Chapter 6 Chapter Two

In 1999, the global economy was recovering, and some people said: "The good days are back." However, a book by Nostradamus predicted: "In August, the nine planets in the solar system and the moon will be arranged in a cross, and the moon in the center of the cross will Earth will be judged at the end of the day." For Wenzhou people, their situation turned out to be a prophecy, and it became a real-life business curse. In the 1990s, after the "Second Start-up" was put forward in Wenzhou, family businesses in Wenzhou got rid of the extensive business model and developed in the direction of joint-stock cooperation and enterprise conglomeration, which won a second spring for Wenzhou's economic development.

However, at the turn of the century, Wenzhou's private economy began to experience a new "seven-year itch".The development of the manufacturing industry has generally encountered a "ceiling". Due to the limitations of the industry itself, the main industries such as leather shoes and low-voltage electrical appliances have very limited space for further expansion.Wenzhou's lighters have occupied nearly 80% of the world market in the last century, but the output value of such an astonishing proportion is only several billion. With China's accession to the WTO, more Wenzhou products are going international, but the situation is not optimistic. "To produce a pair of shoes, Chinese people only get one yuan, while multinational companies get dozens of yuan, and most of the profits are taken away by others." What Long Yongtu, a Chinese hero who joined the WTO, is indeed true.

In Wenzhou, where the manufacturing industry is the backbone, its status as the world's "foundry" is particularly embarrassing. In the entire cycle of commodity production, distribution and sales, the "foundry" can only rely on cheap labor to earn very small profits.Most of the world's popular dolls - Barbie dolls are produced in Wenzhou, China.In the U.S. market, a Barbie doll sells for as much as $10, but the Chinese "foundry" charges about $2, including management fees, $1 for shipping, and $0.65 for materials, making little profit. With tight profit margins, low value-added status, and low risk resistance capabilities, "Made in Wenzhou" has entered an era of meager profits or even losses.

The "world factory" headed by Wenzhou began to conquer cities and territories on the world stage.Every hour Wenzhou produces 120,000 pairs of leather shoes, every day Wenzhou exports 1 million pairs of sunglasses, and every year Wenzhou produces 100 million lighters. These figures have shocked and frightened the world market. The overwhelming Chinese manufacturing is bound to divide up the cake of others. On December 11, 2001, China officially became a member of the WTO.In less than half a year, in May 2002, Chinese products were boycotted and blocked by foreign markets: the Turkish Foreign Trade Agency announced its decision to conduct anti-dumping investigations on mechanical pencils and ballpoint pens exported from China.

At that time, China exported more than 10 million mechanical pencils and ballpoint pens to Turkey, more than half of which came from Wenzhou. More than 100 Wenzhou pen-making enterprises felt a lot of pressure because of this, causing bursts of commotion. Of course, this threat is aimed at almost all light manufacturing industries. Also in May, "the first case of China's accession to the WTO" was directed at Wenzhou lighters. The European Center for Standardization passed the "CR Regulations" on lighters, which specifically stipulates: 1. Toy lighters are completely prohibited from entering the European market, so as to prevent children from playing; 2. Lighters with a price below 2 euros, that is, RMB 15 or less A safety lock must be installed to prevent children from opening it.

Wenzhou lighter companies are not unfamiliar with this. As early as 1994, the CR Act of the United States has given Wenzhou lighters a "lesson from the past." Under the organization of the association, the increasingly mature private enterprises in Wenzhou have successfully used the law to protect themselves.Although the Wenzhou lighter company escaped the catastrophe in the end, there are already countless facts telling Wenzhou businessmen that the Wenzhou model must change. Zhejiang Dongri, the leader of Wenzhou’s second collective entrepreneurship, was the first to go public in 1997, and its performance in the next few years was only surprising: “When it went public in 1999, its net profit per share was 0.29 yuan. In 2000, it fell to 0.20 yuan, and in 2001 it fell to 0.09 yuan. By the middle of 2002, the net profit per share was only 2 cents.” Even for state-owned enterprises, private enterprises in Wenzhou seem even more hopeless.

Only after painstaking determination can we think about change. At the end of 2002, almost all private enterprises in Wenzhou were thinking about change. Xu Yongshui, a representative of the lighter company, not only hired talents with high salaries, but also began to retain talents with shares. He even planned: "For the EU CR anti-dumping, if the lawsuit is going to be fought, wouldn't it be better to go around and set up a branch factory in the EU? " At that time, Chint was already conspiring to move its research and development organization to the United States, Tianzheng began to cooperate with ABB in Sweden, and Chamon, Baoxiniao, and Aokang all extended olive branches to international brands.Zheng Chenai, vice president of the Wenzhou Garment Chamber of Commerce at the time, was not without worries: "Wenzhou's garment industry has entered a dead end. With the same structural model and the same product positioning, China's garment industry must have been a winter in 2003. Therefore, I think we We should use the 'brains' of foreigners to direct our own scissors."

In addition to obstacles in foreign markets, Wenzhou enterprises also face troubles from domestic enterprises. History sometimes inevitably changes time and space.A few years ago, Wenzhou enterprises were criticized by the Chinese people for their dishonesty, profit-seeking, and omnipotence.After paying a heavy price, "establishing the city with quality and integrity", Wenzhou has turned a cocoon into a butterfly and entered a new stage.Then, when enterprises from other regions embarked on the development process of the old Wenzhou, their chaotic market reputation often disturbed the predecessors who were in a hurry.

A clothing store in Henan placed an order of more than 100,000 yuan with a clothing factory in Wenzhou.The two parties agreed that the merchant in Henan should pay part of the deposit first, and pay off the entire balance on a certain date after receiving the clothing.Unexpectedly, when the agreed date arrived, the balance of the payment was delayed. Wen Shang went to collect the debt many times, but to no avail. In the end, he couldn't even see anyone. Wenzhou Xishan Special Ceramics Industry Enterprise Group Co., Ltd. also encountered the same experience. It was charged 8 million yuan on credit, and had to spare manpower to collect accounts everywhere, with little success.Xie Jinxing, the general manager, said helplessly: "Some people do business, look at the market, and try all means to get goods. Once the market changes, they immediately turn their backs, and they have no reputation at all."

In 1999, the Wenzhou brand was well-known throughout the country.This year, Aokang won the top 50 famous brand products in Zhejiang Province and the top 100 private enterprises in China.However, Wang Zhentao felt very annoyed that the Aokang brand he had worked so hard to create actually encountered "Li Gui" in the markets of Wuhan, Anqing, Gaomi, Linyi, Tai'an and other places, such as "×Aokang", "Aokang", Trademarks such as "Aokang ×" have seriously disturbed the market and affected the brand image. Therefore, Wang Zhentao sent a special person to crack down on counterfeiting, and found a surprising discovery: the counterfeit Aokang leather shoes produced in Gaomi Niantou Village have a considerable scale. 10 counterfeiting enterprises have formed a one-stop supporting production line. One company specializes in producing Aokang trademarks, three specializes in making Aokang packaging, and the other six specialize in the production of counterfeit Aokang leather shoes.

So Wang Zhentao set fire to the counterfeit Wenzhou shoes at Wulin Gate in Hangzhou, setting off a campaign of "cracking down on fakes and protecting famous brands". Back then, private enterprises in Wenzhou, which were in their infancy, were fearless and rampant, and finally broke through.But now, Wenzhou enterprises with a certain scale and strength feel constrained everywhere, with a higher starting point and more difficult breakthroughs.As a result, some Wenzhou businessmen were tired of the step-by-step business, felt powerless, unable to bear the desire for rapid wealth expansion, and hoped to find a more convenient and labor-saving way. Wenzhou's economy at the turn of the century, placed on a larger stage, fell into an awkward position where there were pursuers behind and interceptions ahead. The strong Wenzhou people are never satisfied; the Wenzhou people who have strength are more aggressive; the Wenzhou people who have the heart of "getting rich" go astray and lose themselves. In 1997, some enterprises began to go downhill, among them was "Naibao", which had a great reputation. In the summer of 1990, Wang Chengdong was at the forefront of the Wenzhou shoe industry.Naibao, which is favored by a Hong Kong company, has become one of the few joint ventures in Wenzhou, introducing Italian shoe-making assembly lines and supporting equipment, leaving those shoe-making companies that started from family workshops far behind.In the next few years, Naibao has been enjoying a bright future, and has successively won titles such as "Special Award for Product Quality of Export-oriented Enterprises in China's Coastal Areas", "Gold Award of Beijing 'Bailu Cup' Footwear Expo", "Gold Award of the Eighth International Footwear Expo" and so on. Naibao began to enter the track of rapid expansion. By 1997, it had opened 328 specialty stores across the country, and even put forward the slogan of "Thousand Stores Project".At the same time, Wang Chengdong raised more than 30 million yuan, marched into multiple fields, and invested in the construction of "Naibao Hotel".The operation of the hotel is not satisfactory, and the negligently managed Naibao leather shoes also encounter a quality crisis and their sales are hindered. In the autumn of 1997, Wang Chengdong, a romantic figure in the shoemaking industry in Wenzhou, left, and Naibao went bankrupt and ended in bankruptcy. This year, it was the financial turmoil in Southeast Asia. Although China's financial defense war was successful, Wenzhou's light manufacturing industry was still bruised.At that time, Wenzhou business owners generally felt that with the deterioration of the internal and external environment and increasingly fierce competition, the profits of the industry had been pulled down. "It is no longer the era when everyone can make money." The Naibao incident even sounded the alarm for Wenzhou enterprises.In the face of the crisis, Kangnai, Aokang, Gilda, and Red Dragonfly chose to vigorously cultivate their own brands. After years of down-to-earth development, they finally became Chinese famous brands.However, the bankruptcy of Naibao deeply touched Wang Yuejin of Bali Shoes: Over the years, Bali and Naibao can be described as "going hand in hand." Wang Yuejin, who founded Lucheng Yuejin Leather Shoes Factory in 1984, transformed the factory into a company in 1990 and changed its name to Bali Leather Shoes Factory.After that, Wang Yuejin focused on quality and became the first company to put a credit card into shoes, and won the title of "Innovative Shoe King". In 1993, Bali won the first "China Shoe King" reputation.Wang Yuejin at this stage has taken the company to a higher level in a down-to-earth manner. However, perhaps it is the title of "shoe king" that has strengthened the ambition of Bali.Back then, he used 7 pieces of leather to make the world's largest men's leather shoes, 2.05 meters long.Two years later, he created the largest women's leather shoes with a length of 2.4 meters, and exhibited them all over the country. In 1994, Wang Yuejin established Zhejiang Bali, which became the first group company in the province's leather shoes industry.At that time, other shoe-making enterprises only had one or two production lines in production, while Bali opened all eight production lines.Wang Yuejin's inflated heart cannot be increased. In 1997, Wang Chengdong's departure did not make him sober, but went to the other extreme - disregarding his "old business" and getting involved in mining investment. In 2004, the Bali Group was caught in a smuggling scandal, and Wang Yuejin fled to Australia to avoid inspection.After the turmoil subsided, it continued its "mining" journey. In 2009, when the global financial crisis hit again, Bali became another "Naibao", and the "Chinese shoe king" collapsed. After the fall of Bali, Zheng Xiukang of Kangnai recalled a detail of that year. Zheng Xiukang visited Bali Group in 1994. Wang Yuejin was full of ambition and said to Zheng Xiukang: "Old Zheng, I set up a group company, and you can also do it." One." Zheng Xiukang today is thankful for his persistence, he replied to Wang Yuejin that he had some scruples: "I'd better make the sole of the shoe solid first." When Wang Yuejin's blind expansion was on the road of no return, Wang Datong of "Far East Leather" was suffering from the "internal disability" of the family business. In 1994, in Kunyang Town, Pingyang County, Wang Datong mobilized his family to raise money, and the whole family jointly founded the enterprise "Far East Leather".Like many family businesses in Wenzhou, the family did not have a clear division of labor at that time, nor did they have clear property rights. The hidden dangers that had been planted since the establishment of the company finally began to "explode" in 1998.Therefore, Wang Datong announced a new share distribution plan, and family members signed the "Share Agreement". However, what Wang Datong didn't realize was that the family disputes that were supposed to be resolved were also escalating with the growth of the company. After years of development, "Far East Leather" has the right to import and export on its own. From domestic to foreign, there are "Far East" affiliated companies in Zhejiang, Guangdong, Hong Kong and Vietnam, and the highest annual output value has exceeded 500 million yuan. , assets reached more than 2 billion yuan. In 2005, shares were distributed again; in 2006, the grievances of the "Far East Leather" giants deteriorated, and Wang Datong was bizarrely sent to the hospital by his relatives as a mental patient, while the Far East Group was falling apart. Various forms of corporate management crises have pushed some of Wenzhou's manufacturing industries into difficulties or even collapsed. At the same time, some enterprises that tried to break the old "Wenzhou model" began to stay away from the road of industrial development. At the end of the 20th century, Wenzhou's light industry manufacturing enterprises had basically completed the primary transformation from extensive to brand. Afterwards, such group changes as Baoxiniao, Zhuangji, Delixi, and Chint were seeking a new way out.However, the labor-intensive and low-intensity manufacturing structure maintains the dominant position of Wenzhou's regional industry, making it difficult to achieve new breakthroughs and transform the industrial structure. In 2002, the 10th anniversary of the establishment of the Wenzhou Economic and Technological Development Zone, Wu Yi, then Vice Premier of the State, inspected and found that the comprehensive strength of the development zone was developing slowly, and even ranked second to last.Wu Yi mercilessly questioned the accompanying officials: "If the countdown continues, I don't think your development zone needs to be done." In the words of experts, the Wenzhou model has entered a stubborn "intergenerational lock-in": "Most of the two generations of entrepreneurs in Wenzhou are stuck in labor-intensive industries, forming a special personalized transaction method, which makes the manufacturing industry appear 'intergenerational. The phenomenon of "lock-in" restricts Wenzhou people from entering new industries. If the transformation from personalized transactions to impersonal transactions cannot be completed, Wenzhou's economy will not be able to realize the transformation from a tangible market to an intangible market, and the Wenzhou model will inevitably decline." In order for Wenzhou to continue to develop, the shrinking industry seems to be an irreversible trend. At the turn of the century, the impetuousness of the whole people was rampant.The culture of Hong Kong and Taiwan has entered the mainland, and star chasing fever has arisen everywhere. In 1999, Forbes placed mainland movie star Liu Xiaoqing at the top of the wealth list in mainland China. In the 1990s, Wenzhou became the first stop for the mainland concerts of most Hong Kong and Taiwan singers.Wenzhou is neither a provincial city nor a cultural center.How did you get this opportunity?On the one hand, Wenzhou, as the first place to get rich, is "not short of money" and has spending power; Rich, the trend of chasing stars is even worse. In October 1997, Wenzhou ushered in the first large-scale star concert in history.Mainland popular stars Liu Huan, Zang Tianshuo, Tian Zhen and others attended. The most eye-catching thing was that Hong Kong superstar Alan Tam came to the mainland for the first time and sang three songs consecutively in Wenzhou. At that time, Wenzhou already had a special planning company for such star concerts.Kurt McKath, author of the world-best-selling book "Business Show", said: "All industries are entertainment industries." In the eyes of shrewd Wenzhou people, "All behaviors are business, and all opportunities can make money. ". In 1998, Andy Lau chose Wenzhou for the first solo concert in the Mainland. Under the arrangement of the planning company, the naming rights of Andy Lau's concert, the right to stay in the hotel, and the right to attend banquets were all put up for auction.For a time, it attracted people from all walks of life in Wenzhou to come and spend a lot of money. Shrewd use of celebrity effects, through Andy Lau's designation of liquor, clothing, flowers, related Wenzhou people made a fortune. Celebrity effect is very much in line with the tastes of Wenzhou enterprises. In May 2000, a little-known clothing company in Wenzhou jumped onto the pages of several major domestic portals because of a letter: A private company in Wenzhou sent an email to US President Clinton, expressing its willingness to "" Hire" him to serve as the company's "image ambassador" after leaving office. The content of the letter is as follows: As soon as this explosive news appeared, the reputation of "Fapai" clothing suddenly rose.Afterwards, people in the industry lamented, "So many media reported this matter", even if "taking 50 million yuan to advertise on CCTV, there is no such effect." The "Fa Pai" company also has to admit that it spends tens of millions of dollars in advertising on CCTV every year, and has never achieved such an effect. An e-mail had such a sensational effect that Peng Xing, the chairman of the "Fapai" behind the scenes, did not expect it. A few months ago, Peng Xing, chairman of "Fa Pai", went abroad for inspection.During the period, I overheard information: President Clinton may engage in the film and television industry after leaving office.The sensitivity of business made him immediately realize that there was a lot to do. At that time, "Fapai" clothing was planning an international route.If Clinton can be invited to be the spokesperson for the "French School" men's clothing, the effect will obviously be twice the result with half the effort.With this idea, Peng Xing decided to create momentum first, so emails appeared on major websites. Afterwards, "Fapai" clothing appeared on the front pages of thousands of media at home and abroad, including the "Washington Post", "New York Times" and "Asahi Shimbun". As another protagonist of the incident, the White House did not make any response.The onlookers dispersed one after another, believing that this was a high-level hype. Unexpectedly, a year later, Clinton's wife, Hillary, replied to the "French School", clearly stating that the resigned Clinton is willing to seriously consider the invitation of the "French School" and looks forward to further negotiations with the "French School". In November 2003, Clinton really came to Beijing and met with Peng Xing.The two shook hands, talked and had lunch together.After the talks, Clinton gladly accepted Peng Xing's gift of French style suits, shirts, leather shoes and ties.This makes the outside world almost all believe that Clinton is about to become the spokesperson of the "French School". "Fapai" once again successfully attracted attention. Surprisingly, since then, although the two parties have contacted many times, they have not announced their substantive cooperation intention to the public, and the matter has finally come to nothing. From the perspective of brand marketing planning, the spokesperson event of "Fa Pai" is a model.At the same time, it can also be seen from this incident that compared with those years of hard work, entrepreneurs in Wenzhou are more and more eager for quick success and quick profits, and put more attention on marketing, planning and even hype. They began to look for all kinds of real overnight storms Wealth, once and for all shortcuts, trying to step into the fast lane of career development.Everything has two sides, and people in Wenzhou tend to ignore industry and focus on speculation. As early as 1987, after Fei Xiaotong visited Wenzhou for the first time, officials from all over the country went to Wenzhou to study.At the beginning of the new century, there has been another wave of "learning from Wenzhou", but this time the main group has been replaced by entrepreneurs and entrepreneurs from all over the world. They hope to get close to Wenzhou enterprises and learn business strategies from them. Wenzhou people with exceptional business acumen turned this wave of visits into business opportunities and launched a tourism project with the theme of "visiting Wenzhou, visiting enterprises, and seeing the economy" - "Mysterious Wenzhou Economic Tour". , and successfully attracted many foreign friends to participate. At the end of 2001, in the large-scale survey of "Who are the idols of Wenzhou youths" launched by the Wenzhou media, Nan Cunhui, the chairman of Chint Group, became the representative of star entrepreneurs after Bo Xilai, Lei Feng, and Zhang Yimou.The media commented on the richest man in Wenzhou: "The spokesperson of China's emerging private enterprises and the epitome of Wenzhou people's struggle to make a fortune." In this regard, Nan Cunhui told the story meaningfully in an interview with the media: "When I first made the enterprise 10 million, I always asked in my heart: 'Why? Don’t let me speak up?” Now, the scale of the enterprise has reached several billion yuan. Every time I hold a meeting, I pray in my heart: “Don’t let me speak up!” The bigger the enterprise, the more I feel the power of the market economy. The stormy sea makes you feel like you are walking on thin ice. People are actually like monkeys. When they climb trees and climb high, they tend to expose their tails. Therefore, we must always be vigilant, constantly surpass ourselves, be honest, and be a good person. Only then can we really do a good job in business.” The Wenzhou spirit of always introspecting and preparing for danger in times of peace represented by Nan Cunhui has gradually faded away... Wenzhou is not only regarded as a hotbed of capitalism, but also known as the "Mecca" of market economy.In the development of China's market economy, Wenzhou seems to bear the brunt of every confrontation, every rectification, and every purge without exception. Someone once compared "Wen Shang" to "Chinese Jews".Because of the loss of their homeland, Jewish businessmen were once wandering and suffering.Later, the powerful Jews learned their lessons and began to invest in the field of political strategy at any cost to cultivate a reliable political force. After many rectifications in the country, for a long time, on the surface, Wenzhou merchants seem to have a posture of burying their heads in business, ignoring political affairs, and prudently protecting themselves. In fact, although the unpredictable politics caused Wenzhou people to stumble a lot, it taught them to look at the wind direction, understand the general situation, follow the trend, and make peace with the government. With the intensification of internal and external pressure and the expansion of desires and demands, Wenzhou's private economy began to seek affiliation with politics, hoping to shorten the distance from politics. In fact, the relationship between government and businessmen has always been close at the same time in Chinese history.Fairbank once expressed this meaning: "The Chinese tradition is not to make a better mousetrap, but to obtain the privilege of catching mice from the government." It is precisely because of such a tradition that in Wenzhou in 1999, government officials were invited to attend the ribbon-cutting ceremony for the opening of self-employed businesses.When this form became popular, a basic market situation spread: the mayor cuts the ribbon, 150,000 yuan a knife, the deputy mayor 100,000 yuan a knife, and other leaders in descending order. Wenzhou is so bold?The media reported on this, and relevant departments came to investigate.The final result of the survey was a compliment instead.It turned out that this was an innovation in the work of the Wenzhou government: all official "appearance fees" were not owned by the ribbon-cutters, but directly entered into the municipal finance and deposited as special funds for social welfare undertakings.It is said that this alone will reach millions every year. As a result, enterprises in Wenzhou began to set up public relations departments, which are responsible for establishing and maintaining good relations with various government departments. "; some companies donate to government public welfare undertakings, with the purpose of "helping officials establish the image of the government"; some bosses even offer 300,000 yuan or more to join the "political circle", even if they get a "five-rank" village official. At that time, there was a saying among the people, "Millionaires cannot join the party. The common people are the common people, and major issues of principle cannot be weighed by the amount of money."This statement originates from a special document issued by the Central Committee of the Communist Party of China in 1989: "Private business owners cannot join the Communist Party of China, and former party members may not consider persuading them to quit the party for the time being." Liu Jianguo, "the first boss in Zhejiang to join the party," felt very aggrieved: "My motivation for joining the party is nothing more than to do a good job in corporate management, to serve the society, and to drive employees to support the party and the government. I am young, rich, and I want progress. What's wrong?" In March 1999, Liu Jianguo submitted his first application for joining the party, and half a year later, he became an active member of the party.But he didn't get his wish soon. More party activists emerged from private business owners in Wenzhou.Bosses ask to join the party with all kinds of simple or complex motives.At that time, the government felt that the good and the bad were intermingled, and it was hard to distinguish the true from the false, so they simply rejected them all. At a talent recruitment fair in Hangzhou, a private company put up a striking banner: Hire excellent party workers with high salaries, with an annual salary of 100,000. In December 2000, Liu Jianguo established a party branch in the company and hired demobilized soldiers as party branch secretary.The Xinhua News Agency reported: "Visitors from all over the world can see the vitality of youth, merchants who are attracted by fame can feel the charm of business geniuses, migrant workers can experience infinite warmth, and party and government leaders can see that the party is built in non-public enterprises. It can still play an irreplaceable role..." At this time, the sales performance of Liu Jianguo's enterprise had reached 100 million yuan, accounting for 1/6 of the industry's sales in Zhejiang Province. He applied to join the party again, but was still rejected. Liu Jianguo's deeds spread to the ears of Qiao Chuanxiu, deputy secretary of the Zhejiang Provincial Party Committee.She made a special trip to Liu Jianguo's enterprise and said to him: "The enterprise must become bigger and stronger, and politically must actively ask to join the party." Encouraged, Liu Jianguo, together with 99 other private entrepreneurs in Zhejiang, submitted the application for joining the party for the third time.Liu's application attracted the attention of the central government, and a six-member investigation team went to Zhejiang.After layers of assessment, Liu Jianguo got his wish. In the 1980s, Liu Dayuan, one of the "Eight Great Kings", once divided the relationship between Wenzhou's private economy and government policies after 1978 into four stages: "Fight against it, open it up (openly), let it go, and support it." ".It is self-evident that Wenzhou businesses are beginning to repair relations with the government. At the beginning of 2012, after "A Hundred Years of Ups and Downs", Wu Xiaobo released "Two Thousand Years of Greatness", the final work of the "Trilogy of Chinese Enterprise History". In an interview, he said: "In the process of economic recovery, enterprises The family class is increasingly dependent on government investment, and the reform has lost its "imaginary enemy"...Today, to become stronger and bigger, enterprises still need the government's "policy tilt" and support. Because resources are allocated to the government As a result, the latter’s wealth preservation and value-added are very unstable, which creates two situations. First, private business groups are forced to ask the government for privileged contracts , resulting in gray and unfair market competition, and the growth of rich and powerful rentiers; second, the sustainable growth of enterprises is greatly affected by policy fluctuations, and there are strong uncertainties.” With the industrial upgrading and transformation of Wenzhou enterprises, Wenzhou businessmen urgently need to further close the relationship with the government in order to obtain more opportunities.The phenomenon of power rent-seeking by government officials is also becoming more and more serious. Wenzhou officials Yang Xiuzhu, Yang Xianghong, Gao Jinxi, Wu Changliu, etc. have been involved in a series of Wenzhou enterprises that paid bribes.There was even such a joke at one point: "In Wenzhou, being an official is really a high-risk occupation." The manufacturing industry expands into investment, real estate, mining and other fields. Without a certain government background support, private companies will not have sufficient competitive advantages.In the past 10 years, the relationship between government and businessmen has been greatly accumulated.In the concept of Wenzhou people, it is necessary and worthwhile to spend money to establish a favorable circle.It has become the "consensus" of Wenzhou people to rely on policies and government platforms to provide backing for the development of enterprises, stand on the shoulders of the government, and obtain more business opportunities near the water. Fairbank once said: "The greatest success of Chinese businessmen is that their descendants are no longer businessmen." This concept has been passed down from ancient times to the present.According to media reports, in 2006, Wenzhou City publicly recruited 449 civil servants, attracting nearly 30,000 people to apply online, and 400 people competed for the most popular positions, many of whom were children of private business owners.In Wenzhou, a land rich in bosses, in recent years, "the ratio of the number of civil servants applying for the examination to the positions they employ has repeatedly hit new highs, and continues to rank first in Zhejiang." In this regard, Wenzhou scholar Ma Jinlong analyzed that Wenzhou bosses are trying to find a reliable "political status". Statistics show that in 2002, the ratio of the number of Wenzhou civil servants applying for the examination to the positions employed was 19:1; by 2005, it jumped to 34:1; record high.Wenzhou has become the city with the largest number of applicants for civil servants in Zhejiang, and it is also the city with the most intense competition. In June 2010, the Municipal Environmental Sanitation Department attracted 1,102 applicants for 8 posts of "post-80s post-80s excrement disposal workers". 1:140. As the desire for "Wenzhou merchants to enter politics" grows, stories of "politics turning to business" are also popular in Wenzhou. Beginning in 1990, several cases of officials above the county level resigned to do business appeared, and the concentrated outbreak period was in the mid-to-late 1990s (representative figures include: Xu Guolin, former head of the Propaganda Department of the Wenzhou Municipal Party Committee, Zou Lihua, former deputy chief prosecutor of the Municipal Procuratorate, and former Pingyang Dong Xihua, Secretary of the County Party Committee and Deputy Secretary-General of the Municipal Party Committee; Ye Zhengmeng, Former Secretary of the Dongtou County Party Committee and Deputy Secretary-General of the Municipal Government; Zhong Puming, Former Deputy Director of the Municipal Economic Commission and Director of the Township Enterprise Bureau; Xie Bingqing, Former Secretary of the Yongjia County Party Committee; He Shuxin, Li Haoran, the former deputy magistrate of Yongjia County, etc.).The most sensational event was in 2003, four provincial and municipal government officials headed by Wenzhou Vice Mayor Wu Minyi resigned at the same time to start business. Whether it is self-employment or entering a company, Zhou Qingzhi, the current president of the Narada Group and former secretary of the Zhejiang Provincial Party Committee, is the most successful among Wenzhou officials. Zhou Qingzhi went into business in 1991, relying on the connections accumulated over the years in politics, and relying on an accurate grasp of the policy direction, his business developed rapidly like a fish in water.Starting from trading, Zhou Qingzhi has made many achievements in real estate, investment, infrastructure and other fields. In 2002, his eleventh year in business, Zhou Qingzhi ranked 48th on the Forbes Rich List with a net worth of US$145 million. However, perhaps because of his many years of political career background, Zhou Qingzhi has kept a high degree of mystery. For decades, he has hardly accepted media interviews, and his Nandu Group does not even have a website to display to the outside world. There are various indications that private enterprises in Wenzhou are no longer dedicated to doing business, and more industries that are supported by power and savagely grow. Many years later, the capital chain of the Wenzhou underground bank broke, like a hemp rope, involving countless bank employees and government officials, large and small.Wu Ying, the protagonist of the largest illegal fund-raising case involving Zhejiang merchants, broke out a series of official corruption incidents in order to save herself, but local officials jointly signed a letter to sentence Wu Ying to death, which aroused great concern from the legal profession and all walks of life.The mystery is self-evident.