Fuzhou, Jiangxi, a cultural city with a thousand years of history, was once thrust into the spotlight due to a sensational 'mining' incident.
The protagonist of this incident was none other than the former Secretary of the Fuzhou Municipal Party Committee - Xiao Yi.
The 'mining' farce he orchestrated not only cast a shadow over Fuzhou's economic development but also exposed many risks present in local government during the development of the digital economy.
Xiao Yi's downfall was like the first domino falling, triggering a series of chain reactions.
Fuzhou Genesis used to be a major electricity consumer in the city, accounting for 10% of the city's electricity consumption, but now it is deserted and empty.
The once roaring mining machines have long since fallen silent.
Fuzhou High-tech Zone, which once carried Xiao Yi's dream of a 'digital economy', now appears particularly desolate, in stark contrast to the streetlights and traffic police installed in surrounding towns.
All of this stemmed from Xiao Yi's failed 'mining dream'.
What kind of 'dream' is this, after all?
Why is a municipal party secretary so obsessed with Bitcoin 'mining'?
How are power and desire intricately intertwined behind this?
Xiao Yi's political career can be described as smooth sailing.
After graduating from university at the age of 19, he devoted himself to education, then entered politics, gradually rising from grassroots cadres to become the Secretary of the Fuzhou Municipal Party Committee.
Behind this glamorous resume lies his intense desire for power and interests.
During his tenure in Ruijin, he was keen on image projects, using various means to build connections and consolidate his position.
This strategy of 'network investment' allowed him to rise steadily in his career, but it also laid the groundwork for his future 'crazy mining'.
After Xiao Yi moved to work in the Beijing office, he experienced a broader world and felt greater power and interests.
This made his already inflated desires even harder to control.
In 2015, Xiao Yi was transferred to be the Secretary of the Fuzhou Municipal Party Committee, turning his attention to the emerging industry of the time - the digital economy.
He loudly proclaimed the slogan of 'digital economy' while secretly diverting Fuzhou's resources to Bitcoin 'mining' projects.
The young businessman Lin Qingxing from Putian was in perfect harmony with Xiao Yi.
Lin Qingxing had been in the cryptocurrency sphere for a long time and always dreamed of establishing a large 'mining' enterprise in the country.
Xiao Yi's emergence provided him with an excellent opportunity.
The two took what they needed; one craved achievements and benefits, while the other sought wealth and expansion, thus commencing a grand drama of power-money transactions.
With Xiao Yi's strong protection, Lin Qingxing's company - Fuzhou Genesis, developed rapidly.
Xiao Yi not only personally facilitated connections for him but also used his position to introduce Genesis Company as a key enterprise into Fuzhou High-tech Zone.
Massive financial subsidies, loan support, and even 10% of the city's electricity resources were prioritized for Genesis's mining machines.
Residents of Fuzhou often encountered power outages, yet the mining machines at Genesis kept running, consuming a significant amount of electricity.
In response, Xiao Yi and Lin Qingxing went to great lengths to design a high-tech scheme to cover up the truth.
They installed two systems on each computer, one for 'mining' and the other to disguise the reality.
Whenever inspectors arrived, they would immediately switch to a fake interface, disguising the mining machines as equipment for artificial intelligence and big data research.
This deceptive tactic once allowed Xiao Yi's 'mining' plan to proceed smoothly.
However, paper cannot contain fire forever.
In 2018, the electricity consumption of Genesis Company reached 74.75 million kilowatt-hours, far exceeding that of other units in the city, which drew attention from the outside.
Meanwhile, some of Xiao Yi's other 'performance projects' in Fuzhou also began to reveal problems.
The fuel vehicle factory he invested 3 billion in loans to build appeared out of place against the backdrop of nationwide promotion of new energy, ultimately 'producing and then stopping production', causing enormous losses.
He invested 350 million to build a BRT rapid bus system, which nearly paralyzed urban traffic, leading to declining business for shops, and even large supermarkets like Walmart had to close their doors.
These 'performance projects' not only failed to bring substantial development to Fuzhou but also exacerbated the local financial burden, triggering strong public dissatisfaction.
These seemingly isolated events actually point to the same issue: how can local governments balance economic development and social sustainability during the development of the digital economy?
Xiao Yi's 'mining dream' is a typical case of such imbalance.
He only focused on pursuing rapid growth in the digital economy, wanting to achieve great success in this field, but ignored the long-term sustainable development of the industry.
This short-sighted approach ultimately led to the collapse of the 'mining dream' and dealt a heavy blow to Fuzhou's economic development.
Xiao Yi's 'mining' actions not only exposed his personal greed for power and interests but also reflected many risks present in local governments during the development of the digital economy.
These risks include: pursuing short-term economic benefits while ignoring the sustainability of the industry; lacking rational judgment and scientific planning for the digital economy; overly relying on policy support while neglecting market rules; and absence of regulation leading to resource wastage and environmental pollution.
The 'mining empire' that Xiao Yi painstakingly managed seemed solid, yet it was fraught with crisis.
His collaboration with Lin Qingxing was built on the foundation of power-money transactions, lacking a solid trust basis.
Lin Qingxing secretly manipulated the situation for personal gain, ultimately triggering an international dispute and becoming the fuse for the collapse of Xiao Yi's 'mining dream'.
In 2019, the German GM Foundation sued Fuzhou Genesis in court, accusing it of defaulting on equipment payments.
It turned out that Xiao Yi and Lin Qingxing had reached an agreement with the GM Foundation, promising to share the mining profits with them.
However, Lin Qingxing secretly withheld all Bitcoin, leaving the GM Foundation with nothing after two years.
This international dispute quickly attracted widespread public attention and exposed Xiao Yi's 'mining' actions to the spotlight.
This lawsuit was like the last straw that broke the camel's back, completely shattering Xiao Yi's 'mining dream'.
Once a star city of the 'digital economy', it has overnight become a laughingstock.
In May 2021, Xiao Yi was taken away by the discipline inspection commission for investigation and was 'double-opened' in November of the same year.
Investigations found that he illegally amassed 1.25 billion yuan through his position and was ultimately sentenced to life imprisonment, with all personal assets confiscated.
Lin Qingxing also could not escape legal sanctions; police found over 100,000 Bitcoin and other digital currencies in his accounts, with a total value exceeding 40 billion yuan.
Xiao Yi's downfall signifies the end of Fuzhou's 'mining' craze.
This city finally woke up from this absurd 'dream' and returned to the right track of economic development.
In the first half of 2024, Fuzhou's economic growth rate ranked among the top in the province, and infrastructure continued to improve.
The once brightly lit mining area is now desolate, contrasting sharply with the surrounding rejuvenated towns.
Xiao Yi's 'mining dream' has sounded an alarm for local governments regarding the development of the digital economy.
This incident reflects significant issues in local government regarding resource allocation and management.
Xiao Yi's rampant waste of electricity resources was mainly because he used his position to provide comprehensive protection for Genesis Company.
Even though Genesis's electricity consumption accounted for 10% of the city, under Xiao Yi's instructions, it could easily avoid power generation regulation.
This indicates that local governments are inadequate in law enforcement and regulation.
Xiao Yi's 'mining dream' also reflects the lack of long-term planning and scientific guidance in local government for emerging industries.
He focused solely on chasing GDP growth, wanting to achieve quick results in the digital economy, yet did not consider the long-term sustainability of industrial development.
The high energy consumption model of Genesis Company not only harmed local finances but also exacerbated energy supply tensions, ultimately leading to the collapse of the entire industrial chain.
What is even more concerning is that Xiao Yi's 'mining' incident exposed corruption issues in local governments regarding investment attraction and project approval.
He not only violated regulations by providing financial subsidies and loan support to Genesis Company but also used his position to engage in power-money transactions.
Such behavior of 'using power for personal gain' not only stripped local governments of their credibility but also disrupted the fair competitive market environment.
Xiao Yi's 'mining dream' ultimately ended in a complete failure.
This incident not only caused significant economic losses to Fuzhou but also provided important lessons for resource management and the development of the digital economy nationwide.
It reminds us that local governments must adhere to scientific planning and lawful governance when developing the digital economy, effectively safeguarding the fundamental interests of the people.
We must enhance regulation and improve systems. Local governments should establish and improve regulatory mechanisms in the digital economy field, clarify regulatory responsibilities, strengthen regulatory efforts, and prevent the abuse of power and corruption.
It is necessary to strengthen the review and supervision of digital economy projects to ensure that they comply with national industrial policies and environmental protection requirements, and to avoid the blind launch of high energy-consuming and high-pollution projects.
Scientific planning and rational development are essential. Local governments should not blindly pursue speed and scale; they should develop scientific and reasonable plans based on their actual conditions and choose digital economy industries that align with local development realities, avoiding a 'herd mentality' in development.
Attention should be paid to the integrity and sustainability of the industrial chain, promoting the integrated development of the digital economy and the real economy to achieve high-quality development.
We must administer according to law and maintain integrity. Local government staff should establish a sense of rule of law and integrity, strictly abide by laws and regulations, perform their duties according to law, firmly resist various temptations, and eliminate corruption behaviors such as seeking personal gain through power and power-money transactions.
We must strengthen the party's integrity construction and create a clean and upright political environment.
We must prioritize people and sustainable development. Local governments should always adhere to a people-centered development philosophy when developing the digital economy, placing the interests of the masses first.
Focus on environmental protection, promote green development, ensure the sustainable development of the digital economy, and leave green mountains and clear waters for future generations.
Xiao Yi's 'mining' incident serves as a mirror, reflecting the inadequacies and problems faced by local governments in the development of the digital economy.
In the era of digital economy, local governments must clarify their development direction, establish correct concepts, adhere to scientific planning and lawful governance, and ensure that the fundamental interests of the masses are genuinely maintained.
