The concept of the Bohai Rim economic circle was put forward in the mid-1980s and was once predicted to be the rapid growth zone for China's next economy. However, in the past 20 years or so, this economic circle has failed to show a clear regional growth, and it has not formed a unified market with a close link between the industrial chain and a reasonable industrial division of labor. Some experts pointed out that the main reason for this situation is that the princes’ economic development thinking has led to regional separatism and their own interests.
In fact, this 'prince economy' has not only appeared in the Bohai Rim region. It has also been very serious in developing petroleum and chemical industries.
In the past few years, with the improvement of the oil and chemical industry market, local governments have competed for large-scale petroleum and chemical projects, and large-scale coal chemical projects such as ethylene, fertilizer, coal-to-oil, and methanol have blossomed. Some localities and enterprises do not consider the overall layout at all, and even rarely consider the market conditions. Some of them are only living in resource areas. Some only have relatively developed traffic, and some even do not have the most basic resource conditions. Struggle on. Some regions have even resorted to non-normal means of forcibly launching and preemptive investment in an attempt to 'force' the state's competent authority to issue a project's 'wholesale permit' as a fait accompli. Recently, it was reported that a certain location in southwestern China planned to build an ethylene project with an annual output of 140,000 tons a few years ago. As a result, 'the ethylene raw material oil could not be implemented', and eventually the project was not implemented. However, the local government is currently building a large ethylene project with an annual output of 800,000 tons, and because local officials have repeatedly travelled to Beijing, they have taken all the stops and initially obtained support from the relevant state departments. What is strange is that although each major project requires many supporting sub-projects or small projects, few regions or companies have proposed supporting projects for large ethylene and large-scale coal chemical construction. The reason for this is self-evident. Because grabbing a big project means grabbing the capital, you can occupy the market first by going on big projects, and you can create local development speed through these 'mega-projects' projects, highlight the achievements of local governments, and you can become big 'princes'. Therefore, behind the big project 'enthusiasm' is actually a kind of 'prince economy' development thinking in support.
Some people say that 'prince economy' can mobilize local enthusiasm and form competition, which is beneficial to the market economy. This is a good word! In the era of planned economy, the sequelae brought about by the 'large and complete' and 'small and all' development models to the Chinese economy have not yet been cleared. The 'prince economy' that is currently spreading in the industry is actually a replica of the 'big and complete' and 'small but all' development thinking in the era of planned economy. Its greatest harm is precisely that it cannot establish a unified and complete big market in the entire petroleum and chemical industry, resulting in redundant construction, waste of resources, and low efficiency. The most obvious trend of the market economy is the more and more specialized division of labor in the development of the industry and more and more rigorous systematic coordination and cooperation. This trend must be formed in a nationally unified, open, fair and equitable competitive environment. Obviously, the 'prince economy' that is currently severely present in the oil and chemical industry is manifested in a blocky division. It is a partial interest and is a 'benefit' other than economic benefits. The ultimate result is industrial similarity, duplication of infrastructure, and disorder Competition is getting farther and farther away from the market economy we are pursuing.
In fact, this 'prince economy' has not only appeared in the Bohai Rim region. It has also been very serious in developing petroleum and chemical industries.
In the past few years, with the improvement of the oil and chemical industry market, local governments have competed for large-scale petroleum and chemical projects, and large-scale coal chemical projects such as ethylene, fertilizer, coal-to-oil, and methanol have blossomed. Some localities and enterprises do not consider the overall layout at all, and even rarely consider the market conditions. Some of them are only living in resource areas. Some only have relatively developed traffic, and some even do not have the most basic resource conditions. Struggle on. Some regions have even resorted to non-normal means of forcibly launching and preemptive investment in an attempt to 'force' the state's competent authority to issue a project's 'wholesale permit' as a fait accompli. Recently, it was reported that a certain location in southwestern China planned to build an ethylene project with an annual output of 140,000 tons a few years ago. As a result, 'the ethylene raw material oil could not be implemented', and eventually the project was not implemented. However, the local government is currently building a large ethylene project with an annual output of 800,000 tons, and because local officials have repeatedly travelled to Beijing, they have taken all the stops and initially obtained support from the relevant state departments. What is strange is that although each major project requires many supporting sub-projects or small projects, few regions or companies have proposed supporting projects for large ethylene and large-scale coal chemical construction. The reason for this is self-evident. Because grabbing a big project means grabbing the capital, you can occupy the market first by going on big projects, and you can create local development speed through these 'mega-projects' projects, highlight the achievements of local governments, and you can become big 'princes'. Therefore, behind the big project 'enthusiasm' is actually a kind of 'prince economy' development thinking in support.
Some people say that 'prince economy' can mobilize local enthusiasm and form competition, which is beneficial to the market economy. This is a good word! In the era of planned economy, the sequelae brought about by the 'large and complete' and 'small and all' development models to the Chinese economy have not yet been cleared. The 'prince economy' that is currently spreading in the industry is actually a replica of the 'big and complete' and 'small but all' development thinking in the era of planned economy. Its greatest harm is precisely that it cannot establish a unified and complete big market in the entire petroleum and chemical industry, resulting in redundant construction, waste of resources, and low efficiency. The most obvious trend of the market economy is the more and more specialized division of labor in the development of the industry and more and more rigorous systematic coordination and cooperation. This trend must be formed in a nationally unified, open, fair and equitable competitive environment. Obviously, the 'prince economy' that is currently severely present in the oil and chemical industry is manifested in a blocky division. It is a partial interest and is a 'benefit' other than economic benefits. The ultimate result is industrial similarity, duplication of infrastructure, and disorder Competition is getting farther and farther away from the market economy we are pursuing.
Carbon Steel Plate,Black Carbon Steel Plate,A285M Carbon Steel Plate,Hot Rolled Steel Carbon Plate
Shandong Yuzhong Steel Co., Ltd. , https://www.cnyzsteel.com