Tech Giants: Starting from Bankrupt Companies

295: Chapter 295 Sanctions Storm: White House DeclarationMay 16, 9:00 AM, East Room, White House, Washington.

The crystal chandelier refracted fine, fragmented light in the morning sun.

The East Room is the third-largest event venue in the White House, typically used for press conferences, award ceremonies, and small state dinners. Today, it has been transformed into a ”war command center”—the American national emblem hangs directly above the podium, with three Stars and Stripes flags standing on each side.

The press section is packed.

All three hundred seats are filled; tripods stand thick in the aisles, and dozens of reporters without seats are standing in the back. CNN, FOX, ABC, CBS, NBC, Bloomberg News, Reuters, Agence France-Presse, Kyodo News... all major global media are present.

Behind the podium, seven people stand in a row:

Robert Hawke, National Security Advisor, fifty-eight years old, gray-blue eyes, stern expression, standing in the center.

Mike Pompeo, Secretary of State, fifty-five years old, standing to Hawke’s right, a faint smile at the corners of his mouth.

Steven Mnuchin, Secretary of the Treasury, fifty-six years old, standing to Hawke’s left, holding a folder.

Wilbur Ross, Secretary of Commerce, eighty years old, full head of white hair, standing at the very edge.

There are also three deputies: the Deputy Secretary of the Treasury in charge of sanction enforcement, the Deputy Secretary of Commerce in charge of industrial security, and the legal counsel in charge of legal affairs.

Hawke steps forward, placing his hand on the podium.

The light from the crystal chandelier casts shadows on his face.

”Today, America announces—”

His voice is broadcast globally: ”—the implementation of the strictest sanctions in history against Xingchen Technology and all its affiliated subsidiaries.”

The large screen behind him lights up.

Entity List · Specially Designated Nationals List

Xingchen Technology Group

Xinghuo Electronics

Xingchen Defense

Xingchen Heavy Industry

Spark Materials

Spark Power

Xingchen Aerospace

...

A total of forty-seven companies.

The screen scrolls slowly; every time a name appears, a low gasp ripples through the press section.

Three minutes later, the list finishes scrolling.

Hawke continues: ”For all entities listed on the Entity List, American companies are prohibited from conducting any transactions with them. All their assets within the United States are frozen. Any foreign company that engages in significant transactions with these entities will also face secondary sanctions.”

He pauses, scanning the room: ”This is not a suggestion; it is an order.”

CNN reporter Emily Schultz raises her hand, and after being granted permission, she stands up: ”Mr. Hawke, does this mean the United States is entering a state of total confrontation with Xingchen?”

Hawke looks her straight in the eye: ”This is not confrontation; it is protection. Protecting America’s technological edge, protecting American national security, and protecting the free world from being held hostage by a technological dictator.”

Emily follows up: ”Does ’technological dictator’ refer to Xingchen?”

Hawke nods: ”Yes. In the past seven days, Xingchen has signed massive military and technological agreements with countries like Russia, Iran, and Malaysia. Some of these countries violate human rights, some threaten regional stability, and some fund terrorism. Xingchen’s actions are tantamount to giving blood transfusions to America’s enemies.”

Emily wants to ask more, but Hawke has already turned to the next reporter.

Reuters reporter James Carter raises his hand: ”Mr. Hawke, the 80 billion dollar agreement signed by Xingchen in Moscow includes chip production lines, communication base stations, and new energy vehicles. These are clearly civilian projects; why are they also being sanctioned?”

Hawke sneers: ”Civilian? 28-nanometer chip production lines can be converted to produce military chips. 5G base stations can be used for military communications. New energy vehicle factories can be converted into armored vehicle production lines. Mr. Carter, your question reveals your naivety.”

James wants to retort, but Hawke has already raised his hand to signal the next one.

Bloomberg News reporter Maria Sanchez: ”Mr. Hawke, European companies also have partnerships with Xingchen. Will they be sanctioned?”

Hawke does not answer directly this time, instead looking at Secretary of State Pompeo.

Pompeo steps forward, standing next to Hawke.

”Maria, that is a good question.” His voice is softer than Hawke’s, but the threat in his tone is undisguised. ”Any country, any company, if it continues to cooperate with Xingchen, is an enemy of the United States.”

He pauses, letting the effect of his words sink in: ”America has the longest reach and the sharpest sword of sanctions in the world. We will make everyone who chooses Xingchen pay the price.”

Maria follows up: ”Including European allies?”

Pompeo smiles, a smile with a chilling implication: ”Especially European allies. You should understand who has been protecting you for seventy years.”

The press section is in an uproar.

This is the first time the United States has openly threatened European allies—if they continue to cooperate with Xingchen, they will be sanctioned.

In the Nasdaq trading hall, red numbers are jumping.

The opening bell just rang, and everyone is staring at the same screen.

XTF · Nasdaq Code: XTECH

This is the only affiliated company of the Xingchen group listed in the U.S.—a supply chain management company registered in the Cayman Islands, whose main business is procuring American equipment for Xingchen. Although Xingchen has long begun to de-Americanize, this stock remains a window for Wall Street to observe Xingchen.

Opening price: $48.75.

Compared to the previous day’s closing price of $52.30, it opened directly 6.8% lower.

Then—

Flash crash.

$47.

$45.

$42.

$38.

Within four minutes, it plummeted 22%.

Traders exclaim:

”Who is selling?”

”Everyone is selling!”

”Close the position! Close the position!”

But right at the $38 mark, a massive buy order suddenly appears.

Ten million shares.

Twenty million shares.

Thirty million shares.

The price stops falling and begins to rebound.

$39.

$40.

$42.

$45.

Five minutes later, the stock price stabilizes at $46.20, with the decline narrowing to 11.7%.

Traders look at each other in confusion.

”Who is supporting the floor?”

”Who dares to pick up the shares at a time like this?”

In the corner of the trading hall, a middle-aged man wearing glasses puts down the phone and says to a colleague:

”Middle East sovereign wealth funds.”

”And the Russian Central Bank.”

”They entered the market at the same time.”

The colleague widens his eyes: ”Are they not afraid of being sanctioned?”

The middle-aged man smiles bitterly: ”They have already been sanctioned for ten years. What difference does one more make?”

The same scene plays out in London.

The stock prices of European companies with business dealings with Xingchen fall collectively:

Siemens Healthineers: -4.2%

Trumpf (Germany): -3.8%

Safran (France): -5.1%

ASML (Netherlands): -3.5%

Analysts are frantically typing on Bloomberg terminals:

”The sanction shockwave is spreading. Any European company with business ties to Xingchen may face American secondary sanctions. Investors are urgently seeking safe havens.”

But strangely, the ruble rises against the dollar.

0.5%.

1.2%.

1.8%.

Traders look at each other: ”The Russians are buying the ruble? Why?”

Someone realizes: ”They are hedging. If the U.S. sanctions Xingchen, Russia will take on more of Xingchen’s business. The ruble is actually benefiting.”

The offshore rmb exchange rate also strengthens in sync.

0.3%.

0.6%.

0.9%.

Bloomberg News headline update: ”Sanctions and Counter-Sanctions: A New Fault Line in Global Finance”

The article writes:

”The United States announced comprehensive sanctions on Xingchen today. However, the market’s first reaction was not a strengthening dollar, but the strengthening of the ruble and the rmb. What does this mean? It means investors anticipate that Xingchen will not fall, but will instead bring its new allies to establish a new financial system.”

”This day may be the turning point for dollar hegemony.”

Hawke sees the Bloomberg News report in his office.

He slams the tablet onto the desk.

”Turning point?” He grinds his teeth. ”What turning point?”

The assistant says cautiously: ”Sir, the ruble and the rmb are indeed strengthening. And the Middle East sovereign wealth funds and the Russian Central Bank are supporting the floor for Xingchen’s stock.”

Hawke stands up and walks to the window.

Outside the window is the White House South Lawn, sunny, with tourists taking photos. In the distance, the Washington Monument pierces the sky.

He is silent for three seconds, then says: ”Notify the Secretary of State, add another press conference this afternoon. I want to go personally—to tell the Europeans, this is not a threat; it is an ultimatum.”

The assistant hesitates: ”Sir, the reaction from Europe is very intense. The German Minister for Economic Affairs just said, ’Europe cannot become a vassal to American sanctions.’”

Hawke turns around, his eyes cold: ”Then let them see what being a vassal means.”