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178 30 Promote the Tight Integration of Sci-Tech with Production1 August 12, 1988 Sci-tech is a magic wand for revitalizing Shanghai. This concept must be firmly embedded in our minds, and we must do a good job of integrating sci-tech with production. This is one of the fundamental things I’ve learned since starting to work in Shanghai. Following are some thoughts on issues surrounding this concept. 1. Promoting the Integration of Sci-Tech and Production In playing to Shanghai’s strengths in sci-tech, we will have to overcome a number of obstacles and bring to this endeavor an open mind and multiple perspectives. Shanghai’s Current Difficulties. Shanghai’s economic development is currently facing many obstacles, a critical one being the serious shortage of raw materials . What’s more, their prices are rising, causing economic benefits to plummet and worsening problems in all areas. In response, the Municipal Party Committee and the municipal government have conducted many studies on the basis of which they intend to adopt the following measures. The first is to restructure industries. Shanghai can’t rely on processing industries alone. It must also undertake some immediate projects to produce raw materials that are in the shortest supply and that will yield the greatest economic benefits. For example, once the supply of cold-rolled steel is ensured, we will be able to develop light industries such as washing machines, refrigerators, and food packaging. Likewise, after we invest in projects for plastics, synthetic fibers, and raw materials for petrochemicals, they will yield benefits within a year or two. This way, things in Shanghai will be a bit better just after two years. The second measure is to develop horizontal economic alliances and a large domestic cycle [for circulating goods]. Shanghai can ensure steady access to some raw materials by various means: it can sign long-term contracts with 1. This is the main part of Zhu Rongji’s speech at a conference in Shanghai on sci-tech work. Zhu_Shanghai Years_1987-1991_hc_9780815731399_i-xii_1-620.indd 178 12/26/17 12:00 PM Promote the Tight Integration of Sci-Tech with Production 179 other provinces and municipalities, invest in them, barter products, or engage in compensatory trade. However, it isn’t enough to source raw materials entirely within China, and it is certainly of no use to confine these efforts within Shanghai. We still need to rely on large-scale imports and exports: imports of raw materials and exports of our products. But the kinds of products we have been making in Shanghai up to now are very hard to export. We must come up with new products, products that are in high demand, and we must truly move toward high quality and high grades—these are the only kinds of products that will be able to enter international markets. Even if you raise their prices and increase your profits a little, people will still be glad to buy your goods. Quality is the lifeblood of products, of enterprises, and of Shanghai—Shanghai’s factory directors must be clear on this point. Only by increasing product variety and improving quality can we provide the best products at the best prices, and thereby increase earnings in order to cope with the pressure of higher prices for raw materials. To this end, we must integrate sci-tech with production, as well as introduce advanced and rigorous management. This is the only way to come up with new and high-quality products and thus create more added value with the same quantities of raw materials and energy. In short, this is the only way to ensure great prospects for Shanghai’s economic development. Open Minds and Multiple Perspectives Are Key to Integrating Sci-Tech and Production . A primary goal should be to produce hi-tech products. In keeping with the demands of the Seventh Five-Year Plan, we must work hard to develop such products in the fields of microelectronics, fiber optic communications, programmable telephone switches, and bioengineering. We should also focus on pillar industries and technologies, and on products that are relatively knowledge intensive. For now, we need to concentrate on properly handling the 14 major projects that have already been identified by the municipal government. Once these projects are under way, we’ll be able to elevate the performance of all of Shanghai’s industries, raising the standards of their industrial technologies to a new level and helping the products of these projects enter foreign markets...


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