[translated by Google from Chinese]
Capital Market Background
The concept of domestic supply and marketing cooperatives continues to ferment. The concept stocks of supply and marketing cooperatives continued to rise. The concept stocks of A-share supply and marketing cooperatives rose for five consecutive days, an increase of 10%. The shareholders after the skyrocketing listed company are all supply and marketing cooperatives: Anhui Supply and Marketing Cooperative, Zhejiang Supply and Marketing Cooperative Association, Shandong Supply and Marketing Cooperative, and China National Supply and Marketing Cooperative.
Supply and Marketing Cooperative
The operating platform of "All-China Federation of Supply and Marketing Cooperatives" is "China Supply and Marketing Group". "China Supply and Marketing Group" was established with the approval of the State Council in January 2010, with total assets of 150 billion RMB, 11 holding companies, and 3 listed companies. In 2021, the revenue will be 96 billion RMB, ranking 83rd among China's top 500 companies and 31st among China's top 500 service companies.
On January 23, 2022, the "All-China Federation of Supply and Marketing Cooperatives" held the seventh council. The council mentioned the data in 2021: the supply and marketing system has reached a record high, and the sales in 2021 will be 62.6k billion RMB, an increase of 19% over the same period. , the products are agricultural products, daily necessities, logistics, etc. This sales is equivalent to 7% of total retail sales nationwide in 2021. The total retail sales in Beijing in 2021 is 15k billion RMB, and the sales volume of supply and marketing cooperatives is 4.2 times that.
The business of supply and marketing cooperatives across the country has been launched on a large scale, which is the basis for Xi Jinping to pursue socialism.
The Hubei Provincial Supply and Marketing Cooperative Headquarters has launched a "basic-level cooperative restoration and reconstruction project" - "basic-level cooperatives" are the supply and marketing cooperatives directly facing farmers below the county, and the supply and marketing cooperatives built directly in the villages. At present, there are 450k members of Hubei grass-roots supply and marketing cooperatives, which has increased by 5 times in 5 years.
The current supply and marketing cooperative is no longer a concept in the past. The current supply and marketing cooperative: 1. Sufficient capital and strong strength; 2. Cross-border operation and monopoly; 3. Lay the foundation for unified purchase and sales.
Supply and marketing cooperatives are one of the foundations of the planned economy. China's planning system absolutely divides the country into urban and rural areas: the cities are the state-owned economy and state-owned enterprises; the countryside is the collective economy. Among them, there are two major parts of the collective economy in rural areas, one is collectively owned by land and means of production, and the other is called production materials, living materials and agricultural products, which are purchased and sold in a unified manner. The executive department of "unified purchase and sales" is called the supply and marketing cooperative, referred to as the supply and marketing cooperative, which is responsible for the purchase, production and living materials of agricultural products in the entire rural area. That is, not only pesticides and fertilizers, but also the entire living materials for food and clothing are responsible for it. The supply and marketing cooperative is a very core and very mainstream supply channel.
After the reform and opening up in 1980, supply and marketing cooperatives lost their monopoly on distribution channels and were gradually replaced by grain merchants and canteens. In 1982, the organization reformed, the National Supply and Marketing Cooperative Association and the Ministry of Commerce merged, but the brand "National Supply and Marketing Cooperative Association" and the original team were retained.
At the end of 2012, Xi Jinping came to power, and the No. 1 Central Document in 2013 clearly stated: the important role of supporting supply and marketing cooperatives in the circulation of agricultural products. So supply and marketing cooperatives are not just starting to happen now, Xi Jinping has already started doing them. The supply and marketing cooperatives have been written into the government work report of the Central No. 1 document for many times, and have received a large and continuous investment of government funds.
The 2018 Central Document No. 1 clearly stated: comprehensively deepen the comprehensive reform of supply and marketing cooperatives, and support supply and marketing, postal services and various enterprises to extend service outlets to rural areas.
The No. 1 Central Document in 2021 clearly stated that the comprehensive reform of supply and marketing cooperatives should integrate production, supply and marketing, and credit. Not only engage in production, but also engage in supply and marketing and credit, credit is finance. Beginning in July 2021, in Northeast China, North China, East China, Central South, Northwest China, Southwest China, and various districts across the country will select Nuogan Province as a pilot project for the trinity of production, supply, marketing and credit for a period of two years.
In January 2022, the seventh council said: In 2021, the National Supply and Marketing Federation will have a development fund, 30 million RMB, to transform 60 grass-roots societies, transform 2,892 weak grass-roots societies, and rural comprehensive service societies have developed Arrived at 470k home. In 2022, it will focus on building 100 counties with strong circulation services, building 1,000 comprehensive supermarkets in townships and villages, transforming 10k comprehensive service cooperatives in rural areas, transforming 2,000 weak grass-roots cooperatives, and building 1,000 grass-roots demonstration cooperatives with sound systems.
Rural Cooperative
At the same time as the supply and marketing cooperatives, agricultural cooperatives are also recovering on a large scale, but the actual results are not so many. Together, the supply and marketing cooperatives and agricultural cooperatives, Xi Jinping's socialist transformation in the countryside has completed 70-80%.
Urban Socialist Transformation / Big Canteen
In cities, the Ministry of Housing and Urban-Rural Development and the Ministry of Civil Affairs jointly issued a notice to the provinces on October 31, 2022: Notice on Launching "Complete Community Construction Pilot Work". Every city in every province in the country is required to take three to five communities to carry out a "complete community construction pilot", starting in October 2022 for a period of two years. What is a "complete community"? That is, community comprehensive service facilities, providing one-stop services for local residents. Services include: kindergarten, elderly service, convenience store, vegetable market, canteen, mail, barber shop, laundry, pharmacy, maintenance shop, housekeeping service, etc., a very complete community service. Then coordinate several "complete communities" to build a block, which is equipped with primary and secondary schools, nursing homes, and community hospitals, and provides public services within the scope of a 15-minute living circle.
After the entire community service is completed, a complete internal cycle can be realized. As soon as the gate of the community is closed, the Chinese return to the previous "unit" system. In the past, units were divided according to workplaces, but now they are divided according to living quarters. China's market-oriented reform is to eliminate the social services of units, because each unit provides social services by itself, which is costly, inefficient and costly. Now use the complete community as a package to restore social services to the previous model: before, the work unit provided social services by itself, and now the government provides social services in a unified manner. This is the return of the planned economic system that matches the supply and marketing cooperatives.
But the current so-called reversion is not a simple repetition, because the government now holds the wealth accumulated by the Chinese people in the past 40 years, plus digital totalitarian tools, plus the resources of the modern enterprise management system and the modern capital market , so the CCP is more confident in socialism than it was forty years ago.
This is why Xi Jinping is engaged in socialism, because the economic conditions were not enough 40 years ago, but now he has whatever he wants and there are abundant resources. But he forgot one of the most fundamental economic laws: the essence of society is to eliminate the generation mechanism of wealth. Socialism does not generate wealth. In the end, it can only be deceitful and cannot last. After the wealth on hand is exhausted, it will start to starve.
Hebei requires cities to build at least 50 "nutritious and healthy restaurants" this year, state-run "nutritious and healthy restaurants." It also requires that by 2025, at least 500 restaurants should be built in each city and no less than 5,000 restaurants in the whole province. This is the people's commune canteen. When the people's commune canteen came, the great famine was not far away.
Elimination of Private Enterprise / "Mixed Ownership Reform"
In addition to supply and marketing cooperatives, canteens, private enterprises can not escape. Latest news: On October 18, the Second Division of Anti-Monopoly Law Enforcement of the State Administration of Market Supervision approved China Unicom and Tencent to establish a joint venture to engage in content distribution network and edge computing business: China Unicom holds 48%, Tencent holds 42%, and employees hold 10% %, which is basically China Unicom Holdings. Stimulated by the news, China Unicom's shares rose 1.2%, while Tencent's shares rose 1.4%. Why should the anti-monopoly department approve the joint venture between China Unicom and Tencent? In the content distribution network, China Unicom has only 5% of the market share, Tencent has only 10% of the market share, and edge computing Tencent has only 5% of the market share, which is far from a market monopoly. Neither is involved in monopolistic behavior, and there is no reason for approval. Approval means attaching importance to it, and it also means that no one can participate in this field, only this one can.
The official media previously defined this joint venture project as a "mixed reform", but later someone came out to explain that it was not a "mixed reform". What is "mixed ownership reform", the full name is "mixed ownership reform", that is, an advanced form of state-owned enterprise reform. The reform of state-owned enterprises is part of the reform of China's economic system, and it was pushed to a climax by Zhu Rongji, but Zhu Rongji later found that state-owned enterprises could not be reformed because state-owned enterprises were neither birds nor beasts. If it is simply an enterprise, it is not difficult to reform according to the characteristics of the enterprise, even if it is simply a government department to carry out institutional reform. SOEs are neither government agencies nor corporations, but a hybrid. Zhu Rongji saw that the state-owned enterprises could not be changed, so what should we do? In Wen Jiabao's hands, he couldn't change it, because Wen Jiabao had no idea.
During the period of Xi Jinping, Xi Jinping did not think that state-owned enterprises had any problems and did not need reform at all, so the content of the reform of state-owned enterprises became to solve the problems of other enterprises. Other enterprises include foreign-funded enterprises. Foreign enterprises cannot move, and the rest are private enterprises. Therefore, the reform of state-owned enterprises has become a "mixed ownership reform" in Xi Jinping's hands, that is, a mixture of state-owned enterprises and private enterprises, and private enterprises are mixed with state-owned enterprises. If private companies have money but no technology, let private companies invest in state-owned companies. A typical example: Huiyuan Juice invested in a company of PetroChina. The owner of Huiyuan Juice felt that there was a bargain and invested 3 billion RMB to PetroChina. Huiyuan Juice's profit is very thin, but its cash flow is huge. Previously, Coca-Cola wanted to buy Huiyuan Juice, but the government did not allow Huiyuan Juice to sell, so it failed to sell. I voted for PetroChina, thinking that PetroChina could go public, but it couldn't be listed, and Huiyuan Juice was dragged down like this.
Therefore, mixing private enterprises with state-owned enterprises is basically killing them. China Unicom and Tencent are cooperating, but Tencent has no choice. It can be said that the purpose of the "mixed-ownership reform" is, first, to seize the money of private enterprises. Private enterprises themselves do not have much money. If the money is invested in state-owned enterprises, it is very difficult for private enterprises to expand themselves; second, to seize the boss. The end result is that the bosses of private companies cannot escape.
Therefore, "mixed-ownership reform" is the "public-private partnership" in the new era. Times have changed, and the form has changed, but the goal has not changed, that is, to eliminate private enterprises through transformation.
Socialist Utopia
Briefly summarize Xi Jinping's vision of a socialist utopia:
1. Rural areas: Supply and marketing cooperatives and agricultural cooperatives become the basic framework of the collective economy, and then carry out the reform of intensive production. Combining these three things, the socialist restoration of the countryside will be basically completed. Xi Jinping has completed 70-80%, and only 20-30% needs to be done.
2. Cities: The most important in cities is the primary industry, which includes raw materials and infrastructure. As soon as Xi Jinping came to power, Liu He helped him implement "supply-side reforms". The "supply-side reform" was initiated by Wen Jiabao's 4k billion RMB stimulus plan. At that time, after the 4k billion RMB economic stimulus came up, the demand soared, so various places built raw material supply production - steel mills, cement plants, non-ferrous metal plants, etc. After Xi Jinping came to power, the demand waned because the 4k billion RMB was almost spent. As demand declines, what about the previously built raw material supply factories? Therefore, Liu He's "supply-side reform" began to eliminate backward production capacity. What is backward production capacity? All private enterprises are classified as backward production capacity and eliminated in the "supply-side reform". Therefore, in the primary industry, there are very few private enterprises, accounting for a very small proportion, which is basically a monopoly of state-owned enterprises. State-owned enterprises monopolize the supply of raw materials for the primary industry and monopolize infrastructure, including energy, transportation, water and electricity.
In the financial industry and capital market, foreign capital has always been restricted to a very small space, and the financial industry and capital market have always been basically dominated by state-owned enterprises. In the real estate industry, after this macro-control, basically there are only state-owned enterprises left, which is the world of state-owned enterprises.
Therefore, the primary industry, the real estate market, the financial industry, and the capital market are all owned by state-owned enterprises, while private enterprises and foreign-funded enterprises only have a small share.
Let’s look at the tertiary industry, namely small and medium-sized enterprises, catering, various social services, etc. Through the social transformation of “complete community building”, private enterprises in the tertiary industry will be completely eliminated and replaced by state-owned enterprises.
The core of the rest is the manufacturing industry. The manufacturing industry is mainly export. The marketing of export is maintained by private enterprises and foreign-funded enterprises. However, the upstream of the manufacturing industry is the raw materials, and the raw materials are all controlled by the state-owned enterprises, so the manufacturing industry can be easily controlled.
3. Regime: Using guns, pens, knives, and digital totalitarian tools, the regime is highly concentrated in the hands of the CCP, and the regime of the CCP is highly concentrated in the hands of Xi Jinping.
4. Internal and external policies: conduct comprehensive ideological confrontation with foreign countries, but open up capital markets and industrial markets conditionally, allowing Western capital, technology and management to come in. Complete personal control within.
This utopia is essentially a dictator's paradise, a people's hell, and will eventually evolve into a great famine.
Keep in mind that the essence of socialism is to eliminate the generation mechanism of social wealth. Failure to produce wealth will inevitably lead to poverty. The essence of socialist utopia is to spend all the wealth created and saved in the past forty years, and then there is no wealth generation mechanism. In the old cafeteria, there was no money to eat. Everyone was happy at first, but after all the food in the commune was eaten up, the result was a great famine.
