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At the end of November, the trade negotiation team led by State Councilor Pu Weiwen went through four months of arduous battles and reached a package of agreements with US representatives in Singapore, known as the "Lion City Agreement" in history.

The agreement has more than 200 pages, and there are three main points that are eye-catching: First, the mainland banking industry is fully liberalized, and overseas financial investors are given national treatment. Regulators shall not restrict business projects and business types; Second, the mainland automobile industry is fully liberalized, and the tax rate is fair, that is, the high import tax tax when overseas automobiles enter the country; Third, the United States is increasing the procurement of agricultural products, and China promises to increase for three consecutive years with an annual increase of no less than 30% and an annual increase of no less than 15% in the next five years.

There is no transition period for the agreement, and all terms will be officially implemented from January 1 next year!

The news spread and domestic public opinion was in an uproar!

For a time, negotiators such as Pu Weiwen were called "eternal sinners", "traitors", "laughing the American tribe", etc., and even more unpleasant criticisms.

The stock markets in mainland China, Hong Kong and Taiwan fell sharply, creating a spectacle of thousands of stocks hitting the limit for three consecutive days, especially bank stocks, automobile stocks and agricultural stocks, and market confidence dropped to freezing point.

Although mainstream public opinion began to launch a positive publicity and guidance role during New Year's Day, analyzing the medium and long-term benefits of the agreement on the adjustment of the mainland's industrial structure, the healthy development of enterprises and the optimization of the industry itself, and pointing out that the pain of reform is inevitable, it is imperative for the mainland economy to integrate into the world's industrial chain. The only way to get rid of the burden and simplify the travel, and continuously improve core competitiveness to adapt to the new situation.

Soon there were counterattacks on the Internet.

Some people say that although we are a little tired with our burdens, we are very happy, so why not continue to be happy?

Some people say that the Chinese market is so big that it can completely digest huge production capacity. Why do we open up the country and let foreigners break in and divide the weight?

Some people also say what can you get from finance, automobiles and agricultural products? Americans' appetite will grow bigger and bigger, and eventually the entire market will be swallowed up!

Ideological chaos is directly reflected in the market. After New Year's Day, banks and other stocks continue to hit the limit. The endless limit downs make people desperate. No one knows where the bottom is.

The automobile market has entered a cold winter mode. Consumers are realistic, shouting about patriotism, but they both suspended their car buying plans, so that imported cars with better quality and cheap prices will be put on the market.

Agricultural products... In the past, New Year's Day to Spring Festival was the time for dealers at all levels to make a fortune. Prices fell as soon as the market opened this year. The reason was that the products of American farms with low prices and good quality will be launched soon. Hurry up and lower the price to run as much as you can!

Before the Spring Festival, the banking industry, which is good at long-term planning, has begun to prepare a "hibernation plan": withdrawing and combining outlets, laying off personnel, and shrinking scale.

In some remote areas with poor information, rumors suddenly came out that "banks are going to go bankrupt" and then quickly reviewed nearby cities like a tornado. Even if the relevant departments responded in a timely manner and tried their best to fight the fire, they still caused a small regional run.

For a country, a government, and the entire financial industry, the bank run is the most dangerous and terrifying thing. At the least, banks will go bankrupt on a large scale, or at worst, civil rebellion will occur and the regime will be subverted!

Why do you say so?

For example, a bank absorbs 10 billion yuan in public deposits, calculated based on the 70% deposit and loan ratio stipulated by the People's Bank of China. Assuming the loan is 7 billion yuan; excluding fixed asset investment, long-term investment, equity investment, and deposit of People's Bank of China insurance funds, about 20%, then in fact, only 10% of cash and silver notes used for daily redemption.

Because banks usually operate deposit and loan business, 1 billion working capital can basically guarantee redemption.

Once a bank run occurs, it will be different. The amount of money that the bank influxes to repay will easily exceed 1 billion, reaching 1.5 billion, 2 billion or even 3 billion or 4 billion. The bank does not have enough liquidity, and external debts cannot be recovered for a moment. The reality of being unable to cope with the redemption will confirm the rumors of "bank bank bankruptcy", which is like a plague that quickly affects other banks, forming the most terrible chain reaction.

Many European and American banks are not in business, but are broken by runs.

The bank run is particularly terrifying for the Chinese government, because since the founding of the People's Republic of China, we have always been a savings society. The people are frugal and diligent. All money except the necessary living expenses are deposited into the bank, rather than the European and American credit consumption, which can be used to spend in advance. If the bank really goes bankrupt, it will inevitably affect thousands of households and shake the most basic stability of the society, and the consequences will be unimaginable.

The highest level realized that the psychological impact of comprehensive opening up on the people is far greater than the actual negative impact, and quickly deployed a series of work to strengthen the revitalization of the economy and stabilize the people's hearts.

Because Yinxia has a relatively small economic scale, its pillar industries, agricultural and sideline products and seedlings, are not outward-oriented, and the real estate market, which has a large fluctuation due to the macro index, is under stable control, so there is little pressure. Among the worried urban leaders, Fang Sheng is a bit free.

At this moment, Fang Sheng remembered what Mr. Yu said after the major change of leadership:

"...All of us generations have suffered too much. The Great Leap Forward has launched satellites, steel production has competed with the United Kingdom and the United States, cotton yields per mu by one million dan, and other blood and tears are vivid in my mind. How can we not think twice before doing it?"

At that time, I explained:... Grandpa felt that the growth of the coastal faction was in a good situation of reform and opening up at the beginning, and the political and people were harmonious, and the international environment was full of kindness. Although it achieved considerable political achievements but did not experience severe tests, it would be a hidden danger for a long time in the future.

Mr. Yu smiled and said that you were talking nonsense, and grandpa didn’t mean that.

Looking back on the dialogue, a generation of proletarian revolutionaries, the battle-hardened old man is really wise and visionary, and the change of leadership predicts the difficulties that will be encountered in the change of leadership.

Let’s look at Shuangjiang’s current predicament, isn’t it the same? It’s still what Mr. Yu said that Shuangjiang is a heavy locomotive, with great force and strong force. Once you establish a direction and rush down, it’s difficult to adjust if you find a mistake.

Whether Shuangjiang or the entire country, the process of trial and error of economic policies is extremely painful, and the cost may be ten or twenty years of depression: enterprises go bankrupt, workers are unemployed in large numbers, housing prices collapse at high levels, and economic development is slow or even regressive under deflation.

Will the "Lion City Agreement" become a turning point for the Chinese nation's super aircraft carrier to change its pace of progress?

This question is too grand for Fang Sheng, but he began to try to consider and analyze the problem from the highest perspective.

From the perspective of local governance, the development of the economy must be made, either focusing on the big and letting go of the small or focusing on annihilation war; commanding a country on the contrary, you must have a overall view of the overall situation, and sometimes you must make strategies that ordinary people cannot understand for the time being, implement strategies that seem to have damaged short-term interests, and wait until several years later, or will never decrypt, and then you will suddenly realize it.

Looking back, the Bai family arranged for Bai Sheng to develop cutting-edge military technology in Hong Kong, which is actually the same idea: for investors Fang Sheng and Zhao Yaoyao, it is a net investment, and there is no future or brightness; but for the military R&D industry, it is an exploratory progress, opening up new ideas and new directions for the country to develop cutting-edge weapons research at the same time.

The highest-level leaders also decided to acquire Northenburg Precision Instruments Group, which also out of at least 20 or 30 years of long-term national strategic considerations, that is, through the acquisition, we gradually make up for our shortcomings in precision technology and break the technical barriers and technological monopoly in Europe and the United States.

As for the real estate problem that is too big to lose, it seems to be a disaster in the local government. If you stand a little higher and look farther, you will find that it is still in a controllable range nationwide, and there are still many "serious moves" that have not been used, so controlling housing prices at the highest level is not a problem.

On the other hand, the lessons learned by the media, the Internet and many experts that Japanese real estate has been trapped for two generations may never be possible in China:

The Japanese real estate market is relatively closed, and foreign investors have to buy houses in Japan for cumbersome procedures, and the outside funds cannot be entered. After the economic development of the 1980s, the funds gradually faded, and Japan's fertility rate continued to decline and the rigid demand was insufficient. It can be said that it is difficult to revive the hope within 30 years.

The mainland has a regional economy centered on the Yangtze River Delta, the Pearl River Delta and megacities. A country has multiple fulcrums to effectively avoid the situation of prosperity and loss. Instead, the east is not bright, the west is bright, and huge profit-seeking funds always flow and business opportunities can always be found.

After jumping out of the game and thinking for a while, Fang Sheng's thoughts suddenly became clear.

This is the benefit of eliminating and selecting the best in China's pyramid-style officialdom. In contrast, the "amateur rule" advocated by Europe and the United States seems to be in line with the "equality of everyone" advocated by some people, but in fact there are great disadvantages.

An obvious phenomenon is that most leaders are hostile to China after they come to power, and often wield the stick of human rights and democracy. Two years later, they are friendly and gentle until their second term. They frequently visit China and sign a large number of cooperation agreements. Then the new leaders come to power, and there is another cycle of reincarnation...

The reason is that these Masaji Amateurs lacked understanding of China before. As they gradually grasped information and intelligence, they became increasingly aware of the importance of cooperation with China. Their attitude naturally changed by 180 degrees. National interests are the principle of eternal unchanging. In contrast, personal likes and dislikes are simply insignificant.

The shortcomings of the pyramid officialdom are as prominent as their advantages, that is, in the cruel and fierce competition, if you make a mistake, you will be excluded forever and will not have a second chance.

Taking Fang Sheng as an example, being able to break through the college entrance examination with thousands of troops and get into the "211 college" Xiaonan University of Technology is the first step, and nearly half of the others who have not been admitted to the university were excluded early.

After that, Fang Sheng failed to pass the civil service exam, but was lucky enough to become a college student village official and barely entered the periphery of the pyramid. In many provinces, college student village officials were only open to their first colleges, which was a shortcut to entering the officialdom.

Then, from clerk to department level, department level, department level, and department level, at least 90% of each level will be eliminated!

Are you the lucky few who you regard [Bayi Chinese website    www.zw-du.me]?

It's wrong!

China is too big and China has too many populations. No matter which level you reach, the stars are still shining, and each star is dazzling!
Chapter completed!