Thirty Years of Turbulence - Chinese Enterprises

作者：admin  点击次数：18  发布时间：2025-10-29

The newly launched "Economic Reference" published a thought-provoking news headline on July 22nd: Shanghai Fifth Iron and Steel Plant purchased a batch of molybdenum iron from Zhenjiang Smelter, which demanded a price 28% higher than the national price, and stated that if Fifth Iron and Steel Plant could not accept it, other steel mills were willing to demand goods at this price. The fifth factory had no choice but to purchase according to this, and they were also forced to "raise prices" when selling steel. The Zhenjiang factory, which has been accused of "disorderly price increases", also has its own difficulties. If it is priced according to the country, it will undoubtedly lose money, so the price increase is also a last resort. The information revealed by this news is that rigid planned pricing has fallen into a structural dilemma in an increasingly market-oriented environment.

On the other hand, loosening price controls and opening up pricing power for some goods has become a trend. Prior to this, all goods in China, from large machinery to needle and thread machines, were priced according to national planning, and no enterprise had any autonomy. This situation is obviously unsustainable, so the country had to gradually open up the prices of small commodities. In September 1982 and September 1983, the State Council twice opened up the prices of a total of 510 small commodities, while also allowing a "quality price difference" of 5% to 15% for similar products. High quality products that have been awarded gold and silver awards have even greater pricing space, with gold award products increasing by no more than 15%, silver award products increasing by no more than 10%, and high-quality products increasing by no more than 5%.