Tech Giants: Starting from Bankrupt Companies

153: Chapter 153 The Battle to Break Through the Siege of WuhanWuhan Yangtze River Economic Belt Joint Conference, December 22nd.

The winter mist over the Yangtze River slowly dissipated in the morning light, and ten-thousand-ton cargo ships on the river sounded their long, drawn-out whistles, like the breath of a waking giant.

In the circular conference room on the top floor of the Wuhan International Conference Center, the floor-to-ceiling windows offered a view of the most magnificent section of the Yangtze River—the Wuhan Yangtze River Bridge, which ”flies across the north and south,” lined up in order with the modern Second Bridge and the Parrot Island Bridge, while the century-old Jianghanguan Clock Tower on the opposite bank echoed the towering Greenland Center in the distance.

The conference table was a rare circular shape, with the leaders of eleven provinces and two municipalities seated around it.

There was no distinction between primary and secondary seats, only the different place names on the nameplates in front of them: Hubei, Hunan, Jiangxi, Anhui, Jiangsu, Zhejiang, Shanghai Municipality, Chongqing, Sichuan, Yunnan, and Guizhou.

The Yangtze River Economic Belt, a massive economic corridor accounting for 45% of the national economy, was today to make a decision capable of changing the map of Chinese manufacturing.

As Hubei Province Governor Zhou Mingyang stood up, the conference room lights automatically dimmed.

The entire LED wall behind him lit up, displaying a dynamic industrial map of the Yangtze River Economic Belt, with thousands of light points flowing along the golden waterway of the Yangtze, each representing an enterprise in the automotive supply chain.

”Old friends, today we won’t talk about GDP growth rates or tax revenue sharing,” Zhou Mingyang began, his voice carrying the characteristic heartiness of a Hubei native. ”Let’s talk about something practical—how to make this great economic artery of the Yangtze beat even more strongly and powerfully.”

He tapped his tablet, and the screen switched to a crash test video: a Red Flag H8 sedan hitting a rigid barrier at 64 km/h. Slow motion showed the B-pillar only slightly deformed, and the car door opening normally.

The top right corner of the video displayed comparative data—under the same conditions, the deformation of a traditional steel B-pillar was 2.8 times that of Spark Materials’ composite.

”This test was conducted last week at the National Motor Vehicle Quality Supervision and Inspection Center,” Zhou Mingyang said, pulling up the test report. ”The metal matrix composite from Spark Materials, when used in an automobile’s body-in-white, can achieve a 15% weight reduction and a 50% improvement in safety. More importantly—”

He zoomed in on the scanning electron microscope image of the material’s microstructure: ”The fatigue life of this material is three times that of traditional steel, meaning that throughout the vehicle’s entire life cycle, one almost never needs to worry about structural aging issues.”

”According to our automotive industry alliance’s calculations, if all 30 million passenger vehicles in use within the Yangtze River Economic Belt were to be upgraded with this material, it could save 12 billion liters of fuel annually and reduce carbon dioxide emissions by 30 million tons.”

Jiangsu Province Executive Vice Governor Li Jianguo pushed up his glasses: ”Old Zhou, we’ve all seen the data. The question is the price—how much more expensive is the cost of Spark Materials compared to the high-end steel currently in use?”

”It’s 40% more expensive initially,” Zhou Mingyang admitted candidly, ”but after mass production, it can be reduced to just 15% more expensive. Moreover, if you calculate the total life cycle cost, including maintenance, energy consumption, and second-hand resale value, it’s actually lower.”

He pulled up a complex cost model: ”For a 200,000 rmb mid-range car, using Spark Materials increases the cost by about 8,000 rmb. However, it saves 1,500 rmb in fuel costs annually, which is 7,500 rmb over five years; insurance costs are reduced by 10%, saving 4,000 rmb over five years; and after five years, the second-hand resale value is 15% higher than ordinary models, selling for 30,000 rmb more—the user actually makes a profit.”

Low murmurs of discussion filled the conference room. These provincial leaders were all economically savvy and understood the weight of the concept of ”total life cycle cost” in government procurement and business decision-making.

”More importantly,” Zhou Mingyang switched the screen to show satellite images of dozens of steel mills along the Yangtze River, ”we’ve calculated the big picture. The annual steel consumption of the automotive industry in the Yangtze River Economic Belt is about 50 million tons.”

”If 3 million tons of that are replaced by Spark Materials, the entire supply chain can save 20 billion rmb in steel procurement costs annually and reduce carbon emissions from steelmaking by 3 million tons—this is equivalent to shutting down a medium-sized steel plant.”

Shanghai Municipality Vice Mayor Chen Jing took over the conversation. She was the only female leader in the conference room, and her speech was clear and logical: ”Our Shanghai Automotive Group has conducted a technology roadmap assessment. If Xinghuo can establish a production base in Wuhan to ensure stable supply, SAIC is willing to fully apply it to the next generation of our main models. SAIC alone will have a demand of over 500,000 tons in the next three years.”

”The same goes for our Dongfeng Group,” Hubei Provincial Party Committee Secretary Wang Jianjun spoke up. ”But the prerequisite is that Xinghuo must form a complete industrial chain within the Yangtze River Economic Belt; we cannot be left ’without rice to cook with’.”

At this moment, Zhou Mingyang took a thick agreement out of his folder and placed it on the turntable in the center of the circular conference table. He gently turned the turntable, and the agreement slowly slid toward Wu Yi.

”Mr. Wu, this is the ’Yangtze River Economic Belt New Material Industry Collaborative Development Agreement’ jointly drafted by our eleven provinces and municipalities.” Zhou Mingyang’s voice became solemn. ”We promise: within three years, we will jointly purchase 3 million tons of Xinghuo civilian materials. The purchase price is 30,000 rmb per ton, and this is the advance deposit—”

He raised his phone, the screen displaying an electronic version of a bank draft, the zeros after the number so long they needed to be displayed in segments: ¥10,000,000,000.

”A 10 billion rmb bank acceptance bill, jointly guaranteed by the eleven provinces and municipalities; sign today, and it will arrive tomorrow,” Zhou Mingyang looked at Wu Yi. ”This is not just an order; it is a vote of confidence from the Yangtze River Economic Belt in indigenous innovative technology.”

Wu Yi took the agreement, which still carried the warmth of the ink. As his fingers traced the paper, he could feel the weight of this commitment—3 million tons, equivalent to three times Xinghuo’s current planned capacity. A 10 billion rmb advance payment—this was not just commercial trust, but a collective bet by a national strategic economic zone on a future technological path.

The conference room was so quiet that the sound of the central air conditioning blowing could be heard. Everyone was looking at Wu Yi.

”Governor Zhou, leaders,” Wu Yi stood up and bowed deeply. ”Xinghuo is a young company, and we are very clear about what 3 million tons means—it means we have to increase our production capacity from the current 300,000 tons to 3 million tons within 18 months. This is an almost impossible task.”

He paused, his gaze sweeping over every face: ”However, if the Yangtze River Economic Belt is willing to give us such trust, we are willing to sign a military pledge: within 18 months, we will build the world’s largest advanced composite material production base in Wuhan. Within 24 months, we will achieve a production capacity of 3 million tons. If we fail, Xinghuo is willing to pay double the advance payment as compensation.”

”Good!” The Hunan Provincial Party Committee Secretary slapped the table. ”That’s the kind of courage we need!”

Wuhan Municipal Party Committee Secretary Zhang Hua stood up, walked to the window, and pointed to a piece of land on the opposite bank of the river that had already been cleared. ”Mr. Wu, do you see that vacant land on the south bank of the Yangtze River Second Bridge? 800 mu, the last piece of industrial land of scale within Wuhan’s inner ring. We originally planned to introduce a multinational automotive headquarters, but now, we have decided to reserve it for Xinghuo.”

He pulled up the planning map: ”Within three months, the ’nine connections and one leveling’ will all be in place. We are already laying dedicated natural gas pipelines and a 110kV dual-circuit power grid—we know how demanding your material production is regarding energy stability. Additionally, Huazhong University of Science and Technology held an emergency university committee meeting yesterday and decided to cancel the originally planned ’Polymer Materials Research Institute’ and instead establish the ’Spark Materials College,’ with targeted cultivation for undergraduates, masters, and doctoral students, delivering 500 graduates every year, with the curriculum designed with Xinghuo’s participation.”

Wu Yi was shocked. Canceling an already planned research institute was almost impossible within the university system. This meant that to win over Xinghuo, Wuhan had mobilized every resource it could.

”And there’s this.” The Director of the Yangtze River Shipping Administration Bureau opened his portable projection equipment and projected a real-time scheduling map of Yangtze River shipping onto the wall. ”We have opened a ’Yangtze Green Channel’ for Xinghuo. Your raw materials and products will have priority for loading and unloading at all ports along the Yangtze River, with a 30% discount on shipping costs. Departing from Wuhan Yangluo Port, containers can reach Shanghai Waigaoqiao in 72 hours and Germany Hamburg in 15 days—this speed is 5 days faster than shipping from Shenzhen, and the cost is 40% lower.”

He zoomed in on a shipping route map: ”More importantly, we are currently negotiating with Chongqing, Nanjing, and Shanghai Port groups to prepare to open a ’Xinghuo Special Line’—two scheduled liners per week, carrying only your goods, departing on time, arriving on time. Mr. Wu, the Yangtze River is the great artery of China, and from today on, this artery beats for Xinghuo.”

Wu Yi felt his throat tighten. He remembered ten years ago, when he was still staying up late to do experiments in a US laboratory, those American professors often said: ”Chinese manufacturing can only ever be a follower, because you do not have a complete industrial chain, you do not have an autonomous technological system, you do not have...”

Now, he stood by the Yangtze River, listening to the world’s third-largest river changing its course for a Chinese technology company.

”On behalf of all my colleagues at Xinghuo,” Wu Yi’s voice was slightly choked with emotion, but he quickly regained his firmness, ”I promise the Yangtze River Economic Belt: what we are building in Wuhan will not just be a factory, but the ’Silicon Valley’ of China’s advanced materials industry. We will establish a global R&D center here, set industry standards, and incubate supply chain enterprises. Within five years, we will make Wuhan an unignorable coordinate on the world’s new materials map.”

Applause surged like a tide, lasting for a long time.

Outside the window, a cargo ship fully loaded with containers was slowly passing through the Yangtze River Second Bridge, its whistle blowing long and loud, as if cheering for this decision.