Chapter 64: Sanctions And Response
Xingyun Manufacturing, General Manager’s Office.
The atmosphere here was not much better than the previous high-level meeting of the Semiconductor Alliance in Cupertino.
The computer monitor interface in front of Yun Yin was paused on a report.
Regarding issues such as environmental pollution from solid-state batteries exported by Xingyun Manufacturing, the White Alliance will issue a 50 billion fine to Xingyun Manufacturing, and prohibit sales in relevant countries until the related environmental pollution issues are resolved.
At the same time, all solid-state batteries produced by Xingyun Manufacturing that have entered customs in various countries will be seized.
Yun Yin’s gaze had been fixed on this report for a long time, her mind full of questions.
Environmental pollution?
The component in solid-state batteries is bone extract.
Fan Ren even joked at the press conference not long ago that under certain extreme conditions, the bone extract in Xinghai’s solid-state batteries could be eaten directly.
It’s simply ridiculous!
However, this absurd scene really happened.
The telephone on the desk rang urgently at this moment, and Yun Yin looked at the caller ID and answered directly.
“Okay, I got it!”
The call was very short, and after hanging up, Yun Yin’s frown deepened.
Xingyun Manufacturing’s long-prepared listing plan was urgently halted. All the previous investments and efforts were ruined.
Thinking of this, a hint of discouragement appeared on her heroic face.
After a long silence, she transferred this report to her mobile phone and then hurried to Xinghai.
Xinghai Meeting Room.
The joyful atmosphere from the establishment of the chip laboratory had just passed a few days ago, but today’s meeting room atmosphere was somewhat off.
After Yun Yin sent the sanctions report issued by the White Alliance to Jin Qiaoying and the summoned Fan Ren, she quietly sat in her chair without speaking, and she herself had no countermeasures.
After Fan Ren finished reading, his eyes scanned the two general managers in front of him. Yun Yin’s lackluster appearance was clearly affected.
Jin Qiaoying’s face also showed anger.
At least not a disheartened expression.
Fan Ren breathed a sigh of relief in his heart. He was afraid that this general manager, who currently dominated all affairs at Xinghai, would also lose her fighting spirit.
‘Cough cough’
Fan Ren cleared his throat.
The two women’s gazes involuntarily turned toward him.
“It’s not a big deal. Ignore the White Alliance’s fine. Put Xingyun Manufacturing’s exports on hold for now. General Manager Yun, next expand the domestic market aggressively. Any problems?”
Hearing this, Yun Yin could only nod helplessly, but she still lacked her usual drive.
Seeing this, Fan Ren didn’t continue to persuade and turned to Jin Qiaoying.
“General Manager Jin, issue an announcement to raise the solid-state battery patent authorization fee to 1000 yuan!”
“What! Are you crazy?”
Jin Qiaoying exclaimed in surprise.
In her view, Fan Ren’s approach was the most basic way to respond in business: out of spite.
This was an extremely unreasonable and inapplicable crisis PR handling method.
“General Manager Jin, don’t be hasty. Let me finish.”
Hearing this, Jin Qiaoying controlled herself to suppress her emotions, her beautiful phoenix eyes staring tightly at Fan Ren.
“General Manager Jin, in your opinion, what is the prerequisite for easing relations between the White Alliance and Xinghai?”
Fan Ren stared straight into Jin Qiaoying’s eyes without avoiding, just fixing on her.
Being stared at so directly by him, a trace of shyness flashed across Jin Qiaoying’s face, but she didn’t think much of it.
She knew what Fan Ren meant, plus the call from Jin Ze a few days ago and the demands he made.
Xinghai Technology must share the technology for preparing carbon nanotubes from graphene, otherwise the White Alliance would impose even harsher sanctions on Xinghai.
“Do we have any choice?”
Fan Ren said calmly.
Jin Qiaoying didn’t know how to answer him. She had always been taught that business issues should never mix personal emotions.
But now, although Fan Ren’s tone seemed emotionless, this attitude precisely showed her that it was a form of anger.
“Xinghai’s journey hasn’t been all smooth, heh.”
Fan Ren smiled self-mockingly, his tone showing no dejection.
He couldn’t help thinking of Liu Jun. If he were here, he wouldn’t even need to say these words.
With his personality, it would most likely be a simple ‘Fight them.’
Thinking of this, Fan Ren realized it had been a while since he drank with Third Brother and Fourth Brother.
After finishing with the chip matter, it was time to relax.
“For Xingyun Manufacturing, keep the funds for your own operations. No need to pay up profits and dividends for now. Sister Jin, how much funds are on the account now?”
When Fan Ren asked about these, Jin Qiaoying answered effortlessly.
“Still quite a lot. The follow-up R&D for the five-nanometer lithography machine only cost about 300 million, plus patent income from the past half year, the company currently has about 5 billion left.”
Fan Ren nodded. This amount was still far from enough for chip R&D.
The original plan for funds was to rely on Xingyun Manufacturing’s huge money-making ability to help Xinghai solve the chip R&D funds problem.
But now that obviously wouldn’t work.
Fan Ren proposed raising the patent authorization fee to 1000 yuan precisely because of this reason, which was 3.3 times higher than before.
However, during specific implementation, domestic enterprises could get a slight discount.
As for companies like San Xin, Desuo, and Deli Electric Power which had a large portion of foreign shareholding, there would be no courtesy.
There was no reason for Xinghai Technology to keep taking hits passively without any countermeasure.
“This way, with the patent authorization raised to 1000 yuan, the subsequent patent revenue should be enough to fill the gap in chip R&D, right?”
Hearing this, Jin Qiaoying’s eyes lit up, but then she hesitated to speak.
This would really offend the foreign markets completely.
She could foresee that this wave of patent fee increases would ultimately make consumers in relevant export countries suffer.
Don’t expect capital to bear the losses themselves; in the end, consumers are the ones who foot the bill.
Fan Ren knew what she wanted to say and nodded helplessly.
“Let’s go with this for now. The main focus at this stage is still on the chip laboratory. Don’t overthink the rest.”
Jin Qiaoying nodded. This matter could only be settled this way for the time being.
The three then discussed specific details, and Fan Ren headed to the laboratory.
Xinghai’s solid-state battery patent authorization surged 330%. Once this news was released, the entire related industry exploded.
In the nearly one year since solid-state batteries were released, car batteries had already completed nearly 20% market share replacement.
The high-end car market had completely abandoned traditional liquid lithium batteries and adopted solid-state batteries.
This trend was currently spreading to the mid-end car market.
The mobile phone market was similar. Compared to traditional liquid lithium batteries, the advantages of solid-state batteries were even more pronounced than in the car market.
A traditional lithium battery mobile phone has a battery capacity of about 5000 mAh, takes 45 minutes to fully charge, but only lasts about 12 hours.
After switching to solid-state batteries, a battery of the same size has a capacity of about 15000 mAh.
Not only that, it takes only 15 minutes to fully charge, with battery life up to three to five days.
It even has only 5% degradation after 30 years, an excellent feature that hasn’t yet shown due to the short time since release.
And just like that, for this cost-effective solid-state battery, the patent authorization suddenly surged 330%, with the final result directly falling on consumers.
However, a few days later, observant people discovered that although battery prices had indeed risen.
The prices of solid-state batteries produced by Hai Niu Electric Power and Xingyun Manufacturing domestically did not fluctuate.
The impact of the price surge was only on the overseas market.
In an instant, Xinghai Technology’s public opinion was pushed to the forefront.
Comments about Xinghai became sharply polarized.
One side strongly praised Xinghai, with remarks like ‘It’s time for foreigners to taste the power of patent weapons.’
The other side was very dissatisfied with Xinghai’s actions, directly calling Xinghai bloodsucking capital with no conscience and only eyes for profit.
Xinghai made no response or explanation whatsoever.
