Those Years When I Was Forced to Top the Forbes List

Chapter 266 You come and I go
August 2nd was a difficult day for Datang.

In the morning, they were still in a meeting preparing for a public opinion and legal counterattack against Spreadtrum. The chairman's faction criticized Zhencaiji's poor execution of the lawsuit, citing "what led to Spreadtrum's tough stance." Meanwhile, the "new power faction" of Zhencaiji engaged in an in-depth debate on "how exactly Spreadtrum was forced into becoming a traitor."

In the afternoon, Datang's market value suddenly shrank by several hundred million yuan, prompting calls from the China Development Bank, PICC Asset Management, and Shanghai Bell (the investor) to inquire about the situation.

The senior management, who had been arguing about "What" and "HOW" until their throats were dry this morning, then asked "Why".

"How can it be?!"

"It's just a few news reports. It's one thing for retail investors to follow the trend, but how could major funds collectively reduce their holdings?"

The public opinion monitoring system of the Tang Dynasty clearly saw the changes in the whole incident and revealed the answer.

"It's Chen Xuebing's blog!"

"Changzheng Capital has recently gained significant influence in institutional circles!"

Datang finally noticed the new shareholder of Spreadtrum.

Zhou Huan cursed, "See? Was I tough on Spreadtrum? Huh? This is a conspiracy! A conspiracy by capital!"

The Zhencaiji faction has completely fallen silent; no one wants to be associated with this "foreign capital enemy."

Zhou Huan seized the opportunity to make a decision: "Capital? Perfect! Immediately reapply to the Ministry of Information Industry for that 10 billion yuan special subsidy. We are a strategic core enterprise. Now that some capital is trying to erode our independent communication development and manipulate our stock price, it is precisely the time to need national support to fight back against external capital!"

"Great idea, Chairman!" Tang Ru'an slapped the table with a smile. "The Ministry has been dragging its feet on this batch of funds. Applying for it now is the perfect opportunity!"

"The chairman is brilliant," someone chimed in, offering a flattering remark.

The new power faction's directors exchanged glances, their eyes hesitant.

One billion.

If this money is actually approved, how much will each department get?

Let's continue following the penniless Zhencaiji.
"That's indeed a good idea. We need to unite and resolutely fight back against external interference. I suggest that authoritative media outlets report on this kind of capital speculation to set the record straight."

A newly empowered board member recently voiced his support for the chairman's position for the first time.

Zhou Huan laughed heartily: "President Xu is right! We should thank our opponents for the opportunity they've given us!"

Zhen Caiji's eyes darkened, sensing danger in his heart.

That old scoundrel came up with a brilliant idea!

If he were to actually obtain this financial power and gain unanimous support from within the organization, the situation that he had worked so hard to build would be wiped out overnight, and Tang Ru'an would seize the opportunity to vie for power.

He was torn about whether or not to reveal the news.

Seeing Zhou Huan's slightly mocking gaze, he gritted his teeth, laughed, cleared his throat, and said:
“The chairman is right. We should unite at this time. However, applying for funds is not the only way. I just received a message that can help us maintain the stock price.”

The surroundings quieted down.

Zhen Caiji's momentum returned, and he said loudly, "Recently, the Ministry of Information Industry has met with China Mobile, China Telecom and China Unicom to discuss spectrum issues. It has been preliminarily decided that China Mobile's core frequency band is 1880-1920MHz."

Everyone was stunned.

Technical executives familiar with the Ministry of Information Industry's 3G frequency planning in 02 have already realized that this is the core frequency band allocated to TD-SCDMA.

Those who didn't know much about it were still asking:
"Is this the uplink frequency band? What about the downlink frequency band?"

Zhen Caiji smiled without saying a word.

There was silence.

Zhou Huan and Tang Ru'an's smiles also disappeared.

TDD (Time Division Duplex) does not require pairing of uplink and downlink channels, while FDD (Frequency Division Duplex) and CDMA2000 (Frequency Division Duplex) require uplink and downlink spectrum to be allocated.

That means it's confirmed that China Mobile has taken over TD.

China Mobile, with its deep pockets and recent listing on the US stock market surpassing Vodafone, boasts over 100 billion in cash resources. Having them develop the TD standard is indeed good news for Datang.

But Zhen Caiji was transferred from China Mobile. He was originally the deputy chief engineer and general manager of the planning department at China Mobile, which was his former employer.

If China Mobile becomes the operator of TD, then the successor of Datang will be locked in an even bigger way.

Zhen Caiji didn't actually want to reveal this secret in advance, because although the ministry had set the tone, China Mobile was still actively vying for WCDMA. But seeing Zhou Huan's undisguised astonishment, he felt it was worth it.

"We can subtly reveal the spectrum issue, and let the media hype it up. As for applying for government subsidies, I don't think it's the right time yet. This money should be used for actual business expansion after the 3G licenses are issued."

The 10 billion yuan subsidy has been talked about for two years, so naturally we have to apply for it.

But not at this time; it should be after he takes office.

"I think this is better!" The director who had just defected was sweating profusely and immediately jumped back to Zhencaiji's camp.

The other new power factions also quickly expressed their agreement.

The other directors' eyes darted around, each making their own calculations.

Seeing this opportunity, Zhen Caiji smiled knowingly and said, "Chairman, if there's any debate about this, how about we hold a vote?"

This time, it's Zhou Huan's turn to bite the back molars.

Previously, he could somewhat suppress Zhencaiji, but now, in a vote, Zhencaiji has surpassed him for the first time, and his authority as chairman has been completely undermined.

"Hehe, since Dean Zhen has a better way, we don't need to make things difficult for the department! I think it's a good idea, then let Dean Zhen handle this matter."

Zhou Huan chuckled and gave the order to Zhen Caiji, as if it were still his decision.

The endless stream of insults.

The following day, Qualcomm suddenly joined the fray.

What is night in China is daytime in the United States.

On August 2, a Wall Street media outlet published an article about the widespread criticism of TD technology by Chinese media that day. The article cited an analysis report from Qualcomm engineers, which stated that TD technology was "outdated and unsuitable for commercial use."

On August 3, the New J newspaper reprinted almost the entire article.

While their rhetoric appears to be completely consistent with the previous day, they are not receiving money from the same company at all, and they are using a lot of foreign media's statements.

On that very day, several media outlets arranged by Chen Xuebing were still attacking Datang.

He astutely sensed something was amiss, immediately retracted the subsequent report, convened a remote meeting of the group, and invited Spreadtrum executives to join via video link. He slammed his fist on the table and berated them:

"Damn it, Chiang Kai-shek massacred us, and now Wang Jingwei is joining in the fun! Let's fight!"

"Fight for data, fight for technology! Not only against Datang, but also against Qualcomm!"

Even with Chen Xuebing's quick reaction, Datang still managed to steal the opportunity and immediately contacted its superiors, referring to Chen Xuebing as a "foreign fang."

The ministry has finally taken action.

On August 5, RM Post published an editorial entitled "Beware of Capital Hijacking Technology: On the Battle to Defend TD's Autonomy".

The Tang Dynasty seized the opportunity to speak out.

Science and Technology Daily: Zhou Huan: Capital Speculation Cannot Save China's 3G; TD Needs Patience, Not Interference

Now, the media fell silent.

RM Post and Telecommunications is the Ministry of Information Industry's "self-media" and the Party's official newspaper. There are very few media outlets that dare to go against them.

Especially newspapers that deal with communications.

Chen Xuebing had organized a round of attacks based on data, but the news and communications newspapers rejected all their articles. Only a few financial newspapers dared to continue taking their work, but they all reminded them not to be too aggressive in their language.

Wu Ping also called to persuade him.

"Let's avoid their sharp edge for now. The Ministry of Information Industry has already spoken, so let's wait for the storm to pass."

"Should I avoid his edge?"

Chen Xuebing chuckled, but the smile didn't reach his eyes: "The stock price of Datang went up yesterday, do you know why?"

"What's wrong?" Wu Ping asked.

Chen Xuebing glanced at the several financial newspapers on the table, their headlines in large print reading:

China Mobile will take over TD and will soon start the construction of 3GTD base stations.

Is China's first 3G license about to be issued? Is Datang's spring about to arrive?

"Several authoritative newspapers have reported in the past few days that China Mobile is confirmed to take over TD. It might actually be true. At this point, even if the King of Heaven himself comes, we will fight Datang to the end. Have Teacher Chen contact the old leaders of the Ministry of Posts and Telecommunications to see if we can find a way to directly contact Wang Jianzhou and explain Spreadtrum's recent technological progress to him. Also, I would like to meet with him alone. Is there any way to do that?" Wang Jianzhou, General Manager of China Mobile Communications Group.

Since its establishment in 2000, China Mobile has not appointed a chairman, and the general manager holds sole power.

“Wang Jianzhou…” Wu Ping sighed, “I’m afraid even that old leader will have a hard time getting an audience with him. He was originally a director-general in the ministry, and now he’s in charge of such a large situation…”

Wang Jianzhou was the director of the Ministry of Posts and Telecommunications in 96, later served as the director of the Ministry of Information Industry, and then as the chairman of China Unicom. He joined China Mobile in 04. From 10 years ago to the present, he has always been in the top circle.

China Mobile's latest market capitalization on the NYSE is $1325 billion. In this day and age, there are countless people in China who want to meet them every day.

Chen Xuebing also realized that he was being a bit too hasty.

The main issue is that the news that China Mobile would lead TD was confirmed back in 07, and now it's suddenly being revealed, with China Mobile not issuing any statement to refute it, which is a sensitive signal.

The issue of China's 3G licenses is being watched closely by countless eyes.

The key point is that while the issue of China Mobile taking the lead in TD has been mentioned, the other two licenses have not been mentioned at all.

Any slight movement in China, the world's largest telecommunications market, will trigger a flurry of activity among telecommunications companies worldwide.

He had a complete plan from the beginning of 3G, which required cooperation with China Mobile as early as possible and for China Mobile to cooperate at the appropriate time. Now the external rhythm seems to have changed somewhat from the previous life, and he fears that delays may lead to changes.

"What about the management of China Mobile? Can we get in touch with them? At least we need to submit Spreadtrum's technology plan to their senior management."

"Let me think of a way."

"As soon as possible, contact me immediately if anything happens. If things are beyond our control, I'll figure something out."

"That old leader should have a solution, but what about the Huaqiangbei market?"

Spreadtrum's order volume has been very small recently, and the orders are also scattered. In the past few days in August, the total number of orders was less than 200,000. It has been a while since they placed an order with SMIC.

With this order volume, expecting SMIC to take over half of its factory's capacity and demand a large-scale price reduction is nothing short of wishful thinking.

An 8-inch wafer fab can produce 70,000 to 80,000 wafers a month, which is more than 10 million wafers per month. Half a fab would be worth several million.

If things continue like this, it would be good if SMIC didn't schedule their orders for another six months.

“Let’s order two million sets from SMIC first,” Chen Xuebing said. “There’s no rush for the order. Those manufacturers who have already agreed to deal with me are now going against my wishes and secretly ordering MediaTek products. In less than a month, I’ll have them double their orders. No matter how much you order, I can sell it all.”

Two million sets of chips, including CPUs and basebands, would cost four million yuan, which would be enough to satisfy SMIC.

“Our costs are a little lower than before, but it’s still $8.6 a set, which is 68 yuan. If we can’t sell them,” Wu Ping said quietly.

"Didn't you sell 300 million last month? Didn't you make any money?" Chen Xuebing retorted, then said:

"Don't worry, Spreadtrum's products already have a good reputation, and everyone is very satisfied with the service. It's just a matter of price. They will understand the price difference very quickly."

There was a reason why he told Xu Yanming to meet with the manufacturer a month later.

The Shanghai Composite Index is currently at 1550, which is much lower than his prediction of a bottom of 1600. As a result, several of the funds invested in by Changzheng at 1600 points have suffered small losses.

The big bosses of the 15 "Spreadtrum Alliance" in Huaqiangbei have invested a total of 200 million yuan in Fund No. 3 from mid-last month to now, and have lost more than 6 million yuan so far.

Fund No. 3 allows for entry and exit at any time, with no guaranteed minimum return.

Two people who dreamed of making money immediately came to him and made a scene. He didn't stop them. The two took 30 million, accepted the loss, and left. Currently, Fund No. 3 has a little over 1.63 million.

Others also had complaints. Although they did not ask the fund for a refund, they surprisingly did not place any orders with Singularity this month, claiming that the previous goods had not been sold out. On the contrary, some small manufacturers who had previously relied on Singularity to sell their goods placed some orders with Spreadtrum when MediaTek's delivery was not timely.

It's all about money.

Chen Xuebing could sense that 1550 points was probably the bottom.

Many things will change dramatically in August.

“MediaTek is in a worse situation than us. They are not making money, but losing money. We need to take a long-term view. When our orders are enough to drive down the price of the contract manufacturers to $7, that will be the time when we can really make money.”

Wu Ping clicked his tongue at the mention of "7 US dollars": "President Chen, every time I listen to you speak, I feel a sense of comfort like a gentle spring breeze, but rain falling on paper doesn't necessarily grow rice and millet."

"Is it hard to grow?" Chen Xuebing straightened his collar, letting go of the summer heat.

"This time I'm determined to make him grow up."

After he finished speaking, he hung up the phone and tapped his fingers back and forth on the desk, thinking about possible international reactions.

If the news that "China Mobile will dominate TD" was released by Datang Telecom employees just to boost Datang's stock price, then it's a foolish move, or rather, Datang's people are too focused on their own interests.

He has recently been studying the history of global communications development, and combined with subsequent developments, he has gained an exceptionally profound understanding of this market.

There is also a greater sense of crisis.

This is an exceptionally large market, with hundreds of billions of RMB equivalent in foreign exchange flowing overseas every year. China has always relied on exchanging market access for technology, and the tolerance buffer between Europe and the United States for China's development of communication technology lies in this interest.

In this situation, if an international telecommunications company sees no profit in it, and its mobile phone suddenly emerges and enters the high-end market, directly clashing with international brands, it will most likely lead to one of these scenarios.

Geotechnical competition.

Moreover, its scale may be even larger than Huawei's in its previous life.

Given China's current level of communication technology, it doesn't even have the opportunity to use patents to restrain others in exchange for mutual licensing; others can manipulate it more easily.

Not to mention chips. China has been using low-end chips for many years. Now, apart from concerns about the military industry, many people don't see a market for this sector at all. There are many voices saying that it's better to buy than to make. If a war breaks out, it may not get the same support that Huawei received in its previous life.

Europe and the United States are currently developing WCDMA and CDMA2000. We need to appease them regarding these two licenses, be cautious in spreading information, and while we can't offer too much in terms of benefits, we must provide a sufficient amount. The best approach is to gradually and patiently work things out.

Now that the power to release information and negotiate is no longer in his hands, and TD, which is leading the way, has neither technology nor strategy, it must be kicked out as soon as possible and replaced by his alliance.

This is a serious matter, and time is of the essence; he has to resort to some methods.

Even if the Ministry of Information Industry speaks out, he can only stand his ground.

He thought for a moment and then dialed a number in Chongqing.

After waiting for a long time, the other end answered.

"Hey."

Hearing that it wasn't his secretary who answered, Chen Xuebing smiled.

The fact that his calls can now be transferred directly to Boss Huang without going through a secretary shows that he is quite important to the other party.

He then got straight to the point:

"Leader Huang, I need your help."

"You've heard about what happened in the Tang Dynasty, but I can't comment on it." The other party said directly, "It would be unwise for you to directly clash with them."

"It's not that I'm looking for trouble, it's that trouble is coming to me. Spreadtrum wants to seize the market, and our competitors, together with Datang, want to strip us of our development rights. Can I tolerate this? Is the technology we jointly developed with Chongqing University of Posts and Telecommunications just going to be rendered useless?"

After a moment of silence and thought, the person on the other end said, "You want me to be a peacemaker?"

"No, that's not it. We've found a partner in Huawei. The combined technology of the three companies, once integrated, will soon be able to replace them. We don't need to swallow our pride."

Upon hearing this hope, Leader Huang became interested.

Spreadtrum is now conducting R&D in Chongqing. If they can really lead a 3G technology and help Chongqing develop an industrial park, he won't care whether Datang lives or dies.

"What do you want to do?"

"Find a media outlet, one that's a bit higher up than RM Post and Telegraph, one that allows reasonable policy discussions."

These words completely baffled Leader Huang.

If it's higher than RM Post and Telecommunications, then it's not at his level.

"Don't say anything out of the ordinary."

"I will restrain myself."

"You can't release anything you say randomly. The media censorship at this level is very strict. If you make wild claims, they'll shut it down immediately, and you won't be able to get help from them," Director Huang reiterated.

"We'll only be talking about technological developments. If you're worried, can you help me contact Wang Jianzhou, the CEO of China Mobile? I won't contact the media, okay?"

There was another moment of silence on the other end.

"I have an old colleague who works at the Economic Daily News, is that okay?"

Chen Xuebing:
He was speechless when the other party weighed the options between "finding Wang Jianzhou" and "finding a deputy B-level media outlet" in just three seconds.

"Go, go, go."

(End of this chapter)