Tech Giants: Starting from Bankrupt Companies

132: Chapter 132 Trio. UndercurrentsWilmington, Delaware, America.

At 8:15 PM local time on December 13th, in the strategic conference room on the 33rd floor of the Dupont headquarters building, the atmosphere was so oppressive it felt like water could be wrung from it. Twelve people sat around a long conference table, each with the same report spread out before them—’Technical Assessment and Market Impact Analysis of Spark Materials’.

The report’s cover was marked with bright red ’Top Secret’ lettering and an unsettling conclusion: ”Estimated risk of 23-35% revenue erosion for Dupont’s High-Performance Materials Division within 18-24 months.”

Mark Rosenberg sat in the head seat, toying with a silver badge in his hand. It was a badge for a KGB technical intelligence officer from the 1980s, a trophy he had obtained during a counter-intelligence operation in Vienna. Whenever he faced significant pressure, he would rotate this badge, his fingertip feeling the fine grooves on its edge.

”The stock price dropped 7.3% at the opening,” the Chief Financial Officer broke the silence. ”The analyst conference call starts in forty-five minutes. I need an explanation.”

”An explanation?” Richard Cohen, President of the High-Performance Materials Division, sneered. ”Explain what? Explain why a Chinese company established less than two years ago has produced material parameters that were only in our three-year R&D plan? Explain why the density and strength data of their ’Xinghui-3’ metal matrix composite exceeds our laboratory samples?”

”What is the source of their technology?” the board representative asked. ”Is it theft?”

”If it were theft, it would actually be easier to handle.” Sarah Chen, Director of Technical Intelligence, pulled up a set of data on the projection screen. ”These are the sample analysis results we obtained through non-public channels. The material’s microstructure shows that their synthesis path is different from all known patent routes. This is original technology.”

”Original?” Richard raised his voice. ”Sarah, do you know what you’re saying? We, along with the Japanese and Germans, have researched metal matrix composites for thirty years to reach this point. The Chinese have always been at least two generations behind in this field, and now they’ve suddenly ’originated’ a disruptive technology?”

Sarah pushed up her glasses. ”I understand your emotions, Richard. But the fact is, the samples don’t lie. Their carbon fiber surface treatment technology, metal matrix interface optimization schemes, and even the thermoforming processes all show a complete and novel technical system.”

Mark finally spoke, his voice low and steady. ”Is it possible it’s technology leaked from Russia? Or Ukraine?”

”We did a comparison immediately.” Sarah pulled up another set of charts. ”The Ukraine National Institute of Materials did have some results leak after 2014, but those were continuations of Soviet Union-era technology and completely inconsistent with the technical characteristics of Spark Materials. As for Russia... their composite material research is more oriented toward extreme environment applications, which is not the same route as this aerospace-grade material.”

The conference room fell into silence again. Outside the window, Wilmington’s night view was brilliant with lights, but no one in the room was in the mood to admire it.

”Market impact assessment?” Mark asked.

”Worst-case scenario.” The Head of Global Strategic Analysis pulled up a prediction model. ”If their production capacity expands as planned, by 2020, we will lose 45% of our market share in the Asia-Pacific aerospace composites market. That’s just direct competition. The indirect impact is even more terrifying—if they start penetrating the automotive and rail transit sectors, the price structure of the entire high-performance materials market will be reshaped.”

”What about the price?”

”Currently unknown. However, according to the usual strategy of Chinese manufacturing, their pricing is likely to be more than 30% lower than ours.” The analysis head paused. ”And... there are unconfirmed reports that they are already deeply tied to China’s military-industrial system.”

”Military-industrial...” Mark repeated the word, his fingers stopping the rotation of the badge.

There was a soft knock on the conference room door, and an assistant peeked in. ”Mr. Rosenberg, the video links with the Tokyo and Seoul branches are ready.”

”Patch them in.”

The screen on the wall lit up, divided into two halves. On the left was Yusuke Yamamoto, head of Dupont Japan, and on the right was Kim Jun-ho, head of the South Korean branch. Both of their expressions were equally grave.

”Yamamoto, what’s the reaction from Toray?” Mark asked.

Yusuke Yamamoto bowed slightly. ”Toray held an emergency board meeting this morning. Their assessment is even more pessimistic than ours—Spark Materials’ carbon fiber composites have already approached the level of Toray’s T1100 grade in certain indicators, but the cost may be only half.”

”What about BASF?”

Kim Jun-ho replied, ”BASF is holding a crisis meeting. Their position in the automotive engineering plastics market might be the first to be hit. The crash test data for the Hongqi Automobile... is already circulating on Chinese social networks. Although there hasn’t been an official release, those in the industry know what it means.”

Mark closed his eyes and opened them three seconds later. ”Initiate the ’Nightingale’ plan.”

Everyone in the conference room was stunned. Even Yamamoto and Kim Jun-ho on the screen showed shocked expressions.

”Mark...” Richard tried to say something.

”I said, initiate ’Nightingale’.” Mark’s voice had no fluctuations, but every word pierced the air like an icicle. ”I need the complete process parameters for Spark Materials’ formulas No. 3, No. 5, and No. 7. I need a list of their equipment suppliers. I need background information on their core R&D team.”

”This is a top-risk-level industrial intelligence operation,” Sarah whispered. ”If exposed, all of the company’s business in China could be expelled.”

”If we don’t act, the company’s high-performance materials business will become an empty shell within three years.” Mark stared at her. ”Which do you choose?”

Sarah fell silent.

Mark turned to the Director of Technical Intelligence. ”Activate the ’Crimson’ asset. It’s been ten years; it’s time for him to move.”

”Crimson...” Sarah gasped. ”Are you sure? That is our deepest-embedded asset in the field of Chinese materials science. Once activated, there’s no turning back.”

”We already have no way back.” Mark stood up, walked to the window, and turned his back to everyone. ”When this chess piece was planted ten years ago, it was for a situation just like today’s. Tell ’Crimson’ the task priority: Highest. Acquisition deadline: 90 days. If necessary... allow the use of unconventional means.”

The words ”unconventional means” caused the temperature in the room to drop sharply.

”Specific instructions?” Sarah asked.

Mark turned around, his eyes devoid of any warmth. ”Tell him: we need the ’source code’ of Spark Materials. Not the products, not the samples, but the ’capability’ to produce these products. If it can’t be obtained, let us know why—where their security vulnerabilities are, and what their weaknesses are.”

”And the cost?”

”The cost has already been calculated.” Mark sat back down and placed the KGB badge on the cover of the report. ”Compared to losing dominance in the global high-end materials market, any cost is acceptable.”

The video conference ended, and the other attendees left one after another. Finally, only Mark and Sarah remained.

”Don’t you find this ironic?” Sarah said softly. ”We once used technology blockades to suppress them for thirty years. Now that they’ve had a breakthrough, our first reaction is to steal.”

”It’s not stealing; it’s survival.” Mark looked at the city lights outside the window. ”Sarah, you grew up in China; you should know better than I—what will happen if they establish a leading position in this field?”

”Industrial upgrading. Technological independence. No longer being constrained by others.”

”And then?” Mark turned his head. ”They will use these materials to build better planes, better cars, and better weapons. They will sell their products to the whole world and defeat us using our own rules of the game. Then one day, our Ministry of National Defense will find that the materials for its own fighter jets come from China, and our car companies will be lining up in Guancheng to make purchases.”

”That’s a market economy.”

”This is war,” Mark corrected. ”A technological war without gunpowder, but just as brutal. We won in the chip field, we won in the aero-engine field, and we won in the industrial software field. This time, we cannot lose either.”

Sarah opened her mouth to speak but hesitated, finally just nodding, gathering her documents, and leaving.

Mark sat alone in the conference room, his fingers starting to rotate the badge again. The city lights outside were reflected on the glass like a brilliant galaxy. But he knew that on the other side of the Pacific, another galaxy was lighting up, and its brightness might soon surpass this one.

He picked up an encrypted phone and dialed a number that hadn’t been dialed in ten years.

The phone rang seven times before connecting; the person on the other end didn’t speak.

”’Nightingale’ returns to the nest,” Mark said in Russian.

There was silence for three seconds on the other end, and then an old and calm voice came through: ”Ten years. I thought you had forgotten about me.”

”We need you to fly one last time.”

”Target?”

”China, Spark Materials.”

The other person laughed, the laughter tinged with a certain complex emotion. ”Finally, it’s their turn. Send me the data. Old rules, one-way contact.”

The call ended. Mark put down the receiver and took a yellowed photo out of his inner suit pocket. It was from 1989, two months before the fall of the Berlin Wall, a photo of him with a young Chinese scholar in Leipzig. On the back of the photo, a Chinese name was written in pen, along with a line of small characters: ”Crimson, dormant state. Do not awaken unless it is a matter of life and death.”

Now, the moment of life and death has arrived.