Thirty Years of Turbulence - Chinese Enterprises

作者：admin  点击次数：6  发布时间：2026-03-17

The term 'illegitimate child' may sound a bit harsh, but it is a clear fact. In order to strictly implement the dual track system and protect state-owned enterprises within the system, the State Council issued a strict ban in March: wholesale business of important means of production and scarce durable consumer goods can only be operated by state-owned units, and it is not allowed to illegally purchase and resell them at a higher price, sell planned supply certificates, arbitrarily raise prices, or solicit additional income in any form. Speculators and profiteers must be resolutely stopped and severely cracked down on.

Such a clear and severe ban can scare some timid people, but it cannot restrain those adventurers with strong backgrounds in the slightest. On the contrary, it makes the profit margin of adventure increasingly larger. The reality that later occurred was that the "dual track pricing system" directly nurtured the prosperity of the "dumping economy". Those people or companies with government background and resources bought scarce production materials at the national planned price and sold them at the market price to earn the price difference. The Economic Daily once reported an example: the state-owned Inner Mongolia Chifeng Metal Materials Company purchased 500 tons of aluminum ingots from an aluminum zinc mine at a planned price of 3714 yuan per ton, and then resold them on site to a Guangdong company at a price of 6500 yuan per ton. The Guangdong company then resold them three times, raising the price to 7000 yuan per ton. Finally, the metal materials company bought them back and transferred them to the state-owned Chifeng Wire Factory. The aluminum ingots remained stationary, and the profiteers who bounced around from them made a fortune. State owned mines, metal material companies, and wire factories all became buyers without exception.