Sail across the sea

Chapter 421 I Believed His Ghost, Fujiki Suke

"Director Fujiki, I don't understand what you mean."

As they left the meeting room where the negotiations were taking place, Jiro Iwai spoke softly to Suke Fujiki.

"Do you want to know why I offered to help China sell photoresist?" Fujiki asked.

"Yes. Aren't we competitors with the Chinese?"

"No, no, no, Mr. Iwai, you overestimate the Chinese. How could you possibly think they could be our competitors?"

"The i-line photoresist they developed is better than ours. I think they must have mastered some new technologies."

"Perhaps so. China's military industry is very secretive; no one knows exactly how much technology they possess. Fortunately, they lack the ability to commercialize this technology, so they simply cannot become our competitors."

"But don't we deserve to pay attention to their research capabilities?"

"What I want to do is precisely to curb their research capabilities. I want to stop their research on photoresist at its current level, so that they can never make any further progress."

"But you promised to sell photoresist for them."

"My condition is that they must build a facility with an annual output of 200 tons, and then I will handle 50 tons of that production for them. Mr. Iwai, do you think the Chinese are capable of selling the remaining 150 tons of product?"

Jiro Iwai shook his head blankly: "I don't know. Director Fujiki, as you know, I'm just a technician and don't understand business matters."

Fujiki was quite satisfied with Jiro Iwai's answer. He smiled and then said in a sinister tone, "The conditions I promised them were actually bait. If they are greedy for the sales volume I promised, they will have to produce 200 tons of product, and then they will face difficulties in selling the product."

"There are only a limited number of integrated circuit manufacturers in the world, and the raw material supply for these companies has always been monopolized by a few chemical companies like ours. It is completely impossible for the Chinese to break into a market with a total volume of 150 tons."

"This means that the photoresist they produce will be stuck in their hands, eventually failing and becoming waste. Given China's economic level, they simply cannot afford such a huge loss. At that time, the officials who advocated for this project will be dismissed, Yun Zhongming and Bi Liansheng's research labs will be closed, and the Chinese will no longer have the courage to venture into this market."

"I see!" Jiro Iwai exclaimed in sudden realization, then asked worriedly, "But what if they discover your plan?"

Fujiki shrugged: "So what? If they don't dare to do it, then my promise is invalid, and Moriya has not suffered any loss."

"I understand, you've just given the Chinese an empty promise."

“This empty promise is absolutely necessary. If I don’t offer them such an incentive, they are likely to choose a conservative approach, which is to first build a plant with an annual output of 20 tons. Although such a plant cannot make money for them, it will give them the opportunity to improve their products and create a virtuous cycle. What I need to do is entice them to take the risk.”

"Director Fujiki is truly brilliant..."

Jiro Iwai complimented Fujiki, but what he was thinking was something else entirely:

These salesmen are really dirty-minded!
Meanwhile, Yun Zhongming was also discussing the promises Fujiki had made to them with Bi Liansheng, both of them with furrowed brows. "Chief Engineer Yun, do you really think the Japanese are that kind-hearted?" Bi Liansheng asked.

Yun Zhongming sneered, "I didn't believe Fujiki's nonsense! Lao Bi, don't you think he just dug a pit for us?"

“A bit…” Bi Liansheng said, “He said if we install a 200-ton unit, he can buy 25% of it for us. This condition sounds good, but I thought about it again. According to his plan, we would have to sell 150 tons a year ourselves, which is not an easy thing.”

“This is simply impossible,” Yun Zhongming asserted.

"So, shall we stick to the original plan and build a 50-ton unit?" Bi Liansheng asked.

“I’m a little hesitant,” Yun Zhongming said. “Old Bi, think about this: using a 200-ton unit can reduce production costs by 20% compared to a 50-ton unit. This means our products will be cheaper and more competitive in the market.”

"If the products we produce with a 200-ton unit can't be sold on the international market, then wouldn't the products produced with a 50-ton unit have even less hope?"

"But at least our pressure will be much less. The pressure of having 50 tons of stockpiled products is different from having 150 tons of stockpiled products."

"The pressure is the same for us. Our goal is to get our products into the international market. If we can't sell the products we produce, having 50 tons or 150 tons in stock is the same – it means complete failure. A 50-ton unit requires an investment of 1000 million yuan. Do you think we can afford such a huge loss?"

"..."

“When Fujiki said he could buy 25% of our stock, I was already doing the math. I thought, if we can sell 50 tons of our product even with higher costs, then selling 100 tons after the costs are lowered should be possible, right? Adding that to the 50 tons Fujiki promised, we’ve essentially sold 150 tons, and that profit is enough to offset the loss from the 50 tons of unsold stock.”

“How about…” Bi Liansheng hesitated for a moment, but finally said, “Chief Engineer Yun, let’s ask Gao Fan again. I think when it comes to scheming and trickery, the Japanese are definitely no match for that kid Gao Fan.”

Yun Zhongming gave a wry smile. Actually, just now, the same thought had flashed through his mind: to ask Gao Fan for advice, but that would have been too embarrassing.

After much deliberation, Yun Zhongming decided to seek advice from Gao Fan.

Because the negotiations between Fenglin Institute and Sengu had dragged on for a long time, Gao Fan left Nanquan after giving Yun Zhongming and the others advice and went to Beijing.

Yun Zhongming called the academic affairs office of the Chemistry Department at Peking University using the phone number Gao Fan had given him. A few hours later, Gao Fan called back.

After listening to Yun Zhongming's account of the negotiation process, especially hearing Fujiki's promise to act as an agent for Fenglin's photoresist, Gao Fan laughed out loud on the other end of the phone.

"The Japanese never disappoint when they get things done," Gao Fan said.

"What do you mean?" Yun Zhongming asked, puzzled.

Gao Fan said, "It's very simple. The Japanese are always uneasy when doing business without using some tricks. Fujiki's promise is obviously a trap, making us suffer a loss and still have to thank him."

(End of this chapter)