Tech Giants: Starting from Bankrupt Companies

202: Chapter 202 Sanctioning the Cold Wave10:00 AM, the third basement level of the Spark Technology building.

This was the strategic command center, rarely used under normal circumstances. Today, it was brightly lit.

Su Chen sat at the head of the table, flanked by core executives including Lin Wan, Li Wanqing, Shen Nanpeng, and Zhang Yang.

The large screen displayed real-time data: ZTE’s stock price plunge, supply chain disruption analysis, and a summary of global media reports.

”Everyone, you have all seen it,” Su Chen began, his voice calm. ”This is not an accident; it is premeditated. America chose to target ZTE first because ZTE’s weaknesses are the most obvious—a high reliance on American technology and flaws in compliance.”

He pulled up the list of America dependencies for the xinghuo system:

EDA software: Already replaced by the Electronic Design Automation tool, completely autonomous.

Some precision instruments: Electron microscopes, ion implanters, etc., are currently being tackled by Spark Industry, with prototypes expected by the end of the year.

Certain special materials: Spark Materials already has backup plans; yields are slightly lower but usable.

Operating systems: PC side relies on Windows, mobile side relies on Android. But Spark Technology has already started ”Hongmeng” system adaptation (in cooperation with Huawei).

”The list is not long,” Su Chen said. ”But this does not mean we can rest easy. If we hadn’t started our strategic planning three years ago, ZTE’s today would be our tomorrow.”

He scanned the conference room: ”Now, I am announcing three directives.”

The large screen displayed:

Directive 1: Supply Chain Security Screening

Comprehensively screen all suppliers and place American companies on a ”high-risk list.”

Start the countdown for domestic substitution: within 6 months, there must be replacement plans for high-risk components.

Within 12 months, complete the domestic production or diversified procurement of all key components.

Directive 2: Establish a ”Supply Chain Security Fund.”

Initial allocation of 50 billion rmb.

Invest in domestic alternative manufacturers with potential: materials, equipment, software, and components.

Criteria: Potential for technological breakthroughs, reliable teams, and market demand.

Directive 3: Secretly Contact ZTE.

Through third-party channels, convey information to ZTE: If they need chips, base station modules, or operating systems, Spark Technology can provide help.

But the condition: ZTE must promise to purchase products from the xinghuo system in the future.

This is a business partnership, not charity.

Lin Wan raised her hand: ”Boss Su, the third directive... won’t this further provoke America? If we publicly support ZTE, it might trigger America to launch assassination attempts against our core personnel again.”

Su Chen nodded: ”That is why it is a secret contact, through intermediaries. And what we are providing are not substitutes for American technology, but products we have independently developed—America has no jurisdiction over them. If America launches assassination attempts again, our Golden Shield security and the National Security Bureau will provide corresponding protection. As long as we don’t go abroad, they won’t be able to carry out large-scale assassinations against our core team.”

He paused: ”More importantly, this crisis is an opportunity. The entire Chinese tech industry will wake up: you cannot hand over your lifeblood to others. What we need to do is not just protect ourselves, but build an autonomous ecosystem. Strengthen our product matrix, build our own industrial alliance, and bring more Chinese companies into the Xingchen system. Only then can we confront America; relying solely on ourselves is not enough to comprehensively win America’s tech war.”

The meeting lasted until noon.

After the meeting, Su Chen kept Shen Nanpeng behind.

”Old Shen, you will be personally responsible for that 50 billion fund,” Su Chen said. ”Don’t just invest in mature companies; invest more in early-stage projects. Especially those teams that have technology but lack capital and market access.”

”Understood,” Shen Nanpeng nodded. ”But where will this 50 billion come from? Xinghuo Electronics just went public, and those funds cannot be touched. As for the parent company...”

”Allocate it from the 160 billion of Xingchen Heavy Industry,” Su Chen said. ”Other projects are not as urgent as this. Supply chain security is a matter of life and death. Besides, Xingchen Heavy Industry is wholly owned by me and not listed; I don’t need to report to shareholders.”

Shen Nanpeng was shocked: ”Boss Su, will these funds only be invested in supply chain-related companies?”

”chips are important, but other industries are also important. You can’t just have a brain; you also need a strong body.” Su Chen looked at the ZTE stock price chart on the screen. ”You can invest in the fields of communications, software, materials, precision manufacturing, and big data, weaving them into a web to achieve industrial synergy in the future.”

1:00 PM, the A-share market opened.

ZTE was locked at the limit down, with sell orders exceeding 10 billion—it was impossible to sell.

Even more frightening was the ripple effect:

Huawei concept stocks plummeted by 5-10% collectively.

The chip sector fell across the board.

5G, communications equipment, electronic manufacturing... all tech-related stocks were in the red.

The stock forums were filled with wailing:

”It’s over, tech stocks are going to crash.”

”America is trying to kill off Chinese tech!”

”Run while you still can.”

On social media, the president of a certain mobile phone manufacturer posted a message:

”Tonight, we are all ZTE.”

The accompanying image was a night view of Shenzhen, brightly lit, but the text was sorrowful.

This post was shared tens of thousands of times.

Many tech practitioners felt the same: today it’s sanctions against ZTE, tomorrow it could be them.

But there were also different voices.

In a small industry group, someone posted anonymously:

”What are you panicking about? Hasn’t Spark Technology been prepared for a long time? Look at their stock prices—Xinghuo Electronics only fell 2% today, and Spark Technology even rose 1%.”

”Spark Technology is Spark Technology, we are us.”

”But Spark Technology has proven that autonomy is feasible. They started planning three years ago, and now they have the Electronic Design Automation tool, Flint chip, Spark Materials...”

”So what? We have to go beg Spark Technology?”

”Still better than begging the Americans.”

The group fell silent.

Then someone @ed the group owner: ”Boss Zhang, does your company have any cooperation with Spark Technology?”

The group owner, Boss Zhang, who does precision machining, replied: ”We are currently in talks. Spark Technology wants to build two chip production lines and needs supporting equipment. The conditions they offered... are very harsh, and the technical standards are very high.”

”What conditions?”

”Must use their technical standards, accept their quality control, and they take the lion’s share of the profit.”

”Isn’t that just working for Spark Technology?”

”But we can survive,” Boss Zhang said. ”And if we can break into the Spark Technology supply chain, our technology can improve by a level. They are not stingy with technology transfer.”

More people began to think: perhaps clinging to Spark Technology is the way to survive.

Amidst the panic, a new alliance quietly emerged. Perhaps the cautionary tale of Spark Technology has already awakened a large number of Chinese enterprises; the comprador mentality is a dead end. Only by mastering core technology can one stand firm, and only innovation can last. In this regard, several major Japanese companies have done very well.

Sony, Kyocera, and Toyota all started by buying technology from America, then innovating their own technology, and finally becoming global bestsellers.