Wu Jinglian talks about the government subsidy of LED new industry over the head

[Text|Mr. Wu Jinglian, member of the 50-member forum of the Chinese economy] I have always opposed the government's offside intervention in the market. In recent years, the government has been heavily subsidizing technological innovation, but science and technology are two different things. Scientific research is external and cannot be found. The return of a mathematical theorem you can get, so the government should be responsible for the investment, but the technological innovation is rewarded by the market. It is unreasonable for the government to give tens of millions and hundreds of millions of dollars to reward a technology. Why do technical innovations require the government to take money to reward?

What is the government's ability to judge which technology is promising? You can say that a certain technology itself may be advanced, but it can be successful in the market without anyone knowing. We are all what the government says about developing technology, and then we will give a lot of money. What is the final result? Look at what our PV industry has become.

More than photovoltaic, now the country is doing LED, the most powerful may be my hometown of Changzhou, to become the LED world capital. However, because resources are scarce and given this enterprise resource, that enterprise can't get it.

Now the whole of Jiangsu is in this situation. Shi Shirong has 20 billion yuan of funds, so the government can't afford to support the LED industry. A LED company in Kunshan thought of financing in the field. Guangdong said that if you move the company to Guangdong, we can invest money, but the local government said that you can't move, and you moved away the few hundred million that I gave you. Therefore, this model of government involvement in investment is extremely abnormal.

The government is a place, and the water and water are not flowing outside. The Ministry of Science and Technology has built a ten-city plan for an electric car. Now there are about 20 cities in the city. The central government and local governments each take a part of the money to subsidize, and the ten cities and ten thousand vehicles are a total of 10,000 cars. At present, two or three thousand cars should be said to have reached the lowest economic scale, but now they are not used at all. All localities have given orders to local enterprises. If there are more than 20 thousand vehicles, they will not reach an effective scale. This money is white. As long as the manufacturing industry goes up, the cost will come down, but what is the use of one thousand units for each company?

This kind of thing can be subsidized by the government because it saves energy and reduces pollution. The general principle is that it cannot be subsidized as soon as it enters competition, but we are not. The government will decide which brand to give money to. This is against the fair competition law. . According to the market economy, the demand side should be subsidized, and then purchased through the market, which one can buy which one.

Home appliances to the countryside is also problematic. Some varieties have already been eliminated, because the home appliance has actually maintained its life cycle, but it is the taxpayer's money, so it also involves the so-called distribution reform. The problem of distribution reform is very big. I always say that the government wants to save money. The result is that taxes are added so much. What is the solution to the problem?

Some small business owners also told me privately (they dare not say it publicly), saying that the leaders of these industries have received a lot of care from the government, but they simply cannot understand our difficulties. When I went to Zhejiang for investigation in 2004, I found that there was a list of companies to be fostered from the province to the county. This in itself violated the basic principles of market competition, but everyone is not surprised, of course, this means How much government pays attention to supporting private enterprises!

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