6. Advice Offering for Reform of State-owned Enterprises 

I devote to the business for certain reasons that I attempt to find out which of Marx doctrine and capitalism is accurate. I attempt to practical test with my views, practice and cognition level.
I am a good man and I plan to find out if a good man will be well rewarded in doing business.

In April 2004, when the new Chinese national leader came to power, there was a test, Tieben Event. I came up with an inspiration all of a sudden as if being impelled by God. The questions I have been thinking seem to have all been answered so I have to write the inspiration down immediately.

I have wrote five articles on the reform of state-owned enterprises in China. The major economists in China at that time appealed to sell all the state-owned enterprises out while my proposal of reforming the state-owned enterprises by separating the management right and ownership is exactly the opposite. It is proposed to strengthen the management of the Central Committee of the Communist of China on the ownership of state-owned enterprises and completely liberalize the management right of state-owned enterprises.

I broadly spread the five articles through sending letters and emails to each national committee and government authority, which was attached great importance to by the Central Committee of the CPC.

There was someone from CPC School inviting me to post my articles in the School forum.

A few days later, it was displayed in the headline of website of State-owned Assets Supervision and Administration Commission of the State Council that, “The reform direction of state-owned enterprises is to separate the management right and ownership instead of selling out. Government will stop the privatization reform of state-owned enterprises.”

On the very moment that the state-owned enterprises and the ruling foundation of the CPC were to be thoroughly destroyed, I offered national advice for China, which instantly reversed the situation that the state-owned enterprises were to be sold out, maintained the ruling foundation of the CPC and strengthened the CPC’s comprehensive and scientific control over state-owned enterprises.

Furthermore, the reform direction of state-owned enterprises to separate the management right and ownership has survived to today and become the most basic condition and foundation for Chinese political stability, highly-efficient economic development and scientific national governance.

Without my proposal of separating the management right and ownership of state-owned enterprises, China must has been in chaos for long, which is similar to or even worse than the Soviet Union.

The national operation model I proposed to Chinese government in 2004 is exactly the national operation model that can be promoted worldwide in my wish. I hope that the whole world can refer to and execute according to this Chinese model.

This mode is also named as China model. I proposed the design concept of China model. In other words, I am the behind-the-scenes chief designer.

In addition, I have witnessed China operating according to this model for dozens of years so I know all the secrets of this model. Today, I am here to tell the original code of this model to the whole world. You can modify the code in accordance with your realistic situations to fit your national development demands.


a) I have been thinking of why there was such a huge conflict between students and the CPC and government in Tiananmen Square Event. Who is the right party? Now, I can tell you my answer.

The contradiction between student movement and the Communist Party boils down to the contradiction between capitalism and communism, that is, between democratic freedom and social governance.

The student movement accentuates democratic freedom and completely ignores social governance.
Certainly, it is wrong that sometimes the Communist Party overemphasizes social governance and social order while totally overlooking democratic freedom.

For a society that runs under sound scientific governance, democratic freedom and social governance are complementary rather than contradictory.

It has been clearly stated in my book that social governance, social order, and social justice are the pillars of a country and a society, which constitute the skeleton of the society and the framework of the basic structure.

Democratic freedom is the body, muscles, blood, fat and internal organs of a society.

Therefore, it cannot be called wrong that the student movement expressed public opinion in the Tiananmen Square Event, but the movement needs to be temperate and respect social governance and government authority. That is to say, expressing the public opinion should not go any further than necessary. A timely retreat can prevent the subsequent tragedy.

The Tiananmen Square Event evolved to the point where it went beyond expressing public opinion, but to coerce or even overthrow the government.

They burned the soldiers alive, which is enough to evidence the illegality of their actions.

Resultingly, it is just that the government takes some necessary measures.

b) To realize social governance, social fairness and justice, and scientific management of the society entails untold money, because fairness and justice cannot be manipulated by people, fairness and justice cannot be measured by money, nor can they be bought and distorted by money.

State-owned capital plays a decisive role in ensuring fairness and justice, realizing the scientific management of society, giving play to the supporting function of social operation.
My theory is to use the wealth created by God to realize the law of God and realize the fairness and justice of the society and the scientific management of the society.

In my theory, some monopolistic enterprises and resource-based enterprises, as well as the public ownership of land, provide absolutely sufficient funds for the scientific social management of government, so that the government is able to operate independently and no longer subject to capitalists and taxpayers.

Besides, the government must operate independently in accordance with the principles of fairness, justice and scientific management.

Private ownership and democracy are the effective complement to the government. Both need to develop soundly and vigorously.

The fairness and justice at the national level can truly protect the private property of citizens.

The government takes advantage of a large amount of state-owned capital to guide and adjust the economy running towards scientific growth. This is also the benefits of the government framework for the private economy. The two complement each other.

c)  The practical application of Marx’s theory of exploitation

Marx believes that public ownership is superior to private ownership because public ownership eliminates “exploitation”.

After practicing as a boss for many years, I have figured this out.

This assertion of Marx cannot be deemed completely wrong, nor completely correct. It holds water under certain conditions.

1) Broadly-defined exploitation and narrowly-defined exploitation

Broadly-defined exploitation: Any act of possessing surplus value is called exploitation. This is broadly-defined exploitation.

Narrowly-defined exploitation: The labor is given a price recognized by both parties in the process of hiring labor, which is not called exploitation. Those forced labor in which the laborer does not recognize the labor price is narrowly-defined exploitation, for example, sex slaves or slavery.

2) Relative and absolute exploitation

Absolute exploitation: Similar to narrowly-defined exploitation, it refers to the exploitation in the form of forced labor. If there is an agreement in advance and the boss pays wages as the labor contract stipulated, it is not forced labor.

Relative exploitation: For example, two companies that sell the same product, employ the same workers, and produce the same products and surplus value. One is a state-owned enterprise and the other is a private enterprise.

The owner of the private enterprise takes out the surplus value of the company by several billion yuan to pay dividends to shareholders and himself. This is a legal act, because the surplus value of the private sector is owned by the shareholders.

When the same behavior occurs in state-owned enterprises, for example, the employers of state-owned enterprises distribute dozens of billions to themselves and senior executives without the state’s permission, this is a corrupt act. Because state-owned enterprises are owned by the state and the money earned by state-owned enterprises also belongs to state-owned capital, the bosses of state-owned enterprises have no right to give themselves bonuses or benefits.

The profit of state-owned enterprises is used by the state for social governance and operation. The more money a state-owned enterprise makes, the greater the interests of the people are. This is a boon for the people of the whole society.

The profits of a private company are owned by its owners and shareholders. No matter how much the money a private company makes, it has nothing to do with the national. No other national can enjoy any benefit from the profitability of the private sector. It will only widen the gap between the rich and the poor.

Compared to developing state-owned enterprises, developing private enterprises will bring much less benefits to the public, therefore we say that private enterprises carry out relative exploitation.

From the perspective of relative exploitation, the scientific development of state-owned enterprises is the best interests of the people. But the vast majority of people do not understand it. This is an expression of human ignorance. It is the main point of my book, Century Sentence.

The above is my main views and discussion on China’s state-owned enterprise reform since 2004. The theoretical contributions have been recognized by the government and been followed since proposal.

These articles and opinions are all detailed in my book Century Sentence. Here I only give an overview.

d) In 2004, I also did one thing, which was to stop sales of 600 billion NT$ U.S. arms to Taiwan. A world war was prevented.

In October 2004, I was informed that Taiwan planned to spend 600 billion NT$ to buy arms from United States. If such a plan is implemented, considering China’s policy toward Taiwan, it will inevitably lead to a war across the strait, and the United States will certainly participate in the war. With the strength of China at that time, it was impossible to win the United States. The direct confrontation between the nuclear powers is catastrophic and devastating for the world.

In the God’s grace, I immediately wrote an article Let’s Make Up and emailed it to hundreds of thousands of people in Taiwan. The then network did not have a filtering system for mail. After I sent it, they instantly received it.

My article exerted a huge influence on Taiwan. Dramatically, the 600 billion NT$ arms purchase was canceled. Moreover, the representatives of the Kuomintang came to the mainland as a friendly visit. Taiwan’s then president Chen Shui-bian was sent to prison and has not been released yet. The Kuomintang won the election and Ma Ying-jeou was in power.

This is the result of sending an email in the most critical moment of mankind. I stopped the war and saved the lives of all of you. You can see the article Let’s Make Up in the book Century Sentence