Yangcheng City, Hua Wei headquarters.
"Knock, knock! Mr. Ren!" Mr. Yu knocked and entered the office.
"You’re back. How was your trip to Su City?"
"The Smart City cooperation plan has been essentially finalized, and I’ve also brought back a draft for enhanced strategic cooperation for your review."
"Hmm! No rush on that; have a seat first and take a look at this."
The 73-year-old, who looked sowhat weathered, took the docunt but didn’t open it imdiately; instead, he turned on the TV next to him.
Mr. Yu, sowhat puzzled, sat down and turned his gaze toward the television.
[April 16, the US Departnt of Comrce announced that it will prohibit companies from selling components, goods, software, and technology to Xingzhong Communication for the next seven years.
Xingzhong Communication then announced a suspension of trading in the A-shares and H-shares markets, and its suppliers’ stock prices on the Nasdaq plumted temporarily.
Experts believe that this is an intention from across the ocean to increase pressure on Country Hua, aiming to gain advantages in subsequent trade negotiations...]
Mr. Yu was completely stunned by the news on the television.
"This..."
The news was indeed quite shocking.
In the past, of the four major communication giants, Julong Communication and Datang Telecommunications had already declined with the tide of ti.
Hua Wei and Xingzhong beca Country Hua’s remaining two telecommunication giants, ranked first and third in the world in 5G patents, respectively.
It could be said there was both cooperation and competition between them.
Yet Xingzhong could be cut off from supplies just like that?
Although, as a main competitor, Xingzhong’s supply cut could actually be an opportunity for Hua Wei to expand its market share, especially in the 5G domain.
But... inexplicably, Mr. Yu thought of the young face he had seen yesterday...
"Sigh!" Mr. Ren sighed deeply. "Troubling tis indeed!"
He looked at Mr. Yu, "What do you think of this?"
Mr. Yu ca to his senses, carefully pondered for a while, and then slowly said,
"Mr. Ren, as far as I know, Xingzhong Communication relies almost entirely on technology from across the ocean for many of its devices, especially the core chips.
This supply cut will absolutely deal a devastating blow to their core business.
Moreover, Xingzhong Communication is a public company, so, in the end, they only have two options, either to go bankrupt or... to capitulate to the other side.
So, I believe negotiations are their only way out.
Finally, it will depend on how much the other side wants and what price Xingzhong has to pay."
"Hmm! What else?"
"There’s also..."
Mr. Yu hesitated for a mont, observing Mr. Ren’s solemn expression.
"There’s also... Today it’s Xingzhong, but who will be next... Could it be us?"
"Ha ha!" Mr. Ren suddenly laughed; he nodded in approval.
"Good, seeing Xingzhong’s plight and still being able to foresee dangers is very good!"
After speaking, his expression beca very grave again.
"Seeing this news, I imdiately thought of two idioms.
One is ’when the rabbit dies, the fox grieves’; the other... is ’when the lips are gone, the teeth will be cold’!"
He slowly paced to the floor-to-ceiling window, looking at the distant Songshan Lake, his gaze deep.
"This trade war, on the surface, is a dispute over trade imbalance but in essence, it’s a matter of financial capitals needing replenishnt.
Due to the decline of the US, they are urgently hoping that Country Hua will loosen financial restrictions.
So that in the next interest rate hike cycle, our dostic speculative capitals can quickly return across the ocean for replenishnt.
However, these capitals, accumulating wealth since the economic reforms, will definitely not be allowed by the country to flow out of the borders.
This is a deadlock, and neither side is likely to compromise in the short term!
Over the past few days, I’ve convened our group’s strategic departnt for discussions several tis and consulted so international strategy experts.
Along with today’s incident with Xingzhong...
It has made even more convinced that they will soon target not just the economic pressures but also start pressing down on Country Hua’s high-tech enterprises.
The economic war will soon evolve into a technology war; we must be prepared!"
Mr. Yu bowed his head in silence.
This argunt...
"Mr. Ren, do you an..."
"The Nanniwan Plan... must be accelerated now!"
"This..." Even though he had so premonitions, hearing the words "Nanniwan Plan" still made Mr. Yu show a shocked expression.
The Nanniwan Plan, that was Hua Wei’s backup plan.
Initially, it wasn’t considered a strategic plan but rely followed the practice of companies like Apple with dual suppliers to avoid impacting the supply chain due to unforeseen events.
But starting years ago, Mr. Ren had already consciously begun to avoid risks possibly caused by foreign policies.
Today’s incident undoubtedly proved Mr. Ren’s foresight in strategy!
"Mr. Ren, if we initiate the Nanniwan Plan, it will affect our capital movent, procurent plans, and investnt construction plans.
Is the situation already this critical?" Mr. Yu frowned.
Although the Xingzhong Communication incident had sounded the alarm for them, it was still speculation.
Whether or not the opposition would act, and when, remain unknown.
The key is that such massive preparations could possibly slow down Hua Wei’s original developnt speed and market expansion plans.
In the end, he still harbored a sliver of hope.
"Given our current scale, our suppliers cover the entire supply chain, with annual purchasing amounts counting in the tens of billions.
If they really decide to cut us off, it would undoubtedly be a case of ’killing the enemy at the cost of self-damage’; perhaps they won’t have the resolve for that?"
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