RBCT Chapter 1430: Taking a Stand (5k)
Chapter 1430: Taking a Stand (5k)
Chapter 1430: Taking a Stand (5k)
Intel's CEO comes and goes, AMD's head comes and goes, BIS and USTR are watching covetously, Chinese and foreign media have set off a storm of public opinion, and new restrictions are approaching in secret.
With all these things happening, it is inevitable that Yike will experience internal shocks.
On October 15, Errol, Vice President of Public Policy and Business Development at Econ America, resigned. The media picked up the news and saw it as a sign of Econ's gradual collapse, and they strongly invited Errol to be interviewed.
Errol's position is to be responsible for dealing with the government, and he has been in Washington for almost the past six months. His resignation at this time will surely bring up many hot topics, although he resigned due to "family reasons."
However, no matter how the media interviewed and invited him, Errol refused very firmly. He didn't want to become a public opinion star at all. Although he resigned, as someone who once represented Yi Ke in communicating with Washington, he could feel Mr. Fang's influence and circle of friends. There was really no need for him to risk sacrifice to chase temporary popularity.
Errol was indeed not optimistic about YiKe's recent performance in the US market, and even thought that YiKe would be at risk of being delisted from Nasdaq in the future.
However, after repeatedly rejecting the media, he was also thinking about a question: how should he measure the remaining YiKe shares in his hands?
YiKe's market value has been fluctuating in the past few months, and this month, affected by multiple negative news, its market value can no longer support the $3400 billion level. Some institutions even pessimistically predict that YiKe may return to below $3000 billion.
However, on his last day at work, Errol received news from his Chinese colleagues that the company's cloud business had received a large government order, and this was obviously just a microcosm.
According to a possible scenario at present, if the company loses the US market, its revenue will definitely be hit hard, but the company still has unrealized potential in the Chinese market, such as the YMS division...
Errol sometimes feels that if YMS is willing to significantly increase advertising, Yike is almost capable of immediately changing its nature and becoming a mutated version of China's Google. Under the current poor expectations, it is not ruled out that it will suck blood from this aspect in the future.
Similarly, Yike’s smart home also has good growth expectations within the company.
Errol thought about it and decided that the American market was indeed important, but the Chinese market could fully support Yike. If the growth of the mobile phone market slowed down, Yike's strength could allow it to compete across fields. For example, it had established a "Kunpeng" electric car project this year. Who knows what the future will be like.
He finally decided to keep some YiKe shares. After all, the overall growth of U.S. stocks has been a lot this year, and YiKe's current decline is almost gradually fulfilling the expectation of losing the U.S. market.
Errol resigned, but still closely followed the developments of his old employer. Soon, he saw a surprising piece of news: Mr. Fang, who had been in China for a long time, actually flew to Berlin!
Going abroad at a time like this... I'm afraid it's really time to "come to Jesus"!
Errol was constantly updating the news, almost forgetting the question of how to measure Yike's future value.
On October 23, many media reported that Fang Zhuo, the head of Yike, flew to Berlin, and his subsequent whereabouts were that he immediately went to the Bingxin International factory in Magdeburg.
It seems that this is just an ordinary inspection of Bingxin's overseas factories, but many Wall Street media have already set off to Germany, hoping to capture the parties involved in the Yike scandal with their cameras.
However, Fang Zhuo's trip was a forced and temporary decision. He was originally considering how to express his attitude and had work arrangements in China. But Qiu Ciyuen, who had been wandering between Germany and France recently, suddenly fell ill, and there were high-level negotiations in Germany, so he simply made the trip.
Although we are cautious about traveling abroad at this stage, direct flights to Germany are still reassuring.
In other words, France, which I might visit next, is also reassuring.
Fang Zhuo came to Germany this time with European President Pan Ben, Emerging Business President Zhang Yaqin and Bingxin's senior executives. On the second day of his inspection of the Magdeburg factory, news came from Berlin that German head Merkel, with whom he had met twice before, welcomed his arrival and made an appointment to meet in Berlin.
This coincided with Fang Zhuo's thoughts. Now that he was out, of course he wanted to meet the top management here.
One of the main reasons why the first ICE CORE overseas factory was chosen to be built in Germany was that Merkel, a German evergreen and one of the leaders in European affairs, had a pragmatic attitude and consistent tenure, which could ensure the relative stability of the ICE CORE factory construction and operation.
In addition to Bingxin's overseas factories, Yike also has a lot of cooperation and investment in Germany. Deutsche Telekom is the operator with the closest overseas cooperation. Yike Cloud has built a data center in Munich, and Schott Glass Factory has also been a stable supplier of Yike over the years...
And, after the financial crisis, the annual Yangtze River Delta economic and trade delegation led by Fang Zhuo is also one of the most active business exchange groups between China and Europe.
Fang Zhuo agreed to the meeting and also received a friendly reminder that many media and reporters had already arrived in Germany or were on their way.
He responded that it would not cause him any trouble.
In fact, just before boarding this flight, vague news came from Washington again. Due to recent circumstances, the relevant restrictions may not last until the end of the year. If Yi Ke does not take effective actions, targeted measures may appear next month.
Fang Zhuo understood this as an ultimatum.
From March till now, Yi Ke's apparent attitude has been to solve the problem, but once the recording was leaked, a very important point of public opinion was the "offense" that Yi Ke was unwilling to succumb to.
Is unwillingness to yield an offense?
At least that's what many media outlets in the United States have shown. Beyond the business level, next year's election is already in the works, and this incident has once again become a good starting point.
Yi Ke has become a very appropriate target.
At this moment, Fang Zhuo did not feel too much pressure in his heart. Instead, he felt a slightly strange excitement. Since he had done everything he could, he decided to see what would happen.
On the 26th, the senior executives of Yike and Bingxin, who stayed in Magdeburg for three days, went to Berlin and will attend an economic and trade event jointly organized by the German Financial Steward, the China Business Center in Germany, and the China Council for the Promotion of International Trade.
Of course, this activity was temporary. It didn’t exist originally, but it came into being after Fang Zhuo came.
In addition, Fang Zhuo would meet with Merkel privately before attending economic and trade activities.
Because it was a private meeting, other people could not accompany, so I was very curious about what the German head and the boss talked about.
"It's nothing. She wants to invest, and I want to protect her."
"She thinks that there could be another world-leading production line in Magdeburg, that's all."
Fang Zhuo didn't think there was anything to hide.
"Then do you agree?" Pan Ben asked.
"No." Fang Zhuo replied.
Everyone was surprised. Shouldn't the relationship between the two sides be further strengthened at this time?
"The cost of advanced technology is too high now, and Bingxin's current focus is not on this, so we don't need to be too blind." Fang Zhuo explained briefly, and then said, "Besides, this 16-28 cooperation model is not very applicable now. We still have to wait until the overall situation is clearer. However, 65nm cannot be used here, and our 45nm is now quite mature. The nm and nm in Magdeburg are indeed gradually losing their competitiveness."
Magdeburg started out with 65nm, and later added a 45nm production line, part of which was for cooperation with European car companies and part of which was conventional wafer foundry.
At a time when first-class processes have expanded to 16nm, 28nm is still quite suitable as the critical point of advanced processes.
Fang Zhuo did not agree to Merkel's investment proposal and gave a second-best response, but he did not feel that the other party was disappointed. Perhaps he also had the intention of removing the roof and opening a window.
Outside the wafer factory, the two talked about Yike's performance in the European market. Mobile phones are normal consumer electronics products. Yike Cloud focuses on serving European small and medium-sized enterprises, and the data remains local. Everything is suitable.
In general, the communication between Fang Zhuo and Merkel was very pragmatic, and they both protected their own interests without any extra tricks.
However, perhaps because of the other party's identity, everyone was still listening attentively despite the plain narration. Judging from the current situation, the fact that they could have a peaceful conversation with each other was already good news.
"Okay, get ready to work. Mr. Zhang, please try to sign a few more clients. Since we are here, we can negotiate on the price." Fang Zhuo called on Zhang Yaqin who was accompanying him. Part of his job was to develop Yikeyun in the European market.
Different from the strategies of Microsoft, Amazon and other companies in Europe, Yikeyun did not pursue large government clients here, but focused on small and medium-sized enterprises, which can be regarded as blazing a trail.
On the 28th, Fang Zhuo and others attended the event, and Chinese companies in Germany also came together, making it a very formal economic and trade event.
However, reporters have been waiting for this three-day event since the first day, strongly demanding that an interview session be added and that the beautiful business friendship between China and Germany be reported.
As the main target of pursuit, Fang Zhuo's hotel had actually been harassed, but his decision to accept the interview was based on the latest news from the American operator.
Yike's partner operators, including T-Mobile and Verizon, have received strong advice from Washington and will consider terminating their cooperation with Yike within the year.
In the current US and European markets, the most important part of the smartphone sales channel is the operator's bundled packages. Once Yike ends its cooperation with US operators, it almost means being kicked out of the US market.
Calculating the timing, it is just in time for the operators to sell out their inventory before Christmas.
There is no official announcement, but the route and time are basically made clear.
On the last day of October, Fang Zhuo gave media interviews in Berlin.
Although he had faced many media cameras at the Internet industry conference in Shanghai before, this was a formal media meeting. Although the theme was China-Germany economic and trade relations, most of the reporters came to see the head of Yike.
Germany's deputy financial steward attended the meeting. He talked about the business cooperation between China and Germany, and then found that everyone's eyes and cameras were almost all on the head of Yi Ke next to him.
He was somewhat helpless, but also made a joke with anticipation: "Hey, Mr. Fang, now is your time."
Fang Zhuo nodded slightly and just as he reached out to turn on the microphone, many reporters started taking pictures, and Kate, a reporter from the Wall Street Journal, asked questions first.
"Mr. Fang, will Yike withdraw from the US market?"
The first question that everyone is most concerned about is.
Fang Zhuo smiled and didn't evade the question too much. He answered: "That depends on whether the American market can accommodate Yi Ke."
Kate followed up with a question: "If Yike's BIS temporary license expires, will it still insist on cooperating with Bingxin International? We haven't seen any results in Yike's replacement. Whether it's Intel, Samsung, GlobalFoundries, UMC, or Taiji, they have all ended negotiations with Yike. Is that right? Did Yike not make the 'active' solution announced in the announcement from the beginning?"
Since March 1 this year, Fang Zhuo answered this still-highly concerned question for the first time: "Yi Ke has actually actively negotiated with various wafer manufacturers, but as you can see, different companies have encountered various pressures. On this issue, I also want to ask."
"On the one hand, BIS issued restrictions to prevent Yike from cooperating with Bingxin, and on the other hand, the SEC intervened and stopped Yike from cooperating with GlobalFoundries. This actually did not provide reasonable space."
"As a company committed to providing consumers with the highest quality products, Yike will not voluntarily give up the US market, but it is also unwilling to endure unfair treatment."
Fang Zhuo paused and gave a clear answer: "Yes, Yike will still insist on cooperating with Bingxin International."
As he said this, today's photographers all took pictures of this moment.
More reporters at the scene suddenly became agitated, and even the senior executives of Sino-German companies who were participating in the interview but could only be spectators could not help but look at the head of Yike.
Yi Ke insisted on cooperating with Bingxin, but the latter was on the Aramco Strict Selection list, which meant that once the temporary license expired, Yi Ke would not be able to sell its products in the US market.
This is a positive response.
This almost puts the final nail in the coffin for the doubts hanging over Yi Ke's head!
Another reporter from the New York Times, Pez, asked loudly amid the discussion: "Mr. Fang, why did you do this? Do you really know the consequences? Mr. Fang, Yike has essentially given up the US market!"
"Pez, you asked the wrong person. You should ask BIS why they did this?" Fang Zhuo knew the reporter who asked the question and asked back with a smile, "Why should ice cores be restricted? Is it because it has introduced sufficiently advanced technology?"
"You, you, this, ice core, it..." Pez couldn't answer for a moment, and used an excuse that has been popular in recent public opinion, "It destroys the division of labor in the global semiconductor industry!"
"If a company that is unwilling to lag behind achieves remarkable results through continuous research and development and provides the best technology to many well-known customers around the world, this is called destroying the division of labor in the industry," Fang Zhuo refuted. "If there are more companies like this in the world, the cost of purchasing chips will not be so high."
There was no order in the interview process at the media meeting. As soon as Mr. Fang finished speaking, several reporters rushed to speak.
"Mr. Fang, if Yi Ke's temporary license cannot be extended, what does this mean for Yi Ke?" a reporter from Der Spiegel asked.
Fang Zhuo just heard this question and then heard other reporters' questions. He indicated that the scene still needed to maintain order, then thought for a moment, considering that the audience of this interview might be from different parts of the world, and answered: "I like Alexandre Dumas's The Count of Monte Cristo very much. I like a passage in it, 'I think a person will not be happy so easily. Happiness is like a palace guarded by a giant dragon on a magical island. To obtain happiness, you must go through a fierce battle.'"
“I don’t know what the criteria for BIS’s temporary license are, and I don’t know whether Yi Ke can get an extension, but I think this is nothing more than Yi Ke’s success is always difficult, and obtaining it probably requires a fierce battle.”
"Yi Ke is not afraid of competition in the market and is willing to consistently provide the best products within its capabilities to consumers around the world."
Will BIS be extended?
Now this situation of shouting and killing...
Matthews, a reporter from Fox News, did not expect to hear such a blunt statement today. He was quite shocked, especially when he thought of the Yike shares he still held. He could not help but ask, "Mr. Fang, is Yike's decision in the interests of shareholders? Do you know what losing the US market means?"
"Yi Ke has not lost the US market, nor does it want to lose the US market." Fang Zhuo revealed the news, "But as far as I know, BIS is already drafting a plan to force Yi Ke to withdraw from the US market. Considering this situation, Yi Ke's investors should ask BIS instead of me."
"As a company that continuously innovates and drives industry development, Yike has the right to choose suppliers. As a company that continuously invests in research and development, Bingxin International has always been a reliable strategic partner of Yike. Many of its products that have been well-received by consumers in the past have also proved this."
Matthews almost wanted to rush to the stage, and his voice was about to break: "Mr. Fang, Yike's business, Yike's market value, Yike... Yike's users, why are you unwilling to give up cooperation with Bingxin?! You, you are simply committing a crime!"
Fang Zhuo spread his hands: "Is this a question?"
Someone nearby motioned to Matthews from Fox News to calm down.
Fang Zhuo continued to speak to the camera: "There is an American writer named John Steinbeck, whose The Grapes of Wrath I also like very much. 'When human beings no longer endure torture or are willing to sacrifice for a certain idea, that is the most frightening, because this quality is the foundation of human beings, and it is this quality that makes people unique in the universe.'"
“A great company lives its values, even if it means suffering for it.”
"Many people kept asking me whether I would give up the cooperation with Bingxin or not."
"I have given my answer now and I will not give up."
"And then you asked me and pressed me on why I was unwilling to give up."
"why?"
"Because Yike is willing to keep improving, and the open and inclusive market spirit, the consistent R&D investment, and the down-to-earth process innovation are what Yike appreciates and agrees with Bingxin."
"Since its founding, Yike and Bingxin have always been willing to accept challenges. We have faced Sony, Nokia, Microsoft, Samsung, and Apple along the way. If we need to face the biggest challenge now, then our persistence in meeting the challenge itself is the practice of our values."
"Just now, Pez said that ice cores are a disruption to the global division of labor. Hey, remember, it is the behavior of forcibly restricting outside the rules of the global market that is a disruption to the global division of labor and the biggest challenge facing the global industry today."
"I know what you want to ask. Whether it's doubt or questioning, Yike and Bingxin are inseparable strategic partners and will not be shaken by any factors."
“This is my consistent attitude!”
“No matter what problems or challenges we face, I would like to speak on my own behalf, on behalf of all the employees of Yike and Bingxin, on behalf of all the practitioners in the industry who are unwilling to succumb to threats, and on behalf of all the colleagues around the world who stick to their beliefs and defend their dignity…”
Fang Zhuo faced the camera and this time, instead of being leaked, he gave an answer openly: "Come on."
No Fuck, that's not appropriate.
However, when he saw an American reporter in the audience raising his middle finger, he gave a similar middle finger without hesitation.
The German newspaper Die Welt gave this scene a description and prediction: This is probably the most expensive middle finger in history.
(End of this chapter)