Chapter 920
: 5 years, population of 1
"Manager Wu, I understand the issues you raised."
"But the essence of the problem is not a lack of degree programs, a shortage of housing, or an overloaded system."
"The essence is that the city's public service system was designed for a population of ten million. Now, it is suddenly required to accommodate the expectations of twenty million people, so the entire system needs to be restructured."
Wu Qingsong frowned slightly, but did not interrupt.
Wang Donglai continued, “It’s true that there aren’t enough school places. But the root cause of this shortage isn’t a lack of schools, but rather that financial investment hasn’t kept pace with the city’s expansion. It’s also true that there’s a housing shortage. But the root cause of this shortage isn’t a lack of houses, but rather that for the past twenty years we’ve treated houses as commodities to be sold, rather than as public goods to be allocated.”
His voice wasn't loud, but every word was clear.
“These fundamental problems cannot be solved by a single department, nor can they be solved in a year or two.”
"But if we don't do anything because of these problems, Tangdu will forever remain a northwestern city with a population of ten million, and will never become a true national central city."
Wu Qingsong looked at him and remained silent for a while.
“Donglai, I’ve heard these kinds of things from people in my position. But most of the people who say these things are here to ask for policies, resources, and support. You’re the first person to lay out the problem so clearly and then present your own solution.”
He picked up his teacup, took a sip, and found the tea had gone cold.
"How do you suggest we solve the problems in education?"
Wang Donglai leaned forward slightly.
"Manager Wu, Tangdu City has a solid educational foundation. It boasts three 985 universities—Tangdu Jiaotong University, Northwestern Polytechnical University, and Xidian University—as well as numerous provincial key universities. Its basic education is also excellent, with five prestigious schools ranking among the best in the country."
"But the problem is that these good schools are scarce resources, and children from ordinary families can't get in."
"Or you could say that the reason these prestigious universities have remained prestigious is because they select the best students."
He paused, then continued, "We can't just focus on those few prestigious schools. The real solution is to improve the quality of ordinary schools. The quality of a school isn't determined by how tall its buildings are, but by how good its teachers are."
"what do you mean?"
"Galaxy Technology can contribute funds to establish a 'Tangdu Basic Education Revitalization Fund.' Two hundred million yuan will be invested annually for five consecutive years. One billion yuan will be used entirely to improve the teaching staff in ordinary primary and secondary schools. This includes sending top-level teachers to rural areas, rotating backbone teachers, training young teachers, and updating teaching equipment. The money will be spent on teachers and classrooms, not on building new schools."
Wu Qingsong did not immediately express his opinion.
He calculated in his mind—one billion yuan, for five consecutive years, this amount of money is neither a huge sum nor a small one.
The key is how to use it and whether it can be used effectively.
"What about the school and teachers? Even if you pay them, would they be willing to come?"
"Manager Wu, how much difference is there in salary between a good teacher at a prestigious school and one at an ordinary school?"
Wu Qingsong thought for a moment and said, "Teachers at prestigious universities get higher performance bonuses, which can be 20,000 to 30,000 yuan more a year."
"What if Galaxy Technology gave subsidies to teachers who went to regular schools? An extra 30,000 yuan per person per year for three consecutive years. Three years is enough time to improve the grades of a regular class. When the grades improve, the teachers will feel a sense of accomplishment and won't want to leave."
Wu Qingsong looked at Wang Donglai with a scrutinizing gaze.
"Donglai, you're buying the quality of education with money."
"No, I'm buying time with money."
Wang Donglai shook his head and explained, "Improving the quality of education would normally take ten or twenty years. I've used money to shorten the cycle to three to five years. Once this group of children graduates, their academic performance will speak for itself, and parents will naturally vote with their feet. At that time, the gap between ordinary schools and prestigious schools won't be so big."
Wu Qingsong leaned back on the sofa, his fingers tapping lightly on the armrest.
"I know you can afford a billion, but do you have any conditions?"
"Indeed, I have one condition."
"What conditions?"
“This 1 billion yuan goes directly to the school, without any intermediaries. Galaxy Technology works directly with the school, and everything is transparent about where the money is spent, how much was spent, and what the results are. Every penny will go to the children and into the classroom.”
Wu Qingsong smiled, a smile that conveyed a sense of understanding.
"You're afraid the money will be intercepted."
Wang Donglai did not deny it, and said frankly, "Manager Wu, I'm not targeting you. But there are some things you know better than I do. How much of the education funding actually reaches the schools after it's allocated? Equipment purchases go through a process that doubles the price. This kind of thing happens to many schools, and I don't want my money to become someone's illicit income."
Wu Qingsong remained silent for a while.
"Donglai, you're quite blunt. But let me tell you, every penny of education funding in Tangdu City is audited. The problems you mentioned existed before, but they're less now, and they'll become even less in the future."
He paused, then his tone became serious.
"I agree to your terms: one billion yuan, directly to the school, openly and transparently. I will also keep an eye on this money."
"Manager, it's not that I don't trust you, but I believe in human nature and prefer to trust technology and systems. Actually, I've already thought it through. All the teachers who receive subsidies will need to upload their course schedules to the cloud, and their classes will need to have an intelligent recognition system installed. Every class will be a check-in to ensure that they are actually in the classroom."
"Technically speaking, it is very easy to achieve."
Wang Donglai did not continue speaking, but Wu Qingsong keenly sensed what Wang Donglai had not yet said.
He immediately changed the subject without showing any emotion, asking, "According to your plan, Tangdu City's housing scale may still be lacking."
Wang Donglai was unfazed by Wu Qingsong's attempt to change the subject and said, "Manager Wu, Tangdu's housing prices are currently among the lowest of all provincial capital cities in the country. It's not because we're not developing well, but because from the very beginning we've stopped relying on land revenue, insisting on not living off land sales or using real estate to boost GDP, but instead relying on high-tech industries."
"As it turns out, this path is feasible."
Wu Qingsong was stunned for a moment, clearly not expecting Wang Donglai to suddenly bring this up.
"But low housing prices don't necessarily mean that young people can afford them."
Wang Donglai continued, "The housing prices in the High-tech Zone are around 20,000 yuan per square meter. A recent college graduate with a monthly salary of 15,000 yuan can save 180,000 yuan a year without spending a penny, which is enough to buy a nine-square-meter apartment. To buy an eighty-square-meter apartment, it would take almost nine years to save up."
"This is a conservative estimate. An average college graduate working in other private companies in Tangdu City would only earn around 4,000 yuan a month. Even if they didn't eat or drink, they would only earn 50,000 yuan a year. You can imagine how difficult it would be for them to buy a house and settle down."
"Manager Wu, one of Tangdu's biggest advantages right now is definitely its housing prices."
"Galaxy Technology offers good employee benefits, but it's impossible for them to hire everyone."
"The reality is that with the development of Galaxy Technology, the related industrial chain and the entire business ecosystem have become prosperous, and with more people, housing prices have naturally risen."
"This is the law of the market, and we should respect it and not try to change it."
"Housing prices can be controlled for a while, but not forever." Wu Qingsong breathed a sigh of relief. After listening to Wang Donglai's ideas about education, he was worried that Wang Donglai would become radical in his views on housing.
Although he is the chief steward of Tangdu City, Wang Donglai's status and position are different, so it's good that they can reach an agreement.
Wu Qingsong nodded, a new look appearing in his eyes.
So what are your thoughts?
"My idea is that instead of letting housing prices rise and then suppressing them, it's better to design it from the beginning."
"The houses in Tangdu City can appreciate in value, but they can't appreciate too much. If they appreciate too much, young people won't be able to afford them. If they can't afford them, they won't stay. If they can't stay, the city will become hollowed out. If the city becomes hollowed out, it's doomed."
"Manager Wu, I had artificial intelligence create a model with a simulation of Tang City's population growth curve, industry growth curve, and housing price growth curve for the next ten years. The three lines need to match. As the population grows, industry follows suit, and housing prices rise gradually. If any line becomes disconnected, problems will arise."
Wu Qingsong squinted and pondered for a while.
"You must have made more than one model."
Wang Donglai nodded, his tone becoming more assertive, and added, "Manager Wu, let me be frank. Controlling housing prices doesn't mean controlling new homes, it means controlling secondhand homes. The price of new homes can be capped, but the price of secondhand homes is determined by the market. If a new home in a neighborhood sells for 20,000, and a secondhand home is listed for 40,000, then that price anchor will prevent the price of new homes from being suppressed."
"so?"
"Therefore, we must lock up the liquidity of the second-hand housing market."
Wu Qingsong frowned.
"Locking down liquidity?"
"Yes. I think a policy could be introduced, for example, that new homes cannot be traded on the market for five years after delivery. After five years, they can be sold, but only to designated official buyback platforms, with the price calculated based on the original purchase price plus bank interest. Want to sell at the market price? Sure, wait another five years. After ten years, they can be freely traded."
"There is also a rationale for this arrangement, which is that the low prices purchased at the beginning already represent a discount, and selling them to the official repurchase platform is also to recover this discount."
Wang Donglai spoke slowly, but every word was clear.
"In this way, speculators will disappear, because the core of property speculation is quick in and quick out to profit from the price difference. If the time frame is locked up, their capital costs will not be able to withstand it. If they can't sell for five years and can only sell at a high price after ten years, who would still speculate?"
Wu Qingsong remained silent for a long time.
"Donglai, your idea... is very bold."
His voice was a little hoarse as he said, "Do you know what this means? It means that Tangdu's real estate market has completely become a consumer goods market, not an investment goods market."
"Then let Tangdu City be the first."
Wang Donglai said decisively.
"Manager Wu, as of today, Tangdu City has abandoned land-based revenue. No other city in the country has taken this path, and since we've started, we'll see it through to the end."
"If housing prices are controlled, young people will stay. If young people stay, industries will thrive. If industries thrive, tax revenue will increase. If tax revenue increases, public services will improve. If public services improve, the city will become more attractive."
He paused, then softened his voice: "This is a positive cycle, and the core of it is to give young people hope that they can afford to buy a house."
"Only in this way can Tangdu be built into a super first-tier metropolis with a population of over 20 million."
Wu Qingsong leaned back on the sofa, closed his eyes, as if digesting these words.
After a long time, he opened his eyes.
"Donglai, your plan is technically feasible, but politically... it requires a great deal of determination."
“I know, so I’m not here today to ask for your answer, but to discuss with you whether this matter can be done.”
Wu Qingsong looked at him and suddenly smiled.
"You're clearly trying to force me to take a stand, but you're making it sound like you're asking for my opinion."
Wang Donglai also smiled: "I also hope that Tangdu City will develop better, and Qin Province will develop better."
The two looked at each other, and the atmosphere relaxed a bit.
"I've noted down the housing issue. The five-year resale restriction and government buyback plan—I'll have the housing and construction department study it and discuss it at the meeting."
"I'm sorry to have troubled the leaders."
"Heh, if you put it that way, it makes me, a local official, feel a little ashamed."
Wu Qingsong gave a wry smile, not dwelling on the issue, and his expression became serious again.
"I think there are only about ten super first-tier cities in China with a permanent population of 20 million. And there are only about six or seven cities with a permanent population of more than 10 million."
"I know that when you say the population size of 20 million, you are referring to the permanent resident population, the urban population, not just the registered population."
"Our current registered population has just exceeded 10 million. This is after last year when we increased talent attraction and relaxed the settlement conditions. As long as you have a bachelor's degree, you can settle down."
"So, this is what you're going to talk about next, right?"
Wu Qingsong spoke with an extremely confident air, seemingly questioning but actually affirming his statement.
Wang Donglai nodded and admitted, "What Manager Wu said is true. Direct settlement for undergraduates is indeed effective, but I think the threshold is still a bit too high. Can we lower the requirements a little?"
"For example, if you have a college or university degree, you can directly register your household and buy a house."
"Those with a high school diploma or below, and two years of social security contributions, can register their household registration and buy a house."
"Furthermore, if one person registers their household registration, their entire family can be allowed to move in with them."
"Once you come, you're a Tangdu person!"
"In five years, we will have settled 10 million people, reaching a population of 20 million."
Even Wu Qingsong was taken aback by Wang Donglai's idea and gasped.
Five years, ten million people.
Two million a year, that's more than 5,400 people a day.
The entire Qin province only has a population of about 30 million. If Tang City were to accommodate 20 million people, it would be impossible to imagine how many people it would have to absorb.
For a moment, Wu Qingsong's mind raced with thoughts. (End of Chapter)