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The news that China's technology consulting company was expanding its technology exports across the country was immediately reported to Western capital markets in Europe and America.

A market research firm mentioned in its quarterly report that "China Tianchao Group has established a technology consulting company to export automobile manufacturing and electronic technology to local enterprises."

Initially, most Western business executives didn't even lift their eyelids when they turned to this page.

After all, advanced technology has always been the exclusive domain of Western capital, and they don't believe that an unknown Chinese company can make a difference.

But soon, detailed intelligence reports began to arrive, making them uneasy...

Tianchao Consulting's technology output list, list of contracted companies, and project schedule...

The information was gathered from the headquarters of major Western industrial giants through various channels.

What were the original plans of these financial giants?
Naturally, they see China as a destination for the transfer of their outdated production capacity from Western markets.

They moved those outdated production lines that were no longer profitable in Europe and America to China, taking advantage of China's cheap labor and lenient environmental policies to make one last profit.

As for core technologies—sorry, those are not for sale.

We won't sell the engine's electronic fuel injection system, the transmission's hydraulic control module, the design blueprints for the mobile phone baseband chip, or even the Invar steel welding process for the LNG carrier's cargo tanks...

Chinese people only need to obediently do low-end assembly and never even think about touching the upstream of the industrial chain.

But this plan was shattered by the Tianchao Group.

Tianchao Consulting not only exports technology, but also complete production line equipment, trains engineers for companies, and accepts technology and equipment in exchange for shares.

A few months ago, an old state-owned enterprise in Northeast China that manufactures bearings was still using hand-cranked machine tools from the 1970s.

Now, however, they are equipped with fully automatic CNC grinding machines, and the product precision has jumped directly from P5 level to P2 level, and they have begun to supply parts to Chinese automobile manufacturers.

Furthermore, they are in contact with international automotive giants to discuss integrating into the supply chains of major automotive brands.

A state-owned enterprise in Southwest China that manufactures hydraulic components previously could only sell its products at low prices in the agricultural machinery market.

Our product performance is now on par with top international brands, and price quotes have already been sent to overseas clients.

This is hardly a technology consulting company.
This is clearly a battering ram specifically designed to target Western technological barriers.

If all Chinese factories adopted the technology of China's leading conglomerates, what advantage would their outdated production capacity have left?

It's important to understand that they can't even make money in their own market; they rely entirely on selling outdated technology and equipment to China at high prices to maintain their profits.

Now even China's lower-tier markets are being devoured by companies armed with Chinese technology. Isn't this just like all their hard work being reaped by Chinese conglomerates in the end?
So these Western capitalists immediately objected.

They launched a global media campaign against the Chinese Communist Party, with a surprisingly unified narrative.

Overnight, the pages of The Wall Street Journal, the Financial Times, and The Economist were filled with articles questioning the Tianchao Group and analyses from dubious so-called experts.

The core argument can be summed up in one word: theft.

"The Celestial Empire Group plagiarizes advanced Western technology."

"It is impossible for a Chinese company that has been established for less than ten years to possess so many cutting-edge technologies out of thin air."

"The technology export of China Consulting is essentially the resale of stolen Western technology."

The article never mentions any specific evidence...

Without comparing patent numbers, technical drawings, or any formal accusations from the infringed company, they repeatedly use vague terms like "suspected," "possibly," and "according to industry insiders" to create doubt.

Legal action followed immediately, with several industry giants simultaneously filing lawsuits in the International Court of Justice.

And they're using the same old tricks they're most familiar with...

Evidence is not important, nor is winning the case. What's important is to muddy the waters, making companies considering cooperating with Tianchao Consulting hesitant, and making those preparing to sign contracts with Tianchao Auto wait and see.

However, when Suning saw these news reports in his office, he was discussing the next batch of industry catalogs for technology exports with the head of Tianchao Consulting.

At this moment, Zhuangzhuang placed a summary of foreign media reports on Suning's desk. "President Su, the foreign media are flooding us with articles criticizing us. The legal department is asking if we should issue a statement in response?"

Su Ning picked up the document, flipped through it, and then put it aside. "No need. Let them hype it up, we'll do ours."

"Should we respond to the lawsuit?"

Suning picked up the phone and called the general counsel, giving only one instruction: "Director Lei, regarding the lawsuit filed against us by Western capital, our group must respond, but we can't afford to waste time with them. The legal team should go to court and follow the procedures, submitting the necessary evidence and responding as required. Don't engage in verbal battles with them in the media... the more you respond, the more motivated they become. They're trying to drag us down, but we won't jump in. Let the court decide, and we'll appeal after the judgment. We're not short of time anyway."

The general counsel said on the other end of the phone, "Understood, Mr. Su. So what should be the tone of our response?"

"In short... the burden of proof lies with the accused. They accuse me of plagiarism, let them provide evidence. If they can't, the court will naturally dismiss the case. We don't need to prove our innocence; that would be falling into their logical trap."

The general counsel understood immediately. After hanging up the phone, he quickly assembled several professional litigation response teams and dispatched them to various locations.

At a litigation strategy meeting, the general counsel told his legal team, "We're not in a hurry. The fact that they're suing us means they're in a hurry. They want to delay us, but we won't. We'll proceed with the necessary procedures, taking it one step at a time. We won't engage in a war of words or a war of words with them. We'll go through the evidence point by point in court. What do they have? Nothing. We have a complete set of R&D logs and third-party testing reports. We won't present them proactively; we'll wait until the judge requests disclosure. That way, the judge will have a stronger impression."

"Mr. Lei, this time we're facing the entire Western capital market. Can we really win?"

"Be confident! Our Tianchao Group's technology is unique."

……

Meanwhile, Tianchao Consulting's technical team continues to work in factories across the country.

The bearing factory in Northeast China had just finished debugging its new production line when the workshop director called, his voice so loud the receiver vibrated: "Engineer Liu! Great news! The first batch of P2-grade precision bearings has rolled off the production line! All the precision test data meet the standards! You need to come over right away. The veteran workers have been looking at the test report for ages, saying it's the most precise bearing they've ever made in their lifetime!"

Mr. Liu laughed on the phone and said, "I'll be there tomorrow. Have the experienced workers archive the test data, and send this batch of bearings to Tianchao Auto for vehicle testing."

"Okay! I guarantee I'll complete the mission."

"I'll explain in more detail when I arrive tomorrow."

"I heard that Tianchao Group has been sued by Western capital again?"

"It's a small matter! The establishment of Tianchao Consulting disrupted their plan to transfer production capacity, so they're naturally jumping up and down in a panic now."

"Do you need our assistance?"

"No need! Tianchao Group's legal department is very professional; just leave it to them."

……

The first batch of products that meet international standards have also rolled off the production line at a hydraulic component factory in Southwest China.

Engineer Zhou watched as the quality inspector recorded the test data for each hydraulic pump. After reviewing the last set of data, he said to Section Chief Zhao of the factory's technical department, "Section Chief Zhao, the performance of this batch of products is no less than that of Bosch Rexroth. I have arranged to send samples to several overseas customers. Once they give us their feedback, you can formally quote us."

Section Chief Zhao rubbed his hands and said, "I've prepared the quotation, but I'm still a little unsure. Do you think those foreigners, who are used to Bosch and Rexroth, will switch to ours?"

Engineer Zhou said, "Think about it, for products with the same performance, your price is only 60% of Bosch's, and your delivery time is even shorter. If you were the purchasing manager, wouldn't you switch?"

Section Chief Zhao thought for a moment, then smiled and said, "Change it."

……

Sparks flew as welding progressed on the modular shipbuilding platform at Jiangnan Shipyard, where the electromagnetic catapult system drawings provided by Tianchao Consulting had entered the prototype trial production stage.

Chief Engineer Lin, wearing a safety helmet, stood in the workshop, watching the workers weld Invar steel plates according to the process parameters provided by Tianchao Consulting.

Although the young welder had just graduated from technical school last year, his hands were as steady as a machine. The welding torch moved at a constant speed in his hands, and the weld solidified evenly under the arc light.

Chief Engineer Lin bent down to inspect the surface of the weld, then examined the weld texture with a magnifying glass before straightening up and saying, "This weld is definitely good enough for GTT certification."

An older welder nearby came over to take a look and said, "Chief Engineer Lin, we used to be lucky if we could get ten out of a hundred welds right, but now this kid gets every single one right. The automatic welding parameters that Tianchao Consulting gave us are truly amazing."

Chief Engineer Lin said, "It's not a miracle, but a difference in data. We used to know that Invar steel was difficult to weld, but we didn't know that every parameter was accurate to several decimal places. Now that all the data is provided, it won't work if it's off by even one degree or one second. As long as you follow the parameters, it will pass."

"I understand! But I heard that Tianchao Group was sued?"

"Yes! The Tianchao Group has really encroached on the interests of Western capital, so naturally Western capital can't sit still and will retaliate."

"Section Chief Zhao, could it be that Tianchao Group really plagiarized something?"

"Hmph! The technology and production lines provided by Tianchao Group are comprehensive. Copying? Who can copy everything?"

"..."

...Western capital quickly realized that something was wrong.

Their media outlets are constantly criticizing Tianchao Group, and their legal team is suing Tianchao Group.

But Tianchao Group doesn't seem to care at all. Suning hasn't given a single word of response, nor has it held a single press conference.

The number of contracts signed by Tianchao Consulting continues to rise, the product quality of its partner companies continues to improve, and its market share continues to expand rapidly.

More importantly, an increasing number of Chinese companies are beginning to reject their joint venture proposals that come with harsh conditions.

Previously, when they went to discuss a joint venture with a Chinese company, they would demand a controlling stake plus technology blockade clauses.

The other party had no choice but to endure it, because Chinese companies had no alternatives.

Now the other party has simply thrown the proposal from China Consulting onto the table, leaving their Western capital with nowhere to go.

Of course, these Western capitalists don't know the saying, "If you follow someone else's path, you'll leave them with no path to follow," otherwise they would be completely dumbfounded.

On this day, the sales director of a German auto parts giant in China personally went to a private auto parts factory in Zhejiang to discuss a joint venture.

The other party's boss's surname is Qian, and he is a middle-aged man in his forties.

The sales director just showed the PPT of the joint venture plan.

Mr. Qian placed a copy of a technology licensing agreement from Tianchao Consulting on the table. “Look,” he said, “Tianchao Consulting’s engine block casting technology is at the same level as the technology you provided. They don’t want controlling stake, they don’t want a performance-based agreement, and they don’t want to appoint directors. Your proposal, however, requires 51% controlling stake, so I cannot accept it.”

The sales director was taken aback for a moment. "Mr. Qian, our technology has been validated in the global market. Tianchao Consulting's technology is relatively new, and its reliability remains to be seen."

Mr. Qian smiled and said, "Wait and see? China's automotive engine installation volume has already exceeded one million units, and the return rate is even lower than yours. You say it needs to be observed, but market data doesn't wait for you to observe. How about this, you cancel your controlling stake requirement, and reduce the technology licensing fee to the same level as China Consulting, and we can continue to talk."

The sales director looked rather grim. "I need to report this to headquarters."

“Alright, take your time with your report.” Boss Qian stood up and shook hands with him. “I’m not in a hurry. The engineers from Tianchao Consulting will be coming to my factory next week to work on the production line modification plan.”

"..." The sales director immediately realized that something was seriously wrong.

The market is only so big. If the Tianchao Group takes a bite more, they will miss out.

……

After receiving this feedback, the senior management at the German headquarters remained silent.

They were originally sitting on the sidelines, waiting for Chinese companies and markets to beg them, and then they would make exorbitant demands.

However, the sudden appearance of the Tianchao Group disrupted their plans.

We can't afford to miss out on the lucrative Chinese market, and we have to seize the opportunity now.

Once Chinese technology has fully equipped domestic companies, Western capital may not even have a chance to enter the market.

The first to succumb was the German auto parts giant.

They quietly withdrew a technology plagiarism accusation against Tianchao Group, without even issuing a statement when the withdrawal letter was submitted to the court.

Then, through an intermediary, a message was sent, expressing a desire to consult with China on cross-licensing of technologies in the field of new energy motors.

Tianchao Consulting's response was straightforward: "Cross-licensing of technology is negotiable, but only if all cooperation terms are mutually beneficial. Tianchao Consulting does not accept any unilateral technology blockades or unfair terms. If you want to use our motor control technology, we also want to see your experience in calibrating electric control systems. Let's sit down and talk on equal terms; if it works, great, if not, no."

The German giant remained silent for several days.

It is said that several board meetings were held internally, and the debates were quite intense.

The marketing department said that if we don't cooperate soon, the Chinese market will be filled with products from Chinese companies. The legal department said that negotiating on an equal footing with Chinese companies would damage our brand image. The technical department said that we really want the motor control technology that the Chinese company is consulting on.

In the end, the CEO made the decision: fly to Beijing to discuss it.

……

The negotiations were held in a conference room at Tianchao Consulting in Beijing's China World Trade Center.

The Germans brought an eight-person team – including technical, legal, financial, and translation specialists.

The Tianchao Consulting team was led by its head, with the legal director and his legal team sitting nearby, and several core engineers from the technical team also in attendance.

The German chief negotiator was a seasoned veteran. After a few pleasantries, he got down to business: "We are very interested in several of your company's patented technologies in the field of new energy motors and hope to cooperate on a mutually beneficial basis."

The head of Tianchao Consulting nodded. "Which patents specifically?"

The German technical representative opened a list and handed it over.

The technical engineer from Tianchao Consulting took it, flipped through it, and whispered a few words to the person in charge.

The person in charge put down the list, "We can license these seven patents. But we also hope that your company can provide corresponding technology sharing in the calibration of electronic control systems. Not all of them, but only a few within a specified scope."

The German negotiator exchanged a glance with the technical representative, then said, "Electrical control calibration is our core strength, and we don't usually share technology in this area. Could we offer other forms of compensation? For example, perhaps a slightly higher licensing fee?"

The person in charge shook his head. "It's not about the money. Cross-licensing technology is about mutual respect and openness. If you only want our technology and are unwilling to share yours, that's not mutual benefit; that's unilateral extortion. Tianchao Consulting doesn't do that kind of business."

The meeting room was silent for a few seconds.

The German representative said they needed to consult with headquarters and therefore adjourned the meeting temporarily.

Then they made a nearly one-hour transoceanic call in the next room, and when they returned, their attitude had clearly changed: "Headquarters agreed to limited technology sharing within the scope specified by the electronic control system."

“Then we can continue discussing the specific terms.” The person in charge gestured for the legal department to bring up the prepared draft contract.

……

Once there's a first, there's bound to be a second.

Siemens, Bosch, Continental...

These Western industrial giants, who once regarded technology transfer as charity, are now lining up to fly to Beijing to consult and negotiate with the Celestial Empire.

At the negotiating table, they discovered that this opponent was unlike any company they had dealt with before. The other party truly possessed core technologies, and could produce complete technical documents and third-party testing reports for each item.

Moreover, the negotiation team is extremely professional, with the legal and financial departments working in perfect harmony. They are decisive in making concessions where necessary and unyielding in sticking to their principles where required.

During a break in the meeting, a negotiator from a German company muttered to a colleague, "They're better at negotiating than we are."

My colleague said with a wry smile, "That's because they really have a lot of cards to play. When they didn't have any cards, of course they couldn't be tough, but now that they have a bunch of good cards, why should they be weak?"

"But how did they do it? According to the intelligence department's investigation, their Tianchao Group was only established in 1994, and it hasn't even been ten years yet."

“It’s truly incredible! This land has been adept at creating miracles since ancient times.”

"..."

……

As a result, a large amount of Western capital rushed into the Chinese market to invest and build factories, gradually transferring the entire industrial chain of various industries to China.

They weren't acting out of pure kindness; it was simply because this was the only way to maximize their profits.

The sheer size of the Chinese market drives them crazy, and its comprehensive industrial chain leaves them with no other choice.

And this time, they no longer had the confidence to ask for exorbitant prices...

The existence of Tianchao Group has given Chinese companies the confidence to compare prices and make choices, restoring balance to the previously one-sided scales of interests.

The cooperation terms ultimately reached by both parties reflect an unprecedented level of equality, and mutual benefit has truly been put into practice.

When Tianchao Group established its technology consulting company, the phrase "mutual benefit and common development" used at the press conference was ridiculed by some Western media as a Chinese-style slogan.

This sentence is now printed on the title page of numerous Sino-foreign enterprise technology cooperation agreements, in black and white, signed and sealed by both parties.

After reporting on the progress of international cooperation at the quarterly summary meeting, the head of Tianchao Consulting placed a stack of signed agreements on the table and said to Su Ning, "Mr. Su, when we talked about mutual benefit and common development at the press conference, to be honest, I myself thought it was just a slogan. But now look, the terms written in these contracts are truly mutually beneficial. We haven't taken advantage of them, and they can't take advantage of us either. This kind of equal cooperation has almost never happened in international technology trade before."

Su Ning picked up the stack of agreements and flipped through them. "This has never happened before, but there will be more and more of it in the future."

...(End of this chapter)