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　 　 　 　Core tip:

1. Xiaomi, which has not cooperated with any traditional mobile phone brand, has achieved the fastest growth, and the ecological chain strategy is the main reason, which is a unique solution for Xiaomi to expand the market power boundary.

2. Xiaomi’s ecological chain is an active strategy. It takes capital and values as a link, binds a large number of hardware suppliers and entrepreneurs, achieves scale effect, and enhances user stickiness, which is essentially different from the so-called ecological strategy of promoting "ecologicalization".

3. Xiaomi makes its controllable organizational boundary always coincide with the market boundary through the ecological chain, thus effectively achieving the purpose of eliminating competition, improving penetration and preventing entry, which is a very clever market power strategy.

　

Case Provision | Case Center of Entrepreneurial Dark Horse College

Author | Nine Records

　

04

Ecological chain:

The Resource Boundary of Xiaomi Market Power

In fact, among Internet people, Lei Jun is neither the first one to make a mobile phone, nor the last one, nor even the most famous or determined one.

In September 2015, 360 CEO Zhou Hongyi posted a message in a circle of friends, "… … I’ll fuck anyone who stops me from making a mobile phone … …” His remarks were aimed at his partner Coolpad. In December 2014, Qihoo 360 reached a strategic alliance with Coolpad to set up a joint venture company. Coolpad provided smart phone design, research and development, technology, manufacturing, supply chain management, quality control, marketing, after-sales service and other resources, and 360 provided security software, mobile application design and online marketing and promotion resources. But then Coolpad announced the cooperation and shareholding of LeTV, which triggered Zhou Hongyi’s warning.

According to media reports, as early as before the rise of Xiaomi, Zhou Hongyi had talked about cooperation with Huawei with the model of "selling mobile phones at low prices to gain users and Internet advertising distribution to gain benefits", but the cooperation failed. There is also Netease Ding Lei, who found his own shareholder Duan Yongping. As the founder of BBK, Duan Yongping also has a considerable say in vivo and OPPO, and then he didn’t talk it over.

There are several similar examples. In terms of "Internet thinking" and the number of users, Ding Lei and Zhou Hongyi may not be weaker than Lei Jun, but they would rather choose the form of cooperation with mobile phone brand manufacturers, because they know that the traditional ecological model of upstream suppliers and downstream agents is naturally beneficial to enterprises that have been in the industry for a long time. This "market barriers" is hard to break, so it is better to cooperate.

However, today, we can see that Xiaomi, which has not cooperated with any traditional mobile phone brand, is the fastest growing "Internet mobile phone". The difference in strategy is the main reason for the difference in results.Xiaomi adopts a power strategy based on value creation rather than a competitive strategy, which is the ecological chain strategy.

1. Converting capital into resources

To understand Xiaomi’s ecological chain strategy, we must first understand Xiaomi’s position in the market.

Even though a certain power base has been formed in the market through the export of values and fan base, Xiaomi is still at a natural disadvantage in key dependence and trading partnership.

One of the most realistic problems is the competition for upstream resources. Mobile phone hardware industry,There is an extremely complex supply chain system, and each mobile phone company often has hundreds of suppliers.Both start-ups, medium-sized enterprises and large enterprises are facing the challenge of supply chain, and some spare parts even need to be reserved one year in advance. Even with Apple’s power position, every generation of apples may have difficulties in supply in the first two months, and all "hunger marketing" is helpless.

In 2013, Xiaomi once launched a 10400mAh mobile power supply from 69 yuan, but it was out of stock for a long time, and the problem was in the industrial chain. According to media reports at that time, some small and medium-sized brand customers complained that Samsung shelved its plan to supply millet batteries at low prices. Since then, Xiaomi Note2 has also been postponed because it can’t get the most tight AMOLED screen. It is understood that after the decline of Xiaomi’s growth rate in 2015, due to the upstream supply chain manufacturers’ adjustment of the supply plan for Xiaomi to prevent risks, Xiaomi suffered a four-month shortage, indicating that Xiaomi in the supply chain still lacked strong power endorsement.

Another problem lies in the downstream user service link. As an Internet company, Xiaomi’s purpose is not only to sell mobile phones, but to retain users and maintain relationships with users through new retail channels to form long-term services. But if there are no more hardware products besides mobile phones, this business model is not established. Because buying a mobile phone is a very low-frequency behavior, there must be a higher-frequency transaction interaction between Internet companies and their users. In cmnet, software is generally downloaded free of charge, so we must rely on hardware to solve this dilemma.

An obvious problem is that more people are needed to make more kinds of products, but Xiaomi’s pursuit of concentration means keeping the company as small as possible and not doing too many things. If hundreds of hardware products are made, the management pressure and communication pressure are unimaginable.

Like other manufacturers, Xiaomi can also choose to cooperate, but cooperation will lead to the concession of Xiaomi’s product values, with the increase of intermediary agents and circulation links. Many cross-border Internet entrepreneurs have lost their power and lost themselves in cooperation.

Through the establishment of cognitive and relational boundaries, Xiaomi has been invincible in how to sell mobile phones, but it still needs to gather more strength to break the constraints of resources and become the master of the market.

Every entrepreneur has his own unique gift. Lei Jun’s gift is not only his enthusiasm for the Internet, but also his capital operation. He knows what capital wants, and he also has a letter of trust for capital. After 2013 and 2014, with the rise of "Double Innovation", thousands of new intelligent hardware entrepreneurs appeared in China, and they showed Lei Jun a new solution.

As a result, Xiaomi began to use capital to solve the problem. From 2013 to 2014, Xiaomi invested in 25 startups a year.

Xiaomi has two teams to face the cooperation of the ecological circle. One is the ecological circle fund within Xiaomi, which is led by co-founder Liu De. The second is Lei Jun’s Shunwei Fund. In addition, in June 2016, Xiaomi announced that the private bank "Sichuan Hope Bank" jointly sponsored by New Hope Group and other enterprises was officially approved by the China Banking Regulatory Commission. On September 1st, Xiaomi and China UnionPay officially released Xiaomi Pay. In May 2017, it reached a fund cooperation of 12 billion yuan with Changjiang Fund.

Different from the natural ecosystem around big companies, Xiaomi’s ecological chain is a market strategy. The traditional industry ecological chain is that manufacturing enterprises integrate upstream and downstream by means of procurement and distribution. The ecological chain of Xiaomi is to gather a group of startup companies through capital means to realize "group purchase" in the upstream and enrich the products of Xiaomi’s new retail channels in the downstream.

In November 2014, Xiaomi made a round of financing for air purifiers before the air purifier products were listed, with a valuation of 25 million US dollars. If in the traditional supply chain mode, Xiaomi can only get market power equivalent to his actual investment (millions of RMB); However, under the eco-chain model, the power resources obtained by this product are equivalent to those of a company with a valuation of $25 million. In this way, Xiaomi changed the expected capital investment into realistic resources.

This is an original new gameplay that binds products, capital and users together. It is precisely because of this innovation that Xiaomi has used thousands of people to do things that tens of thousands of people can do, and firmly held his own values and did not compromise with the old tradition.

In the animal world, small and weak animals always have to erect their feathers and expand their bodies in the face of a large number of hostile opponents, so as to scare off their opponents. The same is true for start-ups. If they shrink in a corner and are timid, they will definitely become the dish of their opponents.

The ecological chain is another key link in the construction of Xiaomi’s market power. Through the ecological chain, Xiaomi forms alliances with some start-ups by means of capital, and at the same time makes them no longer competitors.

If Apple’s success benefits from a complete ecological chain circled by its own IOS system, then Xiaomi’s ecological chain is an active strategy. It takes capital and values as a link to bind a large number of hardware suppliers and entrepreneurs. On the one hand, it achieves scale effect, on the other hand, it also enhances user stickiness, thus building Xiaomi’s resource-based power boundary.

2. "Xiaomi Ecology" is not "LeTV Ecology"

It is worth noting that Xiaomi’s ecological chain is a market strategy, which is essentially different from the "ecosystem" naturally formed around large enterprises. Xiaomi’s ecological chain is a product of intentional cultivation, not a decentralized network connection, but a core alliance strategy.

The concept of "ecosystem" comes from biology, which was introduced into the field of organizational theory by American sociologists in the 1970s, and formed the school of "organizational ecology". After the rise of the Internet, some scholars put forward the similarity between commercial ecosystem and biological ecosystem, and there are also various relationships among food chain, macro environment and competition. They named such an organizational form that is highly dependent on external cooperation and resource management as "Network Based Organizational Form", which is different from the traditional organizational form that is highly closed or highly dependent on market transactions and has clear boundaries, which is what we now call "ecological model" or ".

Ecology and platform are two concepts that are often confused, although they have many connections. Simply put, the platform strategy is to build a market, while the ecological strategy is to build a city. The core of platform strategy is to link bilateral relations to match transactions, while the core of eco-strategy is to create a closely linked multi-format system by constructing and managing extensive and multi-level cooperative relationships (long-term strategic cooperation agreements, investments, joint ventures, mergers and acquisitions and other non-product transactional relationships).

If Xiaomi only buys products from various startups, or only lets enterprises sell products in Xiaomi channel, Xiaomi is the builder of the platform, but Xiaomi is doing "investment+incubation": enterprises in the ecological chain are independent companies. Xiaomi generally holds 20%-25% shares in eco-chain companies, jointly defining products, leading design, assisting in research and development, and endorsing the supply chain. Therefore, the ecological chain of millet has greater diversity and more complex symbiotic relationship.

In the business ecosystem, energy and nutrients mainly appear in the form of user flow. In the process of Alibaba’s development from a platform to an ecosystem, massive users have always been the core and solid foundation of its construction. Similarly, Tencent announced the implementation of the open strategy to build an ecosystem around WeChat, which obviously comes from hundreds of millions of highly sticky users of WeChat.

In addition, in the organizational ecosystem, the value chain assumes the role of food chain. In nature, the food chain is the core organizational logic, which determines the flow and transformation path of energy and nutrients. In Xiaomi ecological chain, the development and release of hidden value of user groups depends on the construction of value chain in the ecosystem.

Therefore,Xiaomi’s ecological chain is actually an extension of its own power boundary. As the core of the ecological chain, Xiaomi should provide a user base that can support the healthy development of the whole ecosystem and control the key links of the value chain/network, which is by no means possible for every enterprise.

In the domestic A-share market, one company once set off the ecological banner, that is LeTV.

Jia Yueting, chairman of LeTV, said: "Our competition with peers can no longer be measured by the gains and losses of a certain stage or point, but more depends on the connection and integration of all links in the ecological chain and the cross-border innovation and continuous subversion on this basis." An open letter to employees.

As a result, LeTV put forward an "eco-anti-"business model, established an all-encompassing ecosystem from sports programs to online car rides, and believed that mutual diversion among eco-enterprises would have great commercial value. For example, from the very beginning, Jia Yueting’s positioning of LeTV’s mobile phone was to attract users with video and become the entrance of LeTV’s ecological terminal, so LeTV’s mobile phone has been sold below the cost price. (April 2015, China Entrepreneur Magazine, "Don Quixote • Jia: The Lonely Journey of the Subverter.

Letv’s typical imagination of "ecological opposition" is: in the stadium scene, there is a moment when people have the strongest desire to buy — — When you see Messi kick the ball into the goal, then you will think, I’ll buy a pair of shoes like this!

Later we learned that it was a dream.

The out-of-control LeTV Ecology can only make a fuss about related party transactions, deferred income tax and equity distribution of subsidiaries, and hide losses.

However, LeTV’s failed attempt does not mean that the development prospect of Xiaomi Ecology is gloomy. Xiaomi’s ecological logic is much simpler and more effective: Xiaomi does not expect related transactions between eco-chain enterprises to bring income (LeTV’s case proves that this income is unreliable), but uses the eco-chain to improve the overall market efficiency.

Moreover, there is always a core in Xiaomi’s ecological chain — — Xiaomi mobile phone and Xiaomi brand values, which provide fast-growing resources and channels for other start-ups. Unlike the "loss-making" sales of LeTV’s mobile phone, Xiaomi’s mobile phone has always been making money, although it claims low gross profit margin.

In the early days of the rapid growth of Xiaomi’s mobile phone, some suppliers complained that Xiaomi’s "Internet thinking" was good, but it was predatory, which depressed the profit margin of supply chain enterprises. However, using the eco-chain strategy, as of the first quarter of 2018, Xiaomi has brought more than 210 eco-chain enterprises into its own track, further enhancing its power position in market negotiations, and also allowing suppliers who cooperate with Xiaomi to have more orders.

It can be said that Xiaomi effectively uses his power to eliminate the dissatisfaction of suppliers, and at the same time, it is further transmitting Xiaomi’s values — — There will be a large number of users coming with the price reduction, which is the reappearance of Xiaomi’s cognition of market power in the industrial chain relationship.

In December 2015, Lei Jun proposed that the ecological chain should be an independent brand. Three months later, "Mijia" was released.To some extent, Xiaomi’s "Mijia" ecological chain system can be regarded as the intelligent hardware version of the App Store.The App Store launched by Apple in 2008 is a successful example of a single enterprise establishing an ecosystem, which determines the acquisition form of applications and services in the era of mobile Internet.If the smart hardware in the future is also the first choice to enter the track of "Mijia", the growth space of Xiaomi will be limitless.

3. Under the rule of Xiaomi

For an ecosystem, win-win is the premise of growth. An ecological chain that can continuously share benefits for all participants is fundamentally sustainable.

Then, can everyone achieve a win-win situation in the Xiaomi ecological chain?

The answer is yes.

First of all, the ecological chain has changed the relationship between Xiaomi and other startups and reduced the future risks of Xiaomi.

In the early days, Xiaomi’s market power cognitive boundary of "high quality, high value and high cost performance" not only affected the big manufacturers it aimed at, but also affected the future of many entrepreneurial projects.

In 2014, at the peak of domestic intelligent hardware entrepreneurship, entrepreneurs, investors and entrepreneurs often asked the same question, "If Xiaomi made your product, how would you respond?"

This antagonism leads to many situations of "cottage" millet. In a dialogue with senior government officials in 2015, Lei Jun also specifically mentioned the proliferation of counterfeit goods. Because of Xiaomi’s strong influence in the hearts of consumers, some startups in the south began to make Xiaomi’s mobile phones and accessories, which caused many problems. Xiaomi once asked the government to increase anti-counterfeiting efforts.

However, with the development of Xiaomi’s ecological chain, these voices have gradually weakened. If you can get Xiaomi’s investment and guidance, why bother to "cottage" it?

This reflects the power of Xiaomi ecological chain.

The future enemies of a company include not only those visible competitors, but also those startups that don’t know where they are. It is impossible to solve the problem simply by relying on competitive strategy. Xiaomi makes its controllable organizational boundary always coincide with the market boundary through the ecological chain, thus effectively achieving the purpose of eliminating competition, improving penetration and preventing entry, which is a very clever market power strategy.

Secondly, the ecological chain has effectively cultivated Xiaomi’s allies in values.

Liu De, the co-founder of Xiaomi in charge of the ecological chain, is a designer and once worked in the Whampoa Military Academy of China Industrial Designers — — University of Science and Technology Beijing is the head of the Department of Industrial Design, and he leads the team in charge of the design of Xiaomi mobile phone.

Liu De divides Xiaomi’s ecological chain into three layers: the innermost layer is the basic hardware such as mobile phone and TV, which is closed and Xiaomi can only do it himself; The second layer is the product directly related to it — — Headphones, charging treasures, bracelets, and IOT devices such as rice cookers, electric kettles, and smart desk lamps are semi-open; The outermost layer is household consumables, such as rice related to rice cookers, filter elements related to purifiers, etc. Xiaomi does not do it himself. The products of the first two floors are also part of Xiaomi’s new retail channel, which can sell the products of the third floor. For example, you can place an order to buy filter elements on the APP page of Xiaomi air purifier.

Xiaomi requires every product to be explosive, and Liu De’s team will personally participate in the design of eco-chain products, and use Xiaomi’s rapid penetration of the market to help these products quickly occupy the market.

In addition to the support of capital and supply chain, Xiaomi will also pass on some explosive methodologies, such as how to simplify the design of a product, reduce costs and meet 80% of the needs of 80% users. When mi band was launched that year, Xiaomi asked the manufacturer Huami Technology to focus on two things — — Reduce power consumption, increase viscosity and improve design. When smart wearable devices cost thousands of dollars in foreign countries, Huami Technology launched the first generation mi band in 79 yuan, which quickly became popular.

The well-known self-media curiosity daily has analyzed the reasons for the success of Huami Technology. They found that in terms of sales expense ratio, relying on Xiaomi’s channel and word-of-mouth marketing, the sales expense of Huami accounted for less than 2% of revenue for a long time, while its peer benchmarking manufacturer Fitbit was nearly 25%. With the help of Xiaomi ecological chain, its procurement cost is also nearly 50% lower than Fitbit.

In order to support the cost of sales, Fitbit’s gross profit margin has been maintained at around 40%. However, the gross profit margin of Huami was only 12.3% and the net profit margin was -4.2% when it produced the first generation of mi band, so it was able to create explosions and cultivate users at a very low price. After the launch of Xiaomi’s second-generation bracelet in mid-2016, the price was raised from 79 yuan to 149 yuan, and the net profit rate of Huami Technology became positive. Therefore, in just three years, the strength of Huami, after being a large-scale brand, has undergone a major reversal compared with Fitbit: the net interest rate of Huami has risen to 8.15%; After 2015, Fitbit’s revenue continued to decline and it fell into a loss.

Of course, there are also some eco-chain enterprises that don’t like to survive in this system. Because the Xiaomi ecological chain emphasizes cost performance, both Lei Jun and others in the company like to say, "The biggest disadvantage of this product is that it is too cheap!" It is difficult for these enterprises to obtain higher gross profit within the Xiaomi ecological chain.

In this respect, Xiaomi is also different from Wal-Mart. The ecological chain is an open platform, which only participates in the incubation of start-ups from 0 to 1, and the later development is not limited. Entrepreneurs can make their own brands outside the ecological chain, and it doesn’t matter if they don’t even accept Xiaomi’s investment. Xiaomi is not so much a channel provider as a product gathering place with common values.

With the help of ecological chain, Xiaomi has effectively constructed the resource boundary of its own market power, so its market position is more stable.

05

Replay

The previous article is magnificently about 20,000 words, but it is actually just studying a problem:What is the reason why Xiaomi can succeed in the market?

Around this problem, we have two findings:

First of all, we find that power strategy, not competition strategy, is leading the growth of Xiaomi.

As mentioned above, the growth of Xiaomi is a textbook case of market expansion. As a start-up, they have established a set of.Market power system in the name of "Xiaomi mode": establish the brand identity in the era of mobile internet with cost performance and explosion rate, and use this to push back the improvement of organizational efficiency and establish the cognitive boundary of power; Turn customers into "fans" and let them participate in the design and promotion of products, so as to form the relationship boundary of enterprise market power; Build an ecological chain by means of venture capital, share the risk of market demand with small hardware startups, accelerate their growth and expand the resource boundary of enterprise market power.

It is this innovative system that distinguishes Xiaomi from many mobile phone manufacturers, builds and cultivates its own exclusive market, and grows step by step in the environment surrounded by wolves, dancing with the wind and soaring to the top.

From the beginning to the end, Xiaomi’s market decision is to occupy the market "mainly with me". We have not found that Xiaomi has taken the initiative to make competitive efforts to find the gap of opponents or build barriers to prevent opponents from attacking. But because of this, they always hold the initiative of the market.

In the dark horse college of entrepreneurship, according to the mental model, entrepreneurs are divided into two categories: heaven school and earth school. Xiaomi can be said to be a typical Tianpai company. Huawei and ZTE have been communication enterprises for 20 years, and Lenovo, OPPO, vivo and other companies also have rich experience in manufacturing and selling consumer electronic products, all of which are naturally grown in this industry. But Xiaomi is not, Xiaomi is a real heterogeneous — — It is more like the spokesperson of the future Internet product model in today’s social ecology — — If you believe Lei Jun’s prediction.

Generally speaking, Tianpai startups succeed in the market, or they seize the opportunity of social change and create a new industry, such as Ali; Either have some independent innovative technologies and find ways to realize them, such as Baidu. Because it is difficult to break through the bottleneck of resources and relationships, Tianpai startups are generally afraid of fighting with incumbent enterprises in the traditional business environment. But Xiaomi is different. It brings the idea of Tianpai entrepreneurs to the world of local giants and proves itself in the market struggle.

Xiaomi’s method of winning the struggle, specifically, Xiaomi’s method of building its own power in the market through values, rice flour and ecological chain, is more practical for today’s entrepreneurs. Because the opportunities of using innovative tools to change the world in the initial stage of the Internet have become less and less, entrepreneurs are now facing more situations, how to take root in an industry and do their best to create a new and successful company. Xiaomi is an example in this respect.

Secondly, we believe that Xiaomi’s achievements also challenge the traditional company value evaluation system.

In 1970, Milton Friedman, an economist, published a famous article in The new york Times Magazine: Corporate social responsibility is to improve profits. This creed, together with the hypothesis of "rational man" in economics, supports the continuous improvement of corporate profits and the legalization of personal income of shareholders and executives.

However, Drucker, a master of management, does not agree with this view. In his view, profit is the result and should not be the purpose of management. It is the reward given to the owner by the enterprise for its continuous operation, but the purpose of the enterprise must exist in the society.

Xiaomi is such a Drucker-style enterprise instead of Friedman-style enterprise. It is a dream enterprise, not a profit machine, but a startup company that wants to create value for society.

In Xiaomi’s business model, user reputation is the origin, cost performance is the engine, and social media is the accelerator. Everything Xiaomi does is to provide products that are "touching and affordable", and he believes that actively reducing the gross profit margin of hardware will eventually bring the desired business value.

According to traditional business ethics, all enterprises will try their best to avoid the situation of zero gross profit, because that means that your company has no barriers in the market.

But Xiaomi did the opposite. It took the initiative to reduce the gross profit, which was consistent with the words of Amazon founder Bezos:"A large company with low gross profit that can survive is itself the biggest moat."However, it is a big challenge to traditional business values.

Why should an enterprise exist? This involves the fundamental definition of enterprise and even entrepreneur value. The expectations of shareholders are different from the interests of enterprises, and the goal of investors is only to make money.

Interestingly, when Xiaomi went public, most media in China, even a large number of self-media, always unconsciously worried about investors.Look at the value of millet simply from the perspective of making money.People ask Lei Jun again and again, where is the moat, where is the revenue growth point and where is the profit? butFew people study the value of millet from the perspective of society and market. However, few people in the media are real investors in Xiaomi.

In our opinion, the value of Xiaomi lies in the value it creates for users. Xiaomi can become Xiaomi because it is a real market revolutionary and a great entrepreneurial experiment that is still going on.

Moreover, the traditional evaluation system can not reflect the possible changes in the future and the value of entrepreneurs’ personal factors to the company.

On the road to Xiaomi’s success, there are huge contingency factors: if Xiaomi didn’t just catch up with the tide of "double innovation" and loose capital environment in the first four years and rush to the "stratosphere" with the fastest speed, would it be able to survive the twists and turns in 2015-2016? If Lei Jun hadn’t happened to be the president and angel investor of Jinshan, could Xiaomi have won the unthinking support of so many netizens and business partners at first, thus enjoying loyalty and reputation? These questions are hard to answer.

But if we look at it from another angle, it is precisely because the founder of Xiaomi is Lei Jun that it can have these accidental opportunities. Lei Jun’s upward motivation, adherence to Xiaomi’s values, familiarity with the method of "lean entrepreneurship" and his resources, contacts and personality are the necessary conditions for all future opportunities of Xiaomi.

In fact, it is precisely the combination of the founder’s personal characteristics and the entrepreneurial methodology based on uncertainty that makes the startup explode with great energy. Wu Xiaobo, a media person who spent $200,000 to buy Xiaomi shares, said, "Lei Jun himself is the biggest premium of Xiaomi".

For an ongoing change, people always overestimate the change it will cause in the next year, but underestimate its long-term impact.

Looking back now, as Lei Jun said in an open letter on the eve of listing: "In the past eight years, the cottage in China has been completely eliminated; China’s smart phones and smart hardware are getting better and better in quality and cheaper in price, and they are rising strongly in the world … … Xiaomi has also become the fourth largest smartphone manufacturer in the world, changing more than 100 industries through eco-chain products. "

Isn’t it an extraordinary market achievement for a startup company to grow from zero to the fourth place in the world in eight years in a long-standing mainstream battlefield?

It should be noted that this paper only studies Xiaomi as a startup company. When a company gets bigger and bigger, especially after listing, it is likely that some decisions that helped it succeed will no longer apply. According to the case center of Entrepreneurship Dark Horse College, in the future market, Xiaomi still faces at least four main risks:

1) Risk of explosives.Xiaomi’s low gross profit strategy determines that each of their products must be explosive, and the cost should be diluted by explosive products, otherwise it will lose money. Take Xiaomi air purifier as an example, the mold opening cost is 10 million. If only 10,000 units are sold, the cost of each unit will increase by 1,000 yuan. Only after the sales volume can reach millions of units can this cost be reduced to a negligible level. This requires that every product of Xiaomi must be based on the needs of a large number of users, and a large number of people will buy it. However, the preferences of modern users can easily migrate with the head IP, and the demand for diversification is also increasing. The emergence of explosions is very accidental. Once a heavyweight product fails to become an explosive product, Xiaomi may fall into huge financial risks.

2) Fan risk.Xiaomi should become both a popular company and a fan culture company. The contradiction here is, is the growth of fans sustainable? Every company can maintain a limited number of fans. If the number of fans stops growing, the growth space of Xiaomi’s subsequent Internet services and intelligent hardware products will be greatly tested, and Xiaomi will lose its difference from other mobile phone manufacturers. No matter from the perspective of future development or current market, Xiaomi needs new means to interact with users and complete new traffic conversion.

3) Main channel risk.Xiaomi’s ecological chain is a big stove, and Xiaomi’s own brand is a heat source. With waste heat, the surrounding intelligent hardware can be made. But the outside world defines an enterprise, or more from its main channel. Especially in the capital market, I prefer "Friedman-style" enterprises, and it is difficult to understand the ecological practices of startups. Letv’s case is not to be discussed. Since 2014, Haier has launched a "micro-model" to build an entrepreneurial ecosystem and achieved good results. From the beginning of 2014 to the present, Haier’s revenue has doubled, its profit has increased by 70%, and its share price has doubled. However, in the same period, Gree focused on its main business, its revenue didn’t change much, its profit doubled, but its stock price quadrupled. Therefore, no matter how great achievements Xiaomi’s ecological chain has made, the valuation of Xiaomi may be defined more according to its position in the main channel in the capital market.

4) Technical risks.Every startup company will enter the "new normal" of slow growth sooner or later after experiencing a high-speed growth period. At that time, companies without the accumulation of key core technologies cannot have stable market power. The next development of Xiaomi needs to get more source innovations from the outside to the inside, including hard technology.

For a startup, all success is temporary. The greater the achievements in the past, the greater the challenges in the future.

Today, the development of Xiaomi has changed from the company that wanted to "follow the trend" and take a ride on the mobile Internet to the standard-bearer who promoted the concept of "touching people’s hearts and being kind in price". But as of 2017, Xiaomi’s share in the global mobile phone market is still only 6.4%. This shows that changing people’s inherent cognition is the most difficult thing in the world. Even if you are sincerely starting from users, you will not let all users become your fans. This is also the fate of most reformers in history — — There were countless people who wanted to change the world, and eventually they became a supplement to the diversity of the original world.

Today, the mobile Internet has become much more complicated than what Xiaomi imagined when he was born. In the early days of Internet application, companies that master Internet tools in advance may be able to dig the "first bucket of gold" more easily, but in the future, all companies will be Internet companies.

As time goes by, everything that God has given a person will be gradually taken back, talent and identity will lose their aura, fans will get old, fashion trends will change, and all that can be left is what they have fought for at the moment.

Lei Jun said: Kind people will not be too bad luck. We wish Lei Jun good luck! Xiaomi, good luck!

[References]】

[1] Professor Catherine &bull of Stanford University; M• Eisenhardt, Market Construction and Boundary Shaping: Entrepreneurial Power in the nascent market (translated by Yu Ming, Guanghua, Peking University).

[2] Xu Xiaoping, a teacher of Zhenge Fund, talked about Entrepreneurship several times.

[3] Luo Xiaoqu, Ph.D. of Stanford University and former chief strategy officer of the dark horse of entrepreneurship, has made relevant research results on "entrepreneurship ecology".

[4] Notes of Xiaomi, Li Wanqiang, Hong Feng, Gao Ziguang and other partners and executives in the dark horse college of entrepreneurship.

[5] Xiaomi’s internal marketing manual "Sense of Participation" and experience collection "Notes on Xiaomi’s Ecological Chain Battlefield".

[6] Caitlin • Muff, Thomas • Dilik et al., Management Education for the Benefit of the World.

[7] Zhou Hang, Shunwei Capital; Feng Weidong, Tiantu Capital; Dai Saiying, founder of three dads; Liu Jianhong, Peng Gang, former senior executives of LeTV; etc. in the dark horse college of entrepreneurship.

[8] Major media reported publicly.

[For more reading, see Article 12.】

Values, Rice Flour and Ecological Chain: Xiaomi’s Market Power Game (I)

Values, Rice Flour and Ecological Chain: Xiaomi’s Market Power Game (Ⅱ)

　

　　"WeChat and Alipay collection codes cannot be used for business collection"

　　Today’s hot search on this topic has attracted everyone’s attention.

　　This news comes from the new notice of bar code payment supervision recently issued by the central bank. On October 13th, 2021, official website, the central bank, issued the Notice of the People’s Bank of China on Strengthening the Management of Payment Acceptance Terminals and Related Services, which put forward a series of management requirements for acquiring institutions and clearing structures. At the same time, bar code payment has also been included in the supervision, and specific provisions have been made on the use of personal collection bar codes, which will be implemented on March 1, 2022.

Careful netizens found the key words.

　　The new regulations do not completely prohibit the commercialization of payment codes.

　　It’s just that you can’t make business collection through personal collection barcode.

　　These netizens are right √

　　Collection codes are divided into personal and business collection codes, among which the personal static collection bar code is the main one to be constrained. According to the regulations, in principle, personal static collection codes are prohibited from being used for remote non-face-to-face collection, and users of personal collection bar codes with obvious business characteristics are managed with reference to special merchants. For individual users with obvious business characteristics, please refer to the management of special merchants, and require such individual users to provide merchant collection barcodes to improve the service quality of individual operators.

　　Simply put, merchants are required to provide WeChat and Alipay business QR codes, and they cannot use personal QR codes to collect business receipts in the future.

　　it is reported

　　Individuals can change the receipt code application for business purposes.

　　However, the relevant departments of the changed standards are still studying.

　　In fact, as early as June this year, in the consultation draft of the notice, the relevant contents of strengthening the management of POS acquiring "one machine, one household" have been pointed out, and the official documents are more supplements to the management of barcode payment terminals.

　　Importance of Supplementary Management of Bar Code Payment

　　The collection bar code (that is, the personal two-dimensional code collection code) is taken advantage of by criminals to transfer illegal and criminal funds.

　　Some criminals use the receipt bar code to transfer gambling funds, providing a payment channel for cross-border gambling activities.

　　Effectively cut off the "capital chain" of crimes such as cross-border gambling.

　　The new notice of bar code payment supervision for the individual payment bar code users with obvious business characteristics, only need to change the individual payment bar code into the merchant payment bar code (refer to the management of special merchants), and the payment will not be affected.

　　For ordinary consumers, normal code scanning payment or collection has no effect.

　　Forward to friends circle

　　Let all your friends know.

1905 movie network news The crew of "Where are the Wonder Animals: The Crime of Grindelwald" (hereinafter referred to as "the crime of Grindelwald") is filming in London recently, and Eddie Redmayne, who plays the leading role of Newt Scarmand, appears on the set. Although the story background of the film took place in the 1920s, the unique "Little Freckle" is still dressed in fashion. He wears a gray coat, a ginger sweater vest, a shirt and trousers, and the whole person looks very retro.

"Little Freckle" holds a wand and jokes with passers-by from time to time. In Where are the Magical Animals 2, Gerlind Wo successfully escaped from prison. After he escaped, he gathered many believers like Voldemort in an attempt to rule the wizarding world. However, his former friend Dumbledore could not sit back and watch Grindelwald go to path of evil, so he stepped in to stop him. In the Harry Potter series, Dumbledore and Grindelwald fought fiercely, and finally Dumbledore won, and Grindelwald was locked in the tower of Newmongard for introspection.

In the Fantastic Animals series, Dumbledore needs Newt’s help, but he doesn’t seem to know the coming danger. In this film, Dumbledore is no longer a sage-like, white-haired old man, and Jude Law will play the youth version of Dumbledore, which is expected.

"Where are the Fantastic Animals 2: The Crime of Grindelwald", starring Eddie Redmayne, katherine waterston, Johnny Depp, Jude Law, ezra miller and other stars, is scheduled to be released in the United States on November 16th, 2018, and is expected to be introduced to the mainland of China.

Cai Dingjian, a professor at China University of Political Science and Law (data map)

　　The Beijing News reported on December 4th. Yesterday, when the staff of New China Life Insurance Company was recruiting in Haidian Branch of Beijing Talent Market, they unexpectedly encountered the query of "employment discrimination". Professor Cai Dingjian of China University of Political Science and Law believes that the age limit for posts and the clause of "party member, transfer to military service, teachers and lawyers are preferred" are "employment discrimination".

　　However, Lu Nasha, a senior account manager of New China Life Insurance Company, believes that such regulations do not exclude other job seekers, and have nothing to do with "employment discrimination", but only with the company’s business.

　　"’priority’ involves the issue of fairness"

　　Yesterday, Professor Cai Dingjian from China University of Political Science and Law, Professor Zhang Qianfan and Professor Ye Jingyi from Peking University, and students from the Center for Constitutional Administration of China University of Political Science and Law "opposed employment discrimination" at the Haidian branch of the Beijing talent market.

　　On the recruitment notice of New China Life Insurance company, there is a requirement that "party member, military transfer, teachers, lawyers, marketing and management are preferred" when you are 25 to 45 years old. Professor Cai Dingjian insists that these requirements are "employment discrimination" clauses. "This is a question of fairness." Cai Dingjian said.

　　Lunasha explained that insurance salesman is a hard job, and not everyone can do it. It requires a hard-working spirit and a strong sense of responsibility. party member, demobilized cadres, teachers and lawyers have obvious advantages, so it is understandable that the company gives priority to it.

　　"State organs have played a bad role"

　　Although Cai Dingjian hopes that the state can impose mandatory regulations on employment discrimination, he also admits that there are obvious employment discrimination among public officials recruited by state organs. "For example, public officials require academic qualifications, age, gender and even appearance." Cai Dingjian believes that this kind of employment discrimination in the field of national civil servant recruitment "has played a very bad leading role".

　　"Household registration discrimination is the most painful" "

　　What saddens Cai Dingjian most is the current "household registration discrimination", which is the most serious aspect of employment discrimination, which is equivalent to racial discrimination in western countries.

　　Cai Dingjian is optimistic about the prospect of anti-employment discrimination. He and his students have launched 13 famous universities, including Peking University, Tsinghua and China University of Political Science and Law, and jointly launched "anti-employment discrimination" activities in ten cities across the country.

Editor: Zhang Renhe

On the 13th, The Politburo Standing Committee (PSC) and Li Keqiang, Premier of the State Council of the People’s Republic of China of the Communist Party of China attended the 2019 National Mass Entrepreneurship Innovation Week in Hangzhou and delivered important speeches.

The speech pointed out that despite the complicated and severe domestic and international situation, China’s economy is resilient, and its resilience is rooted in the hard work and creativity of nearly 1.4 billion people. "Double innovation" is an important support. By stimulating the vitality of market players and social creativity, it can withstand the downward pressure of the economy and maintain the long-term positive fundamentals of China’s economy.

At the same time, the speech stressed that governments at all levels should deepen the "streamline administration, delegate power, strengthen regulation and improve services" reform, optimize the business environment, and further implement policies and measures to reduce taxes and fees on a larger scale, so that entrepreneurial innovators can compete fairly and travel lightly according to market rules, and provide a good growth space for "double innovation".

In recent years, the national "double innovation" work has flourished and the transcripts are amazing.

Taking Beijing as an example, the team of entrepreneurial innovation has continued to grow, and the number of newly established technology-based enterprises has increased from 110 in 2015 to 223 in 2018, doubling; The city’s research and development funds exceeded 160 billion yuan, an increase of 22% over 2015; The number of invention patents per 10,000 people was 111.2, an increase of 80% compared with 2015. In 2018, the city’s new economic aggregate reached the trillion level and reached a new level.

The remarkable achievements of "double innovation" can not be separated from the country’s attention and support for entrepreneurial innovation. On 13th, science and technology innovation board of Shanghai Stock Exchange officially opened its board, which aroused widespread concern. From China’s announcement of the establishment of science and technology innovation board in November last year to the official opening of the board, it only took more than seven months for science and technology innovation board to grow from scratch. Experts believe that the development speed of science and technology innovation board in China is "unusually fast", and behind this "fast" is the strong support of China officials for science and technology enterprises.

Since the first proposal of "mass entrepreneurship and innovation" in 2014, "double innovation" has become one of the key words of economic and social development. Under the current complicated situation, what is the special significance of the state encouraging "double innovation"? How to create a better environment for "double innovation"? Should graduates join the entrepreneurial army?

Experts interviewed by China News Service as a through train said that encouraging "double innovation" at this time is an important way to effectively cope with internal and external pressures. In recent years, China has made a series of positive progress in entrepreneurial innovation, but there are still some practical problems to be overcome.

What is the special significance of encouraging "double innovation" at this time?

Su Jian　Director of Peking University National Economic Research Center

An important way to deal with internal and external pressure

At present, the country is still facing severe downward pressure on the economy, and at the same time, it has to deal with the impact of external trade wars. The trade war has gradually extended to the science and technology war, and the science and technology industry in China has been hit to a certain extent. Moreover, the science and technology industry in China still needs to be upgraded in the international market. Therefore, encouraging "double innovation" at this time is an important solution and means to deal with internal or external pressure.

Ching Wong　Deputy Director, Institute of Market Economy, the State Council Development Research Center

Inevitable requirement for high-quality development

China’s economy has entered a stage of high-quality development, which requires the transformation and upgrading of stock industries and the joint efforts of emerging strategic industries. "Double innovation" is an effective means of support; At the same time, encouraging "double innovation" and promoting China’s economy from factor-driven to innovation-driven are conducive to coping with many external uncertainties.

Hu Biliang　Dean, Institute of Emerging Markets, Beijing Normal University

An important driving force for achieving high-quality development

Entrepreneurial innovation is an important driving force to support high-quality economic development, which is conducive to increasing social investment, creating more employment and wealth, and promoting the development of other related industries. Under the current complicated domestic and international situation, entrepreneurial innovation is an important way to drive economic growth and cope with external pressure.

Li Jin　Principal researcher, China Enterprise Research Institute

Forced enterprise transformation and upgrading

At the moment when China’s economy is turning to high-quality development, "double innovation" can promote structural adjustment and force traditional enterprises to transform and upgrade. At the same time, encouraging "double innovation" can lead to a steady increase in employment and help improve people’s livelihood.

Su Peike　Principal researcher, university of international business and economics Institute of Public Policy.

Solve the employment problem of more people.

From the perspective of employment, encouraging "double innovation" is conducive to solving the employment problem of more people when the employment situation is not ideal; From the perspective of industrial development, "double innovation" is conducive to promoting industrial restructuring, driving the development and application of technologies such as big data and the Internet, and providing a good soil for innovative enterprises.

Wan Zhe　Chief economist of China National Gold Group

Dealing with downward pressure and uncertainty

In the face of increasing global uncertainties, encouraging "double innovation" at this time is conducive to promoting the progress of domestic scientific and technological innovation to cope with various global uncertainties; At the same time, the global economy is facing downward pressure, and encouraging "double innovation" is conducive to safeguarding people’s livelihood and promoting employment.

What achievements has "double innovation" made?
What other questions are there?

Ching Wong

Welcome five gains.

First, the institutional environment has improved significantly, and the business environment and tax structure have made great progress;

Second, the innovation ability has been continuously enhanced, and many innovative enterprises in the forefront of the world have emerged in China;

Third, the multi-level and diversified innovation subject structure has basically taken shape, and the establishment of innovation ecology has made remarkable progress;

Fourth, China’s innovation and international innovation have entered an integrated development pattern, and the ability of China enterprises to integrate global innovation resources has been continuously enhanced;

Fifth, some new industries, new formats and new models in China have been at the forefront of the world.

In the future, it is necessary to enhance the inclusiveness of policies and at the same time strengthen the support for "double innovation" in a more targeted manner.

Li Jin

It is also necessary to strengthen rational and accurate guidance.

"Double innovation" has promoted the development of emerging industries and effectively supported scientific and technological innovation industries. At the same time, under the upsurge of "double innovation", the vast number of private enterprises are encouraged to participate in scientific and technological innovation extensively, bringing new economic growth points.

Facing different innovative products and business models, it is necessary to strengthen rational and accurate guidance, identify enterprises with real market prospects, strong innovation ability and development ability, let such enterprises enjoy dividends, and eliminate backward enterprises mixed in them by market means.

Wan Zhe

There is "quantity" and "quality"

By encouraging "double innovation", many private enterprises with good development prospects have emerged in China, which have improved qualitatively as well as quantitatively. Many enterprises in China have made good achievements in scientific and technological innovation, and China has taken the lead in the world in technology application.

However, some governments have adopted administrative measures to encourage enterprises. In the future, more attention should be paid to cultivating enterprises in a market-oriented way, and too much emphasis on quantity may trigger a bubble.

Su Jian

Need to strengthen intellectual property protection

At present, there are still two problems to be solved in "double innovation": first, protect property rights and entrepreneurs, create a good development environment for them, and be free from negative factors; Second, we should further strengthen the protection of intellectual property rights, improve the benefits of innovation, and constantly improve the enthusiasm of mass entrepreneurship and innovation.

Hu Biliang

Relevant support needs to be further improved.

Entrepreneurial innovation needs to be improved in two aspects: first, the development environment of entrepreneurial innovation is not good enough, and second, the relevant support of the state for entrepreneurial innovation needs to be further improved.

Su Peike

Improve the audit mechanism and exit mechanism.

The current business incubator platform needs to further improve the audit mechanism. At the same time, the exit mechanism needs to be further developed, so that investors can get in and out of funds, so as to attract more people to join the "double innovation" cause.

How can the country create a better environment for "double innovation"?

Su Jian

Build a good legal environment

First of all, we must build a good rule of law system, so that the "double innovation" activities have rules to follow and laws to follow; Secondly, we should standardize the government’s behavior and deepen the reform in streamline administration, delegate power, strengthen regulation and improve services, and we should not act indiscriminately or fail to act.

Ching Wong

Continue to promote market-oriented reform.

It is necessary to give full play to the basic role of the market in allocating resources, let innovative elements such as technology and talents circulate reasonably and effectively, give enterprises room for innovation and development, and accommodate brand-new business models. At the same time, it is necessary to strengthen effective supervision and maintain a good environment for innovation without inhibiting the development of innovation.

Hu Biliang

Do all the service work well.

The state should do all services for entrepreneurship and innovation, including: providing a good institutional environment and further implementing policies and measures to reduce taxes and fees on a larger scale; Provide financial support and give certain special policies to small and medium-sized enterprises in funding arrangements; Strengthen the guidance and management of talents, improve the anti-risk ability of entrepreneurial and innovative talents, and promote relevant talents to participate in entrepreneurial innovation more actively; For high-end entrepreneurial and innovative talents, provide better services, such as settling down and schooling for children, and create a better environment and atmosphere for entrepreneurial innovation.

Li Jin

Form a "moderate tightness" management environment

The government should form a "moderate" management environment and reasonably reduce the "government cost" of enterprises; All departments should better coordinate and strengthen cooperation when implementing policies. In addition, strengthen financial support for "double innovation" enterprises, create a good financial environment, and ensure the reasonable financing needs of enterprises.

Wan Zhe

Reduce institutional costs

The government should further improve the management level, reduce the institutional cost and reduce the procedural friction in the process of public management and service. At the same time, pay attention to the fact that the administrative hand cannot be stretched too long and respect the real supply and demand of the market.

What are the advantages of developing "double innovation" in China?

Su Jian

Market size and talents

The advantages are mainly reflected in two aspects: the domestic market is large and the population is large, which is the biggest advantage; On the other hand, human resources are guaranteed. With the continuous expansion of colleges and universities, the quality of China’s labor force has changed greatly, providing a large number of high-quality talents for "double innovation".

Hu Biliang

Policy+talent+infrastructure

First, the country has many policy dividends in promoting the development of dual innovation, and the government has a strong ability to organize and mobilize resources, which is unmatched by other countries;

Second, there are many young talents in China, and the reserve force of entrepreneurial and innovative talent resources is sufficient;

Third, the infrastructure of entrepreneurial innovation is relatively perfect, such as network, telecommunications and transportation, which provides good scene conditions for entrepreneurial innovation and greatly reduces the cost of entrepreneurial innovation.

Ching Wong

Four advantages and multiple efforts

First, the market advantage: China’s market is large and diverse, and the huge market generates a huge demand for entrepreneurial innovation, while the diversified market is conducive to inclusive and diverse innovation achievements;

Second, the talent advantage, China has a huge reserve of highly educated talents;

Third, the industrial advantage, China has a complete industrial chain, and the market pattern and industrial pattern of both supply and demand are conducive to effectively digesting innovation achievements;

Fourth, environmental advantages. China has a high degree of tolerance and support for entrepreneurial innovation.

Li Jin

The role of the new engine is gradually emerging

At present, the role of "double innovation" as a new engine has gradually emerged. China’s strategic emerging industries have maintained steady and rapid growth, and their driving role has been continuously enhanced, and enterprises have ushered in good development opportunities. In addition, under the upsurge of "double innovation", China has trained a large number of innovative talents, laying a talent foundation for the future development of "double innovation".

Wan Zhe

The market potential is huge

The leading role of scientific and technological innovation in the economy and society has been a national consensus, and all sectors have continuously introduced favorable policies to provide a good environment and opportunities for the development of "double innovation". In addition, China has great market potential. At present, there is still huge market potential in China, and there is a strong demand for scientific and technological innovation products, which is conducive to the development of "double innovation" enterprises.

Should graduates join the entrepreneurial army?

Su Jian

The government should not encourage it too much.

Mainly depends on the personal situation of graduates. However, due to the lack of experience of graduates and the high risk of starting a business, it is not recommended that the government excessively encourage college graduates to start a business, but it can provide a good entrepreneurial environment for the society.

Hu Biliang

Look at the graduates’ own wishes

The most important thing is to see that the graduates themselves are not motivated enough to "create new ideas". The government should not call on graduates to start businesses on a large scale. If graduates have strong enthusiasm, the government can actively support and create good conditions for starting businesses, but don’t over-encourage them.

Ching Wong

Those who have the ability can start a business

For graduates, the cutting-edge thinking mode and the spirit of daring to think and do are their advantages, but starting a business requires a series of conditions, such as capital and experience. If you have the corresponding conditions, you can start a business.

Li Jin

Large space for participation

At present, the market environment and policy environment for entrepreneurial innovation in China are good, and there is a large space for college students to participate in entrepreneurship, and there are many fields and regions to choose from. Encouraging graduates to innovate will be the focus of the future development of "double innovation".

Su Peike

Graduates are not advised to start businesses blindly.

In most cases, starting a business requires certain experience and resources. In the national upsurge of "double innovation", graduates should rationally analyze their own conditions. It is not recommended that a large number of graduates who have just left campus start businesses blindly.

Wan Zhe

vary from person to person

Successful entrepreneurship requires experience in technology, marketing and management. If you have the relevant conditions, it is understandable to start a business on campus. If you don’t have the relevant conditions, you can’t start a business blindly. (Feng Lingling, Yang Jiaxin)

　　China Daily Online, October 5 (Xinhua) A number of foreign media said that in the post-epidemic era, China’s economic recovery process has accelerated, which will further attract foreign investment and help boost the economies of its Asian neighbors.

　　According to a report by CNBC)5 on the 5th, David Chao, global market strategist in Jing Shun’s Asia-Pacific region, said that Asian economies will benefit as China shows a strong rebound from the new coronavirus pandemic. He said that the focus is "whether China consumers can quickly resume their normal activities, and I think Chinese will have much greater influence and will boost other Asian economies". His company found that during the Golden Week, the number of restaurant reservations and family trips in China set a "record".

　　At the same time, foreign media believe that China’s economic recovery process far exceeds that of developed countries. Forbes reported on the 5th that no large multinational company and no foreign enterprises in Shanghai and Beijing want to quit China. China has recovered better from the epidemic than most western European countries, especially Britain. They are talking about implementing more blockades as the number of cases increases. The manufacturing PMI released by the National Bureau of Statistics of China rose from 51 in August to 51.5 in September. This is the second highest level this year and has risen for seven consecutive months. The strong PMI of manufacturing industry is consistent with the improvement of high-frequency data driven by manufacturing industry and the strengthening of regional trade activities (mainly South Korea and Vietnam). The trend of Caixin manufacturing purchasing managers’ index is different from the official data, but even higher than the official data, and it stabilized at 53 again in September. China is moving in the right direction. In contrast, some European countries look ridiculous. Can we still call them "developed economies"?

　　Foreign media believe that the rapid recovery of China’s economy in the post-epidemic era will attract the influx of foreign capital, and it will be costly to decouple from China. On the 5th, The Wall Street Journal published an article entitled "The cost of decoupling enterprises from China is as high as $1 trillion? According to the report, some companies hope to decouple from China to some extent, or at least diversify their business, so as to hedge political or reputational risks and prevent future shocks caused by reasons like the COVID-19 epidemic. Ironically, as China has become the first major economy to recover from the epidemic and resume growth, the dependence of multinational companies on China has actually increased in many cases. Foreign direct investment into China is rebounding rapidly. Companies such as Nike and Tesla described China as a key factor supporting their second-quarter results. At the same time, the cost of rebuilding the supply chain is really high.

　　News of current affairs

　　01. The 12th National Congress of China Women was opened.

　　The 12th National Congress of China Women opened in the Great Hall of the People on the morning of 30th. Supreme Leader, Li Keqiang, Li Zhanshu, Wang Yang, Wang Huning, Han Zheng and other party and state leaders attended the meeting to congratulate, and Zhao Leji delivered a speech on behalf of the CPC Central Committee.

　　02. The Supreme Leader sent a message of condolence to Indonesian President Joko on the lion air passenger plane crash in Indonesia.

　　03. Li Keqiang will hold the third "1+6" round-table dialogue with the heads of major international economic organizations.

　　04. Wang Yang met with the visiting delegation of CPPCC members’ association at the provincial level in Hong Kong.

　　05. Wang Qishan visited the United Arab Emirates.

　　Other news

　　01. the General Office of the Central Committee of the CPC issued "Opinions on Deepening the Reform of the Agencies of the State Commission for Discipline Inspection of the Central Commission for Discipline Inspection".

　　02. Deepen the reform of the Women’s Federation and stimulate the vitality of women’s work.

　　In the past five years, the All-China Women’s Federation has faithfully implemented the important instructions of the Supreme Leader General Secretary and the CPC Central Committee on the reform of women’s federations, persisted in making up the shortcomings and strengths, and made new breakthroughs in strengthening the strength and expanding the coverage of grassroots women’s federations.

　　city news

　　01. While supervising and reforming, we will further promote the special struggle against evil.

　　On the afternoon of the 29th, with the feedback from the Eighth Supervision Team of the Central Committee to Guangdong Province, the first round of supervision by the Central Committee of the national special campaign against evil ended in an all-round way. During the supervision team stationed in 10 provinces and cities such as Hebei, Shanxi and Liaoning, it adhered to the problem orientation and promoted border supervision and reform. Many gangs involved in black and evil were severely punished according to law, and a number of weak and lax grassroots organizations were rectified and managed.

　　02. China Banking and Insurance Regulatory Commission: Further improve the quality and efficiency of financial services for private small and micro enterprises.

　　03. The first China International Import Expo: The National Pavilion was completed today.

　　[Network Jun has something to say] A good scene in a year must be remembered, especially when it is orange, yellow and green. The first China International Import Expo will be held in Shanghai on November 5-10 as scheduled. The convention and exhibition center has been proudly presented, ready to welcome guests from all over the world, and more than 2,800 enterprises will participate. Open and inclusive, sharing the future. This exhibition witnessed the historical changes of China’s foreign trade development, composed a wonderful movement of China’s reform and opening-up, was China’s comprehensive opening-up action, and was an opportunity for China to share the development dividend with other countries in the world.

　　04. Comrade Wang Guangying passed away.

　　international news

　　01. China men’s team won the men’s team championship in 2018 Gymnastics World Championships.

　　At the 2018 Gymnastics World Championships in Doha, Qatar, the men’s team final was contested on the evening of 29th local time. China beat the Russian team with a slight advantage of 0.049 points, and won the men’s team championship in the world championship again after four years.

　　02. Guest countries: China International Import Expo(CIIE) is conducive to the world economy to achieve multi-win results.

　　03. All the people on the crashed passenger plane in Indonesia may be killed.

　　Other news

　　01. The first national comprehensive experimental zone for agricultural opening and development was established.

　　02. The World’s Top Scientists Forum was held in Shanghai.

　　03.2018 The Belt and Road Media Cooperation Forum was held.

　　04. Guangzhou Customs seized 59.5 kilograms of drugs in the third quarter.

　　05. Merkel renounces re-election as CDU chairman.

　　06. The PLO said it would suspend the recognition of the State of Israel.

　　China news agency, Beijing, April 5 (Reporter Zhou Yin) The reporter learned from China National Railway Group Co., Ltd. (hereinafter referred to as China State Railway Group Co.,Ltd.) on April 5 that April 5 was the last day of Qingming holiday, and the national railways ushered in the peak of return passenger flow, with an estimated 14.25 million passengers sent and 1,180 additional passenger trains planned.

　　China State Railway Group Co.,Ltd. said that in order to cope with the peak return passenger flow, local railway departments coordinated epidemic prevention and control and transportation organization, continuously increased capacity, flexibly added passenger trains, and introduced a number of service measures to facilitate the people.

　　The Beijing Bureau Group Company has fully opened four express entrance halls in Beijing-Shanghai and Beijing-Tianjin at Beijing South Railway Station to minimize the waiting time of passengers in line. Taiyuan Bureau Group Corporation added 11 pairs of EMU trains in Beijing, Shanghai and other popular directions, and arranged 13.5 pairs of EMU trains to run again. The Huhehe Bureau Group Company launched the "Colorful Hada" service to provide reservation services for key passengers such as the old, the young, the sick and the disabled. Zhengzhou Bureau Group Company has added the function of urban traffic guidance to the service desks of major railway stations, which is closely linked with aviation, public transportation and subway to provide "seamless connection" service. Xi ‘an Bureau Group Company has expanded the capacity of Xicheng high-speed railway in various ways, and the train runs every 7 minutes on average between Xi ‘an and Chengdu, helping tourists along the route to return smoothly. Guangzhou Bureau Group Company dynamically analyzed the big data of standby ticket purchase, and added 16 EMU trains on popular lines such as Xiamen-Shenzhen and Nanguang high-speed railway to accurately meet the travel needs of passengers. Chengdu Bureau Group Co., Ltd. added night EMU trains in Chongqing to Zunyi and Chengdu to Chongqing to facilitate passengers’ return journey.

　　Statistics show that on April 3, the national railways sent 14.636 million passengers, a record high for a single day this year, and 963 passenger trains were added. On April 4th, the national railways sent 9.332 million passengers and added 497 passenger trains.

　　　　　　　 The word "wall-pushing movement" may not be familiar to many viewers, but the public is not unfamiliar with the malicious hype about a series of hot events such as the shooting at Qing’ an Railway Station in Heilongjiang Province. In fact, the driving force behind these so-called "hot events" is the specific implementation steps of some people pushing the wall. The so-called "wall-pushing movement" is to overthrow the current system and system in our country. These days, four cases of subversion of state power were tried in Tianjin No.2 Intermediate People’s Court, and several defendants were engaged in these activities.

　　　　　　　 From August 2nd to 5th, Tianjin No.2 Intermediate People’s Court tried four cases of subversion of state power for four consecutive days. Four defendants, including Zhou Shifeng, Hu Shigen, Zhai Yanmin and Gou Hongguo, were sentenced to fixed-term imprisonment ranging from three to seven and a half years respectively for committing subversion of state power. All four defendants expressed remorse in court, obeyed the judgment and did not appeal.

　　　　　　　 How did Zhou Shifeng, Hu Shigen and others carry out criminal activities to subvert state power?

　　　　　　　 On February 1st, 2015, there was a dinner in a restaurant named "Qiwei Shao" in Beijing. Zhou Shifeng, Hu Shigen, Zhai Yanmin and others all attended. This seemingly ordinary dinner is brewing a conspiracy. According to Zhai Yanmin’s confession in court, this gathering is not a general dinner, but a gathering to plan subversion of state power.

　　　　　　　 Defendant Zhai Yanmin said that there were two main topics discussed at this gathering, one was how to strengthen the "labor movement", and the other was how to strengthen the hype of sensitive cases. What kind of party is this party? Zhai Yanmin said: "On the surface, it’s a dinner party, but actually it’s a lawyer. This is called ‘ Die ’ Send lawyers, as well as church representatives like Hu Shigen, as well as visitors, and leaders from all circles. They are summing up some sensitive cases in 2014, and are still discussing the direction and some guidelines for planning in 2015. Their purpose is to hype sensitive cases and pay more attention to ‘ The labor movement ’ All these thoughts are to overthrow the leadership of communist party. "

　　　　　　　 According to the evidence provided by the procuratorate, at this gathering, the main topic of Zhou Shifeng, Hu Shigen and others was how to carry out the "wall-pushing movement". The so-called "pushing the wall" is to overthrow the existing system and system in China and realize the "color revolution". In order to achieve this goal, Hu Shigen also put forward three major goals of "integrating domestic anti-system forces, promoting inner-party division, and striving for the involvement of the international community" and five schemes of "transformation scheme, nation-building scheme, people’s livelihood scheme, reward scheme and punishment scheme".

　　　　　　　 Hu Shigen confessed that at the party, he talked about the concept of peaceful transformation, that is, the three major factors of national transformation and the five major programs, and all the people attending the party agreed. At the end of the party, he added two sentences, one is not to confuse your eyes or even hand over your life for the party spirit, and the other is that it is better to rise up than to wait and die.

　　　　　　　 Gong Ning, deputy director of the Public Prosecution Department of the Second Branch of the Tianjin People’s Procuratorate, said: "Through the review of the case, this February 2015 ‘ Qiwei Shao ’ The gathering is a summary of the activities they carried out in the past to subvert the state power, and it is also the way of thinking and steps to determine how to subvert the state power in the future. "

　　　　　　　 Targeted: overthrow the existing system and system in China; There are strategies: integrating domestic anti-system forces, promoting intra-party division, and striving for the involvement of the international community; There are methods: transformation scheme, nation-building scheme, people’s livelihood scheme, reward scheme and punishment scheme; There are also concrete steps: strengthening the so-called "labor movement" and intensifying the speculation of sensitive cases. These are the outstanding features of the "wall-pushing movement" implemented by Zhou Shifeng and Hu Shigen. So, are these people just talking? Of course not. Not long after this "Qiwei Shao" party, they seized an accidental emergency and started to take action.

　　　　　　　 In May 2015, an unexpected incident occurred at the railway station in Qing ‘an County, Heilongjiang Province. On May 2, Xu Chunhe, a local farmer, was suspected of violently assaulting a police officer at Qing ‘an Railway Station, and was shot and killed by the police according to the law. But this is a very clear thing, but suddenly it continues to ferment on the Internet. Rumors such as "Xu Chunhe is a visitor" and "the police shot to stop the petition" are constantly spreading on the Internet, and some people even go to Qing’ an for so-called "solidarity" under the banner of visiting the people. And all this was planned by Zhou Shifeng, Hu Shigen, Zhai Yanmin and others. In court, Zhai Yanmin confessed his trouble in Qing ‘an at the behest of Hu Shigen.

　　　　　　　 According to the prosecution’s accusation, in the Qing ‘an incident, Zhou Shifeng instructed some people to set up a "Qing ‘an incident rights protection group" on the Internet, spreading rumors to confuse the audience under the banner of rights protection, advocating "CCTV video fraud", inciting "the next deceased is you and me", and also launching a "human flesh search" for the police involved; Zhou Shifeng and others made statements in succession and were interviewed by overseas media, deliberately distorting the facts and smearing attacks, which made the Qing ‘an incident more and more heated and quickly became a national hot topic of public opinion.

　　　　　　　 Gong Ning said: "The Qing ‘an incident is typical. In fact, they want to pass ‘ Die ’ The case reached ‘ Die ’ The purpose of the system, in fact, is to provoke some people who don’t know the truth to hate or resent the state organs, including the government, through ‘ Die ’ This case to achieve ‘ Die ’ The whole system. "

　　　　　　　 In fact, before and after the Qing ‘an incident in Heilongjiang, at the scene of a series of hot events, such as Nanchang in Jiangxi, Weifang in Shandong and Zhengzhou in Henan, Zhou Shifeng, Hu Shigen and others also made waves. Behind every heated event, there were their malicious manipulation hands. According to the prosecution’s accusation, since July 2012, Zhou Shifeng, Hu Shigen and others have organized and planned more than 40 sensitive cases in the name of "safeguarding rights". They directed some people to visit the people and carried out criminal activities to subvert the state power by illegally gathering troubles in public places, attacking the state legal system, and using public opinion to provoke some people who don’t know the truth to hate the government.

　　　　　　　 Leading petitioners to make trouble in the name of safeguarding rights, spreading rumors on the Internet, deliberately creating social contradictions and deliberately discrediting the image of the country and the government … … All this sounds like a routine. Who are the organizers of these events? Zhou Shifeng, director of Beijing Fengrui Law Firm; Hu Shigen is an illegal religious activist; Zhai Yanmin and Gou Hongguo are both unemployed people who follow Hu Shigen. Under the guidance of the idea of "pushing the wall", these seemingly unrelated people with different identities and occupations gathered together and performed their duties in the activities of subverting state power.

　　　　　　　 According to the investigation by the procuratorate, there are mainly three groups in these four cases, one is an illegal lawyer group headed by Zhou Shifeng, the other is an illegal religious activity group with Hu Shigen as the core, and the other is a visiting group organized by Zhai Yanmin and Gou Hongguo. When sensitive cases occur, they divide their work and go into battle. Zhou Shifeng’s "deadbeat" lawyers are responsible for attacking the court, disrupting the judicial order, discrediting the government and attacking the current system.

　　　　　　　 While "dead-beat" lawyers made a scene in court, professional visitors outside the court went to the scene to "support" under the guise of pursuing the truth at the court gate, creating troubles, shouting abuse, insulting and slandering, so as to attract a large number of people to watch, causing the surrounding roads to be blocked for a long time, seriously disrupting the work order and social order of the unit, thus causing social concern and hot discussion.

　　　　　　　 They also make full use of the Internet to create hot spots of public opinion. Internet celebrity "Super Vulgar Butcher" Wu Gan, an administrative assistant of Beijing Fengrui Law Firm, is also the main cadre of visiting people to make trouble. In May last year, he was criminally detained by the public security organs on suspicion of stirring up trouble and libel. Zhou Shifeng, director of Beijing Fengrui Law Firm, quickly published an evaluation of the case by overseas media. In an interview, Zhou Shifeng slandered the state organs for framing Wu Gan, maliciously attacked China’s human rights situation, and beautified Wu Gan as "the precious wealth of the Chinese nation", inciting some people who don’t know the truth to hate the state power.

　　　　　　　 The actions of Zhou Shifeng and others violate the national constitution and laws, endanger national security and people’s interests, and violate the "high-voltage line" of the criminal law. The state judicial organs will never tolerate or be soft, and they will be severely punished according to law.

　　　　　　　 Now Zhou Shifeng, Hu Shigen and others have been punished by law. However, these four cases of subversion of state power are not isolated. In recent years, some western forces are willing to incite subversion in other countries, under the beautiful slogan of eliminating corruption, abolishing autocracy and striving for democracy, but without exception, they have dragged the countries concerned into the abyss of infighting and people’s misery, and these western forces have always fantasized that regime subversion can occur in China.

　

　　　　　　　 Wang Yiwei, a professor at the School of International Studies at Renmin University of China, said: "The case of Tianjin really reminds us that we must not take it lightly, because it also happened in Georgia and Ukraine, in some areas such as West Asia and North Africa, and it often started with a case of pleading for the people or defending rights, which incited dissatisfaction in many places, turned the simple desire of the people to change the status quo into a tragedy of continuous national turmoil, and finally it was the people who suffered. Therefore, to some extent, it is necessary to remind the complicated and profound connotation and political background behind the incident, which is conducive to increasing the ability to resist risks. "

　　　　　　　 In the course of the trial, these four cases also aroused widespread concern of the masses. Many people say that the so-called "color revolution" in China is not allowed by law and the people do not agree, and those criminals who try to subvert the state power should be severely punished.

　　　　　　　 After four days of public trials, the court clearly revealed to the public the "mysterious promoters" behind many hot events in recent years and their real attempts through rigorous and solid evidence display. From participating in overseas training to joining illegal religious organizations, from online rumors and slanders to offline troubles, Zhou Shifeng, Hu Shigen and others have already broken the bottom line of the law, and their attempts to subvert state power have been exposed. Their criminal acts endanger national security and harm the fundamental interests of the broad masses of the people, which are not allowed by the constitution and laws, and the people do not agree. The Communist Party of China (CPC)’s leading position is the choice of history and people, and the wall of socialist system is beyond the reach of Zhou Shifeng and Hu Shigen. Those lawless elements who are obsessed with the "wall-pushing" movement and want to realize the "color revolution" can only overthrow themselves in the end.