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Chapter 762: Chapter 663: Strategic Cooperation (Subscription Needed!)_1
Ren Zhengfei thought carefully.
He weighed the pros and cons of cooperation.
The obvious advantage was that it could enhance Huawei’s competitiveness, establish a firm footing quickly in the future commercial 4G market, secure a larger market share, and boost Huawei’s global influence within the industry.
The downside... It seemed there wasn’t any. If Zhiya Technology’s research and development capabilities were indeed as strong as they appeared, there seemed to be no disadvantage for Huawei.
He looked up.
Ren Zhengfei asked, "Manager Yan, what is your cooperation plan?"
Zhiya Technology and Huawei will jointly invest to form a new cooperative company, share technology, and patents. Stocks will be divided according to technology and investment amount. This is negotiable," the fighter said.
Ren Zhengfei nodded and said, "This is a major issue; we need some time to think about it."
The fighter said, "That’s fine. I’ll give you one week. Within this week, our technical staff will liaise with you to help you understand some of our capabilities. As for this document, you can bid for it. If you agree in the end, the communication infrastructure project in Myanmar will definitely belong to Huawei."
A bit of pressure was necessary.
Ren Zhengfei promised, "We will give you an answer as soon as possible."
"That’s good. Our three technical experts will arrive first thing tomorrow morning. We will spend a week discussing 4G technology with you. We’ll take our leave then since it’s getting late," said the fighter, rising from his seat.
"You’re not disturbing us, let me escort you out," said Ren Zhengfei, also rising to his feet, along with the rest of Huawei’s management team.
"Thank you."
After seeing off the fighter,
Ren Zhengfei returned to the conference room to continue the meeting.
"What do you think?" asked Ren Zhengfei.
One of the deputy directors put down the document and said, "If what’s in this file is true, I think there’s no harm in cooperation. This is a powerful partner. As long as their district head nods, we’re assured of this contract. Not only that, we can also take over all the subsequent maintenance and upgrade contracts in Myanmar."
"It’s indeed good. But, if a joint venture is established, should we vie for controlling rights?" another deputy director frowned.
"This might be difficult. You should know, their technology seems strong. Coupled with this contract and their solid financial background, our advantage is only limited to being a Huaxia local enterprise," one of them expressed.
"Yeah, this is a strong dragon. It somewhat suppresses our local snake," someone else interjected.
After taking turns to say their piece,
Everyone looked at Ren Zhengfei.
This was when it became clear that the higher one’s position, the heavier the responsibility. One mistake could lead to everyone’s loss.
After pondering for a while, Ren Zhengfei finally said, "Let’s not discuss this for now. Have someone start preparing the bidding document immediately. When their technical staff arrives tomorrow, we will be able to determine whether we should cooperate and discuss the issue of shareholding."
"Agreed."
"Good."
...
The next day,
Huawei’s headquarters welcomed three scientists. These were all transferred from Zhiya’s Research Center. Since they will work in Huaxia going forward, it’s necessary to have the proper immigration records.
Ren Zhengfei personally received the three scientists and gave them a tour of Huawei’s research center.
The next day,
The knowledge of the three scientists thoroughly refreshed the understanding of the technical staff at Huawei’s research center.
Looking at the three middle-aged scientists, they were like monsters. For every technology Huawei introduced, they understood its principles at a glance and even proposed more comprehensive solutions.
When the first optimization solution related to Orthogonal Frequency Division Multiplexing was easily mentioned, they were extremely surprised.
When the second solution related to Encoding Compression improved the original basis by 30% and reached commercial standards, they were somewhat dazed.
The third.
The fourth.
By the time the tenth puzzle was easily solved, they were already numb.
On the second day,
Ren Zhengfei couldn’t wait to dial the fighter’s number.
"Manager Yan, we agree to cooperate. Please arrange to sign a contract as soon as possible so we can jointly promote the commercial 4G technology," said Ren Zhengfei. The strengths of the three scientists had completely won their approval by then.
Good Lord.
The three of them forcefully overturned Huawei’s software and hardware research and development center.
If these people became enemies, competitors, Ren Zhengfei dared not imagine the horror. Not only Huawei but all the communication equipment manufacturers in the world would have to learn a lesson.
"Okay, I will find time to come over in the afternoon."
"Alright, we’ll wait for you," Ren Zhengfei said solemnly.
Even if Huawei doesn’t have controlling rights in this cooperative venture, he would accept it. Such a partner - rich, influential, with technical skills - made Huawei seem like the ’poor and powerless’ party.
If someone looks up to you, you still demand controlling rights.
This was really hard to justify.
But as long as the technology was there, Huawei’s future might lie within Zhiya Technology.
In the afternoon,
After a full afternoon of negotiations,
Zhiya Technology finally reached a strategic cooperation with Huawei.
They jointly invested to establish a company to conduct cooperation and research on the development of commercial 4G hardware and software solutions, share technology and patent rights. Huawei and Zhiya Technology each invested 1 billion RMB.
Zhiya Technology holds sixty percent of the stocks, and Huawei holds forty percent.
The name of the company is Zhihua Technology Co., Ltd.
"Mr. Ren, I look forward to our happy cooperation."
After signing the agreement, the fighter extended his right hand, shaking hands with Ren Zhengfei,
"Happy cooperation. I hope the company is quickly established. We need to seize the 4G commercial market before Western countries do," Ren Zhengfei said, looking hopeful.
"That’s exactly what I want to see," the fighter said with a smile.
That’s how it happened.
The first investment of Zhiya Technology’s Huaxia branch was settled in Huaxia. The primary task for Zhiya Technology now was how to spend the 10 billion RMB.
At the same time, Myanmar Manufacturing (Huaxia) Group also laid out its plans.
In the Myanmar Economic Zone, all manufacturing industries and companies were managed by the Myanmar Bank Group. But it wasn’t appropriate in Huaxia, hence, Myanmar Manufacturing (Huaxia) Group was established.
In Huaxia, all manufacturing industries would be assigned to this company for unified management and distribution, adopting the same management system as within the territory. All purchase and sales will be arranged uniformly to enhance bargaining power.
Myanmar Asset Investment (Huaxia) Company.
Zhiya Technology Huaxia Branch.
Myanmar Manufacturing (Huaxia) Group.
One for technology, one for funds, one for production.
These were the three major corporate groups in Tang Qing’s domestic layout. They cooperated with each other, forming a combined force for joint advancement and retreat. This model, not just in Huaxia, would be promoted in other countries in the future.
