Rebirth: I am in Jin-Cha-Ji

1114 Demands of the tertiary industry

"Currently, both urban and rural areas are beginning to face difficulties in asset audits, and various disputes are arising from these issues. This is particularly true in many Sino-foreign joint ventures in my country, where these problems are most common.

According to Wei Hongjun's current work schedule, various meetings will be held every few days.

Among them, there were Secretariat meetings every few days, meetings of the various Central Working Committees every few days, and Politburo meetings that had to be held every once in a while.

Therefore, Wei Hongjun's current schedule includes important central meetings to attend almost every day. Wei Hongjun is currently attending a financial work meeting chaired by Chen Yun.

Committee meeting.

Although Wei Hongjun was in charge of all central work, he would only personally preside over meetings when there were specific matters to discuss. Normally, he would attend meetings, not preside over them.

After the meeting started, Zhou Bin was summarizing some local reports and reporting to the Finance and Economics Working Committee.

"That's indeed the case. Currently, some provinces in my country are merging production cooperatives and developing them into larger cooperatives or federations. One of the biggest issues that arises in this process is the asset auditing of each cooperative."

"This is especially true regarding the assets of cooperative factories. The establishment of some large cooperative associations is actually to unite cooperative factories to become bigger and stronger. This kind of cooperation is originally a good thing, but because of serious disagreements among everyone on the identification of cooperative factory assets, the results have affected

It affected the cooperation. Even after the cooperation, it led to serious problems later."

Deng Zhihui interrupted and added to what Zhou Bin said.

The prerequisite for cooperation is consensus. However, when many large cooperatives were established, there were inconsistencies in the identification of assets between them. This has seriously affected the development of large cooperatives in many regions.

Zhou Bin nodded and said, "There are indeed many such problems in rural areas. However, in cities, such disputes are more numerous and more serious. Comrades Tao Zhu and Chen Tao reported to the Central Committee on the problems occurring in Guangdong. Currently, with the increasing number of Sino-foreign joint ventures in Guangdong, many disputes of this nature have arisen in their cooperation."

"Companies from Britain and France have very mature and comprehensive asset valuation teams. Compared to them, our domestic companies, both small and medium-sized local enterprises and large state-owned enterprises, face many problems with asset valuation. Many aspects of asset valuation used by British and French companies are completely unfamiliar to our companies, putting us at a significant disadvantage in negotiations."

"When collaborating with British and French companies, our company was fully aware of the problems with asset valuations, but was unable to provide sufficient evidence to refute them in a short period of time. Because many of the questions raised by British and French companies were unprepared for, or because my country had no concept of such issues, it was easy for us to suffer losses during the cooperation.

"This problem isn't limited to collaborations between Chinese and foreign companies. Some cities have also had serious disputes with businesses over the valuation of land when they cede it to them."

"Local governments in my country want to acquire shares in some companies by selling land. However, because they cannot reach a consensus on how to calculate the land value, the development of some local companies is being affected."

The development of a socialist economy will bring about many new problems. Many of these new problems are issues that neither the central government nor local governments have even considered. Yet, they must be addressed, as many tasks cannot proceed without them.

It's like an asset valuation issue.

In the past, asset valuation was relatively simple, and the government's handling of it was rather crude. Essentially, it simply calculated hard assets, such as the cost of factory buildings and machinery and equipment, and considered them factory assets. However, this method of calculating hard assets increasingly failed to keep pace with actual conditions.

The simplest example is that if two companies have identical hard assets, one with numerous export orders and the other with fewer, their asset valuations will inevitably differ. However, according to current Chinese asset valuation practices, the assets of these two companies are actually comparable. This presents a significant problem.

In rural areas, although there were some disputes over the estimation of some assets when developing mutual aid groups or cooperatives in the past, as long as the work was done solidly, the problem could be solved.

This is mainly because the scale of assets involved in rural areas is limited. At the same time, although many farmers in rural areas have a lot of calculations in their minds, they do not have so many complex calculations and do not understand complex calculations.

But the situation has changed significantly since the development of industry. Accounting for a company's assets is no longer solely about hard assets like factory buildings and machinery and equipment.

European companies have extensive experience in asset auditing, so whether negotiating with companies or the government, the Chinese side will ultimately suffer.

Of course, the current problem is not limited to Sino-foreign joint ventures, but also to many domestic enterprises.

This problem also arises among cooperatives.

This is no small matter. As China's economy develops in the future, there will be more and more cooperation between enterprises of different ownership structures, and the valuation of corporate assets will become increasingly important.

"The demand for asset valuations is increasing year by year, and the growth rate is accelerating. The central government must have clear measures regarding asset valuations to avoid further disputes and protect our assets."

Zhou Bin gave the final summary.

Chen Yun was presiding over the meeting, so he asked, "Comrade Zhou Bin, do you have any thoughts on this issue?"

"I think we should have a special agency to do this, and at the same time formulate more complete regulations on asset valuation. Although the demand in this area is growing rapidly at this stage, the absolute number is still at a basic level.

We must introduce relevant policies at this stage, otherwise the problem will become very serious in a few years."

Zhou Bin spoke.

Deng Zhihui objected, saying, "Establishing a specialized agency is one solution, but I don't think it's appropriate. Not to mention that my country is currently streamlining its Party and government agencies, it's not appropriate to add more agencies at this stage. For example, in Sino-foreign cooperation, how can they trust the asset appraisals conducted by our government agencies? Will they even recognize an asset appraisal conducted by a government agency?"

"Furthermore, when a government agency intervenes, it's easy to link normal business practices with the government, and some people can only passively accept it. So if a government agency conducts an asset appraisal, some disputes may seem to be temporarily suppressed, but many hidden dangers will remain."

Government agencies have their own review departments.

Establishing a specialized asset appraisal agency will make it like the government is pricing various assets.

Chen Yun nodded and said, "Comrade Deng Zhihui's concerns are justified."

"The institutions I'm talking about aren't government agencies. I've looked into the situation in Europe and the United States in this regard and found that they all have specialized companies specializing in asset valuation.

The current situation in China is that the northern provinces are mainly open to the socialist camp headed by the Soviet Union, while the southern provinces mainly do business with European countries.

Therefore, the two provinces with the best development of China's OEM industry are Heilongjiang in the Northeast and Guangdong in South China.

Precisely because of this different situation, many central government cadres need to understand not only the economic model of the socialist camp, but also the economic model of European and American countries.

In order to solve the many economic problems that have arisen in Guangdong, Zhou Bin and his colleagues will learn in detail how European and American countries deal with similar issues.

Economics is a science that summarizes the laws governing economic operations. These laws are objective and cannot be altered by human will.

What Zhou Bin needs to do is to first learn some successful measures taken by European and American countries in the process of economic development, and then transform these economic policies and make them applicable to China's socialist economic construction.

Asset valuation has been a practice for many years in Europe and the United States. As capitalist nations, they have devoted considerable research to the protection and development of private assets. It's safe to say that these countries are meticulous about asset valuation.

European and American countries have established a complete set of asset valuation rules and procedures, including a credit system for asset valuation.

"Does our country also have such asset appraisal companies?

"Yes. In the future, there will be more and more asset appraisal work, involving more and more industries. However, our government can't take on this kind of asset appraisal work alone. In fact, government intervention would be counterproductive. The best approach is to have our own dedicated, professional asset appraisal company and let them take full responsibility for this."

Zhou Bin’s proposal is really bold.

After the founding of the People's Republic of China, the country's main investment directions were the industrial and transportation sectors. Even the national financial sector had to obey this overall situation.

Therefore, the tertiary industry has been the most severely shrunk in New China, and the service industry has developed slowly. Currently, state-owned enterprises invested and controlled by the state are all industrial enterprises.

But this asset appraisal company is obviously not a

The enterprises are actually those belonging to the tertiary industry.

Seeing no one speaking, Zhou Bin continued, "The central government has always emphasized that all government departments and factories should pay attention to economic accounting. This is actually also for the asset issue. European and American countries now have mature asset valuation systems that can clearly show the changes in various types of assets. We can definitely learn from Europe and the United States in this regard."

"I think what Comrade Zhou Bin said makes sense.

Deng Xixian offered support, saying, "To put it another way, many large state-owned enterprises have recently partnered to form joint ventures, but there's been a lot of wrangling over the scale of each other's investments. One reason is that both sides have different understandings of the investment scale and their assessments of the investment assets."

"There are also problems with local governments when our state-owned enterprises invest in and build branches. This is because it involves land issues.

The scale of investment is a question.”

"If we had a nationally recognized, trusted, professional, and authoritative asset appraisal company, then handling these disputes would be much simpler."

Since there is such a demand, we should solve it.

After looking around, Chen Yun said to Wei Hongjun, "Comrade Wei Hongjun, what do you think?

Wei Hongjun nodded and said, "I think Comrade Zhou Bin's approach is correct."

"Agriculture is the foundation, industry is the leading factor. This is what Chairman Mao formally proposed at the Fifth Session of the Ninth Central Committee. In my country's socialist economy, industry and agriculture are the core. However, on the basis of the development of industry and agriculture, the tertiary industry serving our industrial and agricultural development is the lubricant. The proper development of the tertiary industry can enable all walks of life in our country to

There will be better development, which will make our economic development smoother.”

"Asset valuation is a crucial and necessary tertiary industry that must develop. Authoritative, professional asset valuation companies, trusted by society as a whole, can resolve many disputes in this area. Given our country's economic scale and population, we should have several large-scale asset valuation companies nationwide to meet future national demand."

"This is not just because of the current internal situation in our country. In the future, our country will go global and engage in economic cooperation with countries around the world, including cooperation within the socialist camp and with capitalist countries.

"Economic cooperation should pursue win-win cooperation. If we want win-win cooperation, both sides must have a clearer basis for cooperation. That is, both sides must have the most accurate

Asset valuation. This kind of accurate asset valuation, which neither we nor our partners suffer losses from, is the foundation of our cooperation.”

"Asset appraisal is a tertiary industry with huge demand in the future. There are also intermediary companies like those consulting firms in Europe and the United States. my country actually has demand for them and they can develop."

"Many of the Sino-foreign joint ventures currently developing in my country, when they first started working together, including selecting suppliers of spare parts, it was our government that was busy helping these Sino-foreign joint ventures to contact partners.

"Actually, there's absolutely no need for that. We can also set up a large intermediary consulting company. Whether these foreign companies want to enter my country and find partners, parts factories, or establish joint ventures, they can do so on a business basis. Our intermediary consulting company will provide them with information about the companies they want to work with, and they will pay the intermediary consulting company."

"Of course, this is just my suggestion. That is, while my country develops industry and agriculture, we must also develop a tertiary industry that serves and complements industry and agriculture."

Socialist countries are not good at developing the tertiary industry, but the tertiary industry is really important.

In typical Soviet fashion, departments were clearly defined and unwilling to cooperate freely. It's like driving a car: some departments provide the car, others provide the driver. But without someone to mediate between the two, they'd rather let both the car and the driver gather dust than let the driver drive.

They're like, "The government orders us to produce cars, so they don't care whether there are drivers or not; they just need to produce the cars." Similarly, some departments train drivers, but they don't care whether there are cars or not; they just focus on training drivers. If any problems arise, it's the higher authorities' fault, not theirs.

The relationship between departments was so rigid. Under the planned economic system, many factories were deprived of their autonomy, but at the same time, they did not need to bear additional responsibilities.

China was also deeply influenced by the Soviet Union. Although China's economic policies have been adjusted since the Ninth Congress, it is not something that can be successfully adjusted in a short period of time. Therefore, this problem also exists among various factories in China.

The key to breaking this stagnant situation is to develop the tertiary industry, which serves both industrial and agricultural sectors. Many people associate the so-called tertiary industry with service industries like restaurants and hair salons.

In fact, this is the most basic service industry. But in addition to these basic industries, there are many high-end service industries, such as account auditing, asset evaluation, legal services, intermediary matchmaking, etc.

Historically, the international high-end service industry has been controlled by European and American countries, especially the United States.

In fact, there is a huge demand for this in China right now. Many companies actually have a lot of cooperation needs, but because they are unfamiliar with each other, they cannot cooperate.

There's an online novel called "I Earned 88 Salaries a Month in the s," which tells the story of how the heroine exploits information asymmetry to foster collaboration and optimize resource allocation. While the novel is often exaggerated, it does capture a major economic issue in China at the time: the difficulty of collaboration between businesses.

Socialist countries pursue tangible, visible industrial and agricultural data, not the tertiary industry. Furthermore, the planned economy compresses the space for the development of the tertiary industry.

Historically, when China chose to open up its market,

The demand for the tertiary industry suddenly surged. As a result, in the 1980s and 1990s, some well-connected people exploited various loopholes instead of developing a formal tertiary industry and formulating comprehensive tertiary industry development policies.

As a result, by the 21st century, most of China's high-end service industries were controlled by American companies, spending hundreds of billions of RMB each year on these industries.

When Sino-foreign joint ventures want to find domestic partners to produce certain products and replace them with domestic parts, the government is helping them find these partners.

But in Europe and the United States, this kind of work is done by intermediary companies. Even many intermediary consulting companies that provide cooperation plans to factories will become large global companies in the future. They will tailor supporting companies for their clients.

If you want to set up a steel plant, what is the budget, what are the technical standards, these consulting companies can prepare everything for you based on your requirements.

In fact, China could certainly develop such intermediary companies. Jointly established by the central and local governments, they would have access to a wealth of national data, giving them an advantage from the outset.

This applies not only to Sino-foreign joint ventures, but also to large state-owned enterprises. When tackling certain projects, we can collaborate with them to select the most suitable solutions and partners. This is much easier than asking the central government to intervene whenever there is a problem.

Moreover, such large companies can not only organize data on many industries in China, but also organize and classify economic data from socialist countries and Southeast Asian countries through various channels.

This way, both the Chinese government and major companies will be able to provide services when needed, and they may even be able to go abroad and compete with American companies in the future.

After Wei Hongjun finished speaking, everyone realized that the great development of the industrial and agricultural economy was also due to the growth of not only the tertiary industry but also

Development. So everyone started to discuss how to develop the tertiary industry.

It is impossible to completely liberalize the basic tertiary industry at present, but the state can organize the development of some technical and professional tertiary industries.

After discussion, it was decided to develop China's own asset appraisal company, named "China Asset Audit Standards Company", which was jointly funded by the People's Bank of China and the Ministry of Commerce.