Cheng Gang had had enough of this inexplicable sense of superiority from foreign companies.
He chose to return to China after graduating with his doctorate from America because the invisible glass ceiling for Chinese people in America's companies was too thick and too difficult to break.
Therefore, Cheng Gang has never had much affection for European and American companies.
This time, the public's inexplicable sense of superiority made him even more unhappy.
Finally, I couldn't hold back any longer and retorted with a few words.
The other party was clearly not prepared for Cheng Gang's reaction, and the meeting ended on bad terms.
Volkswagen has a significant influence in China.
The joint ventures SAIC Volkswagen and FAW-Volkswagen, along with their upstream and downstream supply chains, collectively affect more than 200,000 jobs.
(Estimated based on the number of Volkswagen employees at FAW-Volkswagen's North China base.)
Not to mention that this year marks the 30th anniversary of Volkswagen's entry into the Chinese market, after 30 years of operation in the Chinese political and business circles.
Soon, Kechuang Bio came under pressure from the Chinese government.
Tesla's energy efficiency is far inferior to Volkswagen's.
As a mature manager, Cheng Gang wouldn't let his emotions affect his work. He immediately reported the situation to Zheng Li:
“A domestic department told me that it hopes we can treat foreign companies and domestic car companies equally.”
(Here I can only imply that Cheng Gang's remarks were definitely very straightforward, otherwise how could Zheng Li, an alien, understand the intricacies of the situation?)
After Cheng Gang finished explaining in detail, Zheng Li asked, still puzzled:
"Doesn't BYD supply electric vehicles to SAIC and FAW's wholly-owned electric vehicle brands?"
Cheng Gang said helplessly, "That's right, but the sales of joint venture new energy vehicle brands have been severely affected."
Zheng Li continued, "With China's current technological advantage in electric vehicle brands, isn't this an opportunity to overtake them?"
"It's not that we don't supply foreign manufacturers, but the production cycle of graphene manufacturing machines is just that long. Is it okay to prioritize supplying domestic companies?"
Cheng Gang nodded: "No problem."
"But not everyone thinks that way."
"The higher-ups have indicated that they fully understand and support our refusal to provide Tesla with the Super Lithium Battery technology."
"But we cannot treat foreign manufacturers with whom we have cooperated for many years differently."
"If the production capacity of Kechuang Bio is insufficient, the graphene multilayer structure manufacturing technology can also be patented."
Cheng Gang seemed to have something difficult to say. After pausing for a moment, he decided to lay it all out with Zheng Li:
"Chairman Zheng, the higher-ups may not actually want to simply help Volkswagen obtain technology licenses."
“I have been told by people from various channels that the proportion of state-owned assets in Kechuang Biotechnology is too low. This incident is actually a kind of warning.”
When Kechuang Bio received its Series B funding, it gave BOCOM International a 5% stake.
After listing, 10% of the shares were publicly offered.
Even if Chinese state-owned capital acquired all of these shares, it would only amount to 15%.
This is clearly not enough for a company as important as Kechuang Bio.
"I'm sure you've heard rumors about this in Singapore as well."
Zheng Li sighed, "Okay, I understand."
"Can other state-owned brands stop this from happening?"
Cheng Gang shook his head: "The OEMs are undoubtedly the beneficiaries in this matter, but the official influence of emerging car manufacturers such as NIO, XPeng, and Li Auto is too low."
"They offer suggestions, but they don't have much effect."
"Moreover, the battery manufacturers actually have some complaints about us."
“If we don’t lock in orders with domestic automakers in advance, they can easily raise prices and supply only as needed, with the highest bidder winning.”
"To be able to capture the largest portion of the profits."
"But now the orders have already been signed before the production of super lithium batteries. In this market where supply is far less than demand and the supply-demand relationship is abnormal, they cannot obtain excess profits."
"So in this matter, there is no one who can truly help us relieve the pressure."
Zheng Li nodded: "Okay, you go and contact them. We can resolve this matter by issuing more shares."
In a sense, Zheng Li still wants this alias and wants to play within the rules, so this is the only way.
Even this compromise, which gives battery manufacturers more freedom to act, is still valid.
Then the technology alliance built by Kechuang Bio is useless. If the leader of the alliance is so easy to compromise, where is your say?
In addition, appropriately releasing shares to state-owned assets is, in a sense, a permanent solution.
Similar incidents will not happen again in the future.
Zheng Li's bottom line is that he must retain at least 51% of the shares and have control.
Absolute control was lost long ago.
Seeing that Zheng Li's expression was not good, Cheng Gang comforted him, "Chairman Zheng, one must learn to compromise when necessary."
"Appropriately increasing the proportion of state-owned assets is a good thing, as it will allow us to obtain more support from the official level."
"Alternatively, you could cash out a portion of your shares and start a new business in Singapore, or establish an offshore trust fund."
"It doesn't necessarily have to be a private placement. Share transfer is also an option. Even if you only transfer five percent of your shares to state-owned assets, using that money to establish a trust would be enough to guarantee wealth for your descendants for two hundred years."
Many wealthy people in China like to set up trusts in Hong Kong.
Many of Shanghai's top-tier wealthy individuals set up trusts in Hong Kong, while ordinary middle-class individuals purchase commercial pension insurance there.
"Announcement from Kechuang Biotechnology Co., Ltd. Regarding the Progress of the Planned Share Transfer and the Suspension of Trading"
Li Zhen, the controlling shareholder and actual controller of Kechuang Biotechnology Co., Ltd. (hereinafter referred to as "Kechuang Biotechnology")
(Zheng Li) (Chairman) is currently planning to acquire shares.
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