Wen | Bao Bian, author | Zhang Mengyi, editor | Yang Liu.

Five years ago, queuing for a meal was still something worth showing off in the circle of friends; Three years ago, Haidilao’s nail art, shrimp-slippery oil gluten and longevity noodles could still trigger a wave of discussions in Tik Tok. Now, how long has it been since you’ve eaten Haidilao?

Recently, "Why don’t people like to eat sea fishing?" boarded a hot search in Weibo, and under the topic, netizens vomited again and again — — "It’s too expensive, I don’t deserve it." "Some stores in Miaocuijiao are gone, and sometimes there are no baby toys. I feel that the service I bought at a high price has shrunk." "The taste is not competitive compared with the Sichuan-Chongqing hot pot at the same price, so it is difficult to keep repeat customers."

Haidilao, which has lost its freshness and attractiveness, is under tremendous profit pressure.On August 14th, Haidilao released the report card for the first half of the year. The announcement showed that as of June 30th, 2022, Haidilao’s estimated income for the first half of the year was no less than 16.7 billion yuan, a decrease of no more than 17% compared with the same period of last year. The net loss in the first half of the year is expected to be 225-297 million yuan, while the net profit in the same period last year was 96.5 million yuan.

Haidilao, which has always been famous for its benchmark service, is facing many questions from consumers: the service quality is shrinking, the service is embarrassing, and the cost performance is not high. After the brand effect is gone, the future of Haidilao still has a long way to go.

"Due to the impact of the COVID-19 epidemic from March to May 2022, some restaurants in mainland China stopped operating or suspended their meals, and the passenger flow decreased. As a result of the Woodpecker Project, the number of restaurants decreased compared with the same period in 2021." For the huge losses in the first half of the year, Haidilao attributed it to the closure of stores and the impact of the epidemic.

However, Haidilao also said that with the gradual easing of the epidemic, since June 2022, the monthly chain of restaurant operations in China and other regions has obviously improved.

The impact of the epidemic can’t be ignored.In fact, it is not just Haidilao, but the performance of the whole hot pot track in the first half of this year is hardly optimistic.

The profit warning issued by Xiabu Xiabu recently shows that in the first half of 2022, the estimated revenue of Xiabu Xiabu is about 2.16 billion yuan, down 29% year-on-year, and the net loss is expected to be 270-290 million, up about 474.47%-517.02% year-on-year. Jiumaojiu, another catering listed company, expects revenue of 1.899 billion yuan in the first half of the year, down by about 6.1% year-on-year, and net profit of about 55 million yuan, down by 70.4% year-on-year.

In addition to the impact of the epidemic, Haidilao is still in the aftershock of the plan to close the store.Since 2018, Haidilao has expanded at an alarming rate. In 2019, 2020 and the first half of 2021, 308, 544 and 299 stores were opened respectively. By the first half of 2021, the total number of global stores in Haidilao had reached 1,597.

It is worth mentioning that the newly expanded stores in Haidilao are mainly in the sinking market. According to the financial report, in 2020, the number of new stores in the first-,second-,third-and below cities of Haidilao was 65, 167 and 257 respectively. In the first half of 2021, these three figures were 75, 204 and 344 respectively.

However, the consumption power of the sinking market is limited.Consumers in low-tier cities are sensitive to price and insensitive to service.. In the rapid expansion, the management problems of Haidilao are also exposed, such as insufficient number of excellent store managers and insufficient corporate culture construction. These newly opened stores failed to bring "Qian Jing".

The crazy development speed has laid a lot of mines for Haidilao. By June 2021, the turnover rate of Haidilao had dropped from 3 times/day in 2019 to 4.8 times/day, and the profit rate continued to be under pressure. Even Zhang Yong, CEO of Haidilao, said frankly in 2021, "I made a plan to further expand the store in June last year, and now I am really blind and confident."

In November 2021, Haidilao launched the Woodpecker Program and decided to gradually close 300 stores with relatively low passenger flow before the end of the year.Affected by the store closure plan, Haidilao lost 4.16 billion yuan in 2021.

The data shows that in 2021, Haidilao opened 421 new stores and closed 276 stores. In the first half of this year, Haidilao continued to close stores. According to the monitoring data of Jihai brand, Haidilao currently has 1,284 stores nationwide, compared with 1,326 stores in December last year, a decrease of 78 stores.

It is foreseeable that Haidilao will remain in the shadow of closing stores for some time to come, and at the same time, it will constantly adjust the location of stores and open new stores.

Wang Hongdong, an analyst in the catering industry, said: "Unlike the Internet business, offline physical stores can produce immediate results with a little adjustment, which takes a certain period and time.There are no large-scale layoffs in Haidilao, and employees’ wages have to be paid normally, so it takes time to digest. As a listed company, Haidilao still pursues growth, so it will continue to open stores in some good locations, and employees need to be resettled. The existing stores can’t digest so many employees. "

Haidilao was first circled by high-quality service.

Up to now, many consumers are relished about the Haidilao service, such as aprons, hot towels, small rubber bands for ladies, waterproof covers for mobile phones that can be unlocked by fingerprints, fruit platters for free renewal, lemonade, sour plum juice, soybean milk, nail service, birthday face-changing performance, and waiters who play games on behalf of them.

When you eat hot pot alone in Haidilao, the clerk will not only send a bowl of porridge to pad your stomach, but also put a special play doll opposite the seat, and will also give away small desserts and snacks after the meal.

Before the epidemic, consumers were willing to pay for the intimate and warm service of Haidilao, but with the decline of young people’s spending power, people are no longer willing to pay a premium for the service.
In this regard, Wang Dongming, a catering analyst, said: "At present, the situation of the national catering industry is not very good, and everyone’s spending power is declining.When consumers are not short of money, they all demand quality and service. When they are short of money, they only demand price. It used to belong to the industry volume, but now it belongs to the industry downgrade."

More and more people choose to tighten their money bags. Thomas lee used to have dinner with friends in Haidilao, but she only ate Haidilao once this year. That was when the epidemic broke out in Beijing in May, and she stayed in the community for a month. Later, when she saw that the set meal for two in Haidilao was only in her early 100 s, she ate it once at a discount of about 60%.

Thomas lee told Leopard Change,After eating Haidilao, take-out will be given priority, because it is cheaper than the store."Haidilao is not as delicious as Yishengyuan. If it is cheap, I will consider eating it once or twice occasionally."

Consumers who are not rich in pockets are complaining about the price increase of Haidilao. Many consumers have found that Haidilao is quietly raising prices. "The bottom of the pot, Sigongge and beef have all gone up in price. Small materials cost 11 yuan each, and drinks cost 8 yuan. Usually, you only need to be in your early 100 s, but now it costs 150 yuan." "In less than a year, half of Flammulina velutipes has risen from 7 yuan to 13 yuan." "Half of quail eggs have risen from 14 yuan to 17 yuan, and then to 19 yuan."

In the face of quietly rising vegetable prices, consumers can only choose to downgrade their consumption.The financial report shows that from 2020 to 2021, the per capita consumption of customers in Haidilao’s domestic first-tier cities dropped from 116.2 yuan to 111.8 yuan, second-tier cities from 105.7 yuan to 101.7 yuan, and third-tier cities from 100.2 yuan to 95.7 yuan.

Along with the price increase, there is also a decline in service quality. In February of this year, the labeling of customers by Haidilao caused controversy. Some consumers have found that Haidilao labels customers privately in the membership system, which also includes physical characteristics and personality needs. Many netizens believe that this behavior of Haidilao has been suspected of infringing on personal privacy.

A member of Haidilao Jinhai, who lives in Shanghai, also found that a Haidilao service he often goes to has changed: snacks used to be delivered voluntarily, but now this service has disappeared. In the past, you could make an appointment for a manicure after 10 o’clock in the evening, but now it will not work after 8 o’clock in the evening. The enthusiasm of service personnel is also declining. "The food in Haidilao can’t be said to be bad, but it is definitely not the best hot pot. I came here because I want to enjoy friendly service. Isn’t this the original intention of Haidilao?"　

For others, the excessive service of Haidilao makes them feel "social death". On social media, some consumers talked about their embarrassing experience in Haidilao. "I ate a hot pot and asked me back and forth dozens of times. Do I need this or that? I still have to answer no, thank you, so tired." Some netizens even joked that if you hate someone, take him to Haidilao and let employees push cakes, light signs and large photos for his birthday.

Haidilao is increasingly difficult to surprise consumers. Faced with questions such as the lack of product taste characteristics and insufficient innovation iteration speed, in December last year, Haidilao released a number of new menus, introducing new products such as real spicy pot, Haidilao mutton ball, crispy pea tip, crispy tender fried milk and so on, and said that it would be served at least twice a year in the future. Even so, the service, not the product, remains the most impressive thing for consumers in Haidilao.

In this regard, Wang Hongdong believes: "Consumers’ impression of Haidilao still stays in good service, and the presence of products is not strong. Everyone has formed an inherent understanding of the high-quality service of Haidilao.The aura of service is too heavy, ignoring the innovation of products."

He also said that if Haidilao wants to continue to bring freshness to consumers, it can continuously introduce new products, increase investment in product research and development, and continue to emphasize product innovation in publicity. New products and explosive products can also stimulate consumers. Or co-branded with other brands, cross-border marketing has caused some topics, so don’t let consumers feel that Haidilao has no other highlights except services.

In July this year, Haidilao announced that it was considering splitting the shares of super HI Company and intended to go public independently. With the disclosure of the prospectus, Haidilao’s overseas business achievements have also been exposed.

According to the data, by the end of last year, Haidilao had opened 1,443 direct stores around the world, of which 114 stores outside Chinese mainland contributed 2.712 billion yuan in revenue.The contribution of overseas business to total revenue is only 6.9%, and the overall scale is not large.

From this data, we can see that the domestic market is still the focus of Haidilao, and overseas business is only a supplement. Overseas Chinese people love to eat hot pot, so it is very difficult to develop foreigners into hot pot customers. Moreover, overseas stores are generally faced with problems such as unacceptable service, low turnover rate and few local consumers.In the case that the hot pot category is difficult to become the mainstream overseas catering consumption, Haidilao can’t intensively open stores and give full play to the advantages of the supply chain.

For catering groups with online celebrity gene, brand aging is a common problem in the industry. In order to alleviate the pressure of revenue and reduce risks, major catering brands are looking for the second growth curve outside the main brand and creating new explosions. For example, Xiabu Xiabu created its high-end brands, and Jiumaojiu launched Taier pickled fish.

Haidilao is also looking for a second growth curve urgently, but compared with its peers,Haidilao’s road to exploring new brands is not smooth.

In recent years, Haidilao has created more than 10 sub-brands, including Shibajian Noodle Shop, Qin Xiaoxian, Laopaiyouer Noodle Shop, Baibran Private Noodle Shop, fanfan Forest, Wugu Sancan, Mengxiaojiang Rice Noodles, Mrs. Luo’s dumplings, Qiaoqiao’s noodles, and even Omuda, a Japanese food store, involving cheap fast food, snacks, Japanese food, breakfast and other categories.

At present,Four sub-brands in Haidilao have closed stores one after another.Like the main brands, these fast food snacks are highly standardized, focus on low-cost strategies, have a bad taste, are under great cost pressure and are difficult to make a living.

In terms of store management, Haidilao also tries to create other formats besides catering. After launching a new type of pub in August last year, Haidilao started the barbecue ingredients delivery business in March this year, and launched peripheral products such as blind boxes and digital collections.

In mid-June this year, Haidilao set up a community operation division, focusing on the innovation of diversified catering services other than restaurant services, and trying to deploy the core strategy of "home+store". The department is gradually introducing prefabricated dishes and hot pot dishes, such as crayfish, pickled fish, pepper and hemp fish, to cater to the needs of young consumers for "one person to eat" and "two people to eat". In addition, Haidilao also sold its own brand of drinks and craft beer in the store.

For a series of actions of Haidilao, Wang Hongdong believes that the hot pot restaurant in Haidilao has been opened and closed, and it has been closed and opened. In fact, it shows thatThe category of hot pot has its own ceiling, and the largest scale may be about 1000. If you want to open thousands or tens of thousands, it is very difficult.The blind pursuit of scale is actually inconsistent with objective laws. Therefore, it is necessary to make some innovations in business model and store model, transform shopping malls into community stores, and find the second growth curve in order to break through the bottleneck.

In the era of consumption degradation, Haidilao will undoubtedly face enormous profit pressure if it wants to maintain the existing price and provide high-cost service quality. It’s not easy to make a deck and find the second curve. Even if it has become a restaurant head brand that has climbed over countless hills, the throne of Big Brother is not easy to sit on.

　　　　 1. On December 18th, 1989, Economic Half an Hour was officially launched;

　　　　 2. In 1990, the "Economic Half-hour Night" was broadcast (the anniversary party of the opening of the "Economic Half-hour" column);

　　　　 3. In 1990, "Behind the Attractive Advertisement-Report from Yongjia" won the special prize of TV news that year;

　　　　 4. In 1991, the March 15th party was premiered in the form of a special program;

　　　　 5. In 1991, Mall won the first prize of TV news topic in that year;

　　　　 6. In 1991, the series of "Trip to the Old Dabie Mountains" won the first prize of TV news topic;

　　　　 7. In 1992, "China Quality Miles Special Program" won the first prize of TV economic program that year;

　　　　 8. In 1993, "93 Quality Miles Series Report" won the first prize of TV economic program that year;

　　　　 9. On August 31st, 1992, the column of Economic Information Network was launched on the basis of Economic Half-hour.

　　　　 10. In 1994, Economic Half-hour was changed from recording to live broadcast (one year);

　　　　 11. In 1994, the large-scale series program "China’s economic benefits in depth in 1994" aroused strong repercussions;

　　　　 12. In 1994, Economic Half-hour first launched the first program named after the host, "One Dan Topic";

　　　　 13. In 1995, "The Record of Turning Losses into Figures" won the first prize of continuous coverage and series coverage of national excellent TV economic programs;

　　　　 14. In 1995, "Harvest-Documentary of China Rural Well-off Society" won the first prize of continuous reporting and national series reporting by China Radio and Television Society; In the same year, the series of programs "Famous Brand of Life and Death" was broadcast, which had a great impact;

　　　　 15. On July 1, 1996, the Economic Half-hour was revised; Nine economic columns were separated from Economic Half-hour, thus forming the embryonic form of the future economic channel with Economic Half-hour as the leader and nine columns.

　　　　 16. The 12-episode series "The Call of the Century" broadcast in September 1996 won the first prize of China News;

　　　　 17. In November, 1996, Economic Half-Hour broadcasted the 12-episode series Autumn Story, which won the first prize of CCTV program and the first prize of economic program;

　　　　 18. In 1997, a series of programs "Talking about Farmers’ Burden" was broadcast; For the first time, it systematically reflects the "burden" problem that the masses have the highest voice;

　　　　 19. In 1997, Economic Half-Hour broadcasted the 12-episode series "A Thousand Years of Words Resources" and won the first prize of China Economic Program;

　　　　 20. In July 1997, the special program "The First Step" was launched, which was the first 90-minute economic special program launched by the Ministry of Economic Affairs. It made a beneficial exploration of this program variety and produced a certain demonstration later;

　　　　 21. In September, 1997, "Transition across the Century" was broadcast, and Premier Li Peng was interviewed by reporters and met with the crew.

　　　　 22. The series "Soft Landing" in December 1997 comprehensively and systematically reflected the wisdom and courage in high-level decision-making during the three years of macro-control;

　　　　 23, January 1, 1998, New Year’s Day special program "People in 97";

　　　　 24. On March 15th, 1998, a six-hour large-scale live broadcast program "Action on September 15th, 1983" created two sets of live broadcast length and daytime ratings records;

　　　　 25. On June 5, 1998, the special program "For Life on Earth" was broadcast;

　　　　 26. In October 1998, Premier Zhu Rongji said, "The two programs are getting better and better, and Economic Half-hour has helped a lot";

　　　　 27. On December 10, 1998, the special program "20 people in 20 years" was broadcast;

　　　　 28. In January 1999, Vice Premier Li Lanqing said at the meeting of directors of the National Taxation Office: "Economic Half-hour" is one of the columns that he and Premier Zhu must watch every day;

　　　　 29. On June 5, 1999, "For a Green Home" was broadcast live on TV;

　　　　 30. In September and November, 1999, Economic Half-hour participated in the production of a large-scale live broadcast program "99 Fortune Forum" dialogue program and "99 Technology Going to the Countryside" TV activity;

　　　　 31. In July 2000, CCTV’s economic life service channel was launched in an all-round way, and "Economic Half-hour" was successfully revised;

　　　　 32. In December 2000, 100 domestic economic experts and 50 financial journalists were invited to select 10 "Economic Half-hour" "People of the Year" from the most active economic figures on the economic stage in China in 2000, and a CCTV2000 Economic Person of the Year award ceremony was organized and broadcast in the form of a special New Year program.

　　　　 33. On July 9th, 2001, Economic Half-Hour was greatly adjusted, and the length of the 30-minute program, which has been maintained for 12 years, was extended to 35 minutes, and the program form was also adjusted accordingly.

　　　　 34. From August 10th to September 10th, 2001, a large-scale series of reports "Rectifying Market Economic Order ―― We are in Action" was broadcast for one month in a row.

　　　　 35. In August, 2001, the case tracking "Image Project" won the second prize of the China News Award, and "A strange foreign smoke in Hanzhong is not allowed to sell" won the second prize of the China TV News Award.

　　　　 36. On September 12th, 2001, Vice Premier Li Lanqing gave instructions on "Rectifying Market Economic Order ―― We are in Action".

　　　　 37. In December 2001, 100 economic experts and 100 financial journalists were organized to select 10 "2001CCTV China Economic Person of the Year", and the "Economic Person of the Year Award" and "Public Person of the Year Award" were established.

　　　　 38. In January 2002, the series "Core Competitiveness" was broadcast. This paper analyzes the core competitiveness of China large enterprise groups such as Haier, Changhong, CNOOC and Huawei.

　　　　 39. During the May 1st, 2002, seven special programs "Economic Observation in the First Year of China’s Entry into WTO" were launched. The program covers many fields such as finance, agriculture, trade war, intellectual property rights, tariffs, prices, automobiles, enterprises and internationalization.

　　　　 40. In May 2002, the ten-episode TV series "People at Work" was released. Focusing on the unit that people call "eating public meals", this paper reviews the 50-year history of the unit and records the reform process in China.

　　　　 41. In July, 2002, in order to meet the need of quick response to news, Economic Half-hour was completely adjusted again, and "doing one thing thoroughly" became the new choice of Economic Half-hour. At the same time, the studio will be moved to the office, and the host will be involved in the program in all directions. Shen Bing, the new anchor, joined together with Zhao He, Wang Xiaoya and Qu Xiangdong to form a strong anchor lineup of Economic Half-hour.

　　　　 42. In August, 2002, the survey program "Difficult Road in Shu" won the first prize of China TV News Award.

　　　　 43. From October 8, 2002, a large-scale series of reports "A Record of China ―― An Interview with Provincial Ministers" was broadcast for one month, and nearly 30 ministers, governors and provincial party committee secretaries were interviewed, which became the key program of CCTV’s 16th National Congress report.

　　　　 44. In December 2002, "2002CCTV China Economic Person of the Year" was selected. On the basis of continuing previous years’ awards, two individual awards are set up: annual innovation award and annual social welfare award.

　　　　 45. In October, 2003, the combined report "Taking Stock of World Cup Economy" won the second prize of the 13th China News Prize.

　　8. It is better for a family to stay together than anything else.

　　For a time, Teresa Teng was really like her hit "Laugh at the sight of you". Her singing career brought her happiness and encouragement, even to her own surprise. It turned out that many dreams in her heart could be fulfilled by singing. She seems to know that her little shoulders can shoulder the money-making skills that her parents can’t, so she tries hard to help her family and improve the plight of the whole family. In fact, the road to music was not so smooth at first, but she was not afraid of hardship and was very resigned.

　　Mother Deng remembers that Coca-Cola in the United States had just entered Taiwan Province, and all of a sudden it set off a hot sale frenzy. Almost every child wanted to drink a bottle to relieve his hunger and satisfy his curiosity. Once they finished singing and were on their way home by bus, Teresa Teng suddenly asked, "Mom, I really want to drink a bottle of Coca-Cola, just one bottle." Perhaps she was used to frugality. Without thinking about it, Deng’s mother immediately said intuitively, "No, that’s a luxury that only rich people can drink." Teresa Teng didn’t say a word. She accepted her fate. She knew that saving a seven-dollar bottle of Coca-Cola would make her family eat better.

　　Deng’s mother came home and spent the night in trouble sleeping. She felt that she was too stingy. The Deng family can live a relatively comfortable life at this time. It is all because of the little girl’s singing and rushing to make such a situation. The mother did not consider satisfying her little desire, but also flatly refused her. What is even more lovely is that the child is not angry at all, nor does it take credit. What else can such a child say to thank her? Early the next morning, Deng’s mother went to buy a dozen Coca-Cola and put it in the refrigerator. She hugged her and said, "You can drink as much as you want!" Teresa Teng was so happy that tears fell down, and immediately shared them with his brother and younger brothers. It can be seen how low her desire is and how simple and honest people are. She was fully happy about this little thing for several months.

　　Teresa Teng has nothing to say about his feelings for his brother and younger brother. Since childhood, the three brothers have loved and protected her very much, and they also vaguely know that this singing sister has the ability to make money that they can’t reach. How extravagant it is to eat eggs when the family is poor! But every morning, when my sister comes back from hanging her throat by the river, my mother will wash a raw egg with warm boiled water to moisten her throat and protect her throat. For a long time, she has the privilege of drinking a cup of egg honey juice with a whole egg every day. Her brothers have never been greedy and protested. They think it is right to be kind to her, because the whole family is her hardest!

　　When Typhoon Gloria ravaged Taiwan Province, Luzhou was badly flooded. At that time, the Deng family lived in the family house at No.109, Zhonglu Village Middle Road. Suddenly, the water jumped to the lintel, and the whole family climbed up the small attic higher from the ground. Deng’s father tried his best to keep the water from rushing in. Deng’s mother was busy packing up what she had, and three brothers were responsible for protecting Teresa Teng. None of the children cried, and the whole family quietly clung to it and stayed together to tide over the crisis. This made her little mind realize that home is the most important thing, and it is better for a family to stay together than anything else. In the future, although she lived abroad, she always tried to get home to be with her family during the Chinese New Year holiday every year, and she spent it happily at home until the Spring Festival before her death.

　　After the flood, every household was waiting for Luzhou Township Office to distribute relief food, and Deng’s father went to help distribute it. Several brothers and sisters just dragged the mud at home, cleaned up the debris and cleaned up the garbage. Mother Deng saw it in her eyes and comforted her in her heart. This accidental accident triggered her desire to buy a better house for her family, and to live higher to avoid flooding. When Teresa Teng’s income was just enough to buy a house, the Deng family bought the first house in Beitou Danfeng Mountain, and the whole family moved out of Luzhou.

　　Mother Deng said that it’s good to have your own house, and the sense of belonging to a home is extremely happy. No matter how late they run to the karaoke bars for a show, the mother and daughter must rush back to their homes and rarely stay out in hotels. Deng’s mother recalled: "In my life, Lijun really had nothing to say to her family, but I, as a mother, never thanked her in person. After she left, I just stayed at home alone and saw that everything in front of me was her shadow, the house she bought, the clothes I wore, the quilt I covered at night and even the cups I used at home were all bought by her, so I especially wanted to say thank you, but she couldn’t hear it.

　　Buying a house, because of its practicality, has become Teresa Teng’s natural introduction to financial management. She doesn’t play stocks or invest in business. When she has enough money, she just buys a house, and she prefers the higher ground. Later, in Stanley, Hong Kong (so that she belongs to the dragon), in Singapore, in Paris, France, in Beverly Hills and Taipei, the houses she bought were all high above the ground, perhaps because of the shadow of the typhoon when she was a child!

(Source: Xinmin Evening News)

　　The Central Committee of the Communist Party of China’s Decision on Deepening the Reform of Party and State Institutions, which was deliberated and adopted at the Third Plenary Session of the 19th CPC Central Committee, pointed out that to deepen the reform of Party and State institutions, it is necessary to strengthen the overall leadership of the Party. To study and implement the Decision, we must accurately grasp the red line of upholding and strengthening the Party’s overall leadership, deeply understand that upholding and strengthening the Party’s overall leadership is the core task and key to promote the reform of the Party and state institutions, implement the Party’s leadership over all work throughout the whole process of reform, and build a Party leadership system that takes the overall situation into consideration and coordinates all parties, so as to provide a strong institutional guarantee for the long-term governance of the Party and the long-term stability of the country.

　　First, adhering to the overall leadership of the party is an important principle that must be adhered to in deepening institutional reform.

　　The "Decision" profoundly summarizes the successful experience of Socialism with Chinese characteristics’s political construction and clarifies four principles that must be followed in deepening the reform of the party and state institutions. The first one is "upholding the overall leadership of the party". Only by grasping and implementing this principle can we ensure the correct direction of the reform of the party and state institutions.

　　(1) the Communist Party of China (CPC)’s leadership is the most essential feature and the greatest institutional advantage of Socialism with Chinese characteristics. Since the 18th National Congress of the Communist Party of China, the CPC Central Committee with the Supreme Leader as the core has profoundly summarized the theory and practice of China’s revolutionary construction and reform in the historical process of commanding great struggles, great projects, great undertakings and great dreams, and clearly put forward that the leadership of the party is the most essential feature of Socialism with Chinese characteristics and the greatest advantage of the Socialism with Chinese characteristics system. This important conclusion has deepened the party’s leadership position and role from the inevitability of historical development and practical development to the inevitability of road development and system development, deepened the understanding of communist party’s ruling law, the law of socialist construction and the law of human social development, and deepened the understanding of Socialism with Chinese characteristics’s essence. It is the most important understanding achievement and the most fundamental experience summary of our party and China people in upholding and developing Socialism with Chinese characteristics, and it is road confidence, theoretical confidence and self-confidence. To uphold and improve the Socialism with Chinese characteristics system, the most crucial and core thing is to uphold and strengthen the Party’s overall leadership, better embody this most essential feature and give full play to this greatest advantage.

　　(2) Upholding the Party’s leadership over all work is an inevitable requirement for upholding and developing Socialism with Chinese characteristics in the new era. Party, government, military and civilian studies, east, west, north and south, the party is the leader of everything. The General Secretary of the Supreme Leader put forward the basic strategy of Socialism with Chinese characteristics in the new era. The "first insistence" of the "14 Persistences" is to uphold the party’s leadership over all work. China is a socialist country under the people’s democratic dictatorship led by the working class and based on the workers’ and peasants’ alliance. Our party is the vanguard of the working class, the people of China and the Chinese nation, representing the fundamental interests of the overwhelming majority of the people, and has no special interests of its own. Based on the nature of our country’s national system and party, it is proper to strengthen the overall leadership of the party. Our party has been in power for 69 years. After long-term practice, especially since the 18th National Congress of the Communist Party of China, we have clearly adhered to the party’s overall leadership and strictly managed the party in an all-round way, leading the Chinese nation to a great leap from standing up, becoming rich and becoming strong. This fully proves that the system and mechanism embodying the party’s overall leadership are effective and useful, and can best mobilize the enthusiasm, initiative and creativity of the broad masses of people. At present, China’s development is in a promising historical opportunity period. To seize the historical opportunity and realize the great dream, we must unswervingly uphold and strengthen the overall leadership of the party, constantly improve the institutional arrangements for upholding the overall leadership of the party, and vigorously promote the modernization of the national governance system and governance capacity. To sum up, adhere to the party’s leadership over all work,It is the demand of the people, the demand of practice and the demand of the times.

　　(3) Upholding and strengthening the overall leadership of the Party is the primary task and fundamental guarantee for deepening the reform of the Party and state institutions. The party’s overall leadership is concrete, not empty or abstract, and must be reflected in all aspects of governing the country, in the design, arrangement and operation of the institutions, systems and systems of state power, and in ensuring and realizing the political, ideological and organizational implementation of the party’s leadership. The "Decision" focuses on further institutionalizing the position and role of the Party as the highest political leading force, and regards upholding and strengthening the overall leadership of the Party as the primary task of this institutional reform. To deepen the reform of the party and state institutions, promote the modernization of the national governance system and governance capacity, and promote the Socialism with Chinese characteristics system to be more mature and more stereotyped, we must move in the direction of upholding and strengthening the party’s overall leadership, and strive to implement the party’s overall leadership in place. The reform of the party and state institutions is a political system reform that has a bearing on the overall situation and should be understood and grasped politically. To ensure the correct direction of reform and the smooth progress of various tasks, we must give full play to the core role of the party in overall planning and coordinating all parties, and earnestly put the political theme of upholding and strengthening the party’s overall leadership throughout the whole process of reform.

　　(4) To uphold the overall leadership of the Party, the most fundamental thing is to uphold the authority of the CPC Central Committee and centralized and unified leadership. Centralized and unified leadership by the Party Central Committee is the highest principle of the Party’s leadership and the most fundamental political rule. The 19th National Congress of the Communist Party of China clearly pointed out that it is the primary task of the party’s political construction to ensure that the whole party obeys the Central Committee and uphold the authority of the Party Central Committee and centralize and unify leadership. In the big chess game of the national governance system, the CPC Central Committee is the "handsome" in the military account. To build and improve the Party’s leadership system and national governance system, we must adhere to the authority and centralized and unified leadership of the CPC Central Committee as the fundamental point, further establish and improve the institutional mechanism for strengthening centralized and unified leadership of the CPC Central Committee, ensure the unity and unity of the whole Party and the unity of actions, and ensure the rapid and effective implementation of the decision-making arrangements of the CPC Central Committee. To deepen the reform of the Party and state institutions, the task is arduous and far-reaching, which affects the whole body. We must firmly establish political consciousness, overall situation consciousness, core consciousness and conformity consciousness, resolutely safeguard the core position of the Supreme Leader General Secretary in the CPC Central Committee and the whole party, resolutely safeguard the authority and centralized and unified leadership of the CPC Central Committee, consciously maintain a high degree of ideological and political unity with the CPC Central Committee with the Supreme Leader Comrade as the core, and carry out all the established tasks firmly and forcefully in accordance with the unified arrangements of the CPC Central Committee.

　　Second, improve the institutional arrangements for adhering to the party’s overall leadership

　　Focusing on ensuring the full coverage of the party’s leadership and ensuring that the party’s leadership is stronger and stronger, the "Decision" puts forward that strengthening the party’s leadership in all fields and aspects of work is the primary task of deepening the reform of the party and state institutions, and makes comprehensive arrangements and strategic arrangements for optimizing the party’s organizational structure and improving the system of adhering to the party’s overall leadership.

　　(1) establish and improve the party’s leadership system and mechanism for major work. The party’s leadership system and mechanism for major work plays a leading role in the overall leadership system arrangement of the party. Things are in all directions, and they should be in the center. To strengthen the party’s overall leadership, we must first strengthen the party’s centralized and unified leadership over major work involving the overall situation. The establishment of decision-making and deliberation coordination institutions by the CPC Central Committee is an effective system design to strengthen the party’s leadership over major work. As early as 1958, the CPC Central Committee established leading groups in finance, politics, law, foreign affairs, science, culture and education. Comrade Mao Zedong pointed out that these groups belong to the CPC Central Committee and the major policies are in the Politburo. Since the 18th National Congress of the Communist Party of China, the CPC Central Committee with the Supreme Leader as the core has further strengthened its centralized and unified leadership over major work involving the overall situation, and successively established the Central Leading Group for Comprehensively Deepening Reform, the Central National Security Council, the Central Leading Group for Cybersecurity and Informatization, and the Central Military Commission for Deepening the Reform of National Defense and the Army. These decision-making and deliberation coordination bodies of the CPC Central Committee have played a very important and key role in promoting the historic achievements and changes in the cause of the party and the state. The "Decision" puts forward the principle requirements for establishing and improving the party’s leadership system and mechanism for major work, clarifies the decision-making and deliberation coordination body of the CPC Central Committee, carries out work under the leadership of the Political Bureau of the Central Committee and its Standing Committee, and bears the important responsibility of top-level design, overall layout, overall coordination and overall promotion of major work. The "Decision" also affects other deliberative and coordinating bodies, party committees (party groups) of various regions and departments.Improve relevant institutional mechanisms and put forward clear requirements. These institutional arrangements and principle requirements fully reflect our party’s accurate grasp of China’s national conditions and deepening understanding of the operating rules of state power, which is conducive to maintaining the authority of the CPC Central Committee and centralized and unified leadership from the system, and is conducive to ensuring the smooth implementation of the Party Central Committee’s decrees and efficient work.

　　(2) Strengthen the leading position of Party organizations in organizations at the same level. Straightening out the relationship between the Party’s organizations and other organizations and strengthening the leading position of the Party’s organizations in organizations at the same level is an important guarantee to achieve full coverage of the Party’s leadership. In the report of the 19th National Congress of the Communist Party of China, the General Secretary of the Supreme Leader pointed out that in China’s political life, the Party is in a leading position. Strengthening the centralized and unified leadership of the Party and supporting the NPC, the government, the CPPCC, the courts and procuratorates to perform their functions, carry out their work and play their roles in accordance with the constitution are unified. Since the 18th National Congress of the Communist Party of China, it has become an important institutional arrangement for The Politburo Standing Committee (PSC) to regularly listen to the work reports of the leading groups of the National People’s Congress Standing Committee (NPCSC), the State Council, Chinese People’s Political Consultative Conference, the Supreme People’s Court and the Supreme People’s Procuratorate and the work reports of the Central Secretariat, which has a very important demonstration significance for the whole party. The "Decision" clearly states that party committees (leading groups) established in state organs, institutions, mass organizations, social organizations, enterprises and other organizations accept the unified leadership of the party committees that approved their establishment and report their work regularly. At the same time, it proposes to speed up the establishment and improvement of party organizations in new economic organizations and social organizations. These regulations are conducive to highlighting our Party’s strong leadership core position in the cause of Socialism with Chinese characteristics, enhancing the seriousness and standardization of political life within the Party, and effectively embodying the Party’s role of commanding the overall situation and coordinating all parties in various organizations at all levels.

　　(3) Give full play to the role of the Party’s functional departments. The Regulations on Working Organs of the Communist Party of China (CPC) (for Trial Implementation) stipulates that the working organs of the Party are the political organs for the Party to implement political, ideological and organizational leadership, and the executive organs for implementing the decision-making arrangements of the CPC Central Committee and local party committees at all levels, implementing party leadership, strengthening party building, and advancing the party’s cause; The functional department of the Party Committee is the competent department responsible for a certain aspect of the Party Committee’s work, exercising relatively independent management functions in accordance with regulations, formulating relevant policies and regulations and organizing their implementation, and coordinating and guiding the work in this system and this field. To deepen the reform of the party and state institutions, an important task is to give full play to the role of the party’s functional departments, better promote the implementation of the decision-making arrangements of the CPC Central Committee, and realize the party’s comprehensive leadership in politics, ideology and organization. The "Decision" proposes to optimize the allocation of responsibilities of Party organizations, propaganda, United front, politics and law, party building, education and training, and further clarify and strengthen the functions of these departments in centralized coordination and overall planning. At the same time, it puts forward the principle requirements for the reform of party committees’ offices, party agencies and institutions directly under the party committees, emphasizing that party committees (party groups) at all levels should strengthen their ability to implement and strengthen their coordination and supervision functions. These regulations and requirements have adapted to the development trend of expanding the Party’s cause in breadth and depth, and are conducive to transforming the Party’s theory, line, principles and policies into concrete measures and practical results.

　　(4) Make overall plans to set up party and government organizations. Party and government organizations are an important support for our party to govern the country and an important force to promote the cause of the party and the state. Since the reform and opening up, we have continuously promoted institutional reform, abolished and merged a number of departments and institutions, optimized and transformed government functions, reduced administrative costs, improved work efficiency, and effectively promoted and guaranteed the sustained and healthy development of China’s economy and society. The 19th National Congress of the Communist Party of China pointed out that the establishment of various institutions should be considered as a whole, the power of the party and government departments and internal institutions should be scientifically allocated, and the responsibilities should be clearly defined. To implement the strategic plan of the 19th National Congress of the Communist Party of China, in accordance with the requirements of adhering to the centralized and unified leadership of the CPC Central Committee, and in view of the outstanding problems existing in the actual operation of party and government institutions, the Decision clearly stipulates that it is necessary to improve the layout of party and government institutions, straighten out the responsibilities of party and government institutions, form a unified and efficient leadership system, ensure the centralized and unified leadership of the Party, and ensure the coordinated and efficient operation of other institutions, and propose that relevant party institutions can work with other departments with similar functions and close ties. Considering and setting up the party and government institutions as a whole, building a new pattern of party and government institutions that meets the development requirements of the new era, grasping the key points that affect the operational efficiency of party and government institutions at present, embodying the requirements of optimizing and coordinating the functions of institutions, and breaking the barriers of departmentalization and localization, which is conducive to strengthening the party’s leadership, enhancing the government’s execution, and giving play to the decisive role of the market in resource allocation and giving better play to the government’s role.Is conducive to highlighting the superiority of the Socialism with Chinese characteristics system.

　　Third, strengthen the party’s ability and determination to take the direction, seek the overall situation, formulate policies and promote reform.

　　To deepen the reform of the party and state institutions, we should not only improve the institutional arrangements to ensure the party’s overall leadership, but also focus on improving the party’s leadership style and ruling style, and earnestly enhance the party’s ability and determination to take the direction, seek the overall situation, formulate policies and promote reform.

　　Enhance the ability and determination of the direction. Direction is the flag, the road, and the common goal we are striving for. The first priority of the party’s leadership is to raise the flag and orient. On the way forward, we must hold high the great banner of Socialism with Chinese characteristics, adhere to the guidance of the Supreme Leader’s Socialism with Chinese characteristics Thought in the new era, Do not forget your initiative mind, keep in mind the mission, strive forever, promote social revolution and self-revolution with a high degree of consciousness, consistently uphold and develop Socialism with Chinese characteristics, consistently promote the new great project of party building, and consistently enhance the sense of hardship and guard against risk challenges. It is necessary to strengthen the "four consciousnesses" in the design and operation of institutional mechanisms, ensure the maintenance of the authority of the CPC Central Committee and centralized and unified leadership with more perfect institutional arrangements, safeguard the core position of the Supreme Leader General Secretary in the CPC Central Committee and the whole party, and ensure the smooth implementation of government decrees and prohibitions. It is necessary to strengthen political determination, adhere to political principles and the bottom line, and never make subversive mistakes on fundamental issues. It is necessary to enhance acumen, improve synergy, effectively find and deal with emerging problems in reform and development, and take precautions before they happen.

　　Enhance the ability and determination to seek the overall situation. The historical position we are in is a new era in Socialism with Chinese characteristics, and the undertaking we are undertaking is an unprecedented great undertaking. No matter how to understand and analyze problems and plan and promote work, we should think and act under the overall situation to prevent situations that are not conducive to the overall situation and the long term. We should focus on winning the goal of building a well-off society in an all-round way, building a socialist modern country in an all-round way, and then realizing the Chinese nation’s great rejuvenation of the Chinese dream. We should focus on the grand practice of taking charge of great struggles, great projects, great undertakings and great dreams, focus on promoting the overall layout of the "five in one" and the "four comprehensive" strategic layout, focus on coordinating the two overall situations at home and abroad, grasp it as a whole, plan strategically, focus on it in the long run, and make efforts according to the situation.

　　Enhance the ability and determination to make policies. Policy is the touchstone to reflect the nature and purpose of the ruling party and a sign to reflect the level of governing the country. In promoting economic and social development, we must persist in taking the people as the center, focus on safeguarding the fundamental interests of the overwhelming majority of the people, focus on solving the contradiction between the people’s growing need for a better life and the unbalanced development, grasp the most urgent and anxious problems of the people, grasp the most direct and realistic interests of the people, formulate practical and effective policies and measures, and continuously enhance the people’s sense of happiness and security. We must persist in seeking truth from facts, proceed from reality, from the masses to the masses, carry out extensive and in-depth investigations and studies, and analyze specific problems, so as to make policies, measures and programs conform to the reality, reflect objective laws, solve practical problems, resolutely oppose formalism and bureaucracy, and achieve targeted, dialectical and precise efforts.

　　Enhance the ability and determination to promote reform. Reform and opening up is the most distinctive banner of our party and a key measure to determine the fate of contemporary China. After 40 years of great revolution of reform and opening-up, the reform has entered the deep water area, so we must work hard, be firm, dare to bite hard bones and venture into dangerous beaches. We must vigorously carry forward the spirit of reform, innovation and self-revolution, promote ideological emancipation and reform, and achieve new breakthroughs in comprehensively deepening reform. It is necessary to focus on promoting the modernization of the national governance system and governance capacity, adapt to the basic characteristics that China’s economy has shifted from a high-speed growth stage to a high-quality development stage, scientifically determine the reform and development ideas, formulate reform and development measures, dare to take responsibility, do good deeds, and break new ground in practice. It is necessary to encourage grassroots innovation, advocate daring to try and be the first, strengthen in-depth excavation, scientific summary, publicity and promotion of successful experiences in reform, promote the formation of a stronger and more dynamic atmosphere for innovation and creation, and unite a powerful force for unswervingly promoting reform and opening up.