Chapter 516: Encirclement Hunt and Counter‑Hunt

August 17, 2009, Shenzhen.

He Xiao was watching a test vehicle run laps at the automotive R&D center's test field when his phone suddenly rang.

It was Li Yaozong.

"Return to the building immediately; we have a guest."

He Xiao was startled for a moment.

"Who?"

"A German."

Forty minutes later, He Xiao pushed open the door to the conference room on the 38th floor of Wanxiang Dasha.

Along one side of the long table sat three Germans. The one in the middle was about fifty, his hair meticulously combed, his suit crisp, a untouched cup of coffee before him. The two younger ones beside him were flipping through documents and fiddling with a laptop, respectively.

Li Yaozong sat opposite, with translator Xiao Zhou standing behind him.

When He Xiao entered, Li Yaozong raised his hand.

"This is He Xiao, the head of Wanshang Auto."

The German in the middle stood up and extended his hand.

"Hans Beckel, Mercedes China President."

He Xiao shook his hand.

His hand was firm, gripping tightly.

Both parties took their seats.

Beckel got straight to the point.

"Mr. Li, Mr. He, we heard that Wanshang Auto is collaborating with the Beidou Navigation System."

Translator Xiao Zhou rendered the sentence.

Li Yaozong nodded.

"The information is very prompt."

Beckel smiled.

"There are no secrets in the automotive industry."

He took a document from his assistant and pushed it to the center of the table.

"This is our cooperation proposal."

Li Yaozong did not reach out to take it.

"What cooperation?"

Beckel nudged the document forward.

"Mercedes wishes to purchase Wanshang Auto's Beidou Navigation System and install it in the models we produce in China."

The conference room was silent for a second.

He Xiao glanced at Li Yaozong.

Li Yaozong showed little expression on his face.

"Mr. Beckel, the Beidou Navigation System is a joint project between us and the state; the agreement stipulates it can only be used on Wanshang Auto vehicles."

Beckel's smile did not change.

"The agreement can be revised. Terms are negotiable."

He paused.

"We can pay a high technology licensing fee, or share some of our intelligent driving technologies with Wanshang. In this area, Mercedes is ahead of you."

He Xiao's hand clenched tightly under the table.

Li Yaozong did not answer immediately.

He lifted the tea cup before him and took a sip.

Then he set the cup down, looking at Beckel.

"Mr. Beckel, do you know what the biggest difference between the Beidou Navigation System and GPS is?"

Beckel was momentarily stunned.

"Higher accuracy?" he ventured.

"No," Li Yaozong shook his head, "it's control."

He looked at the German.

"GPS belongs to the Americans. If one day the Americans are in a bad mood and shut down the signal, all GPS‑equipped cars will be blind."

He paused again.

"Beidou is China's own. No matter what happens, the signal remains."

Beckel's smile softened slightly.

"Mr. Li, what you say concerns politics. We only discuss business."

Li Yaozong smiled.

"Can business and politics be separated?"

The conference room fell silent for a few seconds.

The young man beside Beckel spoke up.

"Mr. Li, we understand your stance. But there is an old Chinese saying, 'One tree cannot make a forest.' The automotive industry needs cooperation and openness. A closed system won't go far."

Li Yaozong looked at him.

"What is your name?"

"Mayer, Mercedes China Strategic Department."

Li Yaozong nodded.

"Mr. Mai Er, you are right. The automotive industry needs cooperation."

He paused.

"But the premise of cooperation is equality."

He looked at Mai Er.

"Is Mercedes willing to share all of your autonomous driving technology with Wanshang?"

Mai Er was stunned for a moment.

"This…"

"You don't want to, right?" Li Yaozong said, "You only want to buy Beidou, not sell technology."

He leaned back in his chair.

"That's not cooperation, that's procurement."

Six

Bei Ke Er's expression changed.

He smiled again, but this time the smile wasn't as natural.

"Mr. Li, we can negotiate. The technology licensing fee is negotiable. Mercedes' brand value can help Wanshang automobiles enter the European market."

He Xiao spoke up from beside.

"Mr. Bei Ke Er, Wanshang automobiles have no plans to enter Europe for now."

Bei Ke Er looked at him.

"Why?"

He Xiao smiled.

"Because our cars first need to dominate the China market."

He looked at the German.

"China sold 13 million cars last year. This market is enough for us to thrive for many years."

Bei Ke Er was silent for a few seconds.

Then he stood up.

"Mr. Li, Mr. He, today's discussion was valuable. I hope we keep communication."

He extended his hand.

Li Yaozong shook it.

"Take care."

After the German left, He Xiao plopped onto the chair.

"President Li, they came with ill intent."

Li Yaozong nodded.

"They're in a hurry."

He Xiao looked at him.

"Hurry about what?"

"They're hurrying about our Beidou," Li Yaozong said, "If Mercedes can't install Beidou, they'll fall behind in the China market. They don't want to fall behind."

He Xiao thought for a moment.

"Then what should we do?"

Li Yaozong stood up and walked to the window.

"Continue doing our work. Beidou will keep progressing as usual, and autonomous driving will keep being developed."

He turned around.

"The more they hurry, the more it shows we're on the right track."

The next month, Wanshang automobile R&D center entered an unprecedentedly busy state.

The development of the Beidou navigation chip was handled by the Wanshang core team. Chen Feng's side dispatched thirty top engineers, working day and night with Beidou office experts to tackle the challenges.

The autonomous driving algorithm was handled by the Pangu Automobile Systems Team. Zhao Ming's side sent twenty people to work with He Xiao's team, running the test field daily.

For the automatic parking feature, He Xiao personally led the team. He recruited a dozen employees poor at parking techniques, having them test repeatedly and give feedback each time.

The automatic maintenance system was supported by Wang Bo's side. They disassembled a test vehicle completely, affixed a QR code to each component, then used Phoenix Scan to see if information could be retrieved.

Throughout August, the lights in the automobile R&D center never went out.

September 15th, the first batch of Beidou navigation chips successfully fabricated.

Chen Feng, holding the chip the size of a fingernail, appeared at the doorway of He Xiao's office.

"It's done."

He Xiao took it, looking at the light.

The chip was tiny, slightly smaller than a phone chip. Its surface bore a few lines of text: Wanshang Beidou No. 1.

"What about performance?"

Chen Feng smiled.

"It's 30 % more accurate than the civilian GPS version. Satellite acquisition speed is twice as fast. Power consumption is 20 % lower."

He Xiao lifted his head.

"Can it be used?"

"Yes," Chen Feng said, "Install it and it runs."

September 20th, the first test vehicle equipped with Beidou navigation rolled off the Wanshang automobile factory line.

That was a Phoenix-brand off-road vehicle, its appearance no different from an ordinary one. But when the navigation was opened, the map on the screen was different.

No longer a GPS signal, it was BeiDou's.

He Xiao personally got into the driver's cabin and pressed the navigation button.

The screen popped up the current location: 22°32'N, 113°56'E. Precision displayed: 0.5 meters.

0.5 meters.

Four times higher than GPS's civilian precision.

He Xiao stared at that number, silent for a few seconds.

Then he started the vehicle and drove out of the factory.

October 8, the National Day long holiday had just ended, and the second batch of visitors arrived.

This time they weren't Germans, but Japanese.

Toyota China Region President Shantian Yilang, accompanied by five people, appeared at Wanxiang Dasha.

Same meeting room, same position.

Shantian was much more direct than Becker.

"Mr. Li, Toyota wants to cooperate with Wanxiang."

Li Yaozong looked at him.

"What cooperation?"

Shantian took out a document from his bag.

"Toyota is willing to partially open its hybrid technology to Wanxiang. In exchange, we hope Wanxiang will authorize the BeiDou navigation system for Toyota's use."

He Xiao listened on the side, his heart gave a jolt.

Hybrid power.

That was Toyota's core technology.

The meeting room fell silent for a few seconds.

Li Yaozong did not answer immediately.

He picked up the document and flipped through it.

Then he put it down.

"Mr. Shantian, have you carefully read this document?"

Shantian was stunned for a moment.

"Of course."

Li Yaozong pointed to one page.

"Here it says the technology Toyota is opening does not include the battery management system, does not include the energy recovery system, does not include the motor control system."

He looked at Shantian.

"These three are the core of hybrid technology. If the core isn't given, what's the point of giving anything?"

Shantian's smile stiffened slightly.

"Mr. Li, these are Toyota's core secrets; they cannot be casually opened. But we are willing to gradually open them, after trust is established……"

"How long after that?" Li Yaozong interrupted.

Shantian opened his mouth.

Li Yaozong stood up.

"Mr. Shantian, Wanxiang is not a three-year-old child. You want to use BeiDou, yet you're unwilling to trade for the real thing."

He walked to the window.

"Such cooperation, better not to discuss."

After the Japanese left, He Xiao couldn't help but ask.

"Manager Li, we really don't have hybrid technology. If we could exchange even a little, that would be something……"

Li Yaozong looked at him.

"Exchanging a little is still a little, but then what?"

He Xiao said nothing.

"Then they'll keep the core, and we'll forever be chasing behind them." Li Yaozong said, "Such cooperation is better than no cooperation."

He walked back to his seat.

"He Xiao, remember. With technology, either don't exchange it, or if you do, exchange it for something equivalent. Otherwise, what you get will always be scraps."

He Xiao nodded.

"Understood."

October 20, the third batch of visitors arrived.

This time they were Americans.

General Motors Global Vice President Mark Johnson personally flew over.

His attitude was softer than the previous two batches.

"Mr. Li, General Motors hopes to establish a comprehensive strategic partnership with Wanxiang."

Li Yaozong looked at him.

"How comprehensive?"

Johnson opened a thick document.

"General Motors is willing to share its sales channels in China with Wanxiang. All of GM's 4S stores can sell Wanxiang vehicles. All of GM's after-sales networks can provide service for Wanxiang vehicles."

He paused.

"As a trade, General Motors hopes to obtain the right to use the Beidou navigation system, as well as priority cooperation rights for Wanshang's intelligent driving technology."

He Xiao listened beside him, calculating a figure in his mind.

General Motors' 4S stores number over two thousand nationwide.

Wanshang's own stores number just over eight hundred.

If the channels are shared, Wanshang's sales could double.

Li Yaozong did not answer immediately.

He picked up the document and flipped through it page by page.

He flipped for ten minutes.

Then he set it down.

"Mr. Johnson, who wrote this proposal?"

Johnson was momentarily stunned.

"The General Motors China team."

Li Yaozong nodded.

"Well written."

A smile appeared on Johnson's face.

"Then, Mr. Li, you agree…"

"But there is one problem," Li Yaozong interrupted him.

Johnson's smile froze.

"What problem?"

Li Yaozong pointed to a page in the document.

"It states here that the priority cooperation rights for Wanshang's intelligent driving technology mean that General Motors has the right to participate first in Wanshang's intelligent driving R&D projects."

He paused briefly.

"Priority—what does that mean?"

Johnson opened his mouth.

Li Yaozong answered for him.

"Priority means you want to see our technology first. After you have seen it, you decide whether to cooperate."

He looked at Johnson.

"That's not cooperation; that's an assessment.

The conference room fell silent for a few seconds.

Johnson's assistant whispered something beside him.

Johnson took a deep breath.

"Mr. Li, what kind of cooperation would you consider fair?"

Li Yaozong looked at him.

"Very simple. You give one, I give one. An equal exchange."

He walked to the whiteboard and picked up a marker.

"If General Motors wants the Beidou navigation system, that's fine. Trade it for your latest electric vehicle technology."

He wrote on the whiteboard: Beidou navigation = General Motors electric vehicle technology.

"If General Motors wants priority cooperation rights for Wanshang's intelligent driving, that's fine. Trade it for your autonomous driving road‑test data."

He added: Wanshang intelligent driving = General Motors road‑test data.

He turned around.

"Mr. Johnson, do you think this proposal is fair?"

Johnson remained silent for a long time.

Then he stood up.

"Mr. Li, I need to report to headquarters."

Li Yaozong nodded.

"I'll await your news."

After the American left, He Xiao let out a long sigh.

"Director Li, today you are…"

Li Yaozong looked at him.

"Do you think I'm being too rigid?"

He Xiao thought for a moment.

"It's a bit rigid, but it doesn't seem wrong either."

Li Yaozong walked to the window.

"He Xiao, do you know why these foreigners keep coming one after another?"

He Xiao shook his head.

"Because they're in a hurry," Li Yaozong said, "When Beidou appeared, they realized that you can't drive on China's roads without it. When Wanshang's intelligent driving appears, they realize that the future cars won't be dictated by them."

He turned around.

"They're urgent, so we can't be soft. If we are soft, they'll keep pressing for more."

He Xiao nodded.

"Understood."

October 25, the news broke.

Germany's *Mingjing Weekly* published an article titled: "China's Wanxiang Refuses Mercedes' Cooperation Request, Beidou Navigation Becomes the Focus of the Contest."

Japan's *Economic News* followed up: "Toyota Hybrid Technology Exchange Plan Fails, Wanshang Holds Firm on Beidou Monopoly Rights."

The *Wall Street Journal* in the United States had a more direct headline: "China Automakers' Open Scheme: Use Beidou to Build a Wall, Leaving Foreign Capital No Way Out."

The article wrote:

"Wanxiang Group's strategy is crystal clear: use the Beidou navigation system to construct a moat that foreign automakers cannot cross. Any overseas brand that wants a piece of the China market must face this wall. Either hand over core technology for exchange, or watch Wanxiang gallop ahead unchallenged."

At the end, the article quoted an anonymous analyst:

"This is not commercial competition; it is a technological contest between nations."

He Xiao, when he saw these reports, was in the test field staring at a prototype vehicle.

He handed his phone to Li Yaozong.

"Mr. Li, take a look."

Li Yaozong took it and read through line by line.

After reading, he returned the phone to He Xiao.

"It's written quite lively."

He Xiao looked at him.

"Aren't you worried?"

Li Yaozong shook his head.

"Worry about what? They write their part, we do ours."

He pointed at the test vehicle that was running laps.

"That one is what we should be concerned about."

On November 3, General Motors headquarters replied.

Johnson came back to Shenzhen, bringing a new proposal.

This time, the document was much thinner.

"Mr. Li, General Motors agrees to the equivalent exchange principle you proposed."

He pushed the document in front of Li Yaozong.

"General Motors is willing to provide the latest electric‑vehicle technology in exchange for usage rights to the Beidou navigation system. It is also willing to provide autonomous driving road‑test data in exchange for priority cooperation rights to Wanshang Intelligent Driving Technology."

Li Yaozong picked up the document and examined it carefully.

This time, the terms were written very clearly.

Electric‑vehicle technology includes three major systems: battery, motor, and electronic control.

Road‑test data includes all autonomous driving data General Motors has accumulated in the United States and Europe, totaling two million kilometers.

Li Yaozong finished reading and set the document down.

He looked at Johnson.

"These data, General Motors is willing to give all of them?"

Johnson nodded.

"All of them."

Li Yaozong was silent for a few seconds.

Then he extended his hand.

"Pleasant cooperation."

Johnson grasped his hand.

"Pleasant cooperation."

The signing ceremony was simple, with no reporters and no flashbulbs.

After signing, Johnson stood up.

"Mr. Li, I hope this is the beginning of a long‑term cooperation between General Motors and Wanshang."

Li Yaozong nodded.

"Hope so."

After Johnson left, He Xiao leaned over.

"Mr. Li, General Motors is really in a hurry."

Li Yaozong looked at him.

"What do you think?"

He Xiao thought for a moment.

"I think they're not truly hurried; they're truly clever."

Li Yaozong raised an eyebrow.

"How so?"

He Xiao pointed at the signed agreement.

"Exchange technology for market, data for time. General Motors knows that in the China market they can't outrun us. Better to get on board early and still get a piece of the pie."

Li Yaozong smiled.

"You see it quite clearly."

He Xiao scratched his head.

"Learned from you."

That evening, He Xiao returned to the automotive R&D center.

The lights in the test field were still on, and the test car was still running laps.

He stood at the edge of the field, watching the car lap after lap.

The BeiDou navigation signal was steadily jumping on the instrument panel.

The intelligent driving algorithm was running silently in the background.

The automatic parking function was being tested over and over.

The automatic maintenance system was always ready to sound an alarm.

He watched for a long time.

Then he took out his phone and sent Li Yaozong a message:

"BeiDou is installed. The data is running. The universal technology will be in place next month."

In the distance, the outline of Fenghuang Mountain faded into the night.

A new day was about to begin again.