My absurd experiences in North America over the years

Shenzhen has no winter, and no snow.

When Li Fu stepped out of Bao'an Airport, the wind from the South China Sea blew in from the Pearl River Estuary. It was humid and warm, carrying a smell of earth and industrial waste.

At that time, China's economy was still experiencing extensive growth, while environmental protection lagged behind.

He was wearing a dark gray cashmere coat, which would have been just right for winter in Nashville and New York, but seemed somewhat out of place here.

Lucy walked beside him, wearing a beige trench coat, her hair up, and a pair of pearl earrings on her earlobes, exuding a capable and elegant air.

She didn't say much during the flight, but she finished reading Lina's research report on the plane.

A black Mercedes came to pick me up. The driver was wearing a dark suit, spoke concisely, and was very courteous.

As the car drove out of the airport and onto the highway, the trees on both sides were small-leaved Indian almond trees, with straight trunks and layered canopies like umbrellas, resembling rows of silent sentinels in the twilight.

Li Fu leaned back in his chair, closed his eyes, and went over what he needed to say during the negotiations in his mind. He wasn't there to talk about prices, but about strategy; not to talk about deals, but about cooperation.

Lucy turned her head to look at him, her gaze gentle.

Huawei's headquarters building was lit up with white lights in the twilight.

Li Fu and Lucy were led into a small conference room by staff. Three people were sitting at one end of a long table. The middle one was a man in his fifties with gray hair and wearing gold-rimmed glasses.

Two colleagues sat next to him, one taking notes and the other flipping through the documents in front of him.

Each of the three people had a folder in front of them, with the Huawei logo printed on the cover.

Li Fu sat down in the guest seat, and Lucy sat next to him.

The two sides exchanged only brief pleasantries without much formality, and quickly got down to business.

The man in the middle spoke first, "Mr. Li, thank you for flying all the way from New York. I am Wang, the head of the Huawei terminal business negotiation team. These two are my colleagues."

Li Fu and Lucy stood up and shook hands with each of them.

Director Wang continued, "We have received your proposal. Our initial assessment of the joint investment structure between JPMorgan Chase and Forrest Capital suggests that the overall framework is feasible. However, before making a final decision, there are a few issues we would like to discuss in person."

Li Fu nodded. "Please speak."

Mr. Wang opened the folder in front of him. "First, in your current funding structure, Forrest Capital has invested $1.2 billion, JPMorgan Chase has invested $800 million, and a French investment bank has invested $200 million. We understand that JPMorgan Chase's funding is secured, but is Forrest Capital's $1.2 billion from their own funds or external financing?"

They need to find out the detailed source of the funds and that the source of the funds is reliable.

"Our own funds," Li Fu said without hesitation. "Forrest Capital is an investment company that I co-founded with the Forrest family. The cash on hand comes from investment returns over the past two years, so there is no pressure to raise external funds."

Mr. Wang's assistant made a note on the document, nodded, and said, "The second question is that Goldman Sachs has also submitted a quote, which is two hundred million US dollars higher than yours. We would like to know, given that you are not competitive in terms of price, what do you consider to be your core competitive advantage?"

Li Fu leaned forward slightly, looking into the other person's eyes.

"Goldman Sachs can offer higher quotes, more flexible financing structures, and more additional commitments, but Goldman Sachs has the typical style of Wall Street investment banks. Their investments are generally short-term, while we are different; we want to hold for the long term."

Goldman Sachs' funds largely come from LPs (Limited Partners), who generally seek short-term returns and typically exit within three to five years.

This point doesn't even need further explanation from Li Fu.

Huawei's team could not possibly be unaware of these circumstances.

"I understand what you mean," Director Wang pondered for a moment and then said, "As far as I know, your trading style seems to have a shorter timeframe. Even with two huge profits, the longest one didn't exceed two years. Are you sure this acquisition of shares is for long-term holding?"

This is one aspect that Huawei is quite concerned about.

They are looking for long-term strategic partners.

"Yes, we plan to hold it for twenty years, or even longer," Li Fu said, not at all surprised by Director Wang's question. He gave a reasonable explanation: "In my eyes, financial investment and industrial investment are completely different things. The financial market is characterized by quick entry and exit because the entire market is unpredictable and there is no clear long-term direction. Industrial investment is completely different, with a clearer and brighter future. I am very optimistic about Huawei's future."

Some things don't need to be said explicitly. For example, Huawei is not short of money. Last year's financial report makes this clear to everyone.

The logic behind this deal is not financing at all, but a strategic layout. It is an open conspiracy that doesn't need to be explicitly stated, but can even be described as using substantial future profits to gain market access.

This is perfectly feasible in capitalist countries.

According to the original timeline, if it weren't for the sudden financial crisis that caused the plans to be shelved, Huawei might not have been in such a passive position later on, at least not to the point of completely divesting its mobile phone business.

Li Fu's decision to restart negotiations with JPMorgan Chase is not entirely about making money, but also about making up for this regret.

Director Wang nodded slightly, acknowledging Li Fu's explanation, but it was clearly not enough to convince him.

"You should remember the 2007 acquisition of 3Com. The CFIUS hurdle is not something money can solve. Wall Street capital is enthusiastic when buying, but ruthless when selling," Li Fu said, referring to Huawei's failed strategic plan. "Goldman Sachs is a representative of this. By then, your overall plan in North America had not yet been implemented, and they had already withdrawn. This is no longer a cooperation, but more like a stock transaction."

His voice wasn't loud, but the pronunciation of each word and the implied meaning of each sentence were very clear.

"Forrest Capital is different. The Forrest family has been operating in Tennessee for nearly a century and has deep connections in Washington. JPMorgan Chase is one of the world's largest financial institutions and has sufficient risk resistance in any market. The deep cooperation between the two companies now is not for high expected returns in the short term, but because we believe that Huawei's terminal business has the potential to become the world's largest mobile phone manufacturer."

Anyone with a modicum of intelligence could understand his subtext: if the investment went wrong, the entire Forrest family and JPMorgan Chase would be there to bail it out.

Miss Forrest's participation in this discussion demonstrates the deep involvement of Tennessee's leading political and business families.

No amount of money could Goldman Sachs offer to achieve this.

This applies to both ability and willingness.

After Li Fu finished speaking, the meeting room was quiet for a moment.

Director Wang picked up his water glass and took two sips, a slow motion as if giving himself some time to think.

Huawei had, of course, conducted a thorough background investigation before the negotiations and had a sufficient understanding of Li Fu and the Forrest family.

"Mr. Li, we will carefully evaluate what you have said." He put down his water glass and changed the subject, asking a more specific question, "Can the specific timetable for the arrival of funds be clearly stated in the formal agreement? We hope to complete the first installment of funds within thirty working days after the transaction is completed."

"Absolutely," Li Fu replied immediately, knowing that this issue meant he had persuaded the other party. "The initial funding of US$1.2 billion will be received within 30 working days after the signing of the agreement. The remaining US$1 billion will be completed in two installments over the next six months. The specific milestones can be detailed in the formal agreement by the legal team."

Director Wang closed the folder and expressed his approval of the discussions. "It may take you two days before we can give you a specific response. I hope Mr. Li and Ms. Forrest can understand this. We will continue to communicate."

When I came out of Huawei's headquarters building, it was already completely dark in Shenzhen.

Li Fu stood on the steps and couldn't resist lighting a cigarette.

This was the first time he had set foot on his homeland since his transmigration, and it still felt so familiar and comfortable.

Because of the strong evening wind, Lucy stood next to him and used her trench coat to shield him from the wind so that the lighter wouldn't be blown out.

He doesn't smoke often, so the fact that the two of them have this kind of tacit understanding shows that they are already somewhat on the same page.

"It's a pity we don't have much time, otherwise I would definitely take you to visit my hometown," Li Fu said, exhaling a puff of smoke.

So close and so beautiful, let's go to Hebei this weekend.

This slogan wasn't that popular in this era.

"We're not in a hurry! Aren't we still waiting for Huawei's response?" Lucy took his arm.

"It's basically settled. Negotiations with large companies don't usually result in immediate answers, but the rest is just a formality: the negotiating representatives go back to report, the legal department reviews the report, and then the decision-makers make the final decision."

Li Fu is now very familiar with these businesses.

The two sides communicated face-to-face about the most critical issues, indicating that Huawei had included them in the final candidate list after conducting background checks.

"What about Goldman Sachs?" Lucy was still a little worried.

As Li Fu walked, he said, "Goldman Sachs' offer is two hundred million dollars higher than ours, but I'm certain that the value we offer is scarce and far beyond what two hundred million dollars can compensate for. And Huawei's scale is so large that even two hundred billion dollars can't stop it."

No one in the world understands Huawei's future better than him.

……

As Joshua Kushner stepped out of Bao'an Airport, the sun was just rising over Shenzhen.

He wore a dark gray custom-made suit, a silver-gray tie, and platinum custom-made buttons on his cuffs. He looked energetic and full of vigor.

The same black Mercedes came to pick him up. The Huawei representative told Joshua that the meeting was scheduled for tomorrow morning, and he could go to the hotel to rest first.

This was originally a normal business etiquette, but many members of the Goldman Sachs delegation were exhausted after traveling all the way from overseas.

However, if we compare this to Li Fu's arrival at dusk and his immediate commencement of negotiations, it suggests that Huawei's delegation was not so eager to know Goldman Sachs' specific conditions and bottom line.

You could even say you don't care that much.

Joshua, of course, was unaware of all this. He only knew that Li Fu had arrived a day early. He was sitting in the back seat, flipping through the presentation that had been revised more than a dozen times, and rehearsing what he would say during the negotiations.

Their advantage lies in having $200 million more than Forrest Capital and JPMorgan Chase, along with additional terms such as a one-time payment plan, performance-based earn-out clauses, and access to overseas listings. Every slide of their presentation is meticulously designed, and every number is carefully considered.

Their advantage is enormous.

He closed his eyes and mentally reviewed the entire demonstration process to confirm that there were no loopholes.

As the car drove onto the highway, the small-leaved almond trees on both sides were lush and green in the sunlight. Shenzhen, this emerging metropolis, is the technology center of the future world. Compared to it, many things in New York are too old.

Joshua looked out the window in astonishment, and at the same time felt a sense of exhilaration, comparing himself to this nascent metropolis.

If this negotiation succeeds, wouldn't that be an opportunity for this young man to take off?

At this moment, Li Fu was sleeping peacefully in Lucy's arms in the hotel. They had just gotten off the plane and were in talks with the Huawei delegation. They were still adjusting to the time difference.

The Goldman Sachs team said they were resting at the hotel, but most of them only took a short nap before starting preparations for the talks.

Their team has more members and they are determined to win.

The next day, Joshua and other Goldman Sachs representatives were led into a conference room by Huawei staff.

The negotiating representatives were still the same three people, headed by Director Wang.

"Mr. Joshua, thank you for flying all the way from New York. I am Wang, the head of the Huawei Terminal Business Negotiation Team." Director Wang began with the same opening remarks as always.

Joshua sat down in the guest seat, opened his laptop, and saw a carefully prepared presentation on the screen.

Throughout the process, he spoke passionately, recounting the various advantages that Goldman Sachs possesses, advantages that would certainly not deter other companies.

But Director Wang's reaction was indifferent; he would only nod slightly occasionally.

The details of their conversations were often only touched upon briefly.

However, Joshua had a high opinion of himself, thinking that Director Wang was just as mild and reserved as the Chinese people he knew.

He was ultimately too young; even with a senior executive backing him up, he still misjudged the current situation.

Director Wang's reaction was lukewarm, indicating more disinterest than anything else.

Huawei has never aimed to raise money through an IPO, let alone list in the United States. Their company has ample cash flow and doesn't mind whether it can make a one-time payment.

They weren't very interested in the other additional terms either.

However, Goldman Sachs' investment practices gave them pause for thought.

Goldman Sachs' typical Wall Street-style speculative behavior, as evidenced by its shorting of US stocks and the resulting market crash, demonstrates that these private equity bankers are profit-driven and, as Li Fu said, not worthy of being entrusted with responsibility.

Goldman Sachs bet on Huawei's terminal business simply because it knew that Li Fu was actively pursuing the project even though he didn't have enough cash flow, so it wanted to steal the deal.

The "miracles" that Li Fu had created made them think that they could make a fortune by following suit and intercepting his work.

The talks concluded relatively smoothly overall. Huawei did not raise any demanding questions and acknowledged some of Goldman Sachs' strengths.

Joshua thought victory was assured.

However, the seasoned senior executive noticed something amiss and began to inquire privately about Li Fulai's situation.

He had a vague sense of unease.

Sure enough, Joshua received a notification the next day: "We have carefully studied your proposal. The price is very competitive and the terms are very favorable. However, after comprehensive evaluation, we have decided to engage in in-depth cooperation with Forrest Capital and JPMorgan Chase."

Joshua was completely stunned; he couldn't understand it.

The meticulously designed price comparison charts on business laptops appear particularly glaring under the lights.