Chapter 319: Continue Being Patent Hooligans

Following this announcement, there were many ramifications abroad. The response overseas was totally within Chen Jin’s expectations. As a repercussion to the announcement of Xing Hai Technologies’ High Energy 1, on the 18th of March, which was the following day, international oil prices plummeted! From the highest price of 140 dollars per barrel, it tumbled down to 120 dollars per barrel. It even fell through 100 a few days later, returning to the normal price range. Aside from that, many western powers couldn’t sit still any longer. They stated:

“Xing Hai Technologies achieving a breakthrough in the energy technology field has brought upon hope to mankind’s governance on the global environment. There’s hope for carbon emissions to be reduced and the greenhouse effect to be effectively curbed, all based on whether Xing Hai Technologies is selfish or not.”

“Protecting the environment is the duty of every country and every company. It is Xing Hai Technologies’ obligation to help and provide technical support to the others for a better world to be forged.”

“Xing Hai Technologies, help us save this devastated world!”

All in an instant, the environmental awareness of many western countries bloomed, suddenly realizing that they desperately need Xing Hai Technologies’ new energy technology to improve the ecological environment of the entire planet. For example, they were very much in need of the High Energy 1 battery’s technology.

“Such an advanced battery technology, they…they must have stolen it from us, despicable thieves.” Netizens of the M nation were basically still on the same thing. But for some reason, their momentum was no longer as powerful as before.

…

Chen Jin was more surprised by the local response. The response of local new energy enterprises, especially that from Li Shen Corporation, Biyadi Batteries, Amperex Technologies, Guoxuan Hi-Tech Company, and other local battery manufacturers, was to “protest” against Xing Hai Technologies.

“Can you calm yourselves, Xing Hai Technologies? We used 20 years to improve our battery’s energy density from 200 Wh/kg to 450 Wh/kg. The manpower and resources we expended are unimaginable. None of our R&D staff have slacked off for even a single day, they are even working overtime during the Lunar New Year. But what about you? Breaking the rules immediately, flipping the tables over right away, throwing our business at a dead end without any prior warning!”

“This is foul play Xing Hai Technologies, this is foul play! 1500Wh/kg, we would need at least another 10 years to attain this level. Making some small improvements is still okay, but a threefold increase instantly? You are literally taking our lives!”

“This is principally a replica of the ‘graphene technology’ some time ago. After Xing Hai Technologies entered the ‘graphene’ era of freedom, they’ve gobbled up the whole local graphene industry. After obtaining Xing Hai Technologies’ patent license, companies will have to hand over 50% of their net profit for 20 years straight! I thought that Xing Hai Technologies would stop there, who would have known that they still have their eyes on the battery industry!”

“Alright, since it has come to this, we quit! Xing Hai Technologies, all my 20 thousand employees, my factory and equipment bought with a couple of billion dollars of investments, they are all yours. I’ll sell them all to you at cost price and I’ll be done with the battery industry!”

“I have more than 30 thousand staff in my factory which associates with more than 30 thousand families. Many of them are still on house loans and still need to support their children’s school fees. I’m handing them to you Xing Hai Technologies, please take care of these workers who just want a stable life!”

“With great ability comes great responsibility. Xing Hai Technologies, the future of the Z nation’s new energy industry is all on you now!”

The local new energy manufacturers were fuming as they voiced out their grudge and dissatisfaction. A few manufacturers even gave up on themselves and called for Xing Hai Technologies to take over them. Nobody could ask them to not complain. Foul. This was really foul play by Xing Hai Technologies! Within the new energy field, did the local manufacturers not work hard? Did they invest too little? Were they lacking determination and perseverance to reform the world’s new energy field?

No. Their local manufacturers were trying their best to march into the new energy industry like they were in an arms race. They were accumulating each and every bit of minor breakthroughs and never once tapered off in their efforts.

In the end, they were struck by Xing Hai Technologies’ dimensionality reduction. All their previous efforts were all in vain and were thrown on the edge of being eliminated. It would only feel weird if they were still speaking in harmony. Afterall, Xing Hai Technologies was taking the whole cake away and severely harming their benefits.

Amongst the condemnations, Chen Jin abruptly became aware that the other’s cake should not be touched lightly. Previously, he also tried his best to not harm the benefits of others and not smash the livelihood of local manufacturers. Even if he were to smash some, it should be that of the foreigners. But this time around, the benefits of all domestic energy companies were being threatened by the High Energy 1 battery.

Dozens of factories, millions of associated workers, trillions of investments. Even the nation was looking for him for negotiations, hoping that he handled this appropriately… the nation had quite an amount of investments in these energy companies.

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“We welcome all forms of advanced technology and will not hinder their progression! But considering the sphere of influence of this, do be cautious and handle this appropriately.” These were the words from the higher-ups for Chen Jin.

…

At Xing Hai edifice, in the executive conference room, Chen Jin had a discussion with the company’s executive members.

“Mr. Chen, at present, what we should do is to put more weight onto intellectual property than assets. We should not build our own battery factory. Instead, we should provide High Energy 1’s technical license and extract 50% net profit. In this way, the local battery manufacturers won’t have to shut down and their workers and factories could also be kept. It won’t trigger too big of a turmoil. This would also be the best solution,” said Ling Jundong, who was sitting in the first position on his left.

The other executives nodded.

Vice-chairman Ling Ying said, “Focusing less on assets is the way to go for high-tech enterprises to reduce cost and avoid risks. The reason is that building a factory requires investments, workers have to be paid, and taxes must also be paid to the state. For a good product that is profitable at first, not only will the return cycle be lengthy, but the company might even experience losses. By distributing technical licenses, it would be equivalent to diverting away costs and risks. Although only half of the profit belongs to us, from an overall perspective, it is still very well worth it!”

The other executives agreed. “I agree, we should place our focus on R&D! Technology is constantly iterating, focusing too much on assets might come back to burden us in the future.” Meaning to say that, Xing Hai Technologies was more suited to be patent hooligans.

However, Chen Jin shook his head. “We mustn’t leave assets all aside! We still have to build our own battery factory and satisfy our own needs. It doesn’t have to be too big, investing a hundred billion would be enough. With our own battery factory, we will get to know how our peers are doing in their business, how much are they actually earning, and get a rough number for ourselves. Or else, if we give out our technical license and the others are losing money every year and have no net profit to turn in, won’t we be messing ourselves up?”

This was also the drawback of profit sharing. Xing Hai Technologies was not completely new to situations such as this. Therefore, they had to take precautions and create an intuitive reference for themselves.

Ling Jundong and the others nodded. “Well said, Mr. Chen.”

…

And so, the solution was settled. Xing Hai Technologies agreed to provide technical licenses for the High Energy 1 battery. All local battery manufacturers were eligible for applications. But the local manufacturers were still not quite satisfied.

“50% profit sharing? Won’t we be working for Xing Hai Technologies in that way?”

“The ratio is too high; we can’t accept it.”

“30%, at most 30%!”

Chen Jin’s attitude was stern towards these dissatisfactions. “50% gain from the local market, no less. Xing Hai Technologies will not budge.” But he also left them with another path. “If you expand to foreign markets, we will demand less at 30%. The foreign market is nothing smaller than the local market, you can choose to expand your businesses abroad.”

Just 30% on foreign profits? The local manufacturers were immediately tempted. They couldn’t earn much from local markets, but they could from foreign markets. They could focus on expanding abroad.

“Alright! We agree for partnership.”

A number of partnership agreements came into being.

However, at this very moment, the military interfered unanticipatedly and gave out a stern warning: The sales of High Energy 1 batteries overseas was strictly banned.