Adoption of State-private Joint Ownership after the Founding of New China


Yue Songsheng was the only son of Yue Dayi. He was born in 1908, the year when Xu Yefen had just passed away. The Yues were an army without a general then while it was very difficult for TRT to profit from the business of “offering up royal medicines” with the decline of the power of the Qing Dynasty. In this case, the family placed great hope on this boy. In 1928, Yue Songsheng graduated from Department of Commerce of Beijing Huiwen School, a famous school at that time, and then went to Tianjin. After graduating from Tianjin Excellence Business School, he became Deputy Manager of Darentang. Thus he not only had precious practical experience but also theoretical knowledge in business management.


After Beiping was liberated in 1949, people became the master of the country and great changes also took place in TRT. In March 1949, a trade union, which was under Beijing Trade Union of Traditional Chinese Medicine, was established in this family enterprise – a time-honored brand with over two hundred years’ history and ever having close relations with the feudal dynasty.


On October 1 1949, the People’s Republic of China was founded. The tablet of TRT was aglow with the fireworks let off at that night. The staff of TRT was so excited. TRT had witnessed the changes of many dynasties. Either the reigns of the emperors of the Qing Dynasty or the government of the Northern Warlords period led by the “Big President” was of the same nature. Now the political power of the people under the leadership of the Communist Party of China truly served the people. It not only tried all means to improve people’s life but also let the people be the master, which of course was a happy change for the staff of TRT. Yue Songsheng, like all the other branches of the family, found the new country, new society and new rules to be exciting and hopeful but still had doubt in mind… Yue Songsheng was a man deliberate in thinking and prompt in action. He would not do what he was not sure of and once he decided to do something, he would do with his utmost enthusiasm. He used to be hesitating about the way in which the Communist Party of China treated the national industry and commerce. But once he believed that the Communist Party of China would protect it in a real sense, he would support the Party and all of its policies with full enthusiasm.


To recover the economy as soon as possible and finish the tasks in the national economic recovery period set by the central government, Beijing Association of Industry and Commerce, founded in June 1950, decided to establish State-private Joint Ownership Industrial Investment Co., Ltd.. On August 18 1950, the company was formally founded and Yue Songsheng was elected the Chairman of the Board. Right after he took his post, he was devoted to his job with great enthusiasm. He visited friends in the industrial and commercial circle and persuaded them to buy shares. He also sized up the market conditions and inspected possible investment projects.


In September 1953, the Central Committee of the Communist Party of China formally announced the general guideline for the period of transition: to gradually realize the socialist industrialization and the socialist transformation of the agriculture, handicrafts and capitalist industry and commerce in a relatively long period.


Based on the instructions of the Beijing Municipal Party Committee and Municipal Government, Beijing Local Industry Bureau selected several influential private enterprises including TRT and Liubiju to first carry out the pilot work of the joint state-private ownership, for the purpose of laying a good foundation, accumulating experience and growing influence for the joint state-private ownership to work all over the industry.


On August 27 1954, the joint state-private ownership meeting of TRT was held. The state and private sides signed on the agreement formally and decided on the posts of leaders of the enterprise. Yue Songsheng was appointed as Manager and Jiang Yongbo, Yue Yiqing and Liu Jing were appointed as Deputy Manager. Altogether 36 people in the family signed or sealed on the agreement. The agreement would be invalid even if just one of them didn’t agree on it. This indicated that the descendants of all branches of the family had followed up the trend of the times after being persuaded. With the joint state-private ownership, TRT was governed by Beijing Local Industry Bureau. The investment of public shares of TRT was ¥250,000 and the private capital of TRT was ¥1233152.25.


On August 29, the celebration of joint state-private ownership of TRT was held in Qingyue Theatre. The celebration, where there were speeches delivered as well as art performances, last four six hours. TRT, which had offered up medicines to the royal court in history, finally became a new joint state-private ownership enterprise after 258 years.