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372 67 Some Thoughts on the Three-Year Restructuring of Shanghai’s Industries and Their Long-Term Growth1 September 27, 1989 Industrial planning is a very important component of long-term economic planning. Shanghai won’t be able to develop if we don’t increase industrial production and performance and ensure the key projects for industrial growth. The city’s Economic Commission and the various industrial bureaus have made a great effort to draw up a broad outline within a very short period of time—this wasn’t at all easy. Of course further steps still have to be taken, a few of which I’d like to discuss here. 1. Adjusting Product Mix and Industrial Structure This subject should be a prominent feature of the plan for industrial growth, the key points of which have yet to be spelled out and its focus sharpened. At least we can’t go wrong with the following projects. Color TV Tubes. We are treating this as the most important project. Even though we have stockpiled color tubes right now, it is advisable to focus on this project. There’s no way the project’s 1 million color tubes would be rejected in China—they will be in great demand once they’re produced. That’s why we cannot waver on this matter under any circumstances: we cannot let up, we must start production this year. Its 12 supporting projects must also get under way. I just received word—apparently the State Planning Commission has also taken note of our glass [TV tube] envelopes and hopes that we will start producing them, and that we will hurry up and start work on the 12 supporting projects. Each imported color TV tube now costs over US$90. Even without its accessory parts, we would save US$40 to $50 making the tube here, so overall we would save US$20 million to $30 million a year. After we make the parts, we’ll 1. This is part of a speech by Zhu Rongji following a report by the Shanghai Municipal Economic Commission titled “The Three-Year Plan for Restructuring Shanghai’s Industries and the Conceptual Outline for Development during the Eighth Five-Year Plan.” Zhu_Shanghai Years_1987-1991_hc_9780815731399_i-xii_1-620.indd 372 12/26/17 12:01 PM Some Thoughts on the Three-Year Restructuring of Shanghai’s Industries 373 save even more, and the benefits will then become obvious. This is the only way we’ll be able to rescue our color TV industry. No matter how great the difficulties , surely we should be able to produce 500,000 color tubes next year. That means next year we’ll have saved ourselves, the benefits will be much greater, and we won’t have to worry about falling prices. Cold-Rolled Steel Plates. We can’t go wrong working on cold-rolled steel plates: no matter how stagnant the economy, they will sell. Hot-rolled steel and whatever else is associated with cold-rolled steel must also keep up—that is, we must have a tight grasp of this key project and not let go. I agree with [Chen] Datong2 that we should focus on quality and on alloys. Shanghai shouldn’t keep producing ordinary steel. Of course we can still produce a little for our own needs, but we should mainly focus on “high-quality, stainless, and highend steel,” on “plates, tubes, and bands,” and then export these to solve the problem of survival—it’s very hard to survive just relying on the domestic market. (Chen Datong: we’ve already exported 80,000 tons of steel, so it’s still worth importing 150,000 tons of pig iron.) The Municipal Bureau of Metallurgical Industries lives off product variety and quality. To put it in more bluntly, we must live off product variety. Lu Guanqiu3 has become famous simply for taking steel from the Shanghai No. 5 Steel Mill, processing it a bit, and then exporting it. Therefore this is something Shanghai can depend on. We in Shanghai keep acting like an emperor rather than caring about what customers want. On a visit to a dairy products factory in Inner Mongolia, I found the equipment made by our petrochemicals machinery factory quite outrageous—the noise it made was so incredibly loud that nobody could enter the room. As soon as I saw this, I said it’s disgraceful for Shanghai to produce equipment like this. Although the factory recently put out a self-criticism...


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