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Hu Xijin: Small and micro enterprises are the capillaries of the Chinese economy

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On the 22nd, Hu Xijin, editor-in-chief of Global Times, posted a message on Weibo and shared a conversation with a small and micro enterprise boss. The full text is as follows:

Small and micro enterprises are the capillaries of the Chinese economy. Recently, Lao Hu had a deep discussion with an old acquaintance who was a small and micro enterprise. He listened to his talk and spit. I think the situation of this L boss is quite typical, and I will share it with you here.


Hu Xijin: Small and micro enterprises are the capillaries of the Chinese economy -Hu-Xijin-Small-and-micro-enterprises-are-the-capillaries-of-the-Chinese-economy

L boss is 58 years old. He co-organized a trading company 19 years ago. Later, the collaborators left, and he became the boss himself. They specialize in plastic pipes and supply them to a variety of companies. The company's plumbing system, sewage system requires plastic pipes, and will be replaced in a few years, they have some stable customers. In the past 19 years, the market environment and sales methods have changed a lot, but his company has survived and the things sold have not changed much.

His company has more than 20 people at the peak, and now there are 8 people, with annual sales of about 10 million yuan, but profits are getting thinner. He said that there are two reasons for this. First, all costs are increasing. Second, he is old enough. He is unwilling and unable to open up new business. Basically, he is eating old and fighting in the original market and business direction.

I asked him how the situation was in 2018. He said that sales were basically the same as in 2017, but because of the increase in costs, profits were further squeezed out, there was no loss, but there was little profit. I asked which specific costs have risen. He said that there are three. The biggest one is the increase in rent. Because of the safe production in the second half of 2017, the farmer’s house he rented was a warehouse and office area, with a rent of 180,000 a year. Because the safety is not up to standard, I can't pass the inspection. I was forced to rent a warehouse that was farther away from the urban area but has a lot of formalities. The rent has risen to 280,000 a year. Second, because the location is far away, he has to send transportation subsidies to employees, one person a month for 600 yuan. The third is that the social security base in Beijing has risen every year. Although the coefficient of payment has dropped, the total social security paid by enterprises has increased. He said that the total cost of the company has increased by about 200,000 yuan, which is a big number for a small company like him.

He said his company is too small and has no gaming ability. The national VAT rate dropped by one percentage point, and the customers knew that the benefits of this point were taken away by the customer's request for price reduction and could not fall into his business.

Eight of his company, including him and his younger brother, each have a monthly salary of less than 10,000 yuan and an average of 5,000 yuan for other employees. The increase in the tax base has little impact on the employees of their company. There are 4 people including him who are Beijing hukou and 4 are foreign hukou. Their company paid a total of about 200,000 taxes to the country last year, and the average person paid 25,000.

I said that you haven’t accumulated a little fortune for so many years? He said that he has some stocks. These stocks are his wealth, but he has no cash.

I asked him, is there any change that is beneficial to you in the past two years? He said that he has to admit it. I asked what it was. He said that the biggest favorable change was that after the second half of 2017, he had a loan of 1 million yuan from the bank as a small and micro enterprise. In the past, he had to borrow from a bank, to take a house as a mortgage, and it was difficult to lend it, and the interest was close to 7%. Now this 1 million quota does not require any mortgage, it can be used at any time, how much to borrow in the quota, and the interest paid for a few days in a few days, the interest rate has dropped to less than 5%, which solves the problem of insufficient liquidity. . The second point is that the troubles from various government departments are basically gone. In the past three days, there are different departments at both ends to find trouble, and it is difficult to deal with them. Now that the situation has completely changed, there is no door to find trouble, looking for the government to do things, the official attitude is very good, and the efficiency is quite high. The business environment in this regard should be said to have changed a lot.

I asked him if you are not satisfied, think again. He thought for a while and said that the bank's service fees are one after another. There are thousands of them in a year, and maybe even tens of thousands, which makes him very distressed.

I asked again, it is factory companies that deal with you. What do you think is the general situation of their operations? He said that it is not clear, but it seems to be ok. I asked where this feeling came from? He said that customers get goods from them and the payment is faster than in the past. In the past, his company had more accounts receivable, and the situation in 2018 was better. It is very important for him to sell goods quickly. He said that if those companies have no money, his small company is the easiest to pay in arrears.

I asked: Do you think your company can survive? He said that he feels good, he is quite confident. I asked where confidence comes from. He said that the materials he sells are always needed by all businesses. Although he can't keep up with the new formats brought by the Internet, he can maintain the company by expanding some new customers with his old relationship. Operation. Even if you don't make money, the company can't. He has been working for 19 years and has experienced many changes. He feels that there should be no problem in the future.

I asked, if your confidence in surviving in the past is 70 points, what is the score of your confidence today? He thought about it: I have 75 points today. I asked what the added 5 points is. He said that the current business environment is more standardized than in the past. The state's policy toward small and micro enterprises is improving. Although the profits are thin, the uncertainty is also small.

I ask again: Your business is so small, do you think that you can't live without it, is it important to the society? He said, I think it is quite important. I asked where the important thing is. He said that my company is small, but it has 8 people including me and my brother. We are behind 8 families. Our wages are now low-income, but we all have bowls of porridge, so we don't have to let the country solve our work and livelihoods. We know that we have no ability to do so. We can still have porridge and drink, and the country is more. A stable.

The sentence that he impressed me the most and repeated it twice was:

If one day, a small and micro enterprise like me is paralyzed, China should be chaotic.

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