Chapter 2 One of the "Chinese-style failures": the defeat of the political and business game

If it is said that most of the stories in the book published 6 years ago were business failures, then there are many failure cases of political and business games in "The Great Defeat II".In a sense, it has more distinctive and unique Chinese characteristics. In this book, we can see at least three scenes of political and business games: ——The political and business rupture in the process of clarifying property rights.Beginning in 1998, the central government began to implement the strategy of "retirement from the state and advancement of the private sector", and state-owned capital gradually withdrew from the field of complete competition, and a large-scale reform of corporate property rights began.According to statistics from the State-owned Assets Supervision and Administration Commission, from 1998 to 2003, the number of state-owned and state-holding enterprises dropped sharply from 238,000 to 150,000, a decrease of 40%.These enterprises either disappeared or changed their property rights.During this process, some local governments and entrepreneurs had disagreements on the idea of ​​clarifying property rights. In the end, the former chose to abandon the latter strategy for various reasons.This rupture directly led to the rapid decline of the enterprise.The two cases of Kelon and Jianlibao are classics.These two enterprises grew up through the joint hard work of entrepreneurial entrepreneurs and local governments, but in the end, the breakdown of communication between the two parties led to tragedy.

——The division of interests in macro-control.In the development process of Chinese enterprises, macro-control is often considered as a semi-periodic factor.Since 1981, the Chinese economy has undergone macro-control every 3 to 5 years, and the key targets of each regulation are private enterprises.In recent years, with the increasing weight of state-owned capital in monopoly industries, the industrial exclusion characteristics of its regulation have become more and more obvious.Some private enterprises venture into the upstream heavy industry or monopoly fields, and their policy risks are often greater than any operational risks.In the spring and summer of 2004, China's economy entered a new round of macro-control, and there were many famous failures in key governance industries, such as Delong in the capital market, Sunco in the real estate industry, and Sunco in the steel industry. Tieben, etc., all stumbled because of their misjudgment of the macro situation.

——The victim in the competition pattern of local interests.Professor Zhang Wuchang from Hong Kong believes that the development of China's economy is the product of fierce regional competition.This situation directly led to the rapid development of the local economy, thus forming a bottom-up reform wave.At the same time, it has also objectively resulted in the regional division of resources, beggar-thy-neighbor, and a clear distinction between Chu and Han. Those companies that try to form an integrated advantage through a national layout are likely to be caught in this kind of conflict of interests unintentionally.In the case of Brilliance, we can see how Yang Rong, the most imaginative entrepreneur in China's auto industry, fell into this.

The weak position of private enterprises born in the field of market competition in the political and business game is obvious to all, and the price paid by entrepreneurs can be described as "blood flowed like a river".Entrepreneur Feng Lun even believes that: "In the face of state-owned capital, private capital can only advance and retreat freely and continue to develop if it always adheres to the standpoint of cooperation rather than competition, supplementation rather than substitution, and subsidiary rather than overreach." How to skillfully navigate the increasingly complex political and business games will become the biggest challenge for Chinese entrepreneurs.

How far entrepreneurs should keep from politics in China is a topic that has been discussed for nearly 30 years.China's economic growth is increasingly characterized by state commercialism.In the next few years, the focus of wealth accumulation will be mainly concentrated in two areas: one is centered on the Internet and mobile information technology, there will be a large number of emerging industries and growth opportunities, and many traditional industries will be transformed in this transformation. The second is centered on monopoly resources, and a series of capital reorganization activities will take place. The government with these resources will use a large number of monopoly opportunities to the market. In this process, the political game skills of multinational companies and private capital are very important.Often, there is only a thin line between ingenious maneuvering and self-defeating, and success is not the same as steady possession.