Why Northeast China Decline from the Disappearance of an Industry

This article has over 3300 words, and those who are not interested can bypass it.In 1984, as a TV repairman in the factory, I was fortunate enough to be seconded to the Provincial Technical Quality Supervision and Inspection Institute and participated in the fourth national quality evaluation of black and white televisions

This article has over 3300 words, and those who are not interested can bypass it.

In 1984, as a TV repairman in the factory, I was fortunate enough to be seconded to the Provincial Technical Quality Supervision and Inspection Institute and participated in the fourth national quality evaluation of black and white televisions. The first level of TV evaluation is high-temperature aging after 200 hours of operation, during which no TV set will fail.

My job responsibility is to open and repair faulty televisions and write a fault analysis for each one. So I understand the product craftsmanship, technology, and manufacturing level of every TV factory in the country at that time. At that time, the technology of manufacturers in Shanghai was slightly higher.

Due to work requirements, I have been to some TV factories and manufacturers. At that time, Shanghai's Jinxing, Feiyue, Shenyang TV General Factory, and Fushun's Jinfeng were larger in scale. Shenyang Baihua, Qingdao Hisense, Changchun Feilu, and Heilongjiang Longjiang have similar scales.

Around 1986, the factory transferred me back and led a team to Shekou, Shenzhen to intern in the SKD component production technology of the Jialicai 22 inch color TV. After returning to the factory, I organized the production of the first batch of color televisions in Northeast China, producing over 20000 units. At that time, color televisions were in high demand, and a color TV ticket worth several hundred yuan could buy a black and white TV.

More than 21000 color televisions are directly loaded onto the vehicle without landing on the assembly line. (SKD does not require aging process). The factory also earned a lot of money, with an additional 200 sets for 20000 sets and a considerable profit from producing over 100 color TVs. At that time, foreign merchants were quite particular. Our factory used the money we earned to build a four story factory building, and now it doesn't look outdated.

Later, a more advanced automated production line for black and white televisions was built in the factory, but it was unable to produce them automatically. The factory sent me to solve the problem, increasing the production from less than 200 televisions a day to 400 televisions per shift. The monthly production of televisions reached over 10000 units, which was also among the top in Northeast China at that time. The "Baihua" brand TV set produced by our factory was a national high-quality product at that time, and we didn't worry about sales.

At this point, TCL's boss Li Dongsheng has not yet been promoted, while Skyworth's boss Huang Hongsheng is still thinking of doing some business. Zhou Houjian from Hisense TV is still struggling to find a way to develop. Zhuang Yuyang from Shenyang Dongyu Group just rented a relatively small house from Huihui Kan in Shenyang. At that time, there was a prototype car that imitated a big toe shoe car in the house, but Dongyu did not produce cars in the end. Over a decade later, a Dongyu Building was built in the Taiyuan Street commercial district of Shenyang, and it developed through real estate development.

The production of televisions requires more than ten types of components, ranging from hundreds to thousands, which requires many supporting manufacturers to produce. There are over twenty factories with radio names under the jurisdiction of Shenyang Electronics Bureau. Shenyang Radio Factory 1 produces resistors, and Factory 7 produces field speakers. Wireless voltage casting mould factory processes TV case, and Fuxin Coal City has a factory producing Electrolytic capacitor.

Northeast China was not just a heavy industrial base, but light industry also held a certain position in the country at that time. The Shen Le Man water heater from Shenyang, the Yingkou washing machine from Yingkou, and the Shen Nuxi refrigerator produced by Shenyang all sold well at that time and were all famous brands. People who get married will buy a Shuangxi Pressure cooking made in Shenyang. Most workers ride Baishan bicycles to work.

When Zhang Zuolin ruled the northeast in Zhongjie, the Shenyang Bell Factory, which began to produce wall clocks in 1922, did not fall down after more than 80 years of historical changes. In 2004, it came to an end and finally hung up. Shenyang Bell Factory sold it to individuals at a low price, and its employees made a living by renting out factory buildings. Later, the clock factory, along with the clock tower that played the sound of the Eastern Red Music to report the time to the citizens of Shencheng, was also demolished during the renovation of Zhongjie, claiming to be a development zone. Now it is a food city. The story of the clock factory and the clock tower can be written in tens of thousands of words by professionals.

Now we look back and see that on September 25, 1986, Shenyang Explosion proof Machinery Factory was auctioned off as a whole for 200000 yuan, becoming the first bankrupt enterprise in China. In 2004, Shenyang Bell Factory was sold to individuals. In the past decade, countless enterprises in Shenyang have gone bankrupt. The Shenyang Electronics Bureau and its dozens of factories seem to have disappeared overnight. I can't see the shadow of that factory still surviving, and the building built with the painstaking efforts of over 800 workers at Shenyang Radio Twelve Factory has become a dowry for someone else.

I once wrote a simple answer about why Northeast China will decline before.

A friend replied:

Why does Northeast China decline?

This is a major event for nearly 100 million people in the three northeastern provinces.

This matter is a headache for governments at all levels in the three northeastern provinces.

This matter is an unsolvable mystery for economists and authoritative figures.

Some economists have written a pile of research reports full of numbers, all on paper, and after all these years of discussion, they have not seen anyone find a way out of the difficulties for the economic development of the three northeastern provinces. If Zhuang Yuyang builds cars behind closed doors every day at the Hui Hui Camp in Shenyang, he will never build the Dongyu Building.

Hisense is now one of the top 500 Chinese enterprises, and has become a model and achievement of economic reform and enterprise restructuring. At present, the output value of Hisense is more than that of all TV factories in Northeast China. Let me raise a few questions, please analyze them.

1. The starting foundation of Hisense is not much higher than that of television factories in northeast China. Shandong Qingdao and Liaoning Dalian face each other across the sea, both under the leadership of the Chinese government, and the reform and opening up policy is basically the same. Why did Hisense TV develop and grow, and all TV factories in Northeast China go bankrupt? It was Zhou Houjian from Hisense who had great skills, or the director of Northeast Television Factory at that time, who was all stupid.

I personally think that at the beginning of the reform and opening up, the then Shandong Province and Qingdao Municipal Government attached great importance to the development of the electronic industry and gave full support to Hisense TV and Haier. At that time, governments at all levels in Manchuria under Qing rule considered themselves to be the heavy industry base of the Republic. To keep heavy industry was to keep the job in the northeast. Take care of yourself and let the light industry thrive.

Is the heavy industry in Northeast China developing rapidly now? Let's take a look at the stock market on March 20, 2023.

The combined stock trading volume of the three northeastern provinces only exceeds half of that of Shandong Province. I remember an old friend of mine who bought stocks at around 30 yuan in Shenyang Machine Tool Stock bought 1000 shares. He said to me, 'If Shenyang Machine Tool continues to rise, I will count on it for retirement.'. The stock price of Shenyang Machine Tool is now ST, only 5 yuan. If my buddy hadn't listened to me at the time, I think he would have been lying down now. The share price of enterprises in Northeast China is mostly more than 5 yuan, and it is reasonable for people to say that they can't invest in Shanhai Pass.

The GTP of Shandong Province in 2022 is nearly 9 trillion yuan, while the total of the three northeastern provinces is less than 6 trillion yuan. In 2022, the output value of a Hisense will reach 180 billion yuan, accounting for a quarter of the output value of Shenyang, and the output value of a Haier will catch up with that of an urban area in Liaoning Province.

Most of the people in Manchuria under Qing rule are descendants of the people who broke through the Chuang Guandong Pass in Shandong. Compared with Shandong, our contributions to the black land in the northeast really make us ashamed.

Hisense now employs more than 80000 people all over the world, which has led to the employment of many people in Shandong Province and Qingdao, and all supporting manufacturers will also have many impressive indicators. There is a Shen Fei in Shenyang, and even if the three wars start, not many Shenyang people will be needed. Why not have a shipyard in Dalian building five warships at the same time?

2. Hisense was restructured from Hisense TV, and Shanghai's Venus Leap was restructured into Radio and Television Group. We don't know how to change it, but the employees of the original factory won't suffer too much at that time. Several enterprises in Northeast China have successfully restructured, with millions of employees laid off and receiving tens of thousands of buyout money based on their length of service. After spending this money, they became fooled when they realized that they needed to pay for their own pension and medical insurance.

The government has provided subsidies for pension and medical insurance for the post-4050 generation in Northeast China. But there are still some people who haven't paid because they can't afford to eventually become low-income households. These people have become a social burden on the three northeastern provinces. The government subsidizes Northeast China with tens of billions of pension funds and medical insurance funds every year, and the son of the Republic has become a gnawing elderly people. The memory of Ji exists in the hearts of the post-4050 generation in Northeast China, and it is inconvenient to say more here. We now want to emphasize that Northeast China has lost a generation of industrial workers and skilled workers and elites in various industries. It is even more difficult for Manchuria under Qing rule to re develop light industry and electronic industry.

In his article (The North-South Gap is fundamentally a gap in marketization), the three economists Ren Zeping said, "The reasons for the North-South Gap: from differences in natural geographical factors to differences in market development." I think Ren Zeping was an economist who traveled from the Song Dynasty to modern times, and using natural geographical factors to explain the economic development gap between the North and the South was reasonable during the Song Dynasty because people did not have the ability to change the geographical environment at that time, So the economy of the Southern Song Dynasty was developed, and the northern ethnic groups only rode horses to invade and seize wealth.

And Northeast China has the earliest railway network in the country and the first formal highway in the country. There is no river to sail on, and the dense road network in Northeast China can replace it. Funny thing is that a finance and economics major V said that the current economic downturn in Northeast China is because there is no good deep-water port. How did the Chinese aircraft carrier Liaoning leave Dalian.

There is a string of pearl harbors along the northeast coast. Seventy years ago, some remnants of the Kuomintang army fled by warships on Huludao.

Some people say that the cold in Northeast China is also the reason for the economic downturn in Northeast China. How come the economies of Canada and Nordic countries are not affected by the weather. On the contrary, crops in Northeast China have been affected by climate, with longer growth cycles, higher yields, and greater value, supporting the entire country.

What is a market economy based on the four "market development gaps"? Market economy means that economic products are priced by the market and freely circulated in the market. The Northeast region has lost its market competitiveness for light industrial products, and all light industrial products in the country can freely enter the Northeast region for sales. Is this market not yet open enough?

Why don't five foreign businessmen invest in Northeast China? Because Northeast China doesn't have the ability to produce product accessories at all, that foreign businessman will invest in building factories, even if they originally had them, they will quietly leave later. Nowadays, investors are building storage and transportation warehouses for various items in Northeast China, becoming a scene on the Shenyang urban road, in stark contrast to the production factories on both sides of the southern road.

At the end of the article, we come to the conclusion that the reason why the Northeast economy has regressed is because it has lost one leg of light industry, only relying on heavy industry and agriculture to move forward, how can it go fast and far. Other reasons are secondary.

Due to the backwardness of light industry in Russia, despite its abundant resources of oil and natural gas, its economic development is also slow.

European countries formed an economic community in order to change the single economic product situation of each country, and ultimately established the European Union.

Although the United States has lost some manufacturing industries, it is also desperately trying to bring them back. The United States still holds onto the weightless software and lightest chips in light industry and imposes a strict blockade on our country. It can be seen that light industry is not light, and the development of heavy industry cannot be separated from light industry.

China is a major country, and the uneven economic development of a region can affect the overall economic development situation. How to revitalize light industry in Northeast China is the main issue for economic development in the region.

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