Facing the leaders of the municipal party committee, Bao Feiyang did not have any stage fright and began his report clearly: "Not to mention other places in the country, just talk about our Pujiang City as the most economically developed municipality in the country. Our economic development level, urban construction level, industrial and technological level... Compared with developed countries, there is also a huge gap."

"The gap is not terrible, the gap just shows our development potential..."

"For example, in the automobile industry, the total sales of automobiles in the country in 1998 were more than 1.6 million, while the number of civilian cars in my country was only more than 13 million. In comparison, the number of automobiles in the United States exceeded 200 million, which is nearly twenty times ours..."

It is hard for people nowadays to imagine that in just over a decade, the annual production of automobiles in China will exceed 20 million, nearly 30 million. In other words, more than ten years later, the number of automobiles produced in China will be more than twice the number of cars held in the country today. And this is potential! Bao Feiyang cannot tell others this data, but through comparison with the United States and European countries, he can let everyone see this potential.

The data comparison is very real. The huge gap between more than 10 million vehicles and 200 million vehicles is enough to make people desperate. However, this also shows the growth potential of China.

"The situation in our country is different from that in the United States, but the overall trend of the development of productivity, production and life needs is still the same. With the development of our country's economy, whether it is cargo transportation or people's travel requirements, the demand for cars will grow rapidly."

"So, even if the domestic automobile market is not prosperous now, we have enough reason to believe that the future of this market will be very promising. We cannot expect our automobile industry to reach the level of the United States soon, but I think that in the future, our car ownership will definitely exceed that of the United States. After all, we have a population of 1.2 billion, and the size of this market is incomparable to the United States. And in the next ten years, at most twenty years, our car ownership will exceed 100 million and more than 200 million, which will be a very huge market."

"For example, the real estate industry, the per capita housing area in my country is only 17.8 square meters. In comparison, the per capita housing area in the United States is as high as 60 square meters, and the United Kingdom and Germany in Europe have reached 38 square meters. Even Japan, which has a higher population density, the per capita housing area has reached 31 square meters..."

Bao Feiyang said: "If the per capita housing area in our country increases by one square per year, we will build more than one billion square meters of houses. In fact, the rural population in our country now accounts for the majority. With the process of urbanization, the urban population will increase, and the housing area built every year will reach more than one billion, or even billion square meters. The development of the real estate industry, the demand for building materials, including steel, will also soar..."

"Haha, I probably know why Comrade Feiyang, you can convince the Germans to come and invest. Your big cake is so big!" Deputy Secretary Tao Ran said with a smile.

"I remember that the central government has indeed introduced policies to stimulate and promote the development of the automobile industry. However, since this year, the response of the automobile market has remained lukewarm. It should be a long way from the full launch, and the situation in real estate is similar..."

However, Bao Feiyang is also confident that the country's production limit is oversupply wire and other products, and it still supports projects such as automotive steel, stainless steel, seamless steel pipes, etc. The focus of the Huixun District 10 million tons steel base project is these products that have a relatively high technical content and are not fully mastered in China.

Tao Ran did not oppose these projects. Whether it was to introduce foreign investment or fill market gaps, these projects were very beneficial to Pujiang City. The questions raised by Tao Ran were related to the restrictions on the steel production capacity of the entire Pujiang City and the adjustment of steel enterprises.

According to the relevant national production restrictions policy, the stainless steel, seamless steel pipes and automobile steel introduced by Pujiang City are not among the ranks of production restrictions. On the contrary, the central government will also support the introduction of such projects. But in addition to these projects, the construction of the tens of million-ton steel base proposed by Bao Feiyang also includes a long-process steelmaking project of 5 million tons. The so-called long-process steelmaking starts from iron ore, through ore dressing, washing, smelting, and finally steel production and rolling. Compared with long-process steelmaking, the stainless steel project introduced this time does not include steelmaking, but purchases crude steel and directly produces stainless steel by adding other metals. This is a short process. In addition, in recent years, more electric furnace steels in the United States have been smelting and manufacturing steel through scrap steel, which is also short-process steelmaking.

As a supporting project for stainless steel, seamless steel pipes and automotive steel, it seems reasonable and natural to have a long-process steelmaking project. However, when the entire steel industry has to limit production, this project may not be able to pass the approval. After all, once the project is completed, it will be at least five million tons of crude steel production. The central government also has clear regulations on new steel projects, that is, while new production capacity is built, the corresponding elimination of backward production capacity must be completed. In other words, if Huixun District wants to build this five million tons of long-process steelmaking project, Pujiang City must reduce the backward production capacity by 5 million tons, which is almost equivalent to the full production capacity of several major steel enterprises in Pujiang City such as Laopu Steel, Chunshan Steel, and Jiangnan Steel.

Tao Ran does not oppose stainless steel, seamless steel pipes, and automobile steel projects. He does not even oppose Pugang relocation and builds a new factory. However, he opposes directly launching a long-process steelmaking process of 5 million tons. He believes that after Pugang relocation, it is sufficient to appropriately expand the steelmaking capacity of 2 million tons to meet part of the needs of several joint venture projects. The rest can also be provided by several other steel companies in Pujiang City, which can also drive several steel plants to develop together.
Chapter completed!