The second day of negotiations focused primarily on establishing a joint venture factory.
Xing Baohua proposed that the two-way pagers produced by the new factory should be manufactured domestically and sold to Europe and the United States through motorcycle sales channels.
After a small internal meeting, the motorcycle team rejected this idea, as they wanted to manufacture in the United States.
At the same time, a new factory can be built in central Shandong to produce not only two-way pagers, but also all motorcycle products.
On this point, Xing Baohua shook his head again. How are patent fees calculated if the products are manufactured in the United States?
Many of Motorola's products, both now and in the future, overlap with Xing Baohua Electronics' products.
Don't be fooled by Xing Baohua's desire to bring the motorcycle factory to his side; it's just a matter of needing them in the early stages, so he's just trying to get them to come over first.
As for what will happen in the future, Xing Baohua is not afraid of the other party at all.
Just like with mobile phones, if a half-pound mobile phone is priced the same as the slim and lightweight mobile phone he produces, who would sell a bulky one with a short battery life?
Just like in later generations, after Motorola's glory days in the feature phone era, the market share of smartphones gradually decreased.
Before long, they bundled up the mobile phone brand and the entire business and handed it over to Lenovo.
Indeed, Lenovo has its strengths, one of which is that it acquired the long-established IBM laptop brand.
Another option was to acquire Motorola's mobile phone division entirely.
Who made Lenovo, the company of later generations, so rich?
The problem now is that Motorola wants to bring pagers back to their home country to boost employment.
The current point of contention is that neither side wants to spend more money, and both want to resolve the issue perfectly.
Both sides are in agreement, so the matter should be easily resolved. However, the profits involved are too large, and there are currently no competitors; it's a completely untapped market.
Once the goods have entered the European and American markets, a monopoly will immediately form, making it difficult not to make money.
Xing Baohua insisted that as long as Motorcycle produced two-way pagers in the United States, he would receive a patent fee of $20 per unit!
Motorcycles are now filled with regret for giving Xing Baohua the two-way paging system for free. Although it was only restricted to mainland China, it couldn't withstand the impact of those grey market products!
Didn't you see that Xing Baohua sold his products all the way to the Middle East? Those are all heartless nouveau riche who never blink an eye when spending money. As long as the products are good, haggling is considered shameless.
By the third day of talks, the motorcyclists felt that $20 was too expensive and hoped to reduce the price to below $10 or exchange it for other patents.
Xing Baohua then revealed his true purpose, citing numerous examples of the massive amounts of chips used in the electronic products he currently manufactures.
No matter how much they purchase, it's never enough. They hope that Motorola can build a factory locally to produce chips to meet the needs of Xing Baohua Electronics Factory.
At the same time, let the people of the United States know that the cost of producing things in the Chinese mainland is very low, especially the labor cost, which has reached one-seventh.
Furthermore, Xing Baohua also mentioned that he wants to launch a laptop computer, which requires a 16/32-bit processor.
Yes, the people at the motorcycle company said that they produced the MC68K, which was actually the 6800 CPU, back in 1979.
This chip was used by Apple in the first-generation Mac.
Xing Baohua knew this, so he continued to follow his plan.
The proposal suggested that if Motorola wanted to produce two-way pagers in the United States, they could pay a patent royalty of $1 per unit.
The prerequisite is either to build a wafer fab next to the Luzhong Electronics Factory to produce chips for the Luzhong Electronics Factory.
Alternatively, Xing Baohua could sell the production line, produce the MA68K chip himself, and provide corresponding upgrade solutions, after-sales service, and employee training, etc.
Negotiations were suspended as disagreements widened, and in reality, Xing Baohua was making exorbitant demands.
Local officials didn't understand Xing Baohua's actions; why did $20 turn into $1?
What if some foreign company manufactures a million pagers in the US and makes a whopping $20 million? A million pagers for every dollar is a huge difference.
Fortunately, I understood what he was saying next. He was forcing people to build a factory in the area, and Xing Baohua's noble character quickly spread.
Giving up over 20 million in profits to let foreigners contribute to their hometown's development can not only boost local employment but also increase local tax revenue.
It can also bring valuable tax revenue to the country.
The local officials were overjoyed! Once successful, they reported Xing Baohua's deeds to the central government.
Such a good comrade deserves to be commended.
Those in the know don't see it that way. Especially the experts at the 11th Research Institute; they also work with wafer fabrication. They know what level Motorola is at.
Xing Baohua pressured them to either provide equipment or build a wafer fab locally.
Which motorcyclist would dare agree to such a condition?
Despite their intention to build a factory in China, their main focus will be on assembly. They already knew that labor was so cheap; Xing Baohua didn't need to specifically mention it.
Purchasing chips and manufacturing chips are two different concepts; the (Pakistan) agreement is no joke.
Why did Xing Baohua dare to make such a bold statement? Because when he was thinking about contingency plans, he remembered that we almost bought the F-14 Tomcat, which happened in 1984, 1985, 1986, and 1987.
The entire 1980s was commonly referred to as the "honeymoon period" between the United States and China.
The chip manufacturing equipment that Xing Baohua wanted was not the most advanced; it was a product from 1979, which, according to Moore's Law, would have been outdated three or four generations ago.
That evening, Xing Baohua set up a barbecue stall in front of the city hotel, using a very trendy term: a non-commercial meeting.
Inviting friends from afar to a private banquet.
Eat barbecue and drink draft beer.
The draft beer was freshly brewed by the local Liuquan Brewery, and the taste was acceptable, but it later became a thing of the past.
Foreigners are very familiar with barbecue and eat it often, but they are completely clueless about grilled skewers.
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