Senior executives began to carry out targeted macro-control. However, the direction of taking action was indeed private enterprises.

However, in recent stage, the expansion of private enterprises is indeed quite rapid, so no wonder they have some exaggeration. In addition, for various purposes, local government officials often instigate these private entrepreneurs to work hard and quickly, and often have to invest billions or even tens of billions of projects, which has finally caused the economy to overheat.

The first thing that was impacted was the electrolytic aluminum project. According to the news obtained by Fan Wubing, the Baotou project and Sanmenxia project of Oriental Group have been ordered to be suspended. Officials from the Metallurgical Department of the Industrial Department of the National Development and Reform Commission said that many of their approval procedures were incomplete and violated relevant national laws. The relevant state departments have stopped the electrolytic aluminum project of Oriental hopes in Baotou. The Sanmenxia Alumina Project is a project that provides upstream products for Baotou, and has also been suspended for review."

Like previous macro-control, there are always some people who will become unlucky flag-sacrificers. Just like the "fool melon seeds" that appeared in the past few decades, Nian Guangjiu, "Eight Kings of Wenzhou", etc., now another name is added to this list of unlucky people, namely Dai Guofang, who is working hard by the Yangtze River.

Then dramatically, Dai Guofang entered the "eye of the storm" of this regulatory storm, which was an unexpected event.

At the beginning of the year, several Xinhua News Agency reporters conducted research in Jiangsu. Their research topic was about the land occupation of golf courses and university towns in various places. In an interview in Nanjing, an expert accidentally said that a company in Changzhou built a steel plant by the Yangtze River.

The speaker was unintentional, the listener was intentional, and the reporters intuitively believed that building a steel mill would definitely require a lot of land, and perhaps there was also the problem of illegal land occupation. So they called the Ministry of Land and Resources, and the reply they received was that the Ministry was not clear about the project.

So, the reporters turned to Changzhou and found the steel factory construction site along the river.

A few days later, an internal reference material entitled "Three thousand acres of land were used before requisition, and environmental protection review was approved before approval" was handed over to the central high-level.

Not long after, the National Development and Reform Commission, the Ministry of Land and Resources and the State Administration of Environmental Protection sent an investigation team to Changzhou.

Since last year, a "heavy-duty movement" has appeared in full swing in private enterprises.

The so-called heavy-duty movement is a investment boom that focuses on heavy industry.

Forty-one-year-old Dai Guofang once stood vigorously on the long embankment on the south bank of the Yangtze River, and told the reporters who came to interview in Mandarin with a strong Sunan accent, "Tieben will surpass Baosteel within three years and catch up with Pohang within five years."

When he said this, he never expected that the situation would take a sharp turn for the worse a year. Baosteel and Pohang are the two largest steel plants in China and South Korea, ranking fifth and third in the world. Dai Guofang, who has only primary school education, plans to build a large steel plant with an annual output of 8.4 million tons on the Yangtze River.

Dai Guofang is actually a poor child. He is a poor child who grew up from the grass. At the age of twelve, because his family was too poor, he had to drop out of school to make a living. His first job was to pick up scrap copper and iron. He seemed to have a special talent in business. In 1996, Dai Guofang registered and established Jiangsu Tieben Casting Co., Ltd. with a registered capital of 2 million yuan. It means "titanium" and started with iron and never left his own business.

By two thousand years ago, Tieben's factory area expanded to 18 hectares and had more than 1,000 workers. On the "New Fortune" China's 400 Rich People List of that year, he ranked 376th, with an estimated net worth of 2.2 billion yuan.

In recent years, with the continuous rapid growth of the macro economy, steel prices have generally continued to rise. At the gate of the Iron Manufacture, large trucks from all over the country lined up every day, waiting for pick-up of goods, and this scene appeared every day.

According to Dai Guofang's estimate, the domestic steel fever can last at least five to six years, so he decided to build a new larger steel plant.

Tieben's new construction plan has received warm support from the Changzhou Municipal Government. In the eyes of many officials in Changzhou, Dai Guofang is a trustworthy person. He lives a very frugal life on weekdays and invests all his savings in the family in the factory. His father and stepmother have been living in the countryside by growing vegetables.

At the beginning, Dai Guofang's idea was not as grand as it did later.

However, building large projects is the best way to drive GDP and the best way to increase political achievements. Driven by the enthusiasm of official personnel, the scale of the Iron Forum project was set at 8.4 million tons in just six months, and the scale of the project increased from 2,000 mu to nearly 10,000 mu, and the project estimate also increased to a scale of 10 billion yuan.

At this time, Tieben's fixed assets were 1.2 billion yuan, and its net assets were less than 700 million yuan.

To start a project worth over 10 billion yuan with such a capital scale, it is undoubtedly a small horse to pull a big cart.

However, Dai Guofang said to his subordinates, "Where can we find such a good opportunity in the local area?"

It was also after confirming the information of government support that the local bank boldly issued loans to Tieben, which immediately obtained a bank credit of 4.4 billion yuan.

It is difficult for a private enterprise to start a steel project with an investment of over 10 billion yuan and an area of ​​nearly 10,000 mu.

China's economic reform has always had a tradition of "breaking through the barrier". Changzhou people also tried "breaking through the barrier" method in the Tieben project. Tieben's 8.4 million tons project was split into seven sub-projects and one dock project and reported separately. Tieben correspondingly established seven "Sino-foreign joint ventures" with just name. In the approval of construction land certificates, the land was "completed into pieces" and divided into fourteen land applications.

The Economic Development Bureau of Changzhou High-tech Zone, where the project is located, quickly approved all infrastructure projects within one day.

Dai Guofang later told the reporter who came to interview in the detention center, "All the procedures were handled by the government at that time, and we did not ask about these matters. When the government said it could be moved, we started construction."

Of course, macro-control is a last resort. Dai Guofang is not the only private entrepreneur who has forced the senior management to use this method. He is obviously not the only private entrepreneur who has entered the steel industry.

In the same year, Guo Guangchang of Fosun, Shanghai was also planning to build a steel plant in Ningbo, Zhejiang.

In other fields, Liu Yongxing of the Liu family in Sichuan announced in Baotou that Oriental Hope Group will invest 10 billion yuan to build a million-ton aluminum-electric integration project here.

This heavy-duty movement for private enterprises is still talked about for many years, and the wheels of the market seem to be rolling towards a hard monopoly area.

You should know that in the past twenty years, China's private capital has failed to succeed in breaking through ownership barriers twice in 1987 and 1996. So, this year's heavy-duty movement is the third and the most powerful collective charge.

In response to this active scene, a magazine wrote in a remarkable comment, "When people see that the upgrading of private enterprises and China's new industrialization are being connected in a timely manner, and private entrepreneurship and private capital are injected into China's heavy industry, people no longer doubt that private enterprises working in the heavy industry will refresh the strongest camp of Chinese private enterprises in the next few years; this round of new industrial movement with market-oriented forces as the main engine will give birth to the first batch of heavy industry giants in China that are not from officials, will not be appointed and removed by the government, but only use the market as the best."

But it is obvious that when this comment is read in the future, it seems like a dream in the previous life, leaving only sighs.

Against the background of macro-control, the problem of Tieben quickly changed from destroying land to illegal construction.

Dai Guofang, who was in the vortex of the incident, began to become anxious. He himself didn't know how things would get worse and worse. He ran around the construction site all day in those days. According to his budget, the first blast furnace of the steel mill would be completed soon and could be put into production immediately. By then, the raw rice would be cooked and cooked, so there was no need to worry.

He told his subordinates that if such a large project is completed, it will be fined at most. It is impossible to demolish it.

However, the situation was much worse than he thought.

Since the issuance of the State Council’s notice, there has been no trend of cooling down in investment in heavy chemical industrial projects in various places.

According to data from the National Bureau of Statistics, fixed asset investment in the first quarter still increased by more than 40% year-on-year, setting a record high since the mid-1990s, among which the investment growth rate in the steel industry was as high as one hundred and seven percent. At this time, iron-based projects with major suspected illegal occupation of land and illegal construction surfaced and became the most suitable and typical target of punishment.

Facing the massive investigation, Dai Guofang, who had never dealt with the big scene, was in chaos. He and his advisers naively believed that Tieben's problem might be settled. So he submitted a self-inspection report to his superiors, saying that the company conducted a self-financial inspection when it was investigated by relevant state departments for illegal investment and illegal land use, and found illegal problems in the operation. Since the establishment of the company in the two thousand years, the company has purchased scrap steel from Changzhou Material Recycling Company and Wujin Material Recycling Co., Ltd. worth more than one billion yuan, of which nearly two million yuan of false invoices were issued and the tax deduction amount was nearly two million yuan. The legal representative Dai Guofang was negligent in management and should bear relevant responsibilities.

This self-inspection report to save money and eliminate disasters was Dai Guofang's last effort to save Tieben. He quickly paid the deducted taxes to the local IRS.

To his expectations, it was this self-inspection report that became the most powerful evidence of accusation by the procuratorate.

The Changzhou City, under tremendous pressure, formed the Tieben Project Cleanup Leading Group and issued an emergency shutdown order.

Soon, the leaders of the State Council arrived in Suzhou. The secretary of the Changzhou Municipal Party Committee and the mayor were summoned to report the Iron-Ben Project and the problems it caused. Then, a special inspection team composed of nine ministries and commissions rushed to Changzhou to conduct a comprehensive inspection of the Iron-Ben Project.

This is the second time that the central ministries and commissions have carried out an unprecedented joint action against a local project since the "Liushi Incident" in Wenzhou in 1991.

Then, Dai Guofang, his wife, father-in-law and others were taken away by the police for suspected tax evasion and the number may be huge.

Then, nine ministries and commissions reported the investigation and handling situation at the State Council Executive Meeting to characterize it. They believed that this was a typical major case of serious dereliction of duty and violations of regulations in local governments and relevant departments, and suspected of illegal and criminal activities by enterprises.

The next day, Xinhua News Agency broadcasted a press release nationwide, listing the five major issues of Tieben identified by the joint investigation team: the local government and relevant departments seriously violated relevant laws and regulations. They overturned the rights and approved projects with investments of up to 10.6 billion yuan in 22 times; illegally approved the requisition of 6,541 mu of land, and organized and implemented land acquisition and demolition in violation of regulations; Tieben Company defrauded bank credit and loans by providing false financial statements, and misappropriated more than 2 billion yuan of bank working capital loans for fixed asset investment; relevant financial institutions seriously violated the regulations on fixed asset loan review and cash management; Tieben Company evaded taxes in large quantities.

The administrative handling of the Tieben incident was unprecedented, with eight government leaders and bank officials severely punishing. Among them, the secretary of the Changzhou Municipal Party Committee was punished with a serious warning within the party; the deputy director of the Changzhou Municipal People's Congress was removed and probation was given; the secretary of the Yangzhong Municipal Party Committee was dismissed; the deputy director of the Jiangsu Provincial Department of Land and Resources, deputy director of the Provincial Development and Reform Commission, president of the Changzhou Branch of the Bank of China were dismissed or ordered to resign, and Dai Guofang's property was seized.

After dealing with these matters, Fan Heng returned home and mentioned this matter to Fan Wubing.

"In fact, this matter has something to do with the agitation of local officials-" Fan Wubing immediately grasped the most critical thing after hearing this. "Local government officials can do anything for political achievements and GDP, which is also expected."

Another point is that the domestic real estate market has been developing rapidly this time, so the demand for steel is very large. Taking advantage of this good opportunity, everyone wants to take the lead and seize the market. Therefore, this is the heavy-duty movement of private enterprises. In fact, it is just that everyone wants to squeeze out the traditional monopoly market of state-owned enterprises.

"But in this matter, the company does have problems." Fan Heng also needs to point out other problems here. "Illegal projects are illegal projects. No matter how local government officials encourage them, entrepreneurs themselves do not have the awareness of operating by law, which leads to the final consequences."

"But then again, if local officials encourage entrepreneurs to take large projects and take the initiative to provide land and loans, not to mention who can resist this temptation, even if they have the courage to not make money, they don't have the courage to refuse the officials' good intentions and influence their political achievements, right?" Fan Wubing deeply exposed the influence of officials on local private enterprises.

In fact, this is true. If you want to grow and grow locally, it is not possible to not receive support from government officials. After all, there are not many companies in China like Fan's Investment Group, and you don't need to worry about development funds at all.

As long as you have something to ask for, you will inevitably be strangled. Once something happens, no one will escape.

But Fan Wubing felt that local governments accounted for 80% of the responsibility for this matter, and entrepreneurs could only account for 20% at most. The current handling opinions are actually a bit biased.
Chapter completed!