Will a project with an investment of 30 billion yuan be discontinued? Chen Yun opposes: This is related to national character | Looking back at Shanghai Research | Shanghai Municipal Committee | Baosteel | Relationship

The construction of Baosteel was the most invested and difficult engineering construction project between the founding of the People's Republic of China and December 1978. The successful completion and operation of the project were inseparable from a series of investigations and research conducted by the Central Committee of the Communist Party of China and the Shanghai Municipal Committee.

Repeated research and site selection at the mouth of the Yangtze River in Shanghai

Shanghai is one of the important steel production bases in China, with steel production accounting for one-fifth of the total national production at that time. However, Shanghai's pig iron production was only 1 million tons. In 1977, when it was learned that the Ministry of Metallurgical Industry of China had introduced steel equipment and built steel bases from Japan, the Shanghai Municipal Party Committee saw this as a rare opportunity and actively sought to place the project in Shanghai.

The construction of this steel industry base will cost at least 30 billion yuan. China's fiscal revenue was only 80 billion yuan that year. For the sake of caution, the central government has decided to screen nationwide, provided that it is modeled after Japan's Nippon Steel, built along the coast, and consumes imported mines.

The investigation team visited more than 10 cities, including Lianyungang, Tianjin, Zhenhai, and Dalian. The prominent problem in these areas is the weak industrial foundation and comprehensive capacity, which makes it difficult to support the large modern steel base. There are two shortcomings in Shanghai: firstly, the water depth at the mouth of the Yangtze River is not enough, and imported mines need to build ports for transshipment; The second reason is that the foundation is soft and requires pile reinforcement, resulting in increased costs. But Shanghai is the largest industrial city in China, with an industrial foundation and comprehensive capacity sufficient to support a modern steel base. After circling around, I returned to Shanghai.

Experts began to propose that it should be built in Jinshanwei. The local channel is deep and the mudflat is idle, so farmland can be requisitioned less. But after in-depth investigation and research, experts rejected this plan. The reason is that Jinshanwei is adjacent to Hangzhou Bay, located at the wind inlet of the subtropical monsoon landfall, with high winds and waves on the sea surface, large fluctuations in sea tides and flow velocities. It is difficult for ore ships to dock at the dock, and it is also far from Shanghai Steel Plant, making it difficult to transport molten iron.

So, experts turned their attention to the mouth of the Yangtze River. At the mouth of the Yangtze River, there are two other options: the western option is in the Shengqiao and Luojing areas west of Shidongkou; The Dongfang case is located east of Shidongkou, close to the county town, and there is a gliding school in the middle of the planned area that can be directly used as a construction base.

The Japanese expert group and Shanghai leaders Su Zhenhua, Ni Zhifu, Peng Chong, Lin Hujia, and Chen Jinhua visited the site. Finally, the Eastern case was chosen. Chen Jinhua said that Shanghai has Jinshan in the south and Baoshan in the north, echoing each other and accumulating gold and silver treasures for the country. Thus, Baosteel was named after Baoshan.

In March 1978, the National Development and Reform Commission, the National Economic Commission, the Ministry of Metallurgy, and Shanghai officially submitted a request report to the central government on the selection of site, construction scale, and related issues for the construction of a new steel plant in Shanghai. Two days later, members of the Standing Committee of the Political Bureau of the Central Committee and relevant Vice Premiers approved the report.

In December 1978, China National Technology Import and Export Corporation and Nippon Steel Corporation of Japan signed the General Agreement on Ordering Complete Equipment from Shanghai Baoshan Iron and Steel Plant at the Jinjiang Hotel in Shanghai

In May 1978, the Shanghai Revolutionary Committee and the Ministry of Metallurgy jointly submitted the "Plan Task Book for Shanghai Baoshan Iron and Steel Plant" to the National Development and Reform Commission. In August 1978, the State Council officially approved the "Plan Task Book for Shanghai Baoshan Iron and Steel Plant". In December, the signing ceremony of the General Agreement on Subscription of Complete Equipment at Shanghai Baoshan Iron and Steel Plant, as well as the contracts for three complete sets of equipment: blast furnace, coke oven, and converter, was held in the Jinjiang Small Auditorium between China National Technology Import and Export Corporation and Nippon Steel Corporation of Japan.

On the day of the announcement of the Third Plenary Session of the Eleventh Central Committee, Baosteel officially began construction.

In June 1979, Chen Yun investigated and solved the problems in Baosteel's construction in Shanghai

Persist in the sound of "adjustment" to the end

At the beginning of 1979, Baosteel construction encountered a period of national economic adjustment in China. The Baosteel project, which has the largest domestic investment, the most imported technology and equipment, and mainly relies on imported ores, has become the most controversial project. Due to tight national construction funds, the equipment purchase contract signed between Baosteel and foreign investors was difficult to fulfill, and construction was temporarily halted.

At the critical moment of whether Baosteel should be taken down or not, entrusted by the Party Central Committee and the State Council, Chen Yun conducted a special investigation and research on Baosteel's construction for about a month and a half from the end of April. From the end of May to early June, he went to Shanghai for investigation and research, listened to opinions from all parties, and understood the current progress of the project.

Chen Yun believes that Baosteel's launch was hasty, with insufficient considerations, insufficient repeated comparisons, and shortcomings in its work. But the quality, specifications, and varieties of steel produced by Baosteel are all very needed by the country, so this steel plant is very important.

Chen Yun also believes that the People's Republic of China has signed, which is related to national dignity. Regarding the schedule issue of Baosteel. Chen Yun suggested that Baosteel's Phase I and Phase II projects could be further apart. Regarding the supporting issues and equipment manufacturing of Baosteel, Chen Yun pointed out that there is a major supporting problem in Baosteel's construction. Baosteel's equipment is still based abroad, and the complete set of technical information must be purchased for future development. He also pointed out that the direction of focusing on the domestic market is correct. I still have confidence in the ability of the domestic machinery industry. As long as I am determined, focused, and serious, I can do a good job. Baosteel Engineering must not be shut down.

After Chen Yun returned to Beijing, he held three meetings of the State Council Finance and Economics Committee to discuss the issue of Baosteel Engineering. At the meeting on June 16th, Chen Yun and Li Xiannian delivered speeches respectively. Chen Yun emphasized that we must "go all out" for this project, "open the shop, not afraid of big business", "have strict requirements for Baosteel, even a bit demanding. We can only do it well, not ruin it. This is to gain experience. Baosteel is the first major project in achieving the four modernizations, and we should set an example."

Li Xiannian pointed out, "If you want to improve the country and increase its strength, if you are weak, they will ignore your approach!" He demanded that all fronts in the country support Baosteel.

In July, Deng Xiaoping visited Shanghai for inspection and stated during an interview with a member of the Standing Committee of the Shanghai Municipal Party Committee, "Baosteel has a lot of discussion both domestically and internationally. We do not regret it, the problem is to do well. The first thing is to do well, and the second thing is to ensure good work." In September of the same year, at a meeting held by the central government, Deng Xiaoping made a prediction that "history will prove that building Baosteel is correct.".

In September, the central government approved the affirmative opinions of the State Council Commission of Finance and Economics and the Ministry of Metallurgy and other units on the construction of Baosteel. Baosteel was able to continue construction amidst the sound of adjustments.

The Baosteel Phase I project under construction. Baosteel No.1 blast furnace is being lifted

In the process of "adjustment and withdrawal", "get back on the horse" again

In 1980, the three-year adjustment of the national economy entered its second year. In order to increase the intensity of the adjustment, the central government decided to establish the Central Financial and Economic Leading Group to replace the original State Council Financial and Economic Commission. The construction issue of Baosteel has once again become a focus. The reason is that Baosteel encountered displacement of foundation piles during the construction process.

In the summer of 1980, a pile foundation displacement occurred at the Baosteel primary rolling site where piles were being driven. Social discussions have resurfaced: "Baosteel's foundation is soft and may slide into the Yangtze River in the future." Although experts have conducted on-site surveys and believe that "civil engineering displacement is a normal situation," "the displacement has not exceeded the upper limit.". However, pile displacement and several other issues in construction have also attracted attention.

In September 1980, at the third session of the fifth National People's Congress, a fiscal deficit of over 10 billion yuan was examined due to the high targets and new advances in economic construction in 1977, especially in 1978. In November, at the National Conference of Provincial Governors and Autonomous Region Chairpersons held by the State Council, the question of whether the Baosteel Project should be suspended, postponed, or disbanded was raised. Shortly thereafter, the State Council officially notified Shanghai that Baosteel Engineering will suspend the first phase, not discuss the second phase, and return the two boards. From November 4th to 5th, the plenary session of the Central Financial and Economic Leading Group decided to postpone the completion of the Baosteel Project's No.1 blast furnace system until 1984, and to suspend or postpone the construction of all Phase II projects. At that time, equipment and raw materials supplied from abroad were constantly being transported, and more than 60000 construction teams were fighting on the construction site.

On December 23rd, the Central Financial and Economic Leading Group once again discussed the adjustment of Baosteel's engineering and decided to suspend the construction of Baosteel's Phase II project. Regarding whether to continue the construction of the first phase of the project, we will adopt the suggestion of Chen Guodong, the first secretary of the Shanghai Municipal Party Committee, and organize expert discussions; At the same time, it is required that Baosteel maintain stability on the construction site and carry out suspension and postponement work. The meeting proposed that Baosteel's engineering construction should "adjust, withdraw enough, and improve."

"Getting off the horse, the losses are too great!" Chen Jinhua, then Deputy Secretary of the Shanghai Municipal Party Committee, did not give up Baosteel because of this. On December 30th, Chen Jinhua, who also serves as the Party Secretary of Baosteel Engineering Command, wrote a letter to the leaders of the State Council, expressing his opinions on the adjustment issues of Baosteel engineering. In order to "minimize losses", Chen Jinhua suggested "not to take down the project, but to postpone construction, which means adding tens of millions of yuan to the essential expenditure amount arranged by the government for Baosteel to be taken down, allowing the project to survive in a slow manner. This is beneficial for stabilizing the team's emotions, for future construction, and even for the impact at home and abroad."

The construction demonstration meeting for Baosteel Phase I project was held in Beijing from January 7th to 11th, 1981, and moved to Baosteel site from January 12th to 31st. More than 200 leaders, experts, and professors from 17 central ministries, relevant departments and bureaus in Shanghai, as well as the Baosteel Engineering Command and Baosteel Advisory Committee, participated in the demonstration. In February of the same year, the State Council held a meeting on Baosteel issues, listened to the report of Baosteel's demonstration meeting, and decided to continue the construction of Baosteel's self owned power plant. In August, according to the instructions of the State Council, the National Development and Reform Commission and the Construction Commission jointly issued a notice: Baosteel Phase I was reclassified as a continuation project. The construction of Baosteel Phase I has been able to resume. Afterwards, the first phase of Baosteel's project progressed smoothly.

In February 1984, Deng Xiaoping inspected Baosteel and listened to reports from Baosteel's leaders on the progress of the first phase project and the ideas for the second phase project. After listening to the report, he wrote an inscription for Baosteel employees: "To master new technologies, one should be good at learning, and more importantly, one should be good at innovation."

In February 1984, Deng Xiaoping inspected Baosteel. The picture shows Deng Xiaoping's inscription for Baosteel employees

In February 1984, Deng Xiaoping inspected Baosteel

After inspecting Baosteel, Deng Xiaoping had a clear understanding of the annual investment needed for the Baosteel Phase II project. In response to the question of whether and when Baosteel Phase II should be built, he pointed out that "it is better to borrow some debt and pay some interest than to buy time." "This matter needs to be determined and done this year, to buy time." Deng Xiaoping's decision advanced the construction time of Baosteel Phase II project by two years.

In September 1985, Baosteel's Phase I project was completed and put into operation.

With just a flick of a finger, Baosteel has achieved remarkable achievements that have attracted worldwide attention after more than 40 years of development. In December 2016, Baosteel merged with Wuhan Iron and Steel Company to form China Baowu Iron and Steel Group Co., Ltd. Nowadays, China Baowu has become a leading modern steel joint enterprise in the world.