people familiar with the situation to serve as deputies—Yan Bugui and Liu Haizhong have already been transferred in, haven't they? This in itself is his support for the joint venture work."
Mayor Li's gaze was gentle, yet carried an undeniable firmness.
"What we want is a win-win situation, not one side dominating the other. He Damin is a smart man; he'll understand."
Yang Chengdong nodded.
"There's one more thing," Mayor Li added, "You can clearly tell him that the country fully recognizes his contributions. How many drivers and maintenance technicians has 'Red Star' trained for Beijing in recent years? Which company wouldn't be eager to hire those young people who graduated from the 'Red Star' training base? The country remembers this achievement. After the joint venture, his status as a technical advisor and his social positions can be retained. If he is willing to continue serving the company, as long as it is within the framework of national policy, everything is negotiable."
Yang Chengdong felt a surge of warmth in his heart.
This was the Mayor Li he knew. Not a cold, impersonal policy machine, but a leader who truly understood the art of balance and how to win people's hearts.
"I'll go tomorrow," he said.
"Go today," Mayor Li corrected. "He Damin is a man who doesn't procrastinate, and we can't delay either. The sooner we explain the policy clearly, the more at ease he'll be. Take his 'one-yuan leasing' plan back to him and tell him that the city has studied it and we thank him for his loyalty to the country, but public-private partnership is an established national policy and we can't make exceptions for people."
He paused, his tone softening slightly.
"Also, please pass on a message to him: 'Boss He, the country will not let honest people suffer.'"
When Yang Chengdong left the mayor's office, it was already 10 a.m.
He didn't go back to his office; instead, he went straight downstairs and had his driver take him to the northwest suburbs.
The streets of Beijing outside the car window were as usual. The clattering trams, the hawkers carrying their wares, the commuters hurrying to work on bicycles, the elderly squatting under walls basking in the sun. The city was operating at its usual pace, and beneath the calm surface, countless decisions concerning individual destinies and corporate futures were quietly unfolding.
Yang Chengdong leaned back in his seat, closing his eyes and concentrating.
He recalled his first visit to the city in 1949, attending a conference on the transformation of private industry and commerce, and listening to veteran comrades explain what "peaceful redemption" and "state capitalism" meant. Back then, he was young and felt these terms were far removed from his own experience. Six years later, he had personally participated in countless negotiations with capitalists, handled labor disputes, and mediated conflicts between the public and private sectors. He had witnessed some capitalists' resistance and resentment towards the transformation, as well as the acceptance and acceptance of others.
He Damin does not belong to any category.
He was so composed. So composed that it didn't seem like he was dealing with an industry he had worked so hard to build, but rather like he was playing a game of chess that he had already calculated. He wanted to retain the property rights, not so much to come back and reclaim the land thirty years later—at least not entirely—but more to leave himself an "anchor point," a thought that would always connect him to this land, this city, and this period of time.
Yang Chengdong had a feeling that He Damin had long anticipated that the city would not approve the "one-yuan rental". He put forward this plan as a test, and also as a statement: I am sincere, I am willing to cooperate, please give me a dignified exit.
Mayor Li accepted this gesture of goodwill.
Now, it's his turn to complete this final communication.
When the jeep entered the "Red Star" gate, He Damin was in the repair workshop. Yang Chengdong stood at the workshop entrance for a moment without asking the gatekeeper to announce his arrival.
The workshop was a hive of activity. Several trucks awaiting repair were mounted on lifts, and young mechanics were crawling underneath them, replacing chassis parts. The sound of wrenches striking metal was crisp and rhythmic. Liu Haizhong stood with his hands behind his back beside a Jeep whose engine was being tested, his back slightly bent, listening intently to his apprentice's report on the malfunction. He didn't rush to conclusions, but nodded occasionally and asked one or two key questions.
Yang Chengdong recalled that when he first came to "Red Star," Liu Haizhong was just a level seven forging worker in the steel rolling mill, and he needed to report even to enter this workshop. Now, he wears a dark blue work uniform with a name tag that reads "Deputy Director of the Maintenance Workshop," and his demeanor has become more composed and in charge.
He Damin emerged from the depths of the workshop, holding a disassembled carburetor in his hand, and was explaining something to the young technician beside him. Upon seeing Yang Chengdong, he paused slightly, then finished handing over his work, wiped his hands, and came forward.
"District Chief Yang, why didn't you call ahead?"
"It was a last-minute decision," Yang Chengdong smiled. "I hope it won't interfere with your work?"
"It won't delay you." He Damin led him towards the office building. "Perfect timing, I still have some details about yesterday's proposal that I'd like to report to you—"
"Damin," Yang Chengdong interrupted him, his tone calm yet solemn, "I took that proposal to Mayor Li today."
He Damin paused for a moment, then resumed his normal pace and turned to look at him.
"What did the mayor say?"
The two had reached the meeting room on the second floor of the office building. He Damin pushed open the slightly ajar door and invited Yang Chengdong to sit down. Chen Xueru came over from the finance department next door upon hearing the news, still holding an account book in her hand. Seeing Yang Chengdong's expression, she didn't rush to speak and quietly sat down next to He Damin.
Yang Chengdong didn't beat around the bush.
"Comrade Damin, Comrade Xueru, the city has carefully studied your plan. Mayor Li asked me to convey two messages."
He paused.
"First sentence: Thank you. Thank you for your unwavering loyalty to the country, and thank you to 'Red Star' for your outstanding contributions to the economic development and technical talent cultivation of Beijing over the years. The country will remember this achievement."
He Damin nodded slightly without saying a word.
"The second sentence," Yang Chengdong looked him in the eyes, "is that the city cannot approve the 'one-yuan rental' plan."
The meeting room was silent for a few seconds.
Chen Xueru's fingers tightened slightly, gripping the corner of the ledger. He Damin's expression remained calm, as if he had expected this answer.
"The mayor doesn't mean to deny your sincerity, but rather that this policy cannot set a precedent." Yang Chengdong slowed his speech, trying to convey Mayor Li's original meaning clearly. "There are more than just 'Red Star' private enterprises in Beijing, and even more across the country. If Boss He's 'one-yuan lease' is approved, what will other capitalists think? They'll think—'So this is possible! So it's possible to avoid public-private partnerships! So it's possible to retain ownership and only transfer usage rights!' How will we face the second and third companies making the same demands then?"
He Damin remained silent for a moment.
"I understand," he said calmly. "It was my oversight."
"It's not that you didn't consider things carefully," Yang Chengdong shook his head, "it's that your ideas are too advanced, ahead of the policy. Mayor Li said that this is not to deny your sincerity, but rather to respect your sincerity—precisely because you, He Damin, have influence and weight among private business owners in Beijing, we can't make an exception for you. This is being responsible to you, and also being responsible to the policy."
He paused for a moment, took the proposal out of his briefcase, and gently placed it on the coffee table.
"The mayor asked me to bring this back to you. He said the door to public-private partnerships is always open, and you are welcome to come through this door and have a good talk with the country."
He Damin looked at the proposal he had personally drafted without saying a word.
Chen Xueru asked softly, "District Chief Yang, so... how exactly should we discuss this?"
Yang Chengdong turned to her, his tone softening.
"Mayor Li asked me to convey a few principles. First, public-private partnership is an established national policy, a peaceful redemption, not confiscation or robbery. The country's policy is fair and just, both for 'Red Star' and for all private enterprises."
"Secondly, Mr. He can set conditions and discuss details. For asset verification, the state will send a professional team to jointly verify the assets; for interest rate, the state has a unified policy, but it can be negotiated within a reasonable range; for personnel arrangements, as long as the candidates recommended by Mr. He meet the conditions, the new team will fully respect and properly appoint them—Teacher Yan and Master Liu have already been transferred in, which is the best example."
He glanced at He Damin.
"Third, regarding the wage issue. The mayor said that the gap in worker treatment that you are worried about can be addressed by stipulating a transition period in the joint venture agreement. For example, within three years, the wages of the original workers of 'Red Star' will not be lower than the level before the joint venture, and the difference can be paid out from the company's profits first. This is not a favor, but a pragmatic solution."
He Damin's eyelids twitched slightly.
Yang Chengdong continued.
"Fourth, regarding you personally. Mayor Li asked me to pass on a message to you—'Mr. He, the country will not let honest people suffer.' After the joint venture, your status as a technical advisor and your social position can be retained. If you are willing to continue serving the company, as long as it is within the framework of national policy, everything is negotiable."
He finished speaking.
The meeting room remained quiet for a long time.
The faint sound of metal clanging from the repair shop could be heard outside the window, one clang after another, like a steady rhythm.
He Damin finally spoke, his voice lower than before.
"District Chief Yang, I've taken Mayor Li's words to heart."
He paused.
"I'm willing to discuss the possibility of public-private partnerships."
Yang Chengdong's heart, which had been hanging in suspense all morning, finally settled down.
After seeing Yang Chengdong off, He Damin stood alone by the window, watching the jeep drive out the gate and gradually disappear at the end of the road.
Chen Xueru walked to his side without saying a word, simply keeping him company quietly.
After a long silence, He Damin said softly, "Xueru, do you remember? I told you that I would come back to visit in 1965."
"Remember."
"Now I have another reason." He looked out the window, his gaze distant. "I want to come back and see if I made the right choice back then by trusting the policies and cooperating with the reforms."
Chen Xueru didn't speak, but simply placed her hand gently on his arm that was resting on the windowsill.
"Are you going to the workshop this afternoon?" she asked.
"Go." He Damin withdrew his gaze. "Let's get the present matter done first."
He turned and walked towards the door. As he passed the coffee table, he glanced down at the returned proposal; the ink on the white paper was still fresh.
He didn't take it with him.
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