Facing Yamamoto Ryuichi’s request, Director Xu obviously could not agree.
However, he also could not reject it, as he had no decision-making power on such major matters. Thus, the issue was reported directly to Huang He for his decision.
Not long after, Yamamoto Ryuichi met Huang He. It was worth noting that his previous three requests to meet Huang He had all been politely declined. Yet, this time, as soon as he proposed joining the China Electronic Technology Industry Development Alliance, Huang He immediately appeared. This led Yamamoto Ryuichi to muse that this Boss Huang was truly a shameless and utterly practical fellow.
“Can Mr. Yamamoto represent Sony in making a decision?” Huang He asked directly upon meeting, also probing the crucial point of Yamamoto Ryuichi’s authority.
After all, Yamamoto Ryuichi was merely a middle-level manager at Sony, responsible for procurement, and had not even touched the threshold of senior management. Huang He did not believe such a person’s casual remarks.
“I do not have the authority to make any decisions for Sony that I have not been authorized to make, but I can convey my observations, opinions, and decisions to the people who can make the decisions at the earliest opportunity!” Yamamoto Ryuichi stated frankly.
While this statement sounded like stating the obvious, it conveyed a very important piece of information: Yamamoto Ryuichi could report and communicate directly with Sony’s executives. Therefore, through Yamamoto Ryuichi, indirect communication with Sony’s executives was possible.
“Very well, then I shall answer Mr. Yamamoto’s question. According to the regulations of the China Electronic Technology Industry Development Alliance, foreign enterprises and individuals can join the alliance, but they cannot become full members. They can only become foreign members and commercial foreign members!”
“What is the difference between these two types of membership? And what are their respective rights?” Yamamoto Ryuichi inquired curiously.
“Certainly. The rights of foreign members are similar to those of full members, but foreign members cannot enjoy certain benefits provided to full members, just as full members cannot enjoy the rights of foreign members. Furthermore, some of the alliance’s technologies and patents will have different prices for domestic and international customers. Both types of members will have to purchase according to their respective membership status! Other than that, it’s basically the same.”
“However, foreign members are required to provide some of their technologies and patents to the alliance for other members to purchase, and they must offer preferential prices to the alliance according to its requirements.”
“Compared to foreign members, commercial foreign members have more limited functions. Their rights in technology trading and licensing are blocked and cannot be used. They can only purchase goods within the alliance and provide goods within the alliance, but they cannot enjoy preferential prices from the alliance, nor are they required to provide preferential prices to the alliance!”
“However, commercial members also have the rights and obligations of preferential supply and preferential purchase. If you become a commercial member, you must preferentially supply a certain amount of goods to the alliance. Similarly, the alliance must preferentially supply a portion of its goods to you. These are relative terms!”
“I see. Then I believe being a commercial member would be sufficient for our Sony Group’s needs!” Yamamoto Ryuichi nodded. The status of foreign member sounded like something their superiors would not agree to, whereas commercial member better suited Sony’s current needs.
Of course, these were Yamamoto Ryuichi’s own thoughts; the final decision still rested with Sony’s executives.
“If we join the alliance as commercial members now, what benefits can we gain?” Yamamoto Ryuichi asked directly.
“First, preferential shipment,” Huang He stated. “If you are the only foreign member, then our first batch of goods will be given to you foreign commercial members first. Only after your quota is fulfilled will other purchasers be considered.”
“At the same time, if any enterprise fails to pay on time, these surplus quotas can be entirely given to commercial foreign members. Unless you cannot take them all, they will be released further!”
“I understand. I will contact the company immediately. Please do wait for our company’s reply before making any decisions!” Yamamoto Ryuichi said.
“Haha, I cannot concern myself with so many matters. After 24 hours, we will tally all unpaid orders and release them uniformly. If you cannot make a decision within this period, we will not deliberately wait for your decision!” Huang He’s words were unyielding.
“Understood, I will contact headquarters right away!” Yamamoto Ryuichi acted swiftly. After meeting with Huang He, he immediately contacted Sony’s President, Nobuyuki Idei, via phone, reporting all the matters and thoughts he had encountered at Jiangnan Group.
“Do you think we should join this alliance and become their member?” Nobuyuki Idei asked.
“I believe we can become commercial foreign members, but not foreign members!” Yamamoto Ryuichi stated frankly. “There is absolutely no need for us to share technology and patents with the Chinese. China currently only has Jiangnan Group as a peculiar anomaly. The technologies of their other enterprises are more than 10 years behind ours and not worth mentioning.”
“Even taking Jiangnan Group as an example, apart from their storage chip technology, there is nothing else that warrants our greater attention. Moreover, Jiangnan Group does not seem to have included their storage chip technology in the alliance for sharing. Therefore, there is no need for us to share technology with this Chinese alliance; it is enough to obtain the right of preferential procurement!”
“Hmm, you make a lot of sense. I will discuss it with the board. You can stay there and wait for the company’s decision in a few days!” Nobuyuki Idei replied.
“That…” Yamamoto Ryuichi said with a wry smile. “Huang He said that we only have 24 hours. After 24 hours, those orders that have not been paid for will be resold. If we do not join the alliance or sign a letter of intent to join the alliance before then, we will not be able to enjoy this benefit!”
“I see…” Nobuyuki Idei also felt somewhat troubled. Although he was Sony’s Chairman and CEO, his position was not entirely secure.
This was not due to a lack of prestige for Nobuyuki Idei, but rather because he had no earth-shattering achievements. However, under his leadership, Sony’s game console business and its pan-entertainment industry had achieved success, causing Sony’s influence to continuously grow, and its stock price generally rose. Therefore, his position was quite stable.
It was just that the CEO and Chairman of Sony did not possess much power because Sony’s equity structure was too complex, and there were many areas of power struggles involved.
For ordinary matters, it was fine, but for significant events like representing Sony in joining an international organization, Nobuyuki Idei absolutely had to obtain the board’s approval.
However, for Sony to convene a board meeting, it often required more than a week to prepare and coordinate the directors’ schedules. A board meeting could not be held immediately.
But Yamamoto Ryuichi’s situation was also quite important. After a moment of hesitation, Nobuyuki Idei said, “You can tell Jiangnan Group that we, Sony, can sign a letter of intent with them, but it will be limited to a letter of intent. Do you understand what I mean?”
“Chairman, will this not anger Jiangnan Group in the future?” Yamamoto Ryuichi naturally understood Nobuyuki Idei’s meaning: to sign a letter of intent first to appease Jiangnan Group and secure the first batch of goods.
“It’s fine. Firstly, the board has not yet made a decision, and I think they will most likely approve this suggestion!”
“Secondly, a letter of intent itself has no legal value. Jiangnan Group will not offend Sony Group over such a matter; they don’t have the guts!” Nobuyuki Idei said very confidently.
“Yes!” Yamamoto Ryuichi nodded.
Then, Yamamoto Ryuichi waited until the next morning, with six hours remaining until the 24-hour deadline. He met Huang He again and stated that headquarters had authorized him to sign a letter of intent to join the alliance.
“Mr. Yamamoto, this actually violates the alliance’s regulations, because a letter of intent does not represent joining the alliance. It is only because I saw your sincere attitude that I finally signed this letter of intent. Please do not disappoint me!” Huang He said meaningfully.
In fact, Huang He would have preferred to sign a formal contract and bring Sony into the alliance first.
However, this was where Huang He had dug a hole for himself: all members wishing to join the alliance could only do so after a vote at the annual general assembly of the alliance. New members were not allowed to join at other times.
Therefore, Huang He currently had no authority to directly allow Sony to join the alliance; they had to wait until August 8th of the following year.
Thus, with each party having their own intentions, Sony and Huang He signed this letter of intent, which actually held no legal value. When the clock struck 4 PM, and the 24-hour payment period ended, 1.16 million chips ultimately had no owners who paid. Huang He then directly handed these chips over to Sony, and Yamamoto Ryuichi promptly paid for them, leaving Wenzhou with satisfaction.
“Find a few people and ‘inadvertently’ spread this news onto the internet, for example, that an employee saw Sony sign an alliance agreement and obtained more chips…” After Yamamoto Ryuichi left, Huang He instructed Hu Jing beside him.
“Yes!” Hu Jing nodded. She was very experienced in such ‘inadvertent’ tasks, having done them many times.
At the same time, Hu Jing reported, “Currently, foreign enterprises have purchased nearly 2 million storage chips from Chinese enterprises. Samsung Group, in particular, has been very active, offering double the original price to acquire them. At least 1.2 million of these 2 million storage chips have been bought by them!”
“Chairman, should we intervene to resolve this matter?”
“There’s no need!” Huang He waved his hand and chuckled. “Let those people make money. If they don’t make money, how can we highlight the alliance’s benefits?”