Video Editor

Chapter 2635 Business Godfather

The news that Tianchao Capital had invested 1.6 million yuan in Alibaba caused another uproar in the business community.

What was the concept of 1.6 million in 1999?

At that time, a courtyard house within the Second Ring Road of Beijing cost only a few hundred thousand yuan, and the annual revenue of most companies across the country could not even reach a fraction of that figure.

China Capital poured this money into an e-commerce website that had only been established for a few days, and even after the investment, it had not yet acquired a controlling stake.

Holding 40% of the shares is not even close to 51%.

Many people's first reaction is to confirm whether the news is true.

Reporters from several mainstream financial newspapers immediately called the public relations department of Tianchao Group to verify the information. The public relations department responded according to the established line set by Suning: "The news is true, and the specific terms will be subject to the announcement."

Alibaba transformed overnight from a shell company into the hottest project in the entire industry.

Jack Ma's phone was ringing off the hook.

These days, Jack Ma's phone rings from morning till night, all from those investors who used to ignore him, call him a pyramid scheme fraudster, and a madman.

Each one was more polite and more enthusiastic than the last.

Jack Ma accepted each offer one by one, and then politely declined each one.

He knew perfectly well that these people weren't optimistic about Alibaba; they panicked after seeing Chinese capital invest 1.6 million yuan, fearing they would miss out on the next Tencent.

You ignored me back then, but now you can't even reach me.

……

In Beijing, China Capital was once again overwhelmed by business plans from all over the country.

This wave is even stronger than when Tianchao Capital first went public, because the cases of Tencent and Alibaba together have shown all entrepreneurs a crazy signal: Tianchao Capital really dares to invest.

Moreover, each transaction involves hundreds of millions of dollars, and it's even possible to request that the company not hold a controlling stake.

what does this mean?

This means that Chinese capital is not the kind of traditional industrial capital; they are genuinely looking at the future and prospects of projects.

The switchboard rang non-stop from morning till night.

"Could you arrange a meeting with President Su?"

"Could you please have the investment department take a look at our project?"

"We have a business model that can absolutely change the industry, and it only costs 20 million?"

Director Han, the head of the investment team at Tianchao Capital, led his team to work around the clock screening projects, with one batch coming in after another.

The whiteboard in the meeting room was covered with project names, industry classifications, and preliminary review comments.

Some have been crossed out, while others have been marked with a question mark.

Occasionally, one item that was checked off would be extracted and placed into a separate red folder.

The projects in that folder are eligible for the next round of interviews.

Director Han was furious because out of a hundred projects, only about three or five had real technical merit and business logic.

The others are either fanatical dreamers who dare to ask for tens of millions with just an idea, or followers who haven't even figured out what they're going to do.

"May I ask, what is your core competitiveness?"

"Our team has strong execution capabilities."

Where are your technological barriers?

"Our business model is ingenious."

It's all just empty talk; there's nothing substantial about it.

……

Director Han walked into Suning's office with a project briefing that had been selected.

"What's wrong? Not going well?" Su Ning naturally noticed the gloom on Director Han's face.

“President Su, it’s really not that I don’t want to invest in these projects, it’s just that none of these offers are worth looking at.” Director Han pointed to the starkly different percentages on the presentation and began to explain one by one with examples. “There was this pyramid scheme guy who created a multi-level marketing system and described it as a ‘new species of social e-commerce’ in his business plan. When I flipped to the back, his commission model was more complicated than a spider web, with uplines recruiting downlines, and downlines recruiting downlines, and each level having a commission rate. I said, ‘Isn’t this just a pyramid scheme?’ He said no, he said it was the sharing economy. I said, ‘What are you sharing?’ He said he was sharing product links. I said, ‘What diseases can the health products in your product links cure?’ He paused for a moment and said they can improve sub-health.”

"..." Su Ning leaned back in her chair, listening without interrupting.

Director Han continued, "There was another health supplement seller who was even more outrageous. He claimed his products used nanotechnology to extract the essence of traditional Chinese medicine, which could improve the body's microcirculation, and that he was 'the next Alibaba in the health technology sector.' I thought he was doing TV shopping. I asked him if he had the approval from the State Drug Administration, and he said he was applying for it. I said, 'You don't even have the approval, and you're already trying to raise funds?' He said that's why he needed money to get the approval. Mr. Su, I really didn't know whether to be angry or laugh at that moment."

"There's another one dealing in used cars." Director Han got more and more excited as he spoke, pouring out all the pent-up complaints he'd had these past few days. "They called themselves an automotive ecosystem platform, and their business plan cover was more elaborate than any of China's automotive annual reports, with gold lettering and UV coating. When I flipped through it, I found out that this so-called automotive ecosystem platform was just a large yard rented in the suburbs to collect scrapped cars, dismantle them, and sell the parts online. They called themselves CEOs and also chief dismantling officers. I asked them how much revenue their platform generated each month. They said it was unstable, sometimes a few thousand, sometimes a few hundred. I asked them what they planned to do with the funding. They said they wanted to expand their yard and collect more cars. Mr. Su, I told them, 'This isn't an automotive ecosystem platform, it's a car dismantling plant.' They were quite unhappy and said I didn't understand internet thinking."

Suning was amused by Director Han's expression and took the briefing to flip through it.

The project names listed in the briefing were increasingly imaginative, some so far so that you couldn't guess what they were about just by looking at the names.

Suning put down the briefing and said to Director Han, "Actually, this probability is normal. It's hard to find one Jack Ma out of a million people. Do you expect Tencent and Alibaba to be everywhere? Tianchao Capital has made a name for itself now. These two investments in Tencent and Alibaba are like sending a signal flare to entrepreneurs across the country: Tianchao Capital has money and dares to invest. Once the signal flare is released, it's inevitable that moths will fly into the flame. What you need to do now is not complain about too many moths, but to refine your sieve and not miss the truly good seedlings."

"..." Director Han nodded, the helplessness on his face fading somewhat.

“Don’t be polite with those rubbish projects, just reject them directly. Don’t waste each other’s time.” Su Ning handed the briefing back to Manager Han. “You don’t need to explain to him why they don’t meet the requirements, and you don’t need to teach him how to change them. He’s not your student, and you’re not his entrepreneurial mentor. Your time is valuable; you should spend it on worthwhile projects. If anyone comes to block the office door, just call security.”

"President Su, I understand."

……

The lawsuits filed by the legal department of China's automotive industry against those who spread rumors have entered the trial stage, and the outcome is naturally a foregone conclusion.

One court judgment after another came down, and those who had confidently claimed in newspapers, on television, and in magazines that Chinese cars were "industrial garbage," "a tax on intelligence," and "plagiarism and patchwork" were all unable to produce any plausible counter-evidence in court when faced with evidence notarized and preserved by the Ministry of Justice.

A commentator who published three long articles in a financial newspaper alleging that China's automotive data was fabricated has had every single number he cited in his articles compared by the Ministry of Justice.

The court presented a complete set of bench test reports and road test data from a nationally recognized third-party testing institution, and every set of data matched the publicly disclosed parameters.

The judge asked, "Defendant, where did you get these numbers from?"

"Provided by a friend in the industry?"

The judge then asked, "Who is that friend in the industry?"

The defendant hesitated for a long time before finally revealing his name.

The judgments ranged from issuing public apologies and compensating for economic losses to establishing defamation, with each judgment resulting in a heavier sentence than the last.

Some of the most stubborn ones tried to argue in court, saying that the Ministry of Justice of China had taken things out of context, that the Ministry of Justice of China was maliciously filing lawsuits, and that this was a case of large corporations bullying media professionals.

The legal department of Tianchao Auto made several copies of the judgment and sent them to the automotive and financial sections of major mainstream media outlets across the country.

Several newspapers published the full text of the judgment, immediately defining the nature of these events.

Every single one of those public intellectuals who used to be so vocal in the newspapers has received a summons.

Following Suning's instructions, the Ministry of Justice will not accept settlements or private apologies; all cases must go through the full litigation process and obtain a judgment.

Sure enough, after a series of actions by the Ministry of Justice of China, those so-called experts and public intellectuals all quieted down.

Although the "dog food" (a slang term for public displays of affection) offered by Japanese automakers was indeed tempting, the Chinese Ministry of Justice quickly made them spit it out.

……

The smoke of the domestic public opinion battle has not yet completely dissipated, but the offensive of Chinese automobiles in the international market has not stopped at all.

The dealer network in Southeast Asia continues to expand, orders in Africa and the Middle East remain high, and several new dealership contracts have been signed in South America. The strategy of Chinese automakers in the international market is simple yet deadly…

Wherever Japanese cars sell well, Chinese automakers open dealerships there.

The price is cheaper than comparable Japanese models, the configuration is higher than comparable Japanese models, the fuel consumption data is publicly available and transparent, and the prices of after-sales parts are posted on the dealer's wall.

The first thing customers see when they enter the store is a large chart that compares the prices of commonly used parts for Chinese cars and their Japanese competitors.

This strategy has caused Japanese automakers to suffer repeated defeats in the international market, with their market share being gradually eroded.

Even the large and powerful Japanese automakers finally couldn't hold on any longer.

They realized that waging a war of words and a price war against China Auto was a thankless and exhausting task. They couldn't win the war of words against China Auto's legal department, and they couldn't win the price war against China Auto's cost control.

If this continues, the market share we lose will be worth far more than the face we lose.

Japanese automakers' annual dealer conference in Southeast Asia.

"Ladies and gentlemen, I propose that we continue to increase our investment in negative publicity."

"If the legal department of Tianchao Auto can win lawsuits against even those media outlets in China, do you think they can't find good lawyers in Southeast Asia?"

"But……"

As a result, Japanese automakers began to consider reconciling with Chinese automakers and proactively sought out a highly influential figure in the mainland business community to act as an intermediary.

This middleman, surnamed Liu, is a veteran in the domestic computer industry. His company is the absolute leader in the domestic PC market. He was later selected as one of the 100 most influential people in China's 40 years of reform and opening up. He has a nickname in business circles: "Godfather of Business." He has a lot of influence and extensive connections. From ministerial leaders to local officials to entrepreneurs in various industries, all kinds of people give Mr. Liu some face.

After accepting the commission from the Japanese car company, Mr. Liu did not hesitate at all and instead personally called Suning.

The assistant, Zhuang Zhuang, answered the phone first. After hearing the other party introduce himself, Zhuang Zhuang immediately covered the receiver with her hand and lowered her voice to say to Su Ning, "President Su, it's President Liu on the phone."

Su Ning nodded and took the microphone. "Mr. Liu, hello! This is Su Ning."

Mr. Liu said with a smile on the phone, "Long time no see! President Su, let's go out for a meal and catch up. Let's not talk about business, just chat."

"Great! Thank you for the invitation, Mr. Liu."

Suning's evaluation of Mr. Liu is complex...

In terms of running a business, Mr. Liu is a remarkable figure. He turned a small company into a leader in the domestic PC industry, and its market share once surpassed that of all international giants.

However, Mr. Liu is also someone who is keen on forming cliques and circles, and is keen on turning entrepreneurs into small circles, using the culture of these circles to consolidate his influence and voice.

Suning didn't want to antagonize anyone, so he agreed, but he had already made up his mind.

I'm fine with eating, but I won't get involved in anything else.

……

The dinner was held in a very private members-only restaurant in Beijing. The entrance was hidden deep in a royal garden, with no sign outside, only a heavy wooden door and a house number. People who knew about this place were all regulars in the circle.

When Su Ning arrived with Zhuang Zhuang, Mr. Liu had already arrived ahead of time.

Mr. Liu hosted the event, and the setting was quite elaborate. Several business associates who had dealt with both companies were present at the table. Some were in the home appliance business, some were in retail, and one was the vice president of an industry association.

Mr. Liu managed to create a perfectly harmonious atmosphere...

It wasn't too formal or casual; it felt like a gathering of old friends, but everyone knew this meal wasn't just for show.

The dishes were excellent, served one after another. Each dish was small in portion but exquisitely prepared.

The wine was excellent, a 15-year-old Moutai. The moment the bottle cap was unscrewed, the entire private room was filled with the aroma of soy sauce.

Mr. Liu is naturally most adept at this kind of occasion. Holding his wine glass, he first chatted with Suning about the domestic and international economic situation.

Then the conversation shifted from the computer industry to the automotive industry. "Mr. Su, China's automotive industry has really brought glory to 'Made in China' in recent years. I've seen China's automotive billboards when I'm on business trips abroad."

"President Liu, you flatter me! Compared to your ideas, our Celestial Empire is just a small fry."

"Haha, Mr. Su is too modest."

After a few rounds of drinks, Mr. Liu put down his glass and steered the conversation toward business. “President Su, regarding the matter between Tianchao Auto and the Japanese side, we are all in business, and competition in the market is normal, but there’s no need to be too tense. Several Japanese automakers asked me to act as a bridge, expressing their willingness to sit down and have a proper talk with Tianchao Auto. We should cooperate where appropriate and compete where appropriate. Everyone should take a step back, and harmony brings wealth.”

Su Ning, holding her wine glass, didn't immediately respond, but simply listened with a slight smile as he finished speaking.

Mr. Liu, a veteran in the business world, never needs any preamble when he speaks. The fact that he has managed to steer the conversation to this level today is already a great honor for China Automotive Group, and it is also a subtle hint to Suning.

The martial arts world is not just about fighting and killing; it's about human relationships and social interactions.

Seeing that Su Ning didn't respond, Mr. Liu picked up his glass and took another sip. "By the way, Mr. Su, I have a group called the Five Mountains Club. We meet several times a year, and the attendees are all top entrepreneurs from various industries across the country. They're in real estate, automobiles, investment, and the internet. Mr. Su is now a benchmark figure in the domestic business community. Why don't you join us, exchange ideas, and help each other out?"

Su Ning chuckled inwardly.

Of course he knew about this bullshit Five Mountains Alliance.

The top-tier circle of entrepreneurs founded by Mr. Liu has gathered a large number of heavyweight figures in the domestic business world, and its influence is indeed considerable. Some projects can obtain approvals and resources that others cannot obtain simply by making a call within this circle.

However, the factionalism was indeed too obvious: those within the circle supported each other, while those outside were marginalized. This culture was completely contrary to his business philosophy.

It's fine for such semi-public business organizations to eat and drink together on a regular basis.

But Suning is very clear that what it does is real industry...

Mingju Real Estate, Tianchao Auto, Kunyu Shipping, and Tianchao Capital are all companies that focus on producing high-quality products, providing services, and developing technology in a straightforward manner. They do not rely on clique culture to acquire resources or seek protection.

Moreover, once you get involved in these cliques, it's a trouble you can't shake off. If you support me today, you'll have to support someone else tomorrow.

After standing around for so long, in the end, you don't know if you're running a business or just doing favors.

Su Ning smiled politely and placed his wine glass on the table. "I appreciate Mr. Liu's kindness. However, Tianchao Group is still in its growth phase. We can't afford to let go of any sector, including automobiles, real estate, shipping, and investment. I'm a workaholic myself, sitting in the office until midnight every day, and I simply can't manage all the social engagements. I won't take up a spot at such a high-profile platform as the Five Mountains Club. Mr. Liu, please feel free to call me anytime you have specific project collaborations."

Mr. Liu's smile remained unchanged, but he was already displeased. "President Su is a very honest person, please understand."

He knew in his heart that although Su Ning's words were polite, he had completely absolved himself of responsibility.

We don't join cliques or factions; we only discuss projects, not personal relationships.

Mr. Liu didn't try to persuade him any further and changed the subject to other things.

As for the Japanese automakers' decision to back down and make peace, it was glossed over lightly at the dinner table.

Mr. Liu has figured out Suning's attitude.

China's automakers are not afraid of normal business competition, so they naturally don't need to make peace with anyone.

There are many channels for discussing cooperation. China's automotive supply chain is open to all suppliers worldwide. Anyone willing to provide cost-effective parts can submit a bid; no intermediaries are needed.

Many things don't need to be said aloud, because everyone understands.

After the meal, the guests and hosts made a good show of enjoying themselves, but in reality, no one took any further steps closer to the other.

As the party was ending, Mr. Liu shook hands with Su Ning at the door and said, "President Su, I hope we can cooperate in the future."

There will definitely be an opportunity.

...(End of this chapter)