Xiaomi Heavy Industry, its first entrepreneurial venture!

Chapter 342 The Galileo Plan Defused! (Third Update!)
"Before this meeting officially begins, I, Sofia Korska, in my capacity as President of the European Commission, on behalf of the European Commission, would like to give you a formal report on the inputs and expenditures of our Galileo program from 2000 to 2010."

"As of this year, up to July 15 before the meeting, we have invested a total of approximately 34 billion euros. Without taking inflation into account, this amount is approximately equivalent to 45.22 billion US dollars."

"During the feasibility study phase, from 2000 to 2003, we invested a total of 1.2 million euros in feasibility studies."

"From 2003 to 2010, we invested a total of 22 billion euros in satellite on-orbit verification."

"At the same time, between 2005 and 2010, we invested a total of 10.8 billion euros in the construction of ground infrastructure and ground stations."

"Of the 34 billion euros in funding, 18.5 billion euros came from the EU budget, and this portion of the funding was mainly used for satellite research and development and the construction of ground control centers."

"10.2 billion yuan came from ESA, and this funding was mainly used for rocket launches and some technology verification."

"Finally, 5.3 million euros came from partner companies, but due to disagreements, these companies have now basically withdrawn."

"This is our investment!"

"As of July 15, according to reports disclosed by countries around the world, America invested approximately $12 billion in GPS systems between 2000 and 2010. Currently, there are 31 satellites in operation, and they are also developing a third-generation high-performance satellite."

"From 2000 to 2010, Russia invested a total of $45 billion in the GLONASS system and launched a total of 22 satellites, but according to official verification, only 16 of them are usable."

"Finally, there is China. From 2000 to 2001, the government invested a total of about US$15 billion. This US$15 billion brought them five GEO verification satellites, which provided small-scale regional experimental services."

"This is government funding."

"Now we need to add Xiaomi Heavy Industry."

"This company appeared out of nowhere. They had no reputation and nothing before."

"On the same day, they launched 24 low-orbit satellites and three geostationary satellites."

"As of today, when our meeting is being held, Xiaomi Heavy Industry's last three geostationary orbit satellites have arrived at the target area and are currently adjusting their orbits."

"Nobody knows how long they've been researching satellites, or how much money they've invested."

"In order to have a reasonable calculation method, our people assumed that they had studied for the same amount of time as the officials, and at the same time, they increased their investment in this enterprise by 150% compared to the official investment."

That's $22.5 billion!

"To date, China has invested a total of US$37.5 billion in satellite navigation!"

"In other words, the EU, as the second largest economy in terms of investing in WeChat navigation systems, ended up being the worst."

“We have invested money, but so far, apart from some buildings on the ground, we have nothing.”

"I've already had the preliminary expense documents prepared and placed on your desks. You're free to look at them and spread them around as you please. After all, it's not a secret, it's a joke!"

"Gentlemen, my report is complete!"

After giving her report, Sofia gracefully bowed to everyone before slowly sitting down.

After she sat down, there was no lively discussion in the room, only a deathly silence.

Opposite her, the 27 committee members from 27 member countries stared blankly at the documents in front of them, their faces expressionless.

There seemed to be something in the document that they found hard to believe.

Several committee members even took out their phones and used the calculators on their phones to start calculating these expenses.

The more they calculated, the worse the expressions on the committee members' faces became. In the end, some of them even started swearing in their own languages.

Fortunately, the others couldn't understand each other's language, so there was no trouble at the scene.

About half an hour passed, and Sofia picked up the small hammer in front of her and gently tapped the table.

As she tapped her doorbell, the other 27 European Commission members looked up and fixed their gazes on the Commission President, eager to hear what she had to say.

Once everyone's attention was on her, Sofia smiled gently and then beckoned to her assistant, asking the assistant to deliver the documents she had to the 27 committee members.

Only after his assistant delivered the documents did he speak slowly and deliberately:
"The main topic of discussion at today's meeting is whether we should continue the Galileo project!"

"Based on the current progress, continuing the Galileo project will require an additional investment of approximately 34 billion euros, or even 44 billion, possibly 54 billion, or 100 billion!"

"I cannot disclose the exact amount required at this time, as our staff are still compiling relevant cost statistics."

"The specific details of subsequent funding will likely not be available until the end of the year."

"But it is undeniable that this is a very large sum of money."

"We need to decide now whether to continue investing!"

No sooner had this been said than Lorenzo Bellini, a committee member from Italy, immediately jumped in to change the subject:

"So, dear President Sofia, I would like to ask a question: the EU must have a satellite navigation system. If we don't use our own, whose should we use?"

"Russia, or America?"

"Moreover, we have already built a large number of control centers, trained a large number of personnel, and invested enormous amounts of money."

"Now you're telling me we need to sunk this cost?"

"How should we, as people, convey this message to the people of our respective countries?"

"You know, the citizens of our country are arguably the most law-abiding and knowledge-seeking citizens in the world."

“If I tell them about this so abruptly, they will definitely ask questions and demand that someone be held accountable.”

"Who will take responsibility then?"

No sooner had the Italian delegate finished speaking than Baron Kingsley, a delegate from England standing not far from him, immediately raised his hand:
“I agree with Miss Sophia’s proposal.”

"This damn Galileo project should have been disbanded long ago. Every time they ask for research and development funding, it's because they've already used it up once or twice and now they need more funding."

"But they have never produced a suitable finished product, nor have they shown their results to everyone."

"Over the years, we've been going back and forth between their reports."

"Now, Chinese companies have emerged out of nowhere, proving to the world that satellite navigation systems can be developed by the state, and powerful companies can also develop them."

"The only thing lacking is the relevant policies."

"Therefore, I agree with President Sofia's point of view. Instead of continuing to invest funds in these useless people, we should use the funds elsewhere, or directly purchase GPS services from America."

"It's better than them using it to skip stones."

"Here, I also need to name the European Aviation Authority. So far, the European Aviation Authority has received more funding, but it has not achieved any results."

"I hope that after this meeting, Vice President Sofia will chair a meeting and invite the head of the European Aviation Authority to come out so that we can have a focused discussion on why we have not achieved any results so far."

Baron Kingsley's words sparked another round of whispers among the audience.

After the commotion subsided, Erodi Laurent, a member of the French committee, slowly stood up, gracefully bowed to the crowd, and expressed his gratitude.

After doing these actions, he slammed his hand on the table, making it rattle loudly.
"Chairwoman Sofia, Committee Member Baron."

"Personally, I think that at this point in time, the most important thing is neither to abandon the project nor to give it a high degree of freedom to continue developing."

"It's about holding people accountable!" "We need to investigate what our people, who were given the funds, actually did during these 10 years, so that everything we did over those 10 years will prove them right."

"There isn't even a confirming satellite in orbit, and that's the key point."

"You should know that China's satellite navigation system project was initiated relatively early, but they have not made any breakthroughs in related technologies."

That's why they've been seeking cooperation with us over the past few years.

“Over the past few years, they have also provided us with funding.”

"In other words, their funding is even tighter."

"Under such tense conditions, they were still able to launch five verification satellites in orbit."

"Look at us, we have nothing!"

"I think we need to find out where this money went and what it was used for."

"Only by understanding these things can we make the right decision: whether to treat the entire Galileo project as a sunk cost or to continue investing in it."

I've finished speaking!

As he uttered the last word, Elodie bowed again to the people in front of him in gratitude.

After he sat down, the noise from the discussion in the room increased again.

No one's money comes from thin air; it's all earned bit by bit from the hard-earned wealth of the people.

Ten years and an investment of 34 billion euros is not a lot; it averages out to only three or four hundred million euros per year.

The problem is that we can't just throw away such a project by using the term "sunk cost."

Doing it this way is like setting a bad precedent.

Because there are many similar projects in Europe, if the Galileo project uses the lack of results as an excuse, it will simply be thrown into sunk costs.

The EU would have to abandon far too many projects, which wouldn't be a simple matter of a few hundred million euros, but rather a matter of billions or even tens of billions of euros.

Elodie's words also reminded everyone that even if a project is to be thrown into sunk costs, it is necessary to thoroughly investigate the causes and consequences.

Discussions resumed, and after much chatter, Johann Bach from Germany was chosen to speak.

As Europe's most notoriously stingy company, having the Germans in charge of this project review is the best course of action.

Pushed forward, Johann Bach couldn't help but roll his eyes, but in the end he did not refuse the decision.

After all, Germany also contributed a portion of that money.

If we don't figure out where this money went, then a loaf of bread in Germany will have to sell for 50 marks.

He clenched his right fist and pounded his chest: "Colleagues, rest assured, I, Johann Bach, will definitely assemble the most professional auditing team to conduct a detailed investigation into the use of funds for the entire Galileo program."

"We must thoroughly investigate the origin and destination of every single fund."

"We will definitely answer everyone's questions and clear the names of the participants in the Galileo project."

"It also allows everyone to give an explanation to their respective people."

“But now, I need the committee chair, Ms. Sofia, to approve funding for hiring a review team.”

Johann Bach's words made Sophia subconsciously frown.

She picked up the hammer and struck it twice: "Mr. John Bach, we now need to review how the funds for the Galileo program were used."

"Within our EU, there are specialized departments that oversee the use of funds."

"Everyone nominated you because they wanted you to lead this department to investigate the Galileo project."

"I didn't ask you to approve the funding!"

"The Galileo project needs funding. If you need funding to approve the Galileo project, then doesn't approving your funding also require funding and a team?"

"tell me!"

Johann Bach did not answer, but looked at Sophia with a half-smile.

Sophia's words drew everyone's attention to Johann Bach, and the more they looked, the stranger their expressions became.

You need to first approve a sum of money so that your review panel can examine the money you've already spent.

If you're bored, you can find another review panel to review the funds you approved for the review panel.

This……

Infinite loop.

After a brief silence, the discussion resumed.

This time, however, everyone tacitly refrained from mentioning the review committee or the disbandment of the Galileo project.

They discussed it for another half hour, but still couldn't reach a conclusion.

Sofia sighed, picked up her small hammer, and tapped it twice to announce the end of the discussion.

They also announced that the discussion on this issue had no results and that it would continue in a couple of days.

After the meeting ended, Sofia picked up her documents and went back to her office.

After locking the office door, drawing the curtains, and starting the record player, the Polish woman took a cell phone from a hidden compartment in her desk drawer.

I found the only number listed above and dialed it.

As soon as the call connected, an inquiry came from the other end:

"How is the result?"

"Do these guys agree to cancel the Galileo project?"

"They didn't agree!" Sofia poured cold water on the idea, then poured it on again:
"The English committee provided assistance, but the French committee said that dissolution was possible, but the use of all related funds needed to be thoroughly investigated."

"Only after the accounting is clear can we determine whether to dissolve the company."

"The German committee member is willing to take responsibility and investigate, but he wants funding."

"I subtly guided the conversation, and I successfully made the others believe that he was there for the funding."

"We stopped this so-called review."

“Mr. Navarro, your plan is not very good. If you want the plan to succeed, I suggest you put enough pressure on yourself.”

"If the pressure isn't enough, these committee members won't give in!"

(End of this chapter)