Chapter 314 These are all creditors (bug fix): I never want to negotiate with them again in my life.
In late June, Ivanov left Moscow and flew to Vladivostok, where he finally saw the complete set of contract herbs.
Why can't we fax it to him in advance?
Because when he boarded the plane, Wang Xiao was still negotiating the contract details with Watanabe Taketa.
Ivanov flipped through the terms and conditions and sighed, "Mitsui is really cunning."
His reason for such sentiments was that the fourth-generation process that Mitsui Group had promised actually turned into the 1990 JX-900 hydrocracking process drawings when the formal negotiations began.
Taketa Watanabe's reasons were all very convincing—although Batumi has been dissolved, Batumi is still in effect.
So it's not that Mitsui is unwilling to provide fourth-generation process technology, but rather that they are being held hostage and powerless to do so.
He also brought up machine tools, saying that in the 1980s, Toshiba openly sold machine tools to the Soviet Union, and now Mitsui is also helping to connect them, enabling Wuzhou to import Hitachi Seiki's HC-800 CNC machine tool.
This shows that it's not that Mitsui lacked sincerity in cooperating, but rather that the Americans were eyeing it covetously.
See? With just one sentence, he elevates himself to a high position while simultaneously sowing discord among the Americans, implying—no, practically declaring—that the Americans shouldn't count on him; the technology they can offer will only be worse. Even if it looks high-end, countless traps await Wuzhou within.
No one, not even a fool, would believe such nonsense.
It's clearly a typical negotiation tactic of starting strong but ending weak, just like how car salespeople lure customers with the top-of-the-line model.
During the formal negotiations, Wang Xiao naturally disagreed and argued fiercely with Watanabe Taketa. In the end, the two parties reached an agreement on a technology tiered licensing system.
Phase I (1994-1998):
Mitsui provides the JX-900 Mark II process (sulfur content ≤0.1%), which can be used in a 5 million tonnes/year refinery, with the technology licensing fee deducted from the crude oil price (US$1.2 per barrel for the first three years).
Yes, Wang Xiao and Watanabe Taketa argued for a full 10 hours over just the $1.20 licensing fee.
There's no reason why the licensing fee should remain unchanged even if the technological level has been lowered.
Phase II (after 1999):
If Wuzhou achieves "stable crude oil supply + Russian political guarantee", Mitsui can upgrade to the JX-900 Mark III process (currently used in Japan, with a sulfur content of ≤0.05%), but Wuzhou will need to pay an additional US$80 million in technology transfer fees or 10% of the refinery equity.
Ivanov exclaimed, "The Japanese have quite the appetite; they asked for 80 million US dollars right off the bat."
The reason he didn't mention the 10% stake in the refinery is that, according to the current agreement, Wuzhou Petroleum will invest $120 million in 20 years of Sakhalin crude oil extraction rights plus $30 million in cash to hold a 55% stake.
Mitsui & Co. acquired a 45% stake in the company by licensing its JX-900 hydrocracking technology and using 1990s refining equipment, valued at $90 million.
If another 10% of the shares were transferred, then Mitsui & Co. would be the king.
Ivanov knew that the current outcome was the result of Wang Xiao's desperate negotiations.
After all, a long-established company like Mitsui, which has stood the test of time for so many years and remains the industry leader, would not send a fool to negotiate a contract.
The opponents are incredibly strong; they have a complete and well-established team.
So Ivanov comforted his displeased partner, saying, "The Japanese are implementing phased authorization to secure long-term cooperation across five continents."
Wang Xiao showed absolutely no pride in having a woman sought after by many men. He simply rolled his eyes and said, "Bullshit! This is a typical continuation of colonial-style technological control—maintaining a technological gap to make the five continents dependent on Mitsui's technological support for a long time. That's exactly what the British did in the 19th century to lock down the technology of India's cotton textile industry!"
She poked her finger at 1999, gritting her teeth: "A five-year technological gap, they really didn't waste a single moment."
But what good is it if she knows what Japan is thinking?
She clearly understands that Japan's technology exports follow the "next-generation principle"—so what if it only transfers technologies that Japan has phased out or that are not core technologies?
Can she just turn her back and leave? No.
Because she was less skilled, she had very few bargaining chips to offer at the negotiating table.
Wang Xiao couldn't help but exclaim, "Only the Soviet Union could have such a broad mind."
FAW, a subsidiary of China, was established with aid from the Stalin Automobile Plant in Moscow in the 1950s.
The Soviets promised that whatever equipment the Stalin Automobile Plant had, the Chinese automobile plant would receive the same equipment; and whatever level the Stalin Automobile Plant was at, the Chinese automobile plant would be able to reach that level.
They said it, and they did it.
Why would Wang Xiao express such sentiments at this moment? Because the Stalin Automobile Factory, which even Chairman Mao envied back then, is now the dying Zil Truck Factory.
Ivanov snorted, maintaining his arrogant and aloof demeanor: "Fine, I won't give up on that poor bastard Jill."
He really couldn't bear to think about it. Just thinking about dealing with the management of the Jill Truck factory made him want to grab a shovel, dig up a grave, and throw them all in.
Good heavens, what kind of old fogies are they? Even the officials in the Moscow government are more up-to-date than them.
Wang Xiao smiled and comforted him, "It's okay, it's okay, Jill can still manage."
According to the agreement reached in the negotiations, Mitsui provided the GIL plant with technical drawings of the 1988 model Isuzu NKR light truck and received a technology transfer fee of US$10 million.
This money will be deducted from the refinery's profit sharing.
Furthermore, Mitsui will arrange for engineers like Gil to receive training at the Fujisawa factory in Japan, with 10 people per session for 3 months, and the expenses will be borne by Gil himself.
Honestly, if investing so much money and still failing to save the Jill Truck Factory, no one could say a bad word about them.
Ivanov sighed, "Then let's pray to God. Let's go, let's go sign the contract."
Wait, why was the Sakhalin project located on Sakhalin Island, and Mrs. Ivano was in Moscow before, but the final signing location became Vladivostok?
Haha, because the Pacific Hotel in Vladivostok was once the headquarters of the Japanese Navy during the Russo-Japanese War.
Now it has become a Japanese-Russian joint venture hotel, but its historical significance has not disappeared.
The Japanese are truly cunning in every aspect of their lives.
So what were Wang Xiao's feelings when he readily agreed?
I'm not in the mood, I'm in a calm mood.
Ivanov was more excited than she was.
Because the Japanese guys who came with Watanabe Taketa to attend the contract signing ceremony, for some reason, not only presented them with Mitsui family crest folding fans as gifts, but also insisted on pinning cherry blossom brooches on them.
Would Ivanov tolerate this? He immediately gifted them pens.
"This was made from bullet casings from the Battle of Moscow."
Both sides wore smiles, but their eyes were cold, turning the conference room into a trench.
As a result, Wang Xiao, who was supposed to act as a third-party fire extinguisher, also caused trouble. Not only did she not put out the fire, she also started fires in different places.
"Why isn't there a Chinese version?" She patted the contract in her hand, her eyebrows raised in anger. "What do you mean? The contract has Japanese, Russian, and English versions, but not a Chinese version? Are you trying to kick me out now?"
Watanabe Taketa stared in disbelief: "Miss, we were just doing what we were supposed to do, we didn't mean anything by it."
Why would we need a Chinese version? China isn't a WTO member, and Chinese isn't the standard language for international business cooperation.
It is also standard practice for Japanese companies investing in China to use English contracts.
Wang Xiao, however, was as unpredictable as a typhoon, nitpicking: "No, I don't accept that statement. Moreover, in order for our cooperation to proceed smoothly and to avoid losses due to ambiguity, I strongly request that a Chinese version of the contract be provided."
As she spoke, her gaze even became earnest, and she looked seriously at the Japanese person across the table, "Why hasn't Japan abolished kanji to this day? Isn't it because katakana can't accurately express meaning, so they have to keep kanji?"
She stretched out her arm. "See, you also acknowledge the precision of the Chinese language, don't you?"
Watanabe Taketa is about to break down.
Wang Xiao complained that negotiating with him was like keeping a hawk awake all day; even the summer sun on Sakhalin Island couldn't keep up with their working hours. He also didn't want to recall the negotiation process with Wang Xiao.
Look, everyone finally finalized the details of the agreement and was about to sign the contract, and now she's suddenly causing trouble again.
I've had enough!
But even if he couldn't stand it anymore, he had to suppress his temper and continue talking.
Mitsui cannot afford to wait, and neither can Japan's energy strategy.
Sakhalin Island does indeed have other oil and gas field projects waiting to be developed.
However, who can guarantee that the remaining Sakhalin projects will have the same good fortune as Wuzhou, which started gushing oil after only one year of mining?
Partnering with Wuzhou to quickly integrate into existing projects is the most suitable option for Mitsui at present.
“Miss Wang, what do you want? Finding a professional translator to create a legally binding Chinese version of the contract now will only make things more complicated and seriously delay the project’s progress.”
“Alright.” Wang Xiao, who had been working so hard and had dark circles under his eyes, seemed to have reached his limit and was actually willing to back down. “Key technical parameters, such as the catalyst activity index, need to be accompanied by Chinese annotations.”
Taketa Watanabe shook his head, trying to appear sincere: "Miss Wang, it's not that we're uncooperative, but JIS terminology is untranslatable. If you could find a qualified JIS terminology translator, we would accept it. But we can't; ordinary business translators are not up to the task."
Fearing that Wang Xiao, being an outsider, wouldn't understand and would just make things worse, he had to patiently explain, "Because China and Japan follow different standards. Diesel produced by the JX-900 process must meet the JIS K 2240 ultra-low sulfur standard, while China follows the GB 252-1987 standard, which has a sulfur content limit five times higher than ours. How do you explain the process standards in this way?"
Wang Xiao sneered inwardly.
She knew that fortunes could change drastically over time, and that China's international standing in 1994 was vastly different from what it was thirty years later.
The status of a language is also a reflection of its international standing.
Modern China lacks a voice in international standards.
"Really?" Wang Xiao raised his eyebrows and stretched out his hand.
The assistant immediately handed her a booklet, which she tossed onto the table.
This is a 1992 Japan-China Standardization Cooperation Agreement.
Wang Xiao said calmly, "I think that based on the terms of the agreement, you should be able to provide a simplified version of the parameters that conforms to ISO standards."
Does the power of discourse come from others handing it to you?
What are you dreaming of? Those things are earned through fierce competition and struggle.
She will absolutely not give up the right to interpret the standards.
Every success serves as a case study for future generations.
She succeeded this time, so that others will have precedents to follow next time.
Watanabe Taketa was speechless and could only accept it reluctantly.
He cursed himself inwardly, wondering why he always fell for her tricks and always thought she was just making trouble for no reason.
In fact, every move she made was well-prepared, and she was determined to win.
She not only secured a trip for Wuzhou's team to visit the Jurong Refinery in Singapore, which went into operation in 1990, to verify the JX-900 Mark II process parameters on-site.
She also threatened Mitsui with her connections in Moscow and the approval of project implementation, stating that if a large-scale war broke out, Mitsui must unconditionally grant temporary access to higher-level technologies for a period of six months.
Forget it, Watanabe Taketa doesn't want to recall it anymore.
Wang Xiao felt he had suffered a great loss and was deeply humiliated by the contract. In Watanabe Taketa's view, if Mitsui hadn't temporarily been unable to find a more suitable partner, it would have been impossible for them to accept it.
Mitsui bled a lot!
While waiting for the simplified technical specifications to be explained, no one really had a moment to rest, because they still had another new clause to argue about.
So, when conflicts and irreconcilable contradictions arise during cooperation, who can you turn to for justice?
Wang Xiao proposed the Hong Kong International Arbitration Centre (HKIAC) because it is close by and its legal system is compatible with both civil law and common law.
However, Japan believes that although China promised "one country, two systems" after Hong Kong's return to China in 1997, Hong Kong will continue to practice capitalism and maintain its way of life for 50 years.
Saying something and doing it are two different things. Who knows what the future holds? Arbitration in Hong Kong would put Japan at a disadvantage.
Therefore, Watanabe Taketa insisted on changing it to the Singapore International Arbitration Centre.
Then everyone stood on their own grounds and began to argue their points.
As the argument escalated, Wang Xiao raised the issue to a political level, directly stating that Mitsui did not trust the Hong Kong International Arbitration Centre, which, to put it bluntly, meant he did not trust the promises of the Chinese government.
If you don't even believe this, then there's really no need for us to continue this discussion.
Watanabe Taketa was simply too exhausted. After much deliberation and discussion with his team, he finally reluctantly agreed.
So when he finally received the new, simplified technical specifications, he was almost moved to tears.
Because everyone could finally sit down and sign the contract—their original plan was to sign the contract as soon as everyone arrived!
He was exhausted, both physically and mentally, and really didn't want to argue anymore.
Vladivostok also has long hours of sunshine in the summer, but it still can't outlast humans.
They dragged it out from sunrise to sunset, until the night was completely silent and the hotel staff on the night shift looked tired and worn out, before finally completing the signing ceremony.
If things go according to plan, there should be a celebration ceremony.
But looking at the group of people who had been tortured to the point of looking like dried vegetables, no longer as elegant as before, who the hell would have the energy to stay up all night and cause trouble?
Taketa Watanabe waved his hand, skipping over the issue altogether, and only emphasized: "Wuzhou must not disassemble the JX-900 equipment for imitation, otherwise it will have to pay a penalty of $200 million."
He said meaningfully, "I know that both Russia and China are masters of turning the tide. But we hope that our cooperation will be long-term and that we should not part ways over such a small matter."
When Wang Xiao smiled, the muscles in her cheeks showed signs of soreness.
There's no way around it, they've already started arguing, and every muscle in their face is working overtime.
So she just smiled and said, "Of course, we share the same interest: to make the most money in the shortest amount of time and in the safest way."
Let her say this, and everyone listen.
Everyone present knew perfectly well that the plan was to learn from the joint venture and then support local suppliers to break through the blockade.
Japan has done this kind of thing quite a few times before.
Otherwise, Mitsui wouldn't have emphasized the $200 million penalty for breach of contract.
Watanabe Taketa, looking exhausted, took his leave: "I hope so."
No one had the energy for any more pleasantries or small talk, so they quickly went back to their rooms, took showers, and went straight to sleep.
When Wang Xiao woke up, the moment he opened his eyes, he felt like his head was completely numb.
She mechanically brushed her teeth and washed her face, mechanically went downstairs to eat breakfast, and then, when she subconsciously looked in the direction of the conference room, she suddenly remembered that the negotiations had ended and the contract had been signed.
The next step is to execute the contract.
She spread fermented bean curd on the steamed bun—thanks to Tang Yicheng's hard work, Vladivostok is now full of Chinese goods.
Even at the Ocean Grand Hotel, you can eat steamed buns, mantou, and fermented bean curd.
Wang Xiao took a bite of the steamed bun slice spread with fermented bean curd, and wow, it was really delicious.
She still had to praise the Russian flour; every bite was bursting with rich wheat flavor.
After swallowing the steamed bun in her mouth, she said, "I'll go back to Moscow with you."
Ivanov was taken aback, then looked at her with concern: "No, you should rest well on Sakhalin Island. I'll take care of things at the ZIL truck factory."
Wang Xiao took a sip of porridge, cleared his throat, and shook his head, saying, "I'm not showing my face at the Jill Truck Factory; I'm going there to appease our creditors!"
Sigh, as a capitalist, she still has too much of a conscience.
She actually felt that it was rather unethical of them not to distribute dividends to shareholders after the Sakhalin project had produced oil.
But people's bottom line will always keep dropping. If she does too many immoral things, even if her conscience is uneasy, she will continue to do them.
For example, she wouldn't hesitate to withhold the shareholders' dividends and instead invest them in building an oil refinery.
Ivanov stroked his freshly shaved chin. This was something he couldn't do himself; only the King could appease the shareholders.
The temperature in Moscow in the summer is obviously higher than in the Far East. This made Wang Xiao, who had been in Sakhalin Island for a long time and had just flown from the morning mist of Vladivostok to the scorching sun of Moscow, feel a wave of summer heat.
Upon arriving at the container market, the heatwave grew even larger, almost like a ball enveloping everyone.
People, everywhere you look, shoulder to shoulder, carrying bags and bundles, reeking of sweat, shouting and haggling with calculators, people moving from one area to another.
These itinerant merchants made up the intensely hot summer of 1994 in Moscow.
It wasn't until sunset that the merchants who had traveled from afar finally left the container market, carrying large and small bags, and returned home laden with their spoils.
The rest were Moscow residents who came in groups, hoping to find bargains.
But at this moment, all they can sell to them are slow-moving products. Because the container market operates on a wholesale basis, if things weren't unsellable, no one would bother wasting time on a handful of customers.
Instead of wasting time like this, why not go to the communal canteen, order a couple of beers and some snacks, and enjoy the Moscow evening breeze while watching TV and chatting away?
It was in this atmosphere that Wang Xiao arrived at the communal canteen.
She found it quite interesting; using the dining table as a conference table seemed to be a unique feature.
Upon receiving the notification, all the traders greeted her with smiles and enthusiasm.
The second sister was the first to jump out and declare her position as the number one loyalist: "I told you, making money by following our Boss Wang means you get more oil and fat in the bone broth than others."
Hey! She was so worried before, fearing that the hundreds of thousands of dollars would be wasted and poured into the sea off Sakhalin Island.
And guess what? In just one year, it started to get oily!
What is oil? It's black gold!
The Russian newspapers are always full of war stories. Zhang San says that Li Si has seized the oil export rights, while Li Si says that Zhang San is the real thief who stole and sold the oil.
Why doesn't anyone bring up anything else? It's all because oil makes money, isn't it?
The eyes of the others were also remarkably bright.
Wang Xiao felt that even if the cafeteria lights were off late at night, the sight of everyone's bright eyes, shining like light bulbs, created a sea of light.
Someone couldn't wait to shout, "Boss Wang, when will we get our dividends?"
People around him chimed in, "Yes, yes, they've found oil."
Wang Xiao nodded, beaming: "That's exactly what I came here for. Oh, to be honest, your money is burning my hands, I have to distribute it to you right away."
The second sister immediately chimed in with flattery: "Oh, Mr. Wang, it's only because you're such a kind person, willing to help us make money, that you feel the money is too hot to handle. Hey, Mr. Wang, do you have any other money-making projects you could recommend for investment?"
She really doesn't dare to keep money in her hands now.
The Russians have gone mad; newspapers, television, and even the radio stations where she often listens to music are bombarding her with investment advertisements.
Every advertisement is full of flowery language, like a shower of gold raining down from the sky.
But if you ask them how they plan to make money after raising funds, anyone who has done business properly can only chuckle at their answers.
So after thinking it over, the second sister still felt that it would be better to invest with Wang Xiao.
Putting everything else aside, they're just lucky.
After my second sister invested in Wuzhou Petroleum Company, she tried her best to find some information and asked around, only to find out that it was perfectly normal for oil not to be extracted for several years.
But they started construction and extracted oil within a year.
If this isn't good luck, then what is it?
Furthermore, she managed to escape death despite such a huge disaster as the plane crash.
What does this mean? It means she has a noble destiny and is born to be extremely wealthy and noble.
The second sister approached Wang Xiao with a smile: "Hey, we're all family here, so don't hold back."
“I’m not hiding anything,” Wang Xiao waved his hand. “I really don’t have time for other projects right now. Our Wuzhou Company is building an oil refinery with Japan’s Mitsui Group. All my energy is focused on this project. I don’t have the energy to deal with anything else.”
The middlemen and traders were confused, and some joked, "Why does a refinery need you to go to so much trouble, Mr. Wang?"
Wang Xiao shook his head: "Oh dear, you really underestimate the oil refinery. Just buying the equipment, not even counting the other factory buildings, will cost a hundred million US dollars. Okay, okay, let's not talk about this anymore. Everyone, let's register and get our dividends quickly. Don't drag it out, it'll make bookkeeping difficult for us later."
The second sister's eyes lit up: "One hundred million US dollars? Oh, Mr. Wang, such a big project, aren't you going to include us?"
Wang Xiao waved his hand: "Alright, alright, you've already invested in the oil and gas field. If I keep taking money out of your pockets, what kind of person would I become?"
“How can this be considered paying money?” The second sister made a decision on the spot. “I don’t want dividends anymore. I will invest my dividends into your oil refinery.”
Wang Xiao frowned, finding it troublesome: "Don't wrap it up, I'm already so busy I wish I had three heads and six arms."
The second sister hugged Wang Xiao's arm: "Oh, Mr. Wang, let me tell you the truth. My abilities are what they are, and the scale of my business can only reach this size. Now that the dividends are back in my hands, I don't have the ability to make money grow."
She pleaded, "Please, have mercy on me and let me continue to earn a little money."
Wang Xiao frowned, as if he were going through a fierce internal struggle.
Finally, she couldn't take it anymore and reluctantly nodded, "Fine, fine, since I'm the one who calls you 'sister'."
Second Sister giggled.
Some people nearby were envious and also asked to continue investing and sharing the profits.
Although they didn't understand exactly what the refinery was refining, they all had a basic understanding of economics.
How much is 100 kilograms of cotton worth? How much can 100 kilograms of clothing sell for?
That price difference is all money!
However, some people are relatively conservative and feel that it is safer to keep the dividends in their own hands.
Wang Xiao had no objections; on the contrary, he seemed relaxed: "Thank goodness, you should take the money back quickly. Don't forget to include it next time you get your dividends."
As soon as she finished speaking, a series of hurried footsteps suddenly sounded outside, followed by fully armed police officers who stormed into the cafeteria and arrested anyone they saw.
The middlemen who had been all smiles just moments before were now terrified, their faces ashen. Those who had decided to receive their share of the profits cried out in desperation, "Boss Wang, you can't do this! If you don't want to give us our share, just say so! How can you call the police to arrest us?"
Wang Xiao was still completely confused, so he quickly stepped forward and asked the police, "What are you doing? Sir, what mission are you on?"
“Muscovites,” the policeman said expressionlessly. “Anyone who isn’t a Muscovite must leave Moscow.”
The traders who understood Russian were collectively shocked.
What's wrong with the Russian police again?
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After some thought, I decided to finish writing this part of the story, which is why the update is late. [Let me see...]
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