In the past, private enterprises relied on environmental pollution prevention and control to reduce costs and increase product competitiveness. Now strict supervision can no longer exclude the use of dust removal equipment; in the past, they relied on low wages to reduce labor costs, but now workers have more employment opportunities to choose from. Low wages cannot attract employees; in the past, the contracting tax preferential policies were used to reduce national taxes and increase corporate income. Now tax laws are strictly enforced and GDP performance assessment is diluted, and local protectionism is gradually becoming more and more unpopular; in the past, low-quality and inferior products reduced the process Cost, now there is a surplus of products, and there is no market for inferior products. The bankruptcy of small private steel mills in Jiangsu is inevitable and is the inevitable result of the supply-side economic reform of the new economic normal. This overcapacity reduction policy is based on market squeeze, policy guidance, technology restrictions, energy-saving thresholds, environmental monitoring, bank loan withdrawals, and zombie dismantling. The State-owned Assets Supervision and Administration Commission and local governments are the responsible entities, and strong assessment and accountability are used. For the implementation of measures, there is no specific indicator to a certain enterprise, and whoever is within the line will dismantle it. Eliminating backward production capacity faces many difficulties. First of all, the low enthusiasm of local governments and the lack of motivation to take drastic measures are a major obstacle to the rapid implementation of national policies. The phenomenon of excessive interference in the market by local governments is still common, and they are especially fond of "investment attraction" projects. They often provide various tax exemptions, preferential land policies and other terms to attract backward production capacity projects transferred from other provinces, making these projects that should be eliminated The "defeated soldiers" have the opportunity to recuperate and the ability to make a comeback. Secondly, the imperfect exit mechanism and poor channels for these backward production capacity markets are also problems that urgently need to be solved. Companies with market exit orders have unreasonable industrial structures and products at the low end of the value chain, which makes it difficult for the market to reorganize and transform across regions and industries, financial liquidation, and personnel placement conflicts, allowing the market to quickly get rid of these "baggage" and lighten the load. It is not possible to see significant results in a short period of time.
The yellow sand will wear golden armor in a hundred battles, and Loulan will never be returned until it is broken. To break through these hard bones, the government and enterprises must show great responsibility, courage and historical responsibility. As the main body of implementation of the "last mile" of national policies, local governments must always focus on the overall national economic situation and the direction of transformation, be indifferent to the "private interests" of local individuals, and carry out actions to eliminate backward production capacity appropriately based on local conditions and start from the source. Reduce the approval and preferential policies for backward production capacity. Resolutely eliminate backward production capacity with high energy consumption, heavy pollution, and poor quality, and carry out macro-control of short-term periodic overcapacity due to structural adjustments. As the “heads” of government departments, we should abandon the “GDP-only heroic theory” and other thoughts that are inconsistent with market rules and eager for quick success, and spend time to reconstruct the industrial layout of the region so that the local economy can flourish. Vital youth.
For enterprises trapped in the quagmire of backward production capacity, it is unrealistic to look around and grasp for life-saving straws. They must rely on the strengthening of independent innovation capabilities and new ideas advocated by the supply-side structural reform to develop new ideas that are consistent with safety. Only by focusing on product production lines that pay equal attention to standards such as environmental protection, quality, and energy consumption, and actively abandoning the "heavy armor" with backward production capacity, can we reduce the "weight", slowly climb out of the quagmire, and get rid of the survival crisis. Then, only through industrial transformation and upgrading and cross-regional and cross-ownership strong alliances can we create many advanced aircraft carriers for the Chinese economy.