Chapter 537 We Are All Participants: Davos Forum

With US stocks poised for a major crash, what are Mr. Wang's thoughts?

Of course I'm heartbroken.

Even if, in a sense, her wealth tied to the stock price is just a string of numbers.

Just because you don't feel much when numbers go up doesn't mean you won't feel heartache when they go down.

Otherwise, try it yourself and see. The joy of finding 100 yuan can never outweigh the pain of losing 100 yuan.

Besides, Boss Wang is a money-grubbing freak.

Just thinking about it makes my heart ache.

So what should Mr. Wang do? Of course, he should try to secure more orders! Even a small amount is still something!

It's okay for Haier to do semiconductors, in fact, it's great, because you're designing core chips for home appliances.

Your design can't just be theory; it needs to be implemented. Well, we can do the manufacturing for you.

Mr. Wang enthusiastically promoted his products: "Our factory is in South Korea, and it's a complete team from LG Electronics. You don't need to worry about your designs being leaked, and the production quality is guaranteed. Samsung and Hyundai Electronics are now using us for OEM manufacturing."

Why did she emphasize South Korea? Because foreign companies generally have a better reputation than their own, and South Korea is a recognized semiconductor powerhouse. Orders from Samsung and Hyundai Electronics naturally serve as a guarantee.

Unexpectedly, Chairman Zhang initially showed little reaction to the idea of ​​outsourcing the manufacturing, and even had a smile on his face.

But the more Mr. Wang spoke, the more his smile faded, until finally he simply refused: "I'm sorry, Haier still prefers to produce the chips domestically, as that would be more convenient."

Oh my, does Haier look down on South Korean semiconductor companies and admire Japanese home appliance giants more? Could it be that the rumors about Haier wanting to rival Sony are true?

However, the customer is always right.

Instead of emphasizing that South Korea's semiconductor industry is currently dominating Japan, Mr. Wang readily agreed: "Domestic production is fine too. We are also building a foundry in Shanghai, which will be one of the most advanced foundries in the world. Give us two years, and in two years, we can also manufacture chips for you."

Chairman Zhang sighed and nodded helplessly, "Alright, alright, we'll wait until your chip factory is built."

He couldn't very well refuse outright.

But with Boss Wang, any refusal that wasn't firmly rejected was tantamount to acceptance.

She left satisfied, continuing her search for her next target.

Haier gave her a lot of inspiration; the home appliance industry is a major consumer of chips.

Are you planning to buy mass-produced goods directly? That's not suitable.

Look, it's the 21st century now. Everyone values ​​individuality and hates being exactly the same as others. If you don't have your own unique characteristics, how can you stand out from the competition?

So you have to differentiate yourself from the competition! If others don't have it, I have it; if others have it, I have it better.

To achieve this goal, we must focus on improving our chips.

It's okay if your company doesn't manufacture chips; we have design companies. We have them in China, the US, and Russia.

Needless to say, the domestic focus is on being down-to-earth.

Needless to say, the US is incredibly advanced. No matter how impressive the semiconductor factories in Japan, South Korea, and Taiwan are, when it comes to core strength, especially in design, the US is still the undisputed leader.

As for Russia, what does it look for in chip design?

The underlying algorithms for accelerating digital signal processing and machine learning, whether matrix operations or optimization theory, rely on advanced algebra and probability theory.

Physical modeling of semiconductor device characteristics requires mathematical equations and electromagnetic derivations.

Performance optimization, timing analysis, power consumption control, and area compression have always been based on mathematical quantification.

Verification of random test vector generation and fault coverage analysis in simulations requires statistics and discrete mathematics.

I didn't quite understand. To put it simply, mathematics is the core of chip design, determining the depth and upper limit of the design. No matter how fancy the sword technique, it still needs to be supported by internal strength.

For Russians, mathematics is an ancestral skill. The people designing your chips aren't just ordinary engineers; they're proper scientists, professors, senior researchers.

What? You're worried that Russia's chip industry is no good? Every industry is like a mountain, and even the most brilliant scientists don't know how to design chips.

Oh! You really don't need to worry about that. In fact, Russia has been designing chips for European companies for several years now. They're very skilled at chip design and contract programming.

As you know, Russia's labor costs are much lower than Europe's. But it also possesses super brains.

No matter what your needs are, no matter what kind of home appliances you want, we have people to help you complete this great industrial revolution, this epoch-making innovation.

Once the chip is designed, you need to worry even less. We have world-class chip factories that can manufacture them.

Wang Xiao, holding a wine glass, chatted with one businessman after another. Her only regret was that although China attached great importance to the Davos Forum this year, and even sent Vice Premier Wu to lead the delegation to the meeting for the first time, the public response was lukewarm.

There are only a handful of Chinese entrepreneurs who came to Davos.

She guessed it was because state-owned enterprises still dominate the domestic economy, and these enterprises are still suffering from the growing pains of economic reform, with layoffs continuing.

I went to Davos, which was an overseas trip.

Even if you say you're attending an international economic forum for the sake of the company's future, to laid-off workers, it's still seen as going abroad.

What does going abroad mean? To ordinary people in 2000, it meant eating, drinking, having fun, and indulging in debauchery.

The factory can't even pay wages now, and so many people have been laid off. How dare you act so cocky and arrogant? Bah! Shameless.

Therefore, the number of state-owned enterprises that could come was naturally limited. Haier had good economic performance, and Chairman Zhang was a well-known pioneering entrepreneur with deep pockets and the ability to withstand pressure.

As for private enterprises? Most are still in the climbing phase, a long way from their peak. Davos is just as far away from them.

Instead of focusing on Davos, we should turn our attention to the Fortune Global Forum in Shanghai.

Mr. Wang consoled himself: "There are advantages to having fewer people."

She said, half-jokingly and half-seriously, "Since there are few Chinese entrepreneurs coming here, international business tycoons naturally think that China is still an undeveloped land. Investing in China now means seizing the opportunity. It's like an invisible billboard."

The assistant glanced at her boss discreetly, feeling that the government needed someone like her most; no matter how bad the situation, she could always find a way to turn it into an advantage.

Unfortunately, no one was paying Mr. Wang this salary, so she only elaborated briefly before jumping back to the main point: "Call the design company and let them find orders themselves."

What did the bursting of the dot-com bubble mean? It meant that software and hardware companies alike collapsed.

If you don't try to find food, or if you can't find any, you'll have to cook for yourself. You'll starve to death before you even get through this cold winter.

Her friends were heartbroken. "Look, the good days of the internet didn't last long. How could it become a bubble so quickly? This collapse is probably even worse than the last financial crisis. There will be widespread devastation."

Seeing everyone looking dejected, Wang Xiao jokingly tried to cheer them up: "What's wrong? It's not necessarily a bad thing if the bubble bursts."

Hey boss, is this confidence or just invincible optimism?

Wang Xiao said seriously, "The bubble has burst, the semiconductor industry is cooling down, which means our factory construction costs will drop significantly. With chip prices falling, we'll also have to clear out our production equipment with big sales."

She shrugged, "How can this not be a good thing?"

The assistant was speechless. "Boss, you really know how to find humor in hardship. How can you forget at a time like this just how badly your existing chip factory is going to lose money?"

Most importantly, who knows how long it will take to rebuild from the ruins? How long will this downturn in the semiconductor industry last?

Good heavens! The assistant felt dizzy just thinking about going back to the days of burning money every day with no hope of making any.

Wang Xiao laughed, reassuring his worried assistant—a boss with a wild imagination can always cultivate an assistant who is constantly worried about everything.

"Don't worry too much, this downturn won't last long. It will bounce back in a few years."

She smiled broadly, filled with emotion, "Because the internet has changed this era, and the bubble was a huge catalyst."

“Look at submarine fiber optic cables and telecommunications infrastructure. A frenzy of capital has entered the market, so in the past few years, a large number of submarine fiber optic cables and telecommunications infrastructure have been laid around the world, especially in the United States.”

Not only the assistant, but also Xiao Gao and Xiao Zhao knew this.

Experts from top international analytics firms say that internet traffic doubles every 100 days. This increased traffic requires a large number of fiber optic lines.

Furthermore, breakthroughs in wavelength division multiplexing (WDM) technology have led to a surge in fiber optic capacity and a sharp drop in costs, prompting a large number of companies to venture into this field.

Giants like AT&T, WorldCom, and Global Crossing have all issued large amounts of bonds to raise funds and are frantically laying fiber optic cables.

Wang Xiao sat in the rocking chair in the room, swaying back and forth, and idly eating winter grapes—a late-ripening variety from southern France, which ripens in winter.

Vegetables touched by frost are sweet, and grapes touched by frost are even sweeter.

So why do the French make grapes to taste like that wine?

Mr. Wang still thinks that the wine produced in Northeast China, with its sweet and sour taste that's almost like grape juice, is the best.

Mr. Wang, whose taste clearly didn't meet the standards of high society, ate grapes and pontificated: "But we all know that the growth rate of traffic has been seriously overestimated. The actual rate is about doubling every year."

There is no doubt that there is a serious oversupply of optical fiber; it is a typical case of overcapacity.

Moreover, in this situation, you can't destroy excess production capacity to maintain product prices, just like you did during the Great Depression by dumping milk down the drain or oranges into the ocean.

Because it would be more costly to dig out the laid fiber optic cables from underground and then from the seabed and destroy them.

So even if people don't use the repaired road and it's left idle, no one will go out of their way to damage it again.

After finishing three grapes, Mr. Wang felt he should save room for dinner, so he withdrew his hand, clasped his hands together, and said, "To get rich, build roads first. As we all know, the most important thing for economic development is infrastructure, which is also a major expense. Excess fiber optic cables are practically free, and bandwidth will be incredibly cheap in the future."

What does cheap bandwidth mean? It means lower internet access costs, and consequently, lower costs for internet users.

The saying "One generation plants the trees, another enjoys the shade" perfectly illustrates this point.

Therefore, the world's progress needs scapegoats, and let us all thank them for their tragic sacrifices!

The assistant wanted to facepalm; should he thank the boss for his approval on behalf of the suckers?

Thank you so much, you suckers!

Boss Wang stopped eating the grapes, washed her hands, and prepared to go to the restaurant, not stopping her from chattering: "Besides, without a frenzied bubble, how could the world have completed a global digital enlightenment in such a short time? Five years ago, how many people were familiar with concepts like the internet, e-commerce, and traffic? Now? You can walk down the street and ask anyone, and they can tell you all about them. To innovate, you need to remove conceptual barriers; innovation requires this kind of enlightenment."

The water gurgled and then stopped; the owner was drying his hands.

After the sound of the hairdryer subsided, the boss started rambling again: "The frenzy for wealth will draw in the smartest people. When the bubble bursts and the tide recedes, the true heroes who remain are certainly formidable, but the entrepreneurs who emerge from the ruins also accumulate unparalleled experience in failure and establish the next generation of business rules."

Wang Xiao walked out of the bathroom and laughed, "That's how history moves forward. Great destruction precedes great construction. The current internet frenzy is just a superficial concept. The real 2.0 and 3.0 eras are yet to come."

The assistants and bodyguards listened with skepticism.

But the fact that the bosses weren't heartbroken by the impending dot-com bubble was a good thing for them.

After all, the person who truly determines their quality of life is the boss. Only when the boss is happy can everyone have a good life.

Overjoyed, Boss Wang and his equally joyful subordinates happily headed to the restaurant for a meal.

Despite its fame, Davos is actually just a small town. The fact that it has two Chinese restaurants is enough to demonstrate its internationalization.

However, the food at this restaurant is just so-so.

Wang Xiao insisted on going there to eat because one of the restaurants had decent fried rice, and it also offered its own pickled vegetables, which were sour and spicy, making them a good accompaniment to rice.

Stepping out of the hotel, the snow-covered landscape of Davos transformed into a bustling, vibrant scene.

People lined up in circles outside, holding megaphones, waving their fists, and chanting slogans in unison.

This is a demonstration and protest by environmental organizations and human rights groups.

What are we protesting?

The protests are against the view that Davos is an elite gathering, detached from the realities of ordinary people.

Protests against globalization exacerbating the wealth gap.

Wang Xiao only realized when he arrived in Davos that in the year 2000, the concept of a global village was not welcomed by everyone, and the wave of opposition to globalization was no less than the voices of support.

The latter argues that globalization is the only driver of economic growth, while the former calls it a shameless means for the rich to exploit the masses.

Two groups of people can start a debate while standing in the freezing cold.

That's why they say human will is invincible!

In this environment, let alone opening her mouth to argue, even taking a single breath of air made her lungs feel icy cold, so she could only slip away.

Most interestingly, while the outside world was in an uproar, in the hotel's forum, Microsoft President Bill Gates was passionately arguing that technological advancements are crucial for reducing inequality and discussing global health issues.

When Wang Xiao finished making her fried rice, the reporter who came in was excited again: "Mr. Bill Gates is going to devote himself to philanthropy in the future. This is the responsibility that entrepreneurs should have."

Mr. Wang was drinking seaweed and egg soup when he almost spat it out and choked to death.

Forget it, charity is just a business.

Bill Gates' foundation can claim philanthropy by donating just 5% of its funds to charity, while the remaining 95% of its investment returns benefit from the tax savings, which is more than the amount spent.

Besides, the numerous times he claims to have donated his entire fortune are nothing more than a word game.

His foundation has been embroiled in numerous scandals, including fraudulent donations and misappropriation of refugee relief funds.

It just goes to show how great it is to be rich and powerful. You have an aura of your own, and no matter what you say, you can still gain the trust and support of countless people.

Human beings are inherently drawn to strength.

Bill Gates is reaping the benefits of this, and so is she.

Boss Wang finished her fried rice mouthful by mouthful, and didn't leave a single bite of the pickled radish that the restaurant served.

She even drank the seaweed and egg soup completely.

The assistant flattered the boss, saying, "If we're talking about frugality, our boss is the real frugality."

These days, whether it's to deceive themselves into believing that every penny of their wealth is clean, or to prevent ordinary people from resenting the rich, the wealthy are all keen to cultivate a frugal persona.

Bill Gates's simple lifestyle has even been used as a case study in junior high school textbooks.

Their boss could easily keep up.

Mr. Wang refused three times in a row: "Stop it, it's too fake, I find it disgusting."

She's so frugal!

She only decided to keep red pandas in Moscow on a whim. Once she actually started, she saw them for no more than 65 days out of 365 days a year.

This didn't stop the red pandas from eating bamboo that was air-freighted every day.

How can she claim to be frugal when she's like this?

The winds in Davos were so biting in winter that she was afraid her face would be blown to the ground.

The assistant was overjoyed and continued to shower the boss with compliments: "Boss, you're too honest, you're not thick-skinned enough."

Wang Xiao had no choice but to turn around and leave.

Could ancient emperors not be licentious? No matter what you say or do, people around you will find no reason to praise you from any angle, yet they can somehow manage to create 361 degrees of praise for you.

Living in this kind of environment every day, it's no wonder people get arrogant.

But she can't blame her friends, because their main task is to provide her with emotional support.

Without this emotional support, she would often break down.

People often need excessive self-confidence to have the courage to move forward.

Mr. Wang walked out of the restaurant, took a deep breath, and enjoyed the bittersweet sensation in his lungs.

Lyuba didn't dare let her stand outside in a daze, so she pulled her back to the hotel.

Just as they were about to reach the hotel entrance, a large group of people rushed over, waving flags with the slogan "Green Hope".

Wang Xiao was also unsure whether it belonged to an environmental organization, a human rights organization, or both.

Actually, she didn't care about that at all; what she was thinking about now was how to get more orders.

But this group of people was blocking the road, and Davos is just a small town with only a few roads. Unless they could move through the entire town, they could only wait for the crowd to disperse.

Obviously, driving around the town in this kind of weather is not a very smart choice.

Lyuba had no choice but to protect her boss and step back so that the speech could end.

In her experience, a speech in this kind of weather would not last more than five minutes, otherwise the speaker would not be able to handle it.

Since Mr. Wang can't leave, he might as well listen carefully to what others are saying.

"A deception! A massive deception! The soaring Nasdaq index is nothing but a mirage, a conspiracy by the rich club, a precise harvesting of the poor! They exaggerate the prospects, they commit financial fraud, they swindle our pension funds! Three-quarters of businesses claim to be conducting global business online through e-commerce, with transaction volumes exceeding those of their direct transactions with consumers. This is a complete and utter lie! A lie to deceive us!"

Wang Xiao listened with great interest, then turned to his assistant and asked, "Has another financial scandal broken? Which company has gone bankrupt?"

She reads the newspaper every day but never saw it.

The assistant shook his head, also unaware of the situation.

It's probably just a common technique used in speeches, and doesn't specifically refer to any particular company.

Mr. Wang continued listening to the commotion.

"They have the advantage of capital and information, and they have complete initiative. They play the game of musical chairs, and they are the first to throw out the flower. In the end, when the drum stops, the flower explodes in the hands of us poor people."

"This is a cold-blooded plunder of wealth, a large-scale, systemic transfer of wealth. Ordinary people, who are behind on information and risk, have all their assets ruthlessly acquired!"

Well, what you said makes sense.

But that's about enough for now. It's so cold outside. Boss Wang wants to go back to the hotel and continue listening to the insightful opinions or nonsense from the political and business tycoons.

At least no matter how outrageous their claims are, the hotel has heating.

However, when Boss Wang tried to retreat, he failed.

The speaker with the megaphone stared intently at her: "Miss Wang, do you admit that my online shopping legend is a conspiracy by your rich club?"

Wang Xiao was stunned!

Didn't we agree that East Asians all look the same in the eyes of Europeans and Americans?

And she had already wrapped herself up like a bear, so how did the other person recognize her?

Do you really have to have such good eyesight?

But the crowd surged forward like a tidal wave, and Wang Xiao couldn't even pretend he hadn't heard or that the other person had admitted their mistake and make a quick getaway.

Liu Ba, Xiao Gao, and Xiao Zhao were all extremely nervous, racking their brains for a way to steal the boss away.

What kind of nonsense is this? What does it have to do with their boss?

If you're so capable, go find Bill Gates, the world's richest man, and ask him for the truth.

No one knows better than the world's richest man, who "made his fortune from scratch," how wealth flows.

Our boss never told any story about starting a business in a garage.

There were so many people, and some reporters with a keen sense of smell had already rushed over excitedly, ready to capture the latest news.

As we all know, news without conflict is not news.

Let the clashes on the streets of Davos come even more fiercely!

Mr. Wang had no choice but to answer, "I know nothing about any rich club, I am not a member of any club, and there is no membership fee in my expenses. So I can tell you for sure that I buy has nothing to do with rich clubs."

The man giving the speech let out a cold laugh: "So, where does your wealth come from? Where did your myths originate?"

"I buy, the key is 'I,' it's me, it's each of us making our own choice."

The cold air you breathe into your stomach really makes your lungs and stomach hurt.

Wang Xiao had to force himself to continue, "Actually, the success of I Buy, as well as the success of all other internet companies, including Amazon and eBay, was beyond my expectations."

"I've thought about it repeatedly: why were we successful? Is it because we're exceptionally talented? No, I wouldn't dare say that, because there are countless outstanding people, including everyone here."

"The core factor in our success is everyone's trust and support. People have seen hope in Ibuy, Amazon, eBay, and countless other internet companies. They have seen hope in disrupting the old order."

"A computer and an idea are all it takes to start a business. The internet has broken the traditional industry's monopoly on capital, factories, and distribution channels."

"What people see in tech elites is not just wealth, but a reflection of themselves achieving upward social mobility through technology rather than inheritance or heavy assets."

"The internet is a technological revolution, and also a revolution in the redistribution of social wealth. Buying tech stocks is voting for your identity as a disruptor, and is a practical action to join the fight against the old order."

"If you ask me what has fueled the prosperity of the internet economy, my answer is only one: it is humanity's desire to break through social classes, its urgency to disrupt the old order, and its anticipation of embracing a new world."

She nodded to the crowd. “Thank you so much for braving the cold to make another voice heard around the world. I was deeply moved by your speeches, and I will donate to protect the environment and prevent global desertification.”

With that, she bowed and then walked towards the hotel.

The reporters quickly caught up, and despite the freezing weather, they held out their microphones and asked, "Miss Wang, would you be willing to give us an exclusive interview?"

Wang Xiao smiled without saying a word and continued walking forward.

No economic bubble can be simply attributed to a few individuals.

The dot-com bubble was far more than just a simple financial market mishap.

It is a large-scale socio-psychological experiment based on technological optimism concerning the redistribution of social wealth and power.

Its demise does not mean the denial of the changes brought about by technology, but rather a declaration that we must be down-to-earth in everything we do.

Emotions and fantasies alone cannot bypass economic laws and the essence of business.

The same applies to any industry.

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[Winking] Good morning!