On November 15, the "2024 China Cement High Quality Development Forum and OCC Second Anti-Involution Forum" was held in Tongcheng, Anhui Province. Qiao Longde, former president of China Building Materials Federation, came to the scene and made a speech. President
Qiao Longde said that the anti-involution and market stabilization conference organized by the conference was very timely and had a very important practical role and far-reaching significance. The state of involution in the
industry hinders the formation of new productivity in the industry and seriously affects the innovation and high-quality development of the industry. The involution competition not only interferes with the market order, but also brings about a serious decline in the economic benefits of the industry and enterprises, with unimaginable consequences.
Although it is a popular phrase on the Internet, it is not difficult to understand that after a certain development mode of a thing has reached a certain level, there is no way to stabilize it, nor to transform it into a new mode or a new form, it can only go round and round internally, helplessly, against its original intention, and be voluntarily entered. In a state of complexity and futility.
This kind of condition in the profession, displays prominently in the certain domain for: Under the exterior resources, specially the market resources limited situation, by the irrationality, lacks the rationality, blindly but diligently the malignant competition, to capture the resources, to contend for and to control the market, has paid the arduous effort, has invested more financial resources and material resources and the cost, What they get is lower and lower returns.
This vicious internal competition leads to the lack of goals and directions for the progress and development of the industry, enterprises and enterprises, resulting in the formation of the present, not to mention the future, so that people have no mind, no motivation to promote technological innovation, or even stranded innovation. As a result, enterprises are busy fighting fires and exhausted, the development of the industry suffers losses, the vitality of enterprises is damaged, and workers are facing the threat of reducing salaries.
Therefore, people who have experienced the involution define the involution as an endless marathon, a bottomless competition of crazy internal friction, a whirlpool and black hole on the way forward, and a war without smoke of gunpowder, which makes those involved scarred. In short, under the involution, there are few survivors.
Involution is not unfamiliar, what is terrible is that President
Qiao Longde said that in the development of China's cement industry, there have been countless times of involution competition with different degrees, but the difference is that there have been many times of internal competition with involution nature. Most of them are the disorderly price drop and competition caused by the fact that the total amount of cement does not decrease, but the demand decreases in different periods of time. Most of them occur in the rising period of China's overall economic development, so the duration is relatively short, coupled with the guidance of government policies, the overall recovery can be achieved after a period of time.
Of course, we have also experienced the low price sales caused by the disunity of ideas and the panic of some enterprises under the background of the decrease of market demand, and the mutual influence between regions and the formation of dumping involution competition. However, relying on the strength of industry organization, the leadership of large enterprises and the wisdom of the industry, we have better curbed the expansion of involution competition, and achieved good economic results and the effect of industry development and promotion, so that China Cement has entered the era of transcendence and leadership.
But this time the situation is different, the whole economic environment is in a transitional period, the economic development is slowing down, the scale of traditional industries and market demand are declining, the economic benefits of the cement industry have been declining for many years, even half or most of the enterprises are losing money. The time of involution competition has lasted for an unprecedented long period in history.
Therefore, it is much more difficult to solve the involution competition in the industry.
Historical experience tells us that involution is a tiger in the way of the development of the industry and a fat stone for progress, which is harmful without benefit. Because the core of involution competition is to protect oneself, protect the market, and fight price war, once the enterprise is difficult to operate and its efficiency declines, without economic support, the enterprise is like a body drive with its skeleton and blood removed, unable to gain a foothold, it can no longer have new ideals and goals, can no longer concentrate on technological innovation and effective technological transformation, and can no longer take society and the overall situation into account. It is impossible to truly achieve green, low-carbon and digital operation, in short, enterprises without economic support will be eliminated and eliminated sooner or later, where can we talk about progress and development?
For this reason, the industry must have a unified goal, unified thinking, unified industry self-discipline rules and unified industry development concept as a guide to extricate itself, the most important of which is to save the industry from the perspective of the industry, not from the perspective of a specific enterprise. The practice of self-rescue can never be pulled out, and only the strength of the industry can save the enterprise. Leading
thinking, policies and standards, and industry self-discipline, President
Qiao Longde believes that in order to reverse the current passive situation, the industry needs to start from three aspects.
First of all, we should take the lead in thinking and unify our understanding. Whether the ideological and political line is correct or not is decisive, we should use Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era to guide and integrate into the reality of the development and upgrading of China's cement industry in the new era, and establish that the goal of the new era of cement industry is to innovate and upgrade the technology and equipment of the cement industry, add new functions, develop new fields, tap new needs, and move towards high quality. To promote the comprehensive formation of new quality productivity, to promote the empowerment of digital economy, and to promote the realization of green low-carbon, if we are only keen on price war, we will be abandoned by the new era. To
unify our thinking is to unify our position. Cement is an important raw material industry of the country and an important national industry of our country. The quality, level and value of development represent the reputation and responsibility of the country. On the basis of reaching the world's leading level, it is our common responsibility to keep up with the new era and create a new level of world cement in the new era. All activities of production, operation and research and development should focus on the new goal of progress, to enhance the value of the cement industry, rather than just to make a few money and mess up the industry. It is necessary to unify the development concept and management concept of the enterprise to the development concept of the industry, to the development concept of the new era, to the values of the industry, and to the mission and responsibility of the development of the cement industry. We should restrain, restrict and punish those behaviors that do not innovate but disrupt the market. The development and innovation of the industry and all major strategies should have the final say of the policy, the advanced productive forces representing the progress of the industry should lead the development of the industry, and the development should be guided by the interests of the industry, rather than by the needs of a single enterprise with its own needs. Once all kinds of needs want to stand up, the development of the industry will be aborted. To
unify our thinking is to establish a healthy and upward industry culture. Sticking to the fine and traditional integrity, doing solid work, operating according to the book, and sinking down to seek the great cause of the nation. Establish the competitive concept of survival of the fittest, and establish the good quality of obtaining due benefits by innovation and real ability. We should expose and criticize the bad behavior of obtaining the fruits of other people's labor by speculation, self-interest at the expense of others and manipulation, so that bad ideological motives can not be based on. The technical equipment level of the cement industry has developed by leaps and bounds in the past decades, but the cultural construction of the industry is lagging behind, which is the ideological root of today's chaotic situation. The industry that does not pay attention to the cultural construction of the industry is the industry that lacks the soul to build, and it will inevitably be at a loss when it encounters problems.
On the basis of unified understanding, governance and self-discipline industries must follow up. Everyone is concerned about the future market demand in China? First of all, the affirmative answer is that the total amount and market demand will certainly be further reduced, which is the inevitable turning point and transformation of China's economic development, and no one can resist the law of progress of the times. When the total amount and market demand decrease, it is useless to worry and fear. What is terrible is that we should worry about whether the involution within the industry will stop? If the involution continues, not to mention the reduction of the total volume and market, even if it increases by 200 million tons, the whole industry is still mostly losing money. If we open up new application fields, unify our thinking and restore the historical level with high quality, high price and multi-function, we will not be afraid of the total amount of 1.5 billion tons, and there will be 150 billion profits. Even if we take a step back to 1 billion tons, there will be 150 billion to 200 billion profits in line with the international price. Therefore, the terrible thing is not the external change, the terrible thing is that we do not change, the terrible thing is that we do not live up to expectations, and the terrible thing is that the industry is not unified.
Of course, we can't just talk about the general principle, the actual measures must keep up with it, the total amount and demand have been reduced, through the policy, the existing stock of cement has been reduced correspondingly by eliminating the fittest and the fittest, and the polic y has been eliminated by standards, indicators, production facilities and construction years, subsidized withdrawal, joint-stock system and leasing system have been made respectively. Reduce the total production capacity, and withdraw the enterprises with relatively high cost, large consumption, substandard carbon and low output from the market. While eliminating backward production capacity with policies and implementing high quality and high price, we should strengthen industry self-discipline, serious industry laws and regulations, restrict and restrict the behavior lacking industry ethics, unify our ideas with industry goals and common interests, fully reflect the additional price of high and new technology in cement industry, and fully reflect the raw materials and energy in the new era. It fully reflects the use value of new quality products created by the value of labor force in the new era, and keeps pace with the times to shape new industries in the new era.
Otherwise, energy saving and emission reduction, technological transformation, innovation and upgrading, and digital intelligent application in the cement industry will be delayed and dragged down. The reason is very simple, the state of involution has no benefit, and the industry without economic benefit support has no mind, no strength to innovate and progress. Do not think that the "two second generations" are specimens, stop not advancing on the two second generations, and no longer innovate the industry will not meet the new requirements of the new era. In a word, involution is the enemy of the industry and must be opposed and resisted.
