Yangcheng, Juchang Headquarters.
"Dongdong! Mr. Ren!" Mr. Yu knocked on the door and entered the office.
"You're back. How was your trip to Sioux City?"
"The smart city cooperation plan has been basically finalized. I also brought back a draft for strengthening strategic cooperation, please take a look."
"Well! There's no rush about that. You sit down first and take a look at this."
The 73-year-old man, who looked a little beaten, took the file and did not open it immediately, but turned on the TV screen next to him.
Mr. Yu sat down on the chair with some confusion and turned his eyes to the TV.
[On April 16, the United States Department of Commerce announced that relevant companies will be prohibited from selling parts, goods, software and technology to Xingzhong Communications in the next seven years.
Xingzhong Communications subsequently announced a trading suspension in the A-share and H-share markets, and the prices of its suppliers on the Nasdaq stock market fell sharply.
According to expert analysis, this is an attempt by the other side of the ocean to increase pressure on China in order to increase its advantage in subsequent trade negotiations...]
The news broadcast on TV made Mr. Yu stunned.
"this……"
This news is really shocking.
The four major communications giants at that time, "Dragon Communications" and "Datang Telecom" have both declined under the tide of the times.
Juchang and Xingzhong have become the only two remaining giants in the communications industry in China, ranking first and third in the world in 5G patents.
It can be said that there is cooperation and competition between them.
However, such a Xingzhong actually said that the confession was cut off?
Although Xingzhong, as its main competitor, is cut off in this way, it is an opportunity for Juchang to expand its market, especially in the 5G field.
But...inexplicably, the young face from yesterday appeared in Mr. Yu's mind...
"Alas!" Mr. Ren sighed. "What a troubled time!"
He looked at Mr. Yu, "What do you think of this matter?"
Mr. Yu came back to his senses, considered it carefully, and then spoke slowly.
"Mr. Ren, as far as I know, Xingzhong Communications almost completely relies on technology from across the ocean for many equipment, especially the core chips.
If supply is cut off, the core business will definitely suffer a devastating blow.
Moreover, Xingzhong Communications is still a listed company. I am afraid that they will only have two options left in the end, either going bankrupt or... giving in to the other party.
So I think negotiation is their only way out.
In the end, it all depends on how big the other party’s appetite is and what price it will cost to revive China.”
"Yeah! What else?"
"besides……"
Mr. Yu hesitated for a moment and looked at Mr. Ren's solemn expression.
"Also, today is Xingzhong, so next...will it be us?"
"Haha!" Mr. Ren suddenly laughed and nodded with satisfaction.
"That's right. After seeing what happened to Xingzhong, it's great to be prepared for danger in times of peace!"
After saying that, his face became extremely solemn again.
“When I saw this news, I immediately thought of two idioms.
One is like the death of a rabbit and the sadness of a fox, and the other...is like death of lips and cold teeth!"
He walked slowly to the floor-to-ceiling window and looked at Songshan Lake in the distance with deep eyes.
"This trade dispute is, on the surface, a trade imbalance dispute, but in essence it is a matter of replenishing financial capital.
Due to the decline of the beautiful country, the other party urgently hopes that China can open up its financial restrictions.
This will allow our domestic speculative capital to return to the other side of the ocean as soon as possible in the next round of interest rate hikes.
However, these capitals are holding back the wealth accumulated since the reform and opening up, and it is certainly impossible for the country to agree to capital outflows.
This is a dead end, and neither party can compromise in a short period of time!
In the past two days, I convened the group's strategy department for many discussions, and consulted some international strategy experts.
Coupled with what happened to Xingzhong today...
This makes me even more convinced that the other side will soon spread its focus from economic suppression to suppression of China's high-tech enterprises.
Economic war will soon evolve into technological war, and we have to guard against it!"
Mr. Yu lowered his head and remained silent.
This argument...
"Mr. Ren, what do you mean..."
"The Nanniwan plan... must be accelerated!"
"This..." Even though he had some guesses in his mind, Mr. Yu still looked shocked when he heard the words "Nanniwan".
The Nanniwan Plan is the spare tire plan of Juchang.
In fact, this was not a strategic plan at the beginning. It was just a plan to learn from large fruit manufacturers and suppliers to prepare one for each other to avoid affecting the supply chain due to emergencies.
But since many years ago, Mr. Ren has consciously avoided the risks that may be caused by foreign policies.
What happened today undoubtedly proves Mr. Ren’s advanced strategic vision!
"Mr. Ren, if the Nanniwan plan is launched, almost all of our fund mobilization, procurement plans, and investment and construction plans will be affected.
The situation...has it really become this urgent?" Mr. Yu frowned.
Although the Xingzhong Communications incident sounded the alarm for them, it was still just speculation after all.
Whether the other party will take action and when it will take action are all unknown.
The key is that such a big move is likely to slow down Juchang's original development speed and market occupation plan.
After all, he still had a sense of luck.
“With our current size, suppliers can be said to be spread throughout the entire industry chain, with annual procurement amounts in the tens of billions.
If the other party really wants to cut off our supply, they will undoubtedly kill one thousand enemies and lose eight hundred to themselves. They may not have this determination, right?
Moreover, today is still an era of globalized division of labor..."
"Globalized division of labor? That was in the past, times will always change.
Alas! I hope I am overthinking..." Mr. Ren sighed.
He looked at Mr. Yu.
"I'm quite relieved about other departments, but your terminal business department... is our weak link."
"You mean...chip?"
"Yeah! It's a pity that back then we only established Sihai for chip design, but we didn't get involved in chip manufacturing."
Mr. Ren said with regret.
Although chips are recognized as the hardest nut to crack, even if Juchang enters the market, he may not necessarily achieve anything.
But if we had entered the market earlier, at least we would not be so passive now. This is the pride of being one of the leading private technology companies in China.
"Regardless of whether our speculation today will come true, you must immediately start purchasing key components.
We must ensure at least half a year... no! At least one year of strategic reserves!"
"This..." Mr. Yu looked hesitant.
The largest terminal business in his hands is undoubtedly mobile phones.
However, the mobile phone industry chain is inherently a production process that tests the flow of funds and inventory.
After all, the backlog of inventory means that funds cannot be withdrawn quickly, and warehousing costs have to be borne, etc.
This fruit is almost perfect.
To be continued...