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Chapter 508 Anxiety

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    ? International political and economic news

    ? On June 24, 2003, Huaxia announced that it had achieved a major victory in the fight against SARS.

    The World Health Organization announced in Geneva on the 24th that the SARS epidemic in Yanjing City has significantly eased and has met the relevant standards of the WHO. Therefore, the travel warning for Yanjing City has been lifted, and Yanjing City has been excluded from the list of SARS-affected areas.  The decision takes effect from the day it is announced.

    "This is very good news, showing that the world has made great progress in the fight against SARS." Ms. Brundtland, Director-General of WHO, commented on this decision.

    In 2003, the event that attracted worldwide attention was the Iraq War.

    On March 20, on the grounds that Iraq harbored weapons of mass destruction and supported terrorists, the US-British joint force bypassed the UN Security Council and launched the Iraq war in spite of the opposition of the international community.

    The war lasted for more than 40 days, and the United States overthrew the Saddam regime as it wished, and entered the subsequent stage of peace and order at the end of the war.

    Early August

    US General George George delivered a televised speech to the nation on the USS Lincoln aircraft carrier, announcing that the major military operations of the US and its allies have ended, and that Iraq will enter a stage of reconstruction of democracy and freedom

    August 4th

    Relevant executives from Intel Corporation, Motorola Corporation, and Microsoft Corporation have successively delivered public speeches, expressing concern about the acquisition of Apple Corporation by the Royal Family Fund. The industry in the field of computers and personal electronic equipment is too concentrated, which is not conducive to full competition in the market.

    In this regard, Apple CEO Mr. Jobs said;

    "With the rise of the Internet high-tech industry in Silicon Valley, the new economy is sweeping across the United States, and Apple's consumer electronics industry is full and fiercely competitive. There is no sign of a leading company monopolizing the market. The above remarks are purely groundless worries."

    August 6th

    According to the British "Sunday Daily" report;

    Motorola is in close contact with Huaxia Huawei to acquire the other party at a price of 7.5 billion US dollars. The text of the agreement of intent for the merger has been initialed and is waiting for the approval of the board of directors.

    Hearing this, Wang Yaocheng couldn't sit still anymore, and suddenly sat up.

    The wheel of history is rolling forward, still running stubbornly according to a fixed track, and the scene that happened in the previous life has reappeared.

    "Well, is the Secretariat following up on this matter? Have you contacted Huawei officials or Mr. Ren himself to obtain first-hand exact information?"

    "Chairman, the Secretariat contacted Mr. Ren as soon as he received the news, and Mr. Ren sent a private email to explain the whole matter and Huawei's considerations in detail."

    "Oh, let me have a look."

    Zhao Feng flipped through the stack of documents in his hand, took out a specially marked document and handed it over, Wang Yaocheng took it over and carefully reviewed it, and his concerns about Huawei were roughly cleared up.

    Entering 2003, several major events occurred in Huawei.

    First of all, the "Cisco incident" is in full swing, and the external environment of the international and domestic markets tends to deteriorate.

    ? From 1998 to 2002, the competition in the Huaxia Communications market was the most intense.

    China Mobile was intensively investing in 2G (gsm route) at that time, and released a huge amount of investment every year, but these investments were basically taken by foreign companies such as Ericsson, Motorola, and Nokia.

    Huawei had already developed gsm products in 1998, but they were not mature enough to enter key markets.

    More importantly, Western companies are very wary of the ever-rising powerful rivals in the communications industry, and have begun to encircle and suppress Huawei. They have learned the lesson of being defeated by the "Huge China" in the fixed-line phone market. As long as Huawei and ZTE develop a certain product, they will  Jointly carry out a substantial price cut to prevent the two companies from taking orders.

    If there is no domestic equipment, continue to sell high prices to earn huge profits.

    ? At that time, the GSM capacity expansion of a Guangdong Mobile, the order reached tens of billions, and Huawei could not grab a dime.

    The situation is very serious, and Huawei's survival is very difficult.

    Previously, Mr. Ren Zhengfei, the founder of Huawei, published "Huawei's Winter", making a pessimistic forecast for the market prospects.

    Then, at the end of 2002, Huawei suffered its first decline in performance since its 15-year history. Huawei¡¯s contracted sales dropped from 35.5 billion last year to 30.1 billion, and its profit dropped sharply from 8.6 billion last year to 1.7 billion.  .

    To this end, Huawei conveyed the "Salary Reduction Proposal" to the director and above cadres, hoping that everyone will work together to tide over the difficulties.

      Facing an uncertain future, Huawei's internal senior management had a huge split.

    ?The powerful man who once followed Mr. Ren helped Li Yinan to leave Huawei and join the camp of rival Harbor Bay. He also aggressively poached Huawei's scientific and technological personnel, and competed fiercely with his old company in the core product field.

    At the most rampant time, half of Huawei's scientific and technological personnel were poached.

    At this difficult time, Huawei decisively announced its entry into the mobile phone industry, and launched its first cdma mobile phone product to test the market.

    Mr. Ren Zhengfei is not afraid of business competition, he is more concerned about the future of Huawei.

    In a private email, Mr. Ren Zhengfei revealed his feelings;

    According to Huawei and its own predictions, through unremitting technological investment and development, Huawei will soon reach the international advanced level, and sooner or later it will confront the United States, the overlord of the communications industry.

    At that time, the United States will definitely attack Huawei. At this time, it will be sold to Motorola and put on a cowboy hat from the United States. The company will still be run by tens of thousands of Chinese people, which will help expand the market space internationally.

    in this case

    Mr. Ren Zhengfei advocated selling Huawei to US capital. The price was negotiated at 10 billion U.S. dollars, and the two parties have signed all formal contracts.

    In other words, as long as Motorola pays, this cross-border merger is already a certainty.

    The specific information reported by foreign media is not accurate, and the news events are generally correct.

    Seeing this, Wang Yaocheng felt extremely heavy.

    How similar is Huawei's difficult situation to your own?

    Over the years, although the Wang consortium has been developing rapidly in the international market by virtue of its Hong Kong nationality, in fact, all these prosperous scenes are like flowers in the mirror. Once the blow comes, whether it can hold on or not is another matter?

    Just because the Americans don¡¯t do anything now doesn¡¯t mean they won¡¯t do it in the future. Placing hope in their mercy is like dancing with wolves.

    Do not underestimate the energy of the American people. It has it in Japan, South Korea, Southeast Asia, and Europe and the United States.  The energy of activities can even affect the direction of high-level decision-making of the local government.

    It must be given great attention, and there is a whole set of countermeasures.

    Putting aside the mention of Commander George, there is close interest cooperation and interaction between the two parties. If Xiao Hei comes to power in a few years, he will be a ruthless guy.

    Calculate the time to be able to layout is running out, at best only about four years.

    In this short period of time, if you want to turn the Wang Consortium into an iron lump that cannot be smashed or bitten, even if a category 12 hurricane hits, you must plan well.

    Wang Yaocheng thought about it solemnly, thought for a while and said;

    "Director Zhao, your secretariat and the Hong Kong Guanfengyun International Research Center have designed a set of stress testing plans for the current and future five to ten years.  The weak link of the consortium industry, put forward feasible strengthening and improvement measures, and conduct research as the most important topic at present.¡±

    "Uh well, the Secretariat will immediately implement the relevant research topics."

    Zhao Feng did not expect the chairman to attach so much importance to this matter. Huawei's situation evoked a strong sense of crisis in the chairman, and he assigned research topics with strong pertinence.

    Thinking about it carefully, if the situation in the plan really happened, the blow to the consortium would undoubtedly be huge.

    Preventing problems before they happen is the meaning of the title.  (Remember the site URL: www.hlnovel.com
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