Those Years When I Was Forced to Top the Forbes List

Chapter 276 Big Shots from All Sides
The next day, Chen Xuebing got up quite early.

Seeing that the rain last night had dispelled the sweltering heat, I changed into my workout clothes, put on my headphones, and went downstairs for a morning run.

Feeling the crispness of early autumn, I received a call from Exhibition News on my way back to the hotel, so I changed into a slightly more formal dark gray suit and headed to the Shanghai International Convention Center.

The list of attendees for the TD Alliance Annual Meeting previously only included participating companies, and it was uncertain who would actually attend. It wasn't until last night, when most of the company representatives had arrived in Shanghai and had their own gatherings, that it became clear that many of the company leaders were personally attending.

Previously, it wasn't this large-scale; it was mostly the second or third in command.

This time, perhaps it was because of the presence of two bigwigs, Vice Minister Zhang and General Manager Wang from China Mobile, coupled with the increasingly credible rumors that "China Mobile will be allocated TD licenses," that everyone sensed that the licenses were imminent and feared missing out on a huge bonus feast.

I joined this damn alliance just for this day, didn't I?

People aren't optimistic about TD technology, but the money spent on TD construction won't be reduced in the slightest; we'll still make the money we're owed.

Even many factories that produce related equipment contacted Spreadtrum to request participation, and Mayor Guangyan sent over a list of local Shanghai companies.

Datang also mobilized its entire force, and yesterday it made a last-minute request to add several positions, bringing in its subsidiaries Datang Mobile, Pioneer Technology, Datang Microelectronics, and joint ventures Xinwei Communication and ADI.

Among them, Datang Mobile has mastered the basic technology of TD, Pioneer Technology makes communication equipment, Microelectronics makes chips, Xinwei Communication provides contract manufacturing for the military, and the newly added ADI is also quite strong. Although Datang's scale is less than 10 billion and it is not outstanding in any aspect, its architecture is quite complete. Without its addition, Spreadtrum would indeed be just a small boat in front of Datang.

Today he must show strength and stand up for Spreadtrum.

It was 9:10 a.m.

Inside the conference hall, waiters carried teapots and coffee pots as they moved about, and the sounds of laughter, chattering, and clinking of cups and saucers filled the air.

The conference room, with about a hundred seats and sofas, had at least fifty people gathered in several circles to talk.

A group of reporters in the back row were adjusting their camera positions.

Only a few people who couldn't get into any circles sat in their seats, looking somewhat lonely.

The largest group consisted of a few people sitting and a dozen or so standing, some holding cups and leaning against the sofas nearby, their different postures revealing their respective statuses.

Zhou Huan sat in the middle, his face serious, and said, "President Liu, you must give us your full support. TD is currently lacking a flagship terminal product. Could you please expedite the research and development of the kind of mobile phone I just mentioned?"

Beside him, Liu Chuan's slightly curly hair showed a hint of gray on the sides. He grinned, revealing his teeth, which added to his somewhat rustic appearance.

He didn't quite understand what Zhou Huan's frantic description of the "touchscreen smartphone" actually was, so he simply waved his hand dismissively and laughed loudly:
"Haha, Lenovo has a global supply chain. As for the phones you mentioned, if they exist in the world, there's nothing we can't make! I'm not involved in the electronics business right now. But we're both companies based in Beijing! I'll have Yuanqing contact you when I get back; it's not a big problem!"

"However," he chuckled, patting Zhou Huan's arm, "President Zhou, I think you're overthinking it. TD, with the leadership's support, will be implemented sooner or later! What you should be worried about now is your future compensation. You've worked so hard to build Datang, but now you're still living off the system, with no profit sharing. How can you be motivated? A cadre like you, coming from a government agency, should be moving towards becoming an entrepreneur! You're even younger than me, right? I heard they've started selecting a successor? Are you already willing to retire? You should suggest to the leadership that Datang be restructured, and you continue to lead Datang forward!"

He didn't know what kind of phone Zhou Huan asked him to make, but it was a favor, and it only had meaning if Zhou Huan was in power.

Moreover, Lenovo's restructuring has been questioned by many as a sign of "capitalism's original sin," and he needs more companies like Lenovo to emerge and align themselves with him.
No, go with him.

Zhou Huan frowned, sensing that President Liu's unhurried attitude suggested he wasn't willing to give face to him, a soon-to-retire chairman.

Hearing Liu Chuan casually instruct Yang Yuanqing, the current chairman of Lenovo, to come and meet with him, he felt a pang of disappointment. His eyes turned cold, and he let out a scoff.
"I am wholeheartedly dedicated to serving the country! A company like Datang should be in the hands of the state! However, I need to carefully cultivate a successor. I will only step down when the situation is right."

His words neither endorsed the reform of large state-owned enterprises nor acknowledged the power that was about to leave him, and those around him sensed a tension.

However, Zhou Huan didn't want to strain his relationship with Liu Chuan, so he smiled and said, "Thank you for the reminder, Mr. Liu."

At that moment, someone nearby looked towards the door and said, "Mr. Wu from Spreadtrum is here."

At the entrance, two young faces walked in side by side, both exuding an air of elite confidence.

He won numerous science and technology awards and honors before he was even forty years old.

One of them was even younger, but only those at the top of the group knew his true reputation.

Since Exhibition News is the organizer of this event, many people are paying attention to them.

Chen Xuebing glanced around and found that most of the faces were unfamiliar. Wang Jianzhou was not present either. Several groups of people were chatting amongst themselves. The only people he could distinguish were Xu Zhijun from Huawei and Zhou Huan from Datang.

However, upon seeing the person sitting next to Zhou Huan, he raised an eyebrow.

Is Godfather Liu here too?

Didn't he retire?
Tsk tsk.

Upon seeing Liu Chuan, Chen Xuebing suddenly felt that Zhou Huan, who was sitting next to him, was as innocent as a primary school student.

Lenovo
Chen Xuebing shook his head slightly, not wanting to provoke anyone, and walked to his seat under Wu Ping's guidance.

Wang Jianzhou's seat is in the middle of the second row, to the side and slightly in front.

"General Manager Chen! General Manager Wu!"

Xu Zhijun, who was standing on one side of the hall talking to a few people, came over and waved from a distance.

Chen Xuebing nodded: "President Ren didn't come?"

“He went to Europe to have negotiations with Telefonica. He doesn’t like coming to these kinds of events; he prefers to be in contact with clients.”

Xu Zhijun's original reply was only the first five words, or even just "He's not here," but considering that this General Manager Chen seemed dissatisfied with Huawei's negotiation arrangements last time, he said more to express Huawei's goodwill.

He had spoken with Mr. Ren about Spreadtrum and Singulato, and Mr. Ren valued this business cooperation, giving the clear message that "they are very insightful companies, and we should learn more from them."

This is the first time Mr. Ren has made such an evaluation of his domestic counterparts.

Chen Xuebing knew about Telefonica, the Spanish telecommunications company, which has operations throughout Europe, Africa, and Latin America and is one of the world's top five telecommunications companies. Negotiating with this company meant that Huawei's overseas business would be secured for next year.

Jealousy.

"Mr. Xu, you've come at the right time. There's something I want to discuss with you. I'll be speaking later, so may I mention the technology joint venture?"

Chen Xuebing got straight to the point.

Xu Zhijun's expression changed slightly.

He moved closer and said in a low voice, "Mr. Chen, didn't we already agree on our cooperation?"

"Let's show our determination and boost everyone's confidence." Chen Xuebing spread his hands and said, "Yesterday, the leaders came to Spreadtrum for inspection, and we conducted technical tests. The results were very good. We took the opportunity to tell Director Zhang that Huawei's base stations would help TD technology break through its limits. The leaders were very satisfied and are willing to support the cooperation between Spreadtrum and Huawei. We are actually helping Huawei. If you don't need it, then forget it."

Xu Zhijun's expression froze for a moment. He sat down next to Chen Xuebing and whispered even more, "Has the leader changed his tune?" Everyone knew what he meant. Although Xu Zhijun turned his head to the side, he deliberately avoided looking at the group of people from the Tang Dynasty behind him.

Chen Xuebing wasn't going to beat around the bush; he brought two pieces of news to announce on the spot, one of which was the cooperation with Huawei.

"Things have definitely changed. Spreadtrum has already negotiated a deal with Datang regarding its acquisition of the basic protocol stack, bypassing Datang. Moreover, we have obtained the right to develop it independently. However, how much the leadership's attitude has changed remains to be seen today."

Xu Zhijun took a deep breath.

This is a big deal, as it means that TD technology can have two branches.

He certainly knew about the technology Spreadtrum possessed, and if he obtained this level of authorization, surpassing Datang would not be difficult at all.

Huawei's cooperation preferences should also lean towards Spreadtrum.

He was starting to regret it. If he had known the leadership was this open-minded, Huawei should have done so much earlier when they participated in the Xiangshan meeting to discuss TD allocation.
However, Chen Xuebing's ability to secure 3G orders in Chongqing must be due to the support of others. Moreover, the Huawei engineers who went to Spreadtrum to debug the technology also learned that Spreadtrum's recent chip shipments were very large, exceeding ten million. They still don't know how much leverage Spreadtrum has.

Huawei's intelligence system also has blind spots. They have always been focused on powerful individual competitors. Places like Huaqiangbei are chaotic and have very irregular business practices. Huawei cautiously avoids them. Although they are both in Shenzhen, they have become blind spots for them.

"Alright, you can announce it."

Xu Zhijun hesitated for a moment before making a decision.

Chen Xuebing was surprised: "Don't we need to consult General Manager Ren and Chairman Sun?"

Ren Zhengfei is the president of Huawei, and Sun Yafang is the chairman of Huawei. Ren Zhengfei is responsible for strategy, while Sun Yafang is responsible for marketing network. Huawei's wolf culture was also created by Sun Yafang. In 99, Ren Zhengfei called the senior executives together to discuss the election of a chairman of the company. As a result, he nominated Sun Yafang as a candidate for chairman. Sun Yafang has since become the number two person in Huawei. There have also been some rumors about the two.

Xu Zhijun's position at Huawei is equally impressive.

"I am now the rotating chair of the EMT, and I can make decisions."

He was only 39 years old and had always been regarded as a representative of the younger generation in the company. When he heard the question from the even younger General Manager Chen, he unusually emphasized his own position.

"Oh, I didn't recognize your greatness." Chen Xuebing smiled and took the initiative to shake hands with Xu Zhijun: "Then thank you, Mr. Xu."

Xu Zhijun:
"Little Xu," that's what President Ren calls him.

You're younger than me, so you call me Little Xu?
Chen Xuebing noticed his speechlessness and just chuckled.

You have connections, but I don't.

Xu Zhijun glanced at him, not wanting him to be smiling so happily, and reminded him, "President Chen, President Zhou from Datang arrived very early today. It seems he's discussing making mobile phones with several terminal manufacturers. How are your mobile phones coming along? President Hou from ZTE is over there. President Zhou also spoke with him this morning. Do you want to go over and inquire? I can introduce you to them."

He pointed to the circle where they had just been chatting.

Upon hearing this, Chen Xuebing immediately understood Zhou Huan's intention and smiled slightly: "Heh, I don't think it's necessary. It's all a circle of billion-dollar companies, and I can't squeeze in anyway. Let them do what they want."

ZTE ranks 25th in market capitalization on the A-share market, with over 300 billion RMB.

Lenovo is listed on the Hong Kong Stock Exchange. In 05, it invested US$4 million of its own money and US$8 million with its US shareholders to acquire IBM's computer business for HK$12 billion. Its market value has increased significantly and is currently over HK$200 billion.

The Hong Kong dollar is currently worth slightly more than the Chinese yuan.

With Huawei added to the mix, this small hall is a gathering of titans, where the units of value are measured in billions, units rarely seen even on the mainland's rich list.

It's no wonder that rich lists these days are worthless; the truly wealthy don't flaunt their wealth and are hidden away in strategic sectors.

Lenovo was once a core strategic player in the computer industry. The Institute of Computing Technology of the Chinese Academy of Sciences was once home to the nation's top computer R&D talent, but they were all taken away to do assembly work.

The entire process of a purely state-owned enterprise transforming into a privately controlled enterprise can be summarized in three sentences.

Step 1: You need to give dividends to make progress.

Under the guise of motivating employees, the management team obtained 30% of the profit-sharing rights, and then used company profits to buy even more profit-sharing rights.

Step Two: Dividends converted into shares – a magical transformation.

Before the IPO, a management buyout (MBO) was used to convert dividend rights into equity, transforming Yang and Liu from state-owned enterprise employees into state-owned enterprise shareholders.

Step 3: Introduce shareholders to share in the wealth.

In 2009, Liu Chuan proposed to introduce new shareholders, and Lu Zhiqiang of Taishan Club became the only qualified shareholder. Later, he promoted the listing of Lenovo Holdings, the parent company of Lenovo, which further diluted the equity of the Chinese Academy of Sciences to below 30% and lost its veto power.

"Three sentences that made me a billionaire."

Many people later focused on the legality of this matter, but ignored the issues of strategic initiative and departmental responsibilities. Lenovo's apparent gain of hundreds of billions in market value came at the cost of the decline of the PC industry.

Until Chen Xuebing's rebirth, Loongson Technology was struggling alone, still working on microcomputers. China did not yet have a truly independent PC, and computer mainframes and laptops were covered with trademarks such as "NVIDIA", "HDMI", "Intel" and "Windows".

This market has lost a decade; it's no longer a question of the prophets, and the national sentiment is currently still immersed in the "pride" of acquiring IBM, leaving him powerless to intervene.

Xu Zhijun, standing in front of him, inwardly scoffed.

You know they're all companies worth tens of billions.

Huawei is still the biggest one! Why are you being so arrogant towards me?
Just then, a voice called out from behind.

"Mr. Chen?"

The two looked in the direction of the voice and found the person who had spoken sitting upright in the middle of the crowd.

And when Chen Xuebing looked over, she stood up and waved to him, appearing very enthusiastic.

Xu Zhijun was stunned: "President Chen, you know President Liu?"

Chen Xuebing narrowed his eyes.

"do not know."

Liu Chuan waved again, a smile playing on his lips.

The people around him were also stunned.

(There's more at midnight)
(End of this chapter)