Rebirth Tokyo 1986

Chapter 399 A Difficult Choice
Out of respect for Ren Zhengfei, Masato Takeshita arrived downstairs early to greet him.

Then, the moment he got out of the car, he immediately stepped forward and introduced himself.

"Welcome, welcome. It's a pleasure to meet you. I am Masato Takeshita, Chairman of the Xinghai Group."

"Hello, hello, nice to meet you, I am Ren Zhengfei, president of Huawei."

Mr. Ren maintained a humble yet assertive attitude, showing no inferiority complex despite the significant gap between the two companies.

His childhood dream was simply to have enough to eat. He has weathered countless storms, and there is nothing ahead of him that can frighten him anymore.

After a brief self-introduction, the two then introduced their respective team members to each other.

Ren Zhengfei, in particular, gave a very detailed and thorough introduction, demonstrating his respect and care for his employees.

This may be an important reason why he has won the favor of many scientific and technological talents.

That kind of heartfelt respect is something many leaders lack.

The modern-day Liu Bei is truly deserving of his reputation.

Masato Takeshita's office wasn't big enough to accommodate so many people. Therefore, at Miho Uchida's arrangement, the group went to a small meeting room next to the chairman's office.

This is also where the top leaders of Xinghai Group hold meetings; the overall layout is very comfortable and pleasant.

"Mr. Ren, I'm so sorry, you've been here for so long, but we're only meeting formally today."

"Not at all, not at all, Chairman Takeshita, you're too kind. With such a large-scale Xinghai Group, you must be very busy as the person in charge."

"Besides, it was Xinghai Communications that invited us in the first place. As the head of the head office, it is already an honor for us to be able to get close to you, Chairman Takeshita."

During the tea ceremony, the two began exchanging polite words.

On the one hand, I genuinely felt that way, and on the other hand, I wanted to use chatting to get closer to each other.

The two sides were too unfamiliar with each other, and it always felt awkward to talk about things.

The two exchanged pleasantries for two or three minutes before Takeshita Masato broke the cycle.

"To be honest, I've wanted to invest in Huawei for a long time. Back when you developed the JK1000 digital switch but were dealt a heavy blow."

"However, considering the growth benefits that failure could bring to the company, I ultimately chose to observe from the sidelines."

Whether for individuals or companies, the experience of failure is always memorable.

It was precisely because of this painful memory of failure that Huawei developed a strong emphasis on service and technological innovation.

In addition to establishing research institutes, they also frequently organize delegations to visit world-class semiconductor companies.

Later, they even turned to IBM and spent a large sum of money to improve the company's management system.

These are all lessons Huawei learned from its failures. Without this setback, Huawei would likely still be operating as a small workshop, completely oblivious to the importance of product quality.

This failure can be said to have thoroughly awakened Ren Zhengfei.

"This... I never thought such a thing existed. If I had known, I wouldn't have borrowed money from loan sharks."

"But thanks to Xiao Li and Xiao Zheng, I was able to avoid jumping off the building."

Ren Zhengfei wasn't entirely convinced, but he still responded with a sense of emotion and continued speaking.

He never wants to experience the failure of JK1000 development again in his life.

It was so painful and torturous. Every day I woke up to scenes of not being able to pay back the money, the company going bankrupt, and myself being finished.

"Don't worry, Mr. Ren, you would never jump off a building. Even if you fail again, you will grit your teeth and keep fighting."

"You are a fearless warrior who will never be defeated by difficulties."

Life is a journey of continuous struggle!
Ren Zhengfei is extremely tenacious. He will not give up even if he fails once or twice, let alone ten or a hundred times.

He will only stop striving when he dies or becomes too old to move.

"Really? Maybe."

Ren Zhengfei smiled, surprised that there were people in a foreign land who understood him.

However, at this moment, he genuinely began to believe that the person in front of him had been observing him and the company all along.

Although his primary target was Ren Zhengfei, Masato Takeshita did not overlook other important Huawei talents such as Zheng Baoyong and Li Yinan.

Especially Li Yinan, who, like Zheng Baoyong, was a heroic figure who rescued Hua from dire straits.

The C&C08 digital program-controlled switch, which he spearheaded the development of, helped Huawei emerge from the shadow of the JK1000 failure.

From then on, Huawei embarked on a path of rapid development.

However, this guy is restless, and even if he leaves Huawei in the future, Xinghai Group may not have a chance to win him over.

After a brief chat, Masato Takeshita got down to business.

"We can package and transfer the PHS technology and related technologies for mobile base station projects to Huawei, but a certain fee will be required. This fee will then be deducted from the financing funds."

"Yes, that's all I should do."

Ren Zhengfei readily agreed, expressing his willingness to pay the money.

Because some experience and skills are things that money can't buy.

Just like learning, having a book to learn from and having a teacher to teach you are completely different experiences.

"Okay, so be it."

For the next few days, Masato Takeshita accompanied Ren Zhengfei on leisurely strolls and chats.

It introduces the beautiful scenery of Tokyo, as well as some of the Starsea Group's businesses in Tokyo.

As for financing negotiations, they were all handled by subordinates.

The two only need to check the final contract, and once they confirm that there are no problems, they sign their names and affix their seals.

"Wow, that's fast. This is the first time I've ever reached a cooperation agreement with a big company so quickly."

Ren Zhengfei carefully examined the draft agreement in his hand, and couldn't help but admire Xinghai Group's rapid progress.

Unexpectedly, after a trip to Japan, a basic financing consensus was reached in less than a week.

Of course, this is also related to Xinghai Communications making more concessions.

Technical issues cannot be compensated for with a little money.

If Xinghai Group is willing to sell its patents for money, not to mention other companies, Samsung of South Korea will definitely be the first to pounce.

Xinghai Communications' experience will save related companies from taking several years of detours.

In addition to teaching Huawei employees the world's top communication equipment manufacturing technology, Xinghai Communications also helps Huawei find cheaper component suppliers.

However, Xinghai Group also made a fortune in the process.

First, the company's wafer fabs and assembly plants can make a profit from the foundry business.

Secondly, the chip and LCD component departments can also join Huawei's procurement system and make another profit.

Currently, Huawei's procurement and OEM production volumes are relatively small, and the future prospects are not yet very promising.

When Huawei's sales exceed 10 billion yuan in a few years, it will be a very large project.

After the preliminary contract was signed, Takeshita Masato entrusted the rest of the work to Ono Kenji. The general direction of the agreement had been determined, and it was estimated that after another week or two of discussions, the final formal contract signing could be completed before the Chinese New Year.

At that time, the YMCA would go to the special economic zone where Huawei was located in advance to sign the agreement, which would help raise Huawei's profile.

In fact, Ren Zhengfei's willingness to accept investment from Xinghai Group is also significantly influenced by his public profile.

Because China is still relatively poor, there is a common unspoken rule among college students when looking for jobs.

European and American foreign companies > Japanese foreign companies > European and American joint ventures > Japanese joint ventures > Korean foreign companies > Korean joint ventures > Hong Kong companies > Taiwanese companies...

Huawei's commitment to invest in Xinghai Communications will elevate its ranking in the recruitment market from the lowest to the upper-middle level, significantly increasing its attractiveness to talent.

In addition, Huawei's products will sell better.

Because Huawei can skirt the issue by implying that it has the backing of Xinghai Group.

Furthermore, when Huawei sells equipment overseas, it can also use this tactic to avoid the embarrassment of no one being willing to accept it in the early stages.

You have to understand that many foreigners these days know absolutely nothing about China. Some people even buy a copy of "The Last Emperor" and think they're China experts.

Indeed, in the 1990s and even the early 21st century, China's global reputation was just that absurd.

Apart from East Asia and Southeast Asia, the vast majority of people in most countries know nothing about China.

Japan is quite different; through decades of pioneering development, it has already established brand influence in the world today.

For products of similar quality, especially electronics, those made in Japan are generally more expensive and sell better.

If you were to ask who is most concerned about Huawei's visit to Xinghai Communications, it would undoubtedly be ZTE.

Therefore, as soon as Ren Zhengfei returned to China, Hou Wengui couldn't wait to visit him.

"Old Ren, what's the situation over there?"

In their previous lives, Huawei and ZTE had virtually no interaction before 1998.

In the field of telephone switches, both companies are relatively unknown new players. They are not even comparable to foreign companies, let alone Datang International and Julong Group.

Therefore, the current relationship between the two is actually quite good due to their simultaneous investment in Xinghai Communications.

This is why Hou Wengui was able to visit Ren Zhengfei as soon as he returned.

However, the two companies have similar businesses and will inevitably become competitors sooner or later, so Ren Zhengfei did not give a direct answer.

"Xinghai Group truly lives up to its reputation as a world-renowned company. Even its subsidiary, Xinghai Communications, is built like something out of a science fiction movie."

"I really hope that Huawei can develop to the level of Xinghai Communications in the future."

Hou Wengui, a company executive with a teaching background, remained unmoved by Ren Zhengfei's evasive answers.

He smiled calmly again and said, "Xinghai Communications is backed by Xinghai Group, so they definitely only use the best equipment."

"But I believe that both of our companies will have that in the future."

"As far as I know, Xinghai Group is a world-class investor."

"Putting aside other things, Nokia, which was on the verge of bankruptcy, was quickly revived after receiving investment from Xinghai Group and is now one of the world's top three mobile phone manufacturers."

To enhance its persuasiveness, Xinghai Group frequently mentions several highly successful investment projects.

Nokia, in particular, always brings this up with every investment.

Superstition or prejudice, it may be.

Almost every company founder hopes to have abundant investor resources and a high success rate for their projects.

This would prove that you have a greater chance of success.

Investors who have experienced multiple investment failures will politely decline promising projects.

Don’t be afraid of ten thousand, just be afraid of what happens.

In addition, Nokia's case also demonstrates the characteristics of Xinghai Investment.

Following Tencent's investment strategy, we will not interfere in the company's daily affairs and will not threaten the interests of management.

It is precisely because of these two characteristics that many company founders are more willing to accept Xinghai Group's investment.

Then, as he was talking, Mr. Hou Wengui changed the subject.

"But Lao Ren, I heard that Xinghai Group is offering equal terms to both of our companies. I wonder what the negotiations went on?"

"We didn't discuss much, just how much money to raise and how many installments to make the payment, and how much money to make in each installment."

Ren Zhengfei had long ago asked Takeshita Masato whether ZTE would unconditionally replicate whatever benefits Huawei received.

The conditions offered by the young man were naturally not the right ones.

The two companies have the same conditions, meaning they have the same valuation and both will provide the complete set of PHS (Personal Handyphone System) technology.

As for CDMA and GSM mobile communication base station technologies, Huawei paid for them, so they don't count at all.

"Oh, how many batches are there, and how much is each batch?"

"It will be done in three batches, with the same amount in each batch. After spending most of each batch, you can apply for a refund, and Xinghai Group will transfer the money within 5 days."

Xinghai Group would certainly not distribute all the money at once; that would be too foolish.

What if they take the money and run away? We'd be in deep trouble.

However, considering that Huawei and ZTE are both hardware companies, Xinghai Group reduced the number of cash payments to meet the company's rapid expansion requirements as much as possible.

"Is that so? It seems we need to rethink the project."

Each batch of $1.2 million is enough to completely upgrade the company's experimental equipment. Many large state-owned enterprises cannot come up with that much foreign exchange in a short period of time.

Hou Wengui overturned his original plan and decided to make a big splash.

However, being conservative by nature, he doesn't plan to go all in like Ren Zhengfei. Instead, he will develop gradually to avoid incurring serious external debt.

"Yes, our company also needs to readjust its structure and add more project teams."

The dispute between Li Yinan and Zheng Baoyong had initially put him in a difficult position. The company's resources were currently limited, making it impossible to simultaneously meet the research and development needs of both men.

Things are different now; Huawei will soon have ample funds for new projects.

Then, Li Yinan, who was even more capable, was in charge of the CDMA project team in addition to Huawei's Lisizhiben switch project.

Zheng Baoyong, whose skills were slightly less advanced, was in charge of the simpler PHS (Personal Handyphone System) project team.

In this way, the two would not have so many conflicts. Zheng Baoyong, whom he originally wanted to sacrifice, would also have a new spring.

Yes, if it weren't for Xinghai Communications' interference, Zheng Baoyong would have been demoted to a retirement position in name only.

There's no way around it; the basic rule of this world is that the winner takes all.

Zheng Baoyong did indeed make a huge contribution to Huawei in its early days; without him, Huawei would probably still be a small and micro enterprise.

However, the JK1000 digital switch he led the development of failed, while the C&C08 developed by Li Yinan was a great success, so he had to step down to the second line.

If Masato Takeshita were Ren Zhengfei, he would make the same decision.

The company's technical lead must be the one with the strongest technical skills.

(End of this chapter)