To save money.
The adjustments made by Xing Hai Technologies in terms of salaries and benefits were mainly to save money. Moreover, the free policy in the Technology City was, in fact, inconsistent with so-called "socialism." It was not a system that rewarded everyone equally, regardless of merit. Absolute egalitarianism was clearly the road to certain death. It was absolutely unaffordable, even if the company was sitting on a gold mine.
While designing the welfare system, Chen Jin had answered the key questions raised by some senior company executives.
"President Chen, is it true that all goods are free?" a senior executive asked. "Including expensive luxury goods? Does the company have sufficient ability to supply unlimited luxury goods? You must know that the price of some bags and brand-name clothes cost tens of thousands, even hundreds of thousands. Can we afford to supply these things for free?"
