Huaxi Village was once known as "the first village in the world", what is so extraordinary?
The villagers are well-off, they own villas, cars, and millions in savings. The village has also moved to world-famous scenic spots, solved medical care, education and other problems, so that the villagers have no worries at all.
As the years passed, the high-rise buildings that were once built with money have now collapsed, and the villagers of Huaxi Village have gone from being rich to "losers" overnight, burdened with heavy debts.
How did this rich village, which used to be infinitely beautiful, fall to the altar step by step?
Huaxi Village is located in Wuxi, Jiangsu Province, and at that time, it was located in the southern Jiangsu region, and not only had nothing to do with affluence, but was so poor that you could hear the jingle sound.
In 1959, the average annual income in rural China was 67 yuan, but the average annual income in Huaxi Village was only 50 yuan, which shows the depth of poverty in Huaxi Village.
It wasn't until Wu Renbao appeared that there was a man who created the economic miracle of Huaxi Village.
Wu Renbao was born in Huaxi Village in 1928 and later became a cadre with his talents.
He is an imaginative young man who is eager to change his destiny and even more so to improve the prospects of his hometown!
With this dream in mind, Wu Renbao returned to his hometown and began to visit everywhere to prepare for the future development of his hometown.
At that time, the conditions in Huaxi Village were extremely harsh, the whole village had a population of about 600, and there were very few wealthy people, most of whom could not meet their basic food and clothing needs all year round, and even had to rely on debt to survive, the situation was very heart-wrenching.
Huaxi Village, located in northern Jiangsu, is often affected by heavy rains, floods and seawater backflow, resulting in unsuitable crops. Coupled with the mountainous and hilly terrain, it is almost impossible to make a fortune from farming. In this case, there really is no other way.
In order to achieve this goal, Wu Renbao decided to open a factory. Huaxi Village must choose the path of industrialization in order to get rid of poverty. However, at the time it was fraught with great risks.
At that time, the support policy for rural factories was not perfect enough, which made it almost impossible for Wu Renbao to obtain start-up capital from the bank.
At that time, most farmers did not realize that they could work in factories, and it was not clear whether they could make money by opening factories. Moreover, in order to raise funds for the construction of the factory, everyone needs to sell all their belongings to get it together, so you can imagine the difficulties.
Fortunately, Wu Renbao was indeed an admirable leader, in order to build a factory, he traveled all over the place, ran around and persuaded him, and finally succeeded in opening the first factory in 1961!
Wu Renbao is indeed a capable person, and under his strong leadership, Huaxi Village quickly realized its dream of turning from poor to rich, not to mention.
However, an important reason why Huaxi Village was able to get rich quickly at that time was that China's socialist market economy had not yet been formed, and as long as you could produce goods, you would not worry about sales.
However, with the wave of reform and opening up, when all parts of China have entered the era of industrialization, will Huaxi Village be able to continue to inherit its legend of prosperity?
Township enterprises have sprung up in China, and Huaxi Village has faced its own challenges at the beginning of the reform and opening up in 1978.
In a highly competitive market economy, if you can't keep up with the pace of the times and adapt to the development of the trend, you may lose your leading position. In this environment of the jungle, once it stagnates, it is possible to be eliminated.
For example, Sony used to be like this, and so was Nokia.
Fortunately, Wu Renbao is an outstanding leader who faced the challenges of reform and opening up and formulated a series of development strategies for Huaxi Village, including maximizing the added value of the industry, creating high-quality products, and increasing product profits.
Before the full flowering, the main enterprises in Huaxi Village were mainly heavy industries, such as hardware manufacturing. But after the reform and opening up, he began to lead the villagers to turn to the printing industry, textile industry and tourism development.
With the development of social economy, especially in the 90s of the 20th century, tourism has gradually become the first choice for many Chinese people.
Therefore, Wu Renbao began to invest a large amount of money, built many imitation foreign buildings in Huaxi Village, and through various publicity means, Huaxi Village became famous in China, attracting a large number of tourists, directly promoting the vigorous development of all walks of life in Huaxi Village, making it like a fish in water in the wave of vigorous economic development in the new era.
Of course, Huaxi Village also has a share of the profits of the real estate industry.
Rather than getting involved in the real estate industry like those who used money to buy land to build houses, Wu chose to invest in factories and rely on the production and sale of building materials to make money.
This approach not only allowed Huaxi Village to share in the dividends of real estate development, but also successfully avoided the risk of the southern real estate bubble in the 90s.
This vision is really no one.
Under the far-sighted leadership of Wu Renbao, the villagers of Huaxi Village worked together to create an economic miracle that belonged to them.
Unfortunately, there is only one Wu Renbao in Huaxi Village, and in 2013, he passed away.
By the time of Wu Renbao's death, Huaxi Village had developed into a huge system of more than 200 enterprises of various types, and its total assets had exceeded 50 billion yuan.
Although Wu Renbao is gone, it seems that Huaxi Village can continue to live a rich and beautiful life as long as it doesn't take too many risks. But is that really the case?
In 2023, Huaxi Village will actually transfer 80% of its equity for only one yuan!
Oh, it's really embarrassing that the once prosperous first village in the world has fallen to this point.
The decline of Huaxi Village is manifold, the most important reason being the lack of an excellent leader like Wu Renbao, who has an excellent vision of the times and cohesion.
After Wu Renbao's death, due to inertia, the villagers chose to let Wu Renbao's children serve as the new leaders of Huaxi Village.
Unfortunately, Wu Renbao's children are really disappointing, first of all, they lack the ability and vision of their father.
Wu Renbao not only has a superior investment vision, but also is able to control the will of greed, which is where his ability lies.
While Wu was still alive, he kept reminding villagers to focus on developing the real economy rather than getting involved in real estate and finance, which are unreliable.
However, after Wu Renbao's death, Huaxi Village was quickly overwhelmed by a financial and real estate bubble, causing Huaxi Village, which had been believed to have accumulated wealth by relying on physical operations for many years, to suffer heavy losses during the epidemic.
However, this is not the most serious problem, after all, it is not impossible for Huaxi Village to make a comeback after the family wealth accumulated over the years.
It is intolerable that the new leader is not only incompetent, but also has not won the trust and respect of the villagers.
At that time, the reason why the villagers of Huaxi Village were willing to take risks with Wu Renbao and were willing to give it a go was because they firmly believed that Secretary Wu was a good person who worked for the welfare of the villagers.
However, Wu Renbao's children apparently did not receive such respect.
After Wu Renbao's death, the collective, which had grown rich by unity, quickly fell apart and fell into a state of disintegration.
The over-inflation of the villagers of Huaxi Village after becoming rich is also an important reason, in addition to the problem of the leaders.
After Wu Renbao initially proposed to build the brand of Huaxi Village, he immediately began to expand and renovate the village. This not only expanded the area of the village from one square kilometre to 35 square kilometres, but also invested a lot of money in the construction of many so-called wonders.
For example, Longxi International Hotel has 72 floors, also has a sky garden, and in front of the building stands a statue of a cow made of a ton of **. In addition, there is a museum with an area of 10,000 square meters, as well as replicas of the "Forbidden City of Beijing" and the "Great Wall of China".
These buildings do add face to Huaxi Village, but they also lead to a waste of resources.
The annual maintenance cost of Longxi International Hotel alone is as high as tens of millions, but it has not brought much substantial income to Huaxi Village. Don't say anything else.
Not only can the villagers of Huaxi Village enjoy these collective wonders, but they also see a portrayal of their luxurious lives, buying yachts, private jets, and diamond rings.
Life in Huaxi Village has become so good that they have forgotten the old adage of thrift and thrift, all because their wallets are bulging.
Then comes the end of despair!
The economic downturn, investment mistakes, and the failure of Huaxi Village's industry to transform in time to keep up with the trend of the times led to the fate of Huaxi Village, which was finally in debt and coming to an end ten years after Wu Renbao's death.
Most of the buildings that once witnessed the glory of Huaxi Village are now abandoned in the barren grass because they are unattended, waiting silently.
The rise and fall of Huaxi Village has made many people sigh, once enjoyed countless benefits and favors when it flourished, but did not expect it to be so quiet when it declined, which made people deeply understand the ruthlessness of society.
This also tells us an eternal truth: the development of society does not wait for anyone, so never think of standing on the merit book and eating the old book.