Tech Giants: Starting from Bankrupt Companies

360: Chapter 360 Joint Research and Development by Five European CountriesIn September in Shenzhen, sunlight streamed through the glass curtain walls into the lobby of the Ritz-Carlton Hotel. This five-star hotel, situated in the heart of Shenzhen, held an exceptionally solemn atmosphere today—five European national flags hung side-by-side at the entrance of the press hall: Germany’s black-red-gold, France’s blue-white-red, Italy’s green-white-red, the Netherlands’ red-white-blue, and Spain’s red-yellow.

Inside the press hall, over three hundred journalists were already seated. Reporters from Europe occupied the front rows, Chinese reporters were in the back, and American journalists were squeezed into the corners. Rows of camera stands were set up, and flashes went off one after another.

The Ministers of Industry from the five nations stood side-by-side on the stage.

The German Minister of Industry, Peter Altmaier, stood in the center; sixty years old, he wore a dark blue suit, his hair was graying, and his expression was serious. To his left was the French Minister of Industry, Bruno Le Maire, fifty-five, wearing gold-rimmed glasses. To his right was the Italian Minister of Industry, Luigi Di Maio, fifty, dressed in a well-tailored black suit. The Ministers of Industry from the Netherlands and Spain stood on either side.

Su Chen stood behind them, wearing a dark gray shirt with his sleeves rolled up to his forearms.

Altmaier took a step forward and spoke into the microphone:

“Today, Germany, France, Italy, the Netherlands, and Spain are signing the ’Europe-China Technological Cooperation Framework Agreement’ with Xingchen Technology.”

The sound of shutters from below the stage was like a rainstorm.

The large screen lit up:

Europe-China Technological Cooperation Framework Agreement

6G Communications: Joint R&D of next-generation 6G communication standards, with prototype verification to be completed by 2025.

chip Technology: Xingchen grants FD-SOI 14nm technology licensing; Europe to establish R&D centers.

AI Ethics: Co-establishment of the “Europe-China AI Ethics Committee” to formulate global AI governance standards.

Industrial Investment: Xingchen to invest 20 billion Euros to build factories in Europe—covering batteries, chip packaging and testing, and new energy vehicles.

Altmaier added: “This is a milestone for European industry. We have chosen Xingchen; we have chosen the future.”

Su Chen walked to the microphone.

The twenty-nine-year-old Chairman of Xingchen Group wore a simple dark gray shirt, forming a sharp contrast with the suit-and-tie ministers. But his gaze was resolute and his voice steady: “Xingchen chooses Europe not because the European market is large, but because Europe has the best engineers, the best industrial foundation, and the best partners.”

He paused: “A twenty billion Euro investment is just the beginning. In the next five years, this figure will become fifty billion.”

Applause rang out from the audience.

A reporter from Le Monde raised a hand: “Minister Altmaier, did the European Commission know about this agreement beforehand?”

Altmaier smiled, a hint of cunning in that smile: “They knew. But they couldn’t stop it.”

The reporter pressed further: “Then what was their attitude?”

Altmaier shrugged: “You can ask them.”

A burst of laughter erupted from the audience.

At two in the afternoon, in a secret meeting room at Xingchen Headquarters, the atmosphere was even more pragmatic than the morning press conference.

On both sides of the long table sat the five Ministers of Industry and the core team of Xingchen. Outside the window, the waters of Shenzhen Bay shimmered in the sunlight.

Altmaier got straight to the point without pleasantries: “President Su, the agreement is signed, but the details still need to be discussed.”

Su Chen nodded: “Please, go ahead.”

Altmaier cleared his throat: “Europe’s condition is—China must open its government procurement market. Europe’s infrastructure, energy networks, and public transportation can all use Xingchen’s technology. But Xingchen must promise not to engage in ‘technological lock-in.’ We need to jointly develop next-generation products.”

Su Chen looked at him and said calmly: “Xingchen never locks in technology. We only lock in quality.”

The French Minister of Industry, Bruno Le Maire, spoke up, his voice carrying a characteristically French elegance: “There are also non-tariff barriers. Europe has various certification standards, environmental standards, and labor standards. Xingchen must accept these standards to operate in Europe.”

Su Chen nodded: “Xingchen accepts European standards. However, there can be no discriminatory treatment; Xingchen demands the same treatment as local enterprises. Furthermore, Europe must also accept Xingchen’s technical standards—for example, when our standards are higher than Europe’s, which one shall prevail?”

Le Maire fell silent.

The Italian Minister of Industry, Luigi Di Maio, suddenly interjected; he was younger and his thinking was faster: “Then let’s go with ‘the higher, not the lower.’ Whichever standard is higher, we use that one.”

Su Chen looked at him and smiled: “Deal.”

During the break, in the pantry.

Altmaier and Le Maire held their coffee and glanced at each other.

Altmaier said in a low voice: “Bruno, Germany is willing to provide an additional three billion Euros in subsidies, on the condition that—Xingchen’s battery factory must be built in Germany.”

Le Maire glared at him: “Peter, you’re being a bit too...”

Altmaier interrupted him: “Bruno, France has nuclear power and cheap energy. What are you worried about?”

Le Maire thought for a moment and said: “Then France wants the chip packaging and testing plant.”

Su Chen had walked over at some point; listening to their conversation, he smiled: “Ministers, there’s no need to fight. A battery plant for Germany, a chip plant for France, an automobile factory for Italy, an R&D center for the Netherlands, and a materials factory for Spain. All five nations will have a share.”

Altmaier and Le Maire looked at each other and smiled as well.

The morning of September 2nd, Brussels.

In the press hall of the EU Headquarters Council building, the atmosphere was much colder than yesterday’s press conference in Shenzhen. Only a few dozen reporters were present, mostly local Belgian media; the reporters from major European newspapers were still in Shenzhen and hadn’t returned.

The President of the European Commission, Ursula, stood on the stage; sixty years old, she wore a dark blue suit, her hair perfectly in place. But at this moment, her expression was as complex as a child ignored by their parents.

“Regarding the agreement signed yesterday between the five nations and Xingchen, the position of the European Commission is—this does not represent the official position of the EU. The agreement is not binding.”

A reporter raised a hand, a journalist from the Belgian newspaper Le Soir: “Madam President, you say an agreement signed by five Ministers of Industry is not binding?”

Ursula fell silent for a second: “The EU has no right to interfere in commercial agreements signed by member states.”

Another reporter pressed: “Then do you mean the EU cannot control its member states?”

Ursula was silent for even longer.

Then she said: “We are currently evaluating the situation.”

Someone in the audience laughed.

The laughter was light, but in the empty press hall, it was exceptionally piercing.

The Chancellery in Berlin. Reporters surrounded Merkel.

“Madam Chancellor, the EU says the agreement is not binding. What is your view?”

Merkel smiled, a kind of composure in that smile that came from seeing through the ways of the world: “The EU is right. The agreement does not bind the EU; it only binds the signatory nations—Germany, France, Italy, the Netherlands, and Spain.”

She paused: “The five of us, together, account for seventy percent of the EU’s GDP. That’s binding enough.”

The reporters burst into laughter.

The next morning, the cover of Der Spiegel appeared at major newsstands across Germany.

Cover image: The flags of the five nations fluttering in the wind, while the EU flag lay on the ground, stepped upon.

Cover headline: “The EU is Dead, Europe is Alive”

Sub-headline: “Five Nations Choose Xingchen, Brussels Chooses Silence”

Lin Wan walked into Su Chen’s office.

“President Su, the five-nation agreement is signed. Twenty billion in investment, 6G joint R&D, chip licensing, and the AI Committee.”

Su Chen stood by the window, looking at the sunset over Shenzhen Bay: “Is the EU anxious?”

Lin Wan smiled: “Being anxious won’t help. The GDP of those five nations accounts for seventy percent of the EU. They represent Europe.”

Su Chen nodded: “That’s good. For the next step, let them run it themselves. We will only provide the technology.”

He turned around, looking at the night scene outside the window: “When we monopolize high technology in the EU, then who calls the shots in the EU might not be certain. Let the bullet fly for a while.”