2003: Starting with Foreign Trade

Chapter 893 "The Busy Representative Tan"

"I'm a little curious why Mr. Tan hasn't bought a private jet yet?"

On March 1, Tan Jincheng, having just finished his trip to Guizhou Province, did not have time to return to Zhejiang Province. Instead, he flew to Beijing with the Guizhou delegation to attend this year's Two Sessions.

In business class, a Mr. Chen, who was sitting next to Tan Jincheng, was somewhat curious about this issue.

Tan Jincheng smiled and said, "Many people have asked me this question. In the end, I think it's not practical. I don't want to waste money on appearances."

Private jets are actually not very practical. Buying one is almost like running a non-profitable company. Anyway, major airlines also offer charter services, so signing a cooperation agreement with a few airlines won't affect your travel.

And you don't have to bear any other expenses yourself.

The leader surnamed Chen chuckled and said, "This answer is somewhat unexpected."

He was just curious for a moment. Given Tan Jincheng's status and wealth, no one would say that owning a private jet was showing off or anything; they would just think it was perfectly normal.

He could imagine many reasons for not buying it, but he never expected this one, which was not something someone his age could say.

"Some assets can be bought back, but some assets do not need to be."

Tan Jincheng's words were loaded with meaning, and the leader surnamed Chen smiled but said nothing more.

The plane slowly landed at Beijing Daxing International Airport. Daxing Airport is still under construction and not yet in operation. With such a large event, the already busy Beijing Daxing International Airport became even more bustling.

He cupped his hands in a gesture of respect to the delegation from your province and said, "Distinguished leaders, it's time for us to say goodbye. Thank you all for your care over the past month."

At this time, delegation members from various places were arriving at the airport, as were various media outlets. Tan Jincheng did not want to be discovered by the media and was stopped. He needed to go to the Zhejiang delegation's accommodation as soon as possible to meet them.

In addition, his family will be visiting Beijing this weekend, just like last year, so some arrangements need to be made at home.

"Not at all, it's our duty to entertain guests. We also welcome Mr. Tan and your family to visit your province anytime."

"Definitely, definitely. See you later."

Without much small talk, Tan Jincheng quickly left under the watchful eyes of the delegation from your province. The members of the delegation watched this "big spender" depart, each with a different expression.

Honestly, they really like Tan Jincheng, an entrepreneur who is described by outsiders as having an internet mindset. Tan Jincheng's unconventional way of doing things makes him seem somewhat "different" among a group of entrepreneurs.

However, this unconventional approach is what they like. The national-level data center, which was quickly implemented within a month, gave them a big boost before the Two Sessions, especially the investment promotion department of your province, who has been all smiles for the past month.

The investment and construction of large-scale data centers is not a one-time event, but a long-term endeavor. The two-phase plan for the Qixing Data Center extends to 2024, and the total budgeted investment will definitely not be less than 10 billion yuan.

Routine maintenance, operations, and employee recruitment go without saying.

What surprised them most was that the Seven Star Data Center, currently the largest private data center, with its cave-like design built into the mountainside, has brought great attention not only to Gui'an New Area but also to Guizhou Province.

Like a character in a martial arts novel whose Ren and Du meridians have been opened, Qixing Data Center has provided them with a new approach to attracting investment in the digital economy. With resources such as electricity comparable to those of other provinces, they can then promote their security efforts more extensively.

In addition, what surprised them the most was that with the implementation of the Seven Stars Data Center project, many other companies also extended olive branches, and the path to attracting investment was suddenly clear.

Tencent was the first to extend an olive branch. After hearing Tan Jincheng's introduction, Pony Ma also decided to send someone to take a look.

What are you planning to talk about this year? Is it still your education-related proposal?

In the lounge of the Zhejiang delegation, Li Shufu and Tan Jincheng, who had rushed over, sat alone in a corner. Li Shufu looked at Boss Tan, who was used to making big moves at the beginning of each year, with a smile on his face.

A large data center exposed Tan Jincheng's ambitions to the public. The data aggregation of the three core groups was not unexpected, but the inclusion of data from Meizu Technology, which had just been acquired, was something no one had anticipated.

According to Meizu's latest corporate information and the data we have learned, Tan Jincheng controls 80.09% of Meizu Technology's shares after the restructuring through ByteDance's advertising platform, achieving complete control.

In recent years, mobile phone manufacturers have increasingly penetrated the automotive industry. Xiaomi Group has invested in and acquired shares in two emerging brands: Wenjie by Li Bing and Xiaopeng Motors by He Xiaopeng.

In addition, they are also one of the shareholders of Weilai Automobile. Lei Jun, through Xiaomi and his Shunwei Capital, owns a total of 1.05% of the shares of the listed company Weilai, which is worth about RMB 25 billion based on Weilai's current market value.

Apple's Project Titan, an electric vehicle project that it secretly began pursuing in 2014, has long been exposed. Although progress has been slow, it has accumulated a certain amount of technology and has a significant penetration rate in the automotive-related field through investments in ride-hailing companies such as Didi.

In addition, they are also trying to penetrate the Android ecosystem by collaborating with car manufacturers through system development.

The company's research and development in communication technology and chips is also preparing for applications such as vehicle networking and autonomous driving.

Li Shufu has reason to believe that in the future, in addition to facing competition from other automakers, car manufacturers will also face considerable competition from mobile phone manufacturers. These mobile phone manufacturers often create ecosystems, and it is possible that they will directly enter the car manufacturing industry.

While the emerging electric vehicle manufacturers, primarily driven by internet thinking, are still in the era of "PPT car manufacturing," it's fair to say that the threat posed by smartphone manufacturers is actually greater.

Imagine if one day large ecosystem companies like Apple, Huawei, and Xiaomi entered the car manufacturing industry. Given their marketing prowess in the mobile phone sector, how should traditional car manufacturers, who are slow to adapt, respond?

In China, when it comes to marketing capabilities, the mobile phone industry can be said to completely outclass the automotive industry. If it weren't for the emergence of an unconventional company, they simply wouldn't be able to compete with the mobile phone industry for popularity.

Tan Jincheng's swift acquisition of Meizu Technology was, in his view, extremely forward-thinking. Whether or not he could win was another matter; he was simply planting a seed in their circle first. He also greatly admired Tan Jincheng's timing and decisiveness.

After Huang Zhang tricked Ali, he couldn't attract any major investments in the capital circle. Meizu, which was in dire straits, urgently needed new capital injection, and this guy wanted to use the same trick on Tan Jincheng.

Tan Jincheng's strategy was highly appreciated by Li Shufu. They also wanted to find a good mobile phone company to acquire and develop a car infotainment system. However, Li Shufu did not have as many connections in the mobile phone industry and the Internet as Tan Jincheng, so he wanted to hear Tan Jincheng's opinion.

The Two Sessions haven't officially started yet, so everyone still has some time. Sitting down and chatting might bring some new ideas.

"Yes, I've been bringing this up for so many years, and now that we're seeing some results, of course we should continue."

When Tan Jincheng first became a delegate to the National People's Congress, he raised education-related issues simply to avoid unnecessary controversy. Every year at the Two Sessions, he submitted many bizarre proposals, some of which were taken out of context by the media.

He didn't want to become the subject of ridicule from the whole nation because of some oversight.

Caring for grassroots education and rural left-behind children, and providing them with more educational resources and care, is morally justifiable, and his initial motivation fully supports this proposal.

Tan Jincheng spent his winter and summer vacations in the countryside when he was a child, so he can be considered a left-behind child.

"That's true. You've done a lot of good things over the years, so there's nothing wrong with continuing."

Tan Jincheng's desire to avoid trouble couldn't escape the notice of the big shots, but they all just laughed it off, and some even admired it, since Tan Jincheng's personal, family foundation, and corporate donations to education over the years have been substantial.

Tan Jincheng's presence can be seen in numerous projects, large and small, including school buildings in impoverished areas, basic education facilities, assistance to low-income families' college students, lunch programs, and Project Hope scholarships.

"Hey, I'll do what I can. Besides, my wife basically manages these things now, and I haven't helped much."

Tan Jincheng waved his hand dismissively.

Last year, the State Council issued an opinion on strengthening the care and protection of left-behind children in rural areas, which sparked heated discussions. Throughout the year, many official media outlets followed up with reports, and unsurprisingly, this issue will continue to be a hot topic of discussion among delegates at this year's Two Sessions.

He mentions it every year, so he's already very familiar with it.

Tan Jincheng's influence is growing, and with his status, he was temporarily absent last year, but he definitely can't do it again this year. At the beginning of the year, many organizations such as the China Passenger Car Association and the China Bicycle Association tried to influence him to propose motions for their respective industries.

However, he politely declined them all.

In order to gain industry dominance, it's common for business leaders to use their influence to sway policy decisions; Tan Jincheng is no exception.

For example, securing the design and shared patent rights for the green license plate before Di Zi was one of Tan Jincheng's strategies for gaining industry influence. Other examples include the formulation of standards.

There are some things that should be fought for, but they must be fought for in private. The Two Sessions are under such high scrutiny, and he is under such high scrutiny, that any proposals related to his own interests are easily taken out of context by the media, making him one of the oddball representatives.

"You're quite clever, bringing this up every year, even though it doesn't really affect your own interests. Even if your suggestions are flawed, everyone just laughs it off."

"Okay, let's not talk about this anymore. I want to talk to you about your ecosystem system. Can you tell me about it?"

"which aspect?"

"A mobile phone, or a car infotainment system."

Since Tesla began large-scale OTA updates on its Model S in 2012, the two emerging automakers, Weilai and Tesla, separated by the Pacific Ocean, have been engaged in an arms race in the field of intelligent vehicle systems.

While there is still debate about which company has the best intelligent vehicle infotainment system globally, in China, Weilai is definitely in a leading position in research on intelligent vehicle infotainment systems.

While Weilai acquired Meizu, Tesla, another leading company, is also acquiring BlackBerry.

The fact that two emerging automakers have both ventured into the mobile phone industry to enrich their in-vehicle infotainment systems is bound to attract attention from their peers. Geely's previous strategy focused on gasoline-powered vehicles, but since 2016, Geely has also begun to pay attention to new energy vehicles.

On the one hand, the industry trend of new energy vehicles is becoming increasingly obvious, and on the other hand, there is also the pressure of the dual-credit system.

The dual-credit system is almost global, especially in the European market. For Li Shufu, who has ambitions to expand overseas, it is natural not to be constrained by the dual-credit system.

"HTC, if Mr. Li wants to acquire a mobile phone manufacturer, then HTC's team would be a good fit."

Tan Jincheng immediately understood what Li Shufu wanted to find out. He had only been a step ahead in some acquisitions, a couple of years earlier, but if someone with a keen eye noticed, it wouldn't be difficult to see through his strategy. Every domestic automaker has ambitions to go global. Geely's near-all-in approach, even risking its own troubles to acquire Volvo, demonstrates Li Shufu's unwavering commitment to overseas expansion.

HTC?

"Yes, they have made great achievements in acoustics and VR. If Mr. Li wants to develop your car infotainment system, HTC is a good choice. By the way, if you want to acquire them, you should do it quickly, as Google has also set its sights on their team."

"Um, aren't they available in China?"

The relationship between the two sides is rather delicate. Li Shufu felt that if there were better options, it would be better not to cause trouble, even though HTC sounded pretty good.

"There are some domestically, but currently, either there's little chance of acquisition, or their technological potential is limited and they're plagued with problems."

"For example?"

"Coolpad and LeEco are potential acquisition targets, but they already have a lot of problems, not to mention their limited technological expertise."

"Then there's Smartisan or OnePlus. Smartisan has some technology and could be acquired, but OnePlus is almost impossible to acquire. They're not short of money and their business is operating very smoothly, so they don't need to raise funds."

At this point, Tan Jincheng smiled and said, "Of course, if President Li wants to go a little bigger, we can also discuss Lenovo's mobile phone business."

He snatched Meizu away, and the potential acquisition targets in China are actually quite limited. Coolpad, LeEco, and Smartisan are the most likely, especially since the acquisition of Smartisan should go relatively smoothly. However, Tan Jincheng doesn't like either of them, so I believe Mr. Li probably isn't interested either.

OnePlus is great, but if we're talking about the possibility of them being acquired, it's even lower than Lenovo's.

The once-dominant "ZTE, Huawei, Coolpad, and Lenovo" trio has now fallen apart. ZTE needs no introduction, Huawei is also out of the running, and Coolpad and Lenovo are the two most likely to be taken over. Tan Jincheng had previously considered taking over Lenovo.

Regardless of the reputation and standing of those in charge of the alliance, they are recognized as one of the standard setters in this era, and their reputation has not been tarnished. In addition, the alliance has grown up almost alongside the reform and opening up, so its technological accumulation is actually not bad.

Smartphones have left them behind, but they have considerable experience in both hardware and software. With his current qualifications, Tan Jincheng is still a bit lacking in the ability to deal with and cooperate deeply with such people, and he won't gain much advantage.

But Mr. Li is different; he can treat the other party as an equal.

"To be honest, HTC was one of my previous options. I even asked Mr. Ma to help me contact them for a while. If Mr. Li is interested in HTC, I can give you the relevant information."

Money has been spent, favors have been made, but nothing has been done. It's better to just give it away as a favor.

"So you were preparing this at the same time with the Meizu and HTC teams?"

"Yes."

"Haven't you considered the companies you just mentioned?"

"I considered it, but ultimately gave up. I just explained the reasons, and there are others you already know."

Li Shufu nodded. He trusted Tan Jincheng's investment acumen; otherwise, he wouldn't have specifically sought him out to ask about this matter. The companies Tan Jincheng had just mentioned each had their own shortcomings, and he also understood why a certain mobile phone business, which Tan Jincheng hadn't mentioned, was abandoned.

Tan Jincheng said these two are the best, so he has to consider them.

After considering this, he said, "Alright, then I'll trouble you, Mr. Tan. Please give us a copy of the information later, and we'll discuss it internally first."

Li Shufu isn't a gossip, but he did learn some unknown inside stories about the acquisition from this conversation. No wonder the acquisition of Meizu went so smoothly; it turns out he had in-depth communication with Ali from the very beginning.

The data collection on HTC was probably preparation for Meizu's failed acquisition.

"No trouble at all. I'll have someone send the documents over later. Just give me a designated address and recipient."

After chatting for a while, Tan Jincheng got up to say goodbye. He had other things to do. Wang Jianfeng, the founder of Junsheng, also asked him to talk before the Two Sessions began. He said he had something very important to discuss with him.

Besides Wang Jianfeng, he also needs to meet with BMW CEO Krüger before the conference, and he also needs to give an exclusive interview to CCTV, so he is quite busy.

From the time he landed to his official appearance at the Two Sessions, only a day and a half had passed.

Wang Jianfeng was easy to find; he was also a member of the Zhejiang delegation. Tan Jincheng represented Beicang, while he represented Yinzhou.

Upon meeting, Wang Jianfeng brought Tan Jincheng a very shocking piece of news.

"You want to acquire Takata?"

Junsheng Electronics is a Class A supplier for Weilai Automotive. The two companies have extensive cooperation in parts and components. Just like Weilai Automotive's rapid development, Junsheng's development in recent years has also been like a rocket launch. This low-profile parts supplier is also implementing a globalization strategy.

It has been listed among the top 100 global supply chains for several consecutive years, and in 2016, it rapidly advanced its globalization strategy by acquiring the American company KSS.

This time, the ambitious Wang Jianfeng set his sights on Takata, a company that had just gone bankrupt. As the world's third-largest airbag supplier, Takata, which had previously been stubbornly denying its wrongdoing, finally officially admitted to deceiving consumers and manufacturers.

In today's popular parlance, it's confirmed.

"Yes, that's why we asked President Tan for help."

Wang Jianfeng looked relaxed. As one of the giants in Ningbo's automotive industry, Junsheng seemed unknown to anyone, unlike Wei Lai's high profile. The two companies had cooperated for many years, had a close relationship, and held cross-shareholdings.

In private, Wang Jianfeng and Tan Jincheng often met and were quite familiar with each other.

The two of them initially met through the introduction of Chen Yanan's father, one of Gu Qingqing's roommates. Chen Yanan's family's auto parts factory is now one of Weilai's suppliers, but due to its scale, it is of a lower grade.

"How do you want me to help you? If I can, then I certainly will."

Tan Jincheng also looked relaxed, saying that working together with partners to advance globalization would also be very beneficial for Wei Lai.

There are countless small-time companies that commit fraud and refuse to admit it. 2017 marked their complete collapse. Take Takata for example, as early as 2004, engineers revealed that their airbags had safety hazards.

At the time, their approach was to order the deletion of various data and accident videos from the computers, a fact they revealed themselves this year.

When the hammer falls, Takata must pay the price for its actions. Airbags are no small matter; losing orders and trust is inevitable, and exorbitant compensation and bankruptcy are also necessary.

"It's nothing much, I just hope that Mr. Tan can provide me with some Wall Street connections and financial support in the US. We can handle the rest ourselves."

"Haha, so you're eyeing the funds we recently used to reduce our holdings."

After deducting some concessions, legal fees, travel expenses, taxes, etc., ByteDance's equity cash-out from Tesla and Nvidia totaled $52.81 billion. Of this, $10 billion will be brought back to China to supplement ByteDance's cash flow, while the remainder will remain overseas to seek investment opportunities.

Of course, this portion of funds is not all cash; some of it consists of special currencies and gold, with the value of these assets estimated at around $10 billion.

"Yes, we want to acquire Takata, but we really don't have that much money. That's why we're here, Mr. Tan, after you recently made a fortune."

Unlike Weilai, Junsheng, despite its large business, has poor cash flow. This is related to the nature of their business and their investments. The recent acquisition of KSS resulted in a net cash flow of -90.23 billion yuan from investing activities for Junsheng in 2016.

Currently, all the cash and valuables in their company's accounts total only about 50 billion yen, which is clearly insufficient to acquire Takata.

According to estimates, if they want to acquire Takata's core assets other than the problematic airbags, including steering wheels, seat belts, and non-problematic airbag modules, they would need to prepare at least $20 billion.

Wang Jianfeng's best option became raising more than 80 billion yuan in one go through A-shares by increasing capital to specific targets and by investing in a consortium.

He needed the support of his partner, Tan Jincheng; of course, he neither expected nor wanted Tan Jincheng to subscribe to the 80 billion yuan fundraising alone.

In order to acquire Takata, Wang Jianfeng has made many sacrifices. This massive fundraising may dilute his stake in Junsheng to as low as 33.37%.

He's a werewolf; if he accidentally drops 33%, that's extremely dangerous.

Tan Jincheng was full of admiration for his plan. This guy was even more ruthless than himself. However, he still readily agreed: "Alright, go and talk to him. I'll make up for the shortfall."

"Hehe, I knew Mr. Tan was a straightforward person. Actually, we talked about it last month when Takata had the accident. Eight funds, including E Fund, have agreed to participate, and each of them has agreed to contribute 8 million yuan."

"So we're putting up 16 billion? That's over 2 million US dollars, not a lot, but that would mean our shareholding might exceed 5%."

"It's okay, we just need to keep it below 5%. We can give them a little more later. We've already spent 8 million, so a little more won't make a difference."

Wang Jianfeng spoke casually, but inwardly he was incredibly envious.

Damn, 16 billion to pay back? I wish I could be that carefree!

"Okay, no problem. You can have US dollars or RMB, but US dollars are preferred, so it will be easier for you to get through KSS."

Tan Jincheng did not want suppliers to hold more than 5% of the shares. On the one hand, he was afraid that suppliers would feel resentful, and on the other hand, it would make it easy for him to withdraw at any time and protect his own interests.

"Great! I won't bother you for now. How about we have dinner together tonight? It's on me."

Tan Jincheng shook his head: "No, I have to meet a guest tonight, we don't need to play these games."

He was also meeting that evening with the CEO of BMW, who had come from afar specifically to see him.

(End of this chapter)