Chapter 321: Easier Said Than Done

"Xiao Li, don't be so grandiose or cryptic. I want objective views," Sun Weimin warned Li Xian before he had even finished his second sentence.

Li Xian had intended to be a bit enigmatic, but now, reprimanded by Sun Weimin, he felt somewhat embarrassed. He decided to cut through the fluff and get straight to the point: "Secretary Sun, let's talk about why I'm not optimistic."

"Then be detailed," Sun Weimin said, gesturing at the desk.

"Hmm," Li Xian scratched his head, "To put it simply, I'm optimistic about Longjiang's short-term outlook but not about its long-term prospects."

Under Sun Weimin's scrutinizing gaze, Li Xian laid out his points: from the current market economic reform benefits, to Longjiang's current industrial structure, and then to the constraints imposed by its geographical environment, ultimately noting the decline in the old industrial base's position since the rise of coastal industrial zones.

However, the most crucial point he didn't mention was the lagging nature of Northeast China under this round of reforms.

But this issue, if brought up now, would seem quite shocking—it would only be apparent a decade later.

Even though it was happening now.

After listening to Li Xian's detailed analysis, Sun Weimin's expression grew solemn.

"Secretary Sun? Secretary Sun?"

After a long silence, Sun Weimin was brought back to attention by Li Xian's call.

"Ah." He relaxed his furrowed brow and, looking at the young entrepreneur before him, tentatively asked, "Is there no way to address this?"

But as soon as he asked, he regretted it.

He had directed his concerns to a young man in his twenties, which was clearly a case of desperate measures.

"There is!"

To Sun Weimin's surprise, Li Xian gave a firm affirmative answer.

"Oh?" Sun Weimin was intrigued, "Let's hear it then. What's the solution?"

Li Xian, without hesitation, held up three fingers: "Start developing industry, invest in technology, and retain talent."

Before returning to this era, Li Xian had often mingled in various online forums and communities. Discussions about his hometown's economy were common at that time, with many keyboard warriors and genuine economic experts offering their views. Although the opinions varied, they generally converged on these three strategies.

"Our natural environment in Longjiang is harsh, with long winters, so agriculture is not a viable option. Even if we grow economic crops, they can't surpass the southern regions with milder climates and longer daylight hours."

"So you mean to abandon agricultural development?" Clearly, Sun Weimin was not on board with this first point.

"Of course not!" Li Xian immediately countered, "Agriculture is a strategic industry crucial for stability and public morale. It must be prioritized at all times. However, looking at the development trajectories of industrialized countries, in the early stages of industrialization, agriculture supports industry and provides accumulation. But once industrialization reaches a certain level, industry supports agriculture and cities support rural areas, achieving coordinated development between industry and agriculture, and between urban and rural areas, is a common trend."

After this explanation, Sun Weimin slightly straightened in his seat.

Li Xian continued, "For example, take the mountain specialty development company I manage. It drives the development of forest resources through the pharmaceutical and health product industries."

"Secretary Sun, you need to understand that agriculture is the foundation, but it is not the solution. To put it simply, our Northeast region has nearly five months of freezing conditions each year. During this time, most farmers are idle. Only by simultaneously developing other industries and finding economic breakthroughs can we drive regional development.

But what industries can Longjiang develop? Real estate might work, but given our geographical position far from economic centers, poor natural environment, and the impact of winter freezes on construction, real estate has slower returns compared to the south, making industrial development difficult.

On the other hand, industry can operate year-round as long as there is water and power supply. With a large-scale industrial setup, we can create sufficient jobs, retain talent, and generate more revenue to develop the region."

After listening to Li Xian's analysis, Sun Weimin nodded in agreement.

But he also sighed.

The reason he asked for Li Xian's views on Longjiang's economy was due to a recent interim report commissioned by the national statistics bureau on provincial state-owned enterprises.

According to the report on over 900 state-owned enterprises in Longjiang Province, by October 1993, these enterprises had total assets of 104.1 billion but liabilities reached 100.7 billion. The average debt ratio was 77%. Compared to ten years ago, assets had increased fourfold, but liabilities had increased 8.6 times. Many old state-owned enterprises were still in production, but their products often went directly into storage after coming off the production line. According to the report, the total value of inventory products in provincial industrial enterprises at the township level and above had reached nearly 600 billion.

Continuous losses, low efficiency, unsellable products, and tight funds.

This was the situation of the provincial industry.

Now, with the interim regulatory office intervening in local reform processes, promoting industrial development under these conditions?

Easier said than done.

Sun Weimin waved his hand and pulled out a page from a report on his desk, placing it in front of Li Xian. "Take a look, but remember, it's for your eyes only and shouldn't be shared."

Oh?

Looking at the blue-covered folder, Li Xian swallowed. He thought it might be something highly confidential.

But when he opened the folder and saw the heading of the interim regulatory office's document, followed by a series of dismal data, his face stiffened.

So it's this...

This information wasn't really confidential. It's just that the government treated it as a secret, considering the collective failure of state enterprises as a shameful matter.

However, the reality was that almost everyone already knew about the difficulties faced by state-owned enterprises. Millions of state enterprise employees had long spread the situation of their units among the public.

And those vivid, word-of-mouth accounts were even more shocking than these cold statistics.

"What you just said is similar to the rhetoric of a young person, just theoretical. Young people often have too many assumptions and are too idealistic."

Hearing Sun Weimin's evaluation, Li Xian felt disgruntled.

He hadn't finished speaking.

What the report described wasn't just Longjiang's industrial problems but was a common issue nationwide during the planned economy era.

There wasn't a good solution to this tricky problem in 1993. However, three years later, a person named Wu Jinglian would propose a famous theory in *Reform* magazine—"Grasp the Large and Let Go of the Small."

This approach would focus on supporting large state-owned enterprises with potential while allowing smaller state-owned enterprises to become more flexible, aiming for a quick integration with the market economy.

But he dared not mention this theory.

Because this method would directly lead to millions of state enterprise employees losing their current jobs.

For the economic environment, it was a remedy. But for those living outside the data, it was too harsh.

Revealing this method, he feared he would be criticized for years or even decades.