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The Tokyo stock market closed at 2 p.m.

The Nikkei index fell 1.2%, but the share prices of companies associated with Pacific Capital, such as Sony, Panasonic, and Toshiba, rose against the trend.

A financial commentator on a Japanese television station analyzed: "The market believes that companies that cooperate with Pacific Capital will reap the benefits of the Chinese market. This is a typical spillover effect of the 'China concept'."

The commentator is right, but only half right.

The other half is that the fate of these Japanese companies is becoming increasingly intertwined with the Chinese market.

The New York Stock Exchange opened in the evening.

Lemon Technology's stock price broke through the $100 mark, setting a new all-time high.

At the Nasdaq Stock Exchange, traders were all talking about this company.

"Lemon Technology's market value has exceeded $800 billion!"

“Suning’s personal wealth is estimated to be over 200 billion, which would put him in the top ten in the US, right?”

"The key is the growth story—the Chinese market hasn't fully taken off yet."

Morgan Stanley held an emergency meeting to discuss whether to adjust its rating.

Analyst Kate's view is clear: "The valuation must be increased. Lemon Technology is not just a computer company; it controls the entire Chinese manufacturing ecosystem through Pacific Capital. It is a platform company and should be valued at the multiples of internet companies."

"But the price-to-earnings ratio for manufacturing companies is generally no more than 20," a conservative analyst countered.

“That’s traditional manufacturing,” Kate countered. “Pacific Capital’s model is: use technology to exchange for market access, use market access to raise funds, and use funds to buy more technology. It’s a flywheel effect; it will keep spinning faster and faster.”

The debate lasted for an hour, and the final decision was made to upgrade Lemon Technology's rating from "Overweight" to "Strong Buy" with a target price of $130.

The news broke an hour before the market closed, and the stock price immediately rose another 5%.

In Hong Kong, the Pacific Capital team was having a celebration party, but it was quickly stopped by Suning.

"Don't get too excited," Suning said, pouring cold water on the idea. "Stock prices rise quickly, but they also fall quickly. The higher Wall Street praises us now, the higher their demands will be in the future."

"What is the boss worried about?" Guan Wei asked.

“We are worried that our performance will not keep up with the stock price.” Suning put it realistically, “The return rate in the third quarter was 42%, which is unsustainable. The average return rate of China’s manufacturing industry is around 15%, and we will return to the normal level sooner or later.”

"What should I do?"

"Do two things," Suning assigned the task. "First, get several large projects off the ground as soon as possible to solidify the story. Second, appropriately reduce some of the stock holdings to lock in profits."

"Selling shares? The market is so hot right now..."

"The hotter it gets, the more we need to reduce our spending," Suning said. "We need cash for our investments in China. If the stock price goes up and we don't sell, are we just waiting for it to fall?"

Chen Weiming nodded: "Understood. But reducing holdings may cause the stock price to fall."

“Control the pace and reduce holdings in batches.” Suning thought for a moment, “Find Goldman Sachs and Morgan Stanley to help with the operation; they are professionals.”

Just then, Mark called urgently from New York.

"Boss, this is a problem. The U.S. Department of Commerce received a complaint that we are transferring sensitive technology to China. Congress may launch an investigation."

Who filed the complaint?

“Anonymous, but I suspect it was driven by Japanese companies.” Mark lowered his voice. “A friend at the Department of Commerce revealed that the complaint materials are very detailed, listing seventeen technologies we transferred, including some semiconductor equipment technologies.”

Suning paused for a moment: "Activate the contingency plan. Send our lobbying team to Washington, and at the same time contact our partners—Intel, AMD, and Applied Materials—to speak on our behalf."

"The cost will be very high."

“It’s cheaper than the cost of a stock price crash,” Suning said soberly. “Tell the lobbying team that the core message is: we invest in China and create jobs in the United States. For example, Ningxin Semiconductor imports $1 billion worth of equipment and materials from the United States every year.”

"understood."

The call had barely ended when another call came in from Tokyo.

This time, it was Shoichiro Toyoda who called personally.

“Mr. Gan, congratulations on the surge in stock price.” Zhang Yilang’s tone was much more moderate than last time. “The board of directors has reconsidered the hybrid technology cooperation, and we are willing to discuss it.”

"What about the conditions?"

“It’s still a joint venture, but the proportions can be adjusted—Toyota 45%, Pacific Capital 55%.” Zhang Yilang paused for a moment, “but there’s one additional condition.”

"explain."

“We hope Pacific Capital will assist Toyota in entering the Chinese auto finance sector,” Zhang Yilang said directly. “We know you have a financial license in China.”

The rise in stock price gave them greater bargaining power.

Su Ning smiled: "We can talk. I'll send someone to Tokyo next week."

After hanging up the phone, everyone in the conference room looked at Su Ning.

"Boss, this is great news," Guan Wei said.

“It’s a good thing, but also a pressure.” Su Ning looked out the window. “The higher the stock price, the more people are watching us. We have to balance the interests of Japan, the United States, and China. One wrong step and we’ll lose everything.”

"Then let's..."

“Proceed according to plan.” Su Ning stood up. “Guan Wei, you’re in charge of reducing holdings and cashing out. Chen Weiming, you’re in charge of preparing for the cooperation negotiations with Toyota. Mark is in New York keeping an eye on the Commerce Department’s investigation. I’m going to Beijing next week—the stock price has gone up, and the Chinese government will have its own ideas; we need to communicate with them.”

The team members each took on their tasks and dispersed.

Suning stood alone by the office window, looking at the night view of Victoria Harbour.

Soaring stock prices are a double-edged sword—they mean more resources, but also greater risks.

Wall Street's money isn't given away for free; they want to see growth and returns.

But the real challenge has only just begun.

Japanese companies shifted from confrontation to cooperation because they saw the power of capital behind stock prices.

However, how long this cooperation can last depends on whether Pacific Capital can continue to create value.

The benefits of the Chinese market are still being realized, but competition is also intensifying.

German and South Korean companies are entering the market, and Pacific Capital cannot rely on "grabbing Japanese projects" for growth forever.

As for the United States, the skepticism surrounding technology transfer will only grow stronger.

Lemon Technology is an American company, but its major shareholder is of Chinese descent, a fact that could make it a target during sensitive times.

All the problems need to be solved before the stock price bubble bursts.

The phone rang; it was a lawyer from New York.

“Mr. Gan, we have analyzed the complaint materials, and there are three items on the technology list that may involve export controls. Although the end use is civilian, the equipment itself has military potential.”

What is the worst-case scenario?

“Fines, restrictions on investment in China, and even personal criminal liability,” the lawyer said seriously. “I advise you not to return to the United States in the near future, and to wait until the situation becomes clearer.”

Su Ning frowned: "Is it that serious?"

“Congress is in the midterm elections, and anti-China sentiment is rising. Your Chinese identity could be politicized.” The lawyer paused. “We are trying to communicate with people in the Department of Commerce, but it will take time.”

"understood."

After hanging up the phone, Suning looked at the stock price curves of Lemon Technology and Pacific Capital on his computer screen...

The two steeply upward-pointing red lines are particularly eye-catching on the candlestick chart.

But behind the red line lies an increasingly complex game of chess.

The game of capital is never just about the rise and fall of numbers.

Night fell, and the trading session ended.

Lemon Technology closed at $102, with a market capitalization of $820 billion.

Pacific Capital closed at HK$71, with a market capitalization exceeding HK$300 billion.

Two numbers broke records.

But it also means that tomorrow's challenges will be more difficult than today's.

...Su Ning thought that passive defense was not a good idea, and it was better to have public opinion on his side.

Therefore, Suning is prepared to take the initiative, since it holds the moral high ground.

In early November 1996, Suning gave an exclusive interview to The New York Times.

The location was chosen to be the Pacific Capital office in Hong Kong, and the reporter was Michael Stone, a senior financial reporter for the Times.

“Mr. Gan, first of all, congratulations to Lemon Technology and Pacific Capital on their record-high stock prices,” Michael said bluntly. “But there are questions on Wall Street and in Washington—why are you investing so heavily in China? Some people worry that this will lead to the outflow of American manufacturing.”

Su Ning sat on the sofa, speaking calmly: "This question needs to be answered in two parts. First, we invest in China because there are opportunities there. Second, this will not harm American interests; on the contrary, it will benefit the United States."

"Tell me more specifically?"

“China has a population of one billion and is in the process of industrialization. This market doesn’t need a few hundred computers or a few thousand TVs, but millions or tens of millions.” Suning picked up the Lemon computer on the coffee table. “This computer sells for $2000 in the United States, but in China we can reduce the cost to $1200 and still maintain a 30% gross profit. Why? Because China’s labor costs are only one-tenth of those in the United States, and land and energy are also cheaper.”

"But job opportunities have also gone to China."

“Michael, let me ask you a question.” Suning leaned forward. “A computer has more than 3000 parts, from the CPU to resistors and capacitors. What does Lemon Computer produce in the US? Design, chips, operating systems, core software—these high-value-added parts are all in the US, creating high-paying jobs for engineers, designers, and programmers. But the low-value-added parts, like the casing, assembly, and packaging, are in China, where workers earn $150 a month.”

Michael quickly jotted down notes: "You mean division of labor?"

“Globalization is about division of labor,” Suning said directly. “The United States should focus on what it does best: finance, high-tech R&D, brand management, and global supply chain integration. China excels in large-scale manufacturing, infrastructure construction, and labor-intensive industries. This is a natural complementarity.”

"But many Americans are worried about losing their jobs."

“You’re worrying about the wrong thing,” Su Ning shook his head. “American workers won’t lose their jobs; they’ll upgrade. Twenty years ago, American auto workers worried that Japanese cars would make them lose their jobs. What happened? The American auto industry was forced to upgrade and now focuses on SUVs, pickup trucks, and electric cars, which are more profitable. Let Japan and South Korea make the low-end compact cars.”

Michael pressed further: "But many of Pacific Capital's investments in China are in industries where the US used to have an advantage, such as home appliances and electronics."

“These industries are no longer competitive in the United States,” Suning stated realistically. “A microwave oven costs $200 to produce in an American factory, but only $60 in a Chinese factory. Consumers won’t pay that $140 difference. Forcibly protecting these industries will only make American consumers spend more money.”

"So you support free trade?"

“I fully support this,” Su Ning nodded. “Furthermore, I believe the United States should push for China’s accession to the WTO as soon as possible.”

This made Michael look up: "WTO? China is not a full member of the GATT yet."

“Therefore, the process should be accelerated,” Su Ning said. “China’s accession to the global trading system will have three major benefits for the United States: First, the Chinese market will be more open to American capital; second, China will have to abide by international rules, and intellectual property protection will be strengthened; third, the United States can use trade rules to constrain China, instead of relying on political pressure as it is now.”

"But many American companies complain about rampant piracy in China."

“Then let’s use the WTO’s dispute settlement mechanism,” Su Ning said. “Shutting our doors and hurling insults won’t solve the problem. Let’s bring China into the system so that the rules can take effect. And to be honest, China’s protection of intellectual property rights is much better now than it was ten years ago—because companies like ours are investing and we demand protection of our patents.”

The interview is now entering its crucial part.

Michael asked, "Some critics say that your investments have helped China acquire advanced technology, which could threaten U.S. advantage in the long run. What's your take on that?"

“Shortsighted,” Suning commented. “Technology is fluid. If you don’t give it to us, Europe will, Japan will. When Lemon Technology went public with Lemon 14, we were only then licensing Lemon 2 to Chinese companies. If a technological gap of more than a decade makes us feel insecure, then we Americans are just worrying unnecessarily. So our American attitude should be: maintain a one-generation technological lead, transfer mature technologies to make money, and then use the profits to develop the next generation of technologies. That’s a virtuous cycle.”

"Specifically in the semiconductor field? That's a sensitive area."

“Semiconductors are divided into many levels,” Suning explained. “The US should maintain an absolute lead in the most advanced areas, such as chip design, EDA software, and lithography machine core technologies. But mature manufacturing processes, packaging and testing, and materials production can be transferred. In fact, Intel has already built factories in Ireland and Israel, but this has not affected the US’s technological leadership.”

"But China is catching up."

“Catching up is a good thing,” Su Ning said unexpectedly. “Only by catching up can we make progress. If the United States always competes with backward countries, it will become lazy. Look at the US-Soviet space race. Although it was expensive, it spurred the development of computers, new materials, and communication technologies. Now, competing with China’s industries will similarly force the United States to innovate.”

Michael glanced at his notes: "One last question. Some people are questioning your stance—as a Chinese American, do you represent American interests or Chinese interests?"

Su Ning laughed: "I was born in the United States, in an orphanage, and then adopted and raised by a kind foster mother, receiving an American education. My brother is the American hero Forrest Gump. I have never met my biological parents and have no interest in them whatsoever. I consider myself a true American. Furthermore, I now represent the interests of shareholders. Lemon Technology is a US-listed company, and 90% of its shareholders are American institutions and individuals. I am responsible to these people and must generate profits. And where do those profits come from? From combining American technology, Chinese manufacturing, and the global market. It's that simple."

"No emotional factors involved?"

“Business is business,” Suning said. “It doesn’t exist! This is the normal state of affairs in the era of globalization. If I had to label myself, I would say I am an international capitalist—I go wherever there is an opportunity, and I invest wherever the rules are fair.”

"Mr. Gan, I'm curious, have you ever thought about finding your biological parents?"

"No! Because it feels pointless! They weren't there when I needed them before; now that I'm an adult, I need them even less."

The interview lasted two hours.

At the end, Michael asked one last informal question: "Mr. Gan, what would you do if Washington were to restrict investment in China?"

“We will abide by the law,” Su Ning replied. “But I will publicly oppose it because it harms American interests. Capital is mobile; if the US doesn’t allow investment, capital will go to Europe, Singapore, or Hong Kong. What benefits can these tiny places bring us? In the end, American companies will lose the Chinese market, and the Americans themselves will suffer. Why have Japanese companies become increasingly frantic in recent years? It’s because our Pacific Capital has succeeded, and they’ve become desperate. Eighty years ago, Japanese companies stole the American domestic market, and now we must seize the Chinese market, otherwise we Americans will still be the losers.”

Three days later, The New York Times published an interview on its front page.

The title is straightforward: "Chinese-American billionaire calls for China to join the WTO so the US can focus on high-end industries."

Subtitle: "Lemon Technology Founder Su Ninggan Says Sino-US Industrial Division of Labor is Most Beneficial to Both Countries"

The article quoted Suning's views in detail and included commentary:
“Suninggan’s views represent the pragmatists on Wall Street and in Silicon Valley—they don’t care about ideology, they only care about profits and markets. This voice is influencing decision-making in Washington.”

On the day the article was published, Lemon Technology's stock price rose slightly by 2%, and the market reaction was calm.

But Washington's reaction was strong.

The White House Council of Economic Advisers held an emergency meeting to discuss the views expressed in the article.

“Su Ninggan makes a good point,” one consultant admitted. “Protecting low-end manufacturing is too costly.”

“But we can’t say it publicly,” another advisor objected. “The union will cause an uproar.”

Japan is the most nervous.

The Yomiuri Shimbun published an editorial titled "The Shadow of the US-China Industrial Alliance—Where is Japan?"

The editorial even warned: "If the United States accepts Suninggan's 'division of labor' theory, leaving high-end technology to the United States and low- and mid-end manufacturing to China, Japan will lose its position. Japan must accelerate industrial upgrading, otherwise it will be marginalized."

Tokyo, Japan: Emergency meeting held by the Ministry of International Trade and Industry.

The minister pounded the table: "A great era has arrived! We absolutely cannot lag behind!"

“Your Excellency,” a young official said in a low voice, “Japan is indeed in an awkward position right now—it’s not as good as the United States in the high-end market, and it’s not as good as China in terms of cost.”

"Therefore, we must accelerate technological research and development to find an irreplaceable position."

"Hi!"

"Why do you think Su Ninggan is so reckless?"

"Your Excellency, this is all based on strong appeal. Lemon Technology and Pacific Capital are very powerful, and our Japanese companies have to face the problem squarely."

"Yoshi! It seems it's time to seriously consider Suning's demands. Since we can't beat him, let's cooperate."

"Your Excellency is wise."

In his Hong Kong office, Suning, observing the global media's reaction, told his team, "The article worked. Now everyone is discussing the division of labor between China and the US, which is better than simply arguing about technology transfer."

“But the American Manufacturing Association is attacking us,” Guan Wei warned.

“Talk to the union leaders!” Su Ning said. “Tell them that Pacific Capital has invested in three R&D centers in the United States, creating 500 high-paying jobs. These jobs are more promising than those on the assembly line. In addition, we can consider giving the union some benefits. To put it bluntly, it’s all about interests.”

What about China?

“We will continue to cooperate,” Suning said. “Next week I will go to Beijing to meet with some leaders and discuss China’s accession to the WTO. Although we are American-owned, we can act as a bridge for communication.”

"The Japanese side is acting very aggressively."

“Let them jump.” Su Ning didn’t care. “Japan’s current mentality is panic—they are afraid of being abandoned by the United States and also afraid of being surpassed by China. Under this mentality, they are more likely to make wrong decisions.”

As it turns out, Suning's judgment was correct.

Three months later, news came from Washington that the US government was reassessing its trade policy toward China, with voices supporting China's accession to the WTO gaining the upper hand.

Japan's Ministry of International Trade and Industry hastily launched the "Industrial Revitalization Plan," investing heavily in research and development in new fields such as artificial intelligence and biotechnology—but the move came too late.

The New York Times interview became a turning point in Sino-US economic and trade relations.

It wasn't because it changed policy, but because it publicly articulated a consensus among many entrepreneurs:

Globalization is irreversible, and the division of labor benefits everyone.

This simple truth will ultimately triumph over short-sighted protectionism.

Suning and his company are at the forefront of this trend.

...(End of chapter)