Chapter 1611: The Georgetown Conspiracy (revised)

Later in the day.

The other side of the world.

Inside a secret private club in Georgetown, Washington, DC.

Heavy velvet curtains blocked out the sunlight.

The air was filled with the smell of expensive cigar smoke and the aroma of whiskey.

There's a secret meeting going on here.

A secret meeting that is small in scale but may have an impact on the global technology industry landscape.

On one side were three senators in suits and ties with serious expressions.

They are important promoters of technology and industrial policies in Congress.

On the other side are several top lobbying representatives led by Elijah Cohen.

It represents a "strategic coordination alliance" consisting of more than a dozen top North American technology companies.

"Gentlemen," Cohen's voice was deep and penetrating, breaking the brief silence, "time is of the essence, so I will not waste time on polite conversation."

He pointed to an electronic screen behind him and glanced at the three congressmen.

"It is now very clear that China has posed an unprecedented and systemic threat to us in the field of science and technology, especially in the formulation of communication technology standards."

Several sets of data charts are projected on the screen at the appropriate time.

"Look at the allocation of IPV6 addresses and the deployment status of root servers, and then look at the number of proposals and the proportion of core patents in 3GPP (5G standards organization)."

"According to the current trend, within five years at the latest, in the key standards area that will determine the direction of technology in the next ten or even twenty years, we may face an extremely disturbing situation: the combined voice of the United States, Japan, Germany, and Canada in relevant international organizations will be roughly equivalent to that of China alone!"

Cohen's tone became serious:

"Therefore, we hope to find a way to restrict the development of China's technology industry from a judicial perspective!"

The three congressmen looked at the shocking curve on the screen and their faces became solemn.

They are not practitioners, but it is not difficult to see that what Cohen said is true.

China's rise in communication technology standards is alarmingly fast.

But as members of parliament, they also have their own difficulties.

"Mr. Cohen, we understand the industry's concerns," said Robert Chambers, a senior congressman who led the meeting. "But you also know that adopting radical and comprehensive technology blockade and decoupling policies will bring huge risks."

Another person nearby also expressed his agreement:

"The global industrial chain is already deeply integrated. If it is forcibly cut off, it is likely to cause chaos in the supply chain system and even the collapse of the global market... This will directly harm the interests of our local companies and consumers."

He spread his hands frankly:

"Cohen, we are old acquaintances. There is no need to hide it. The mid-term elections are coming up and the general election will come in two years. If this causes large-scale economic fluctuations..."

He didn't say anything else, but the meaning was self-evident.

The votes will be severely affected.

"No, no, no, you misunderstood."

Another lobbyist quickly chimed in:

"We don't really want to completely decouple from China. After all, many companies still need their market, and there are many production bases there."

Cohen turned back and pressed the page-turning pen, and a plan appeared on the screen:

"Our strategy is to use technological blockade as a bargaining chip to pressure them to make concessions, and the ultimate goal is to reach a stable rules framework that is beneficial to us!"

The three congressmen opposite still maintained their previous posture.

But their eyes and expressions showed that they had begun to take an interest.

Seeing this, Cohen switched the screen again.

“This framework is similar to the Washington Naval Treaty, except that in key technology fields such as communications, semiconductors, and artificial intelligence, it clearly defines the upper limits of the share of major countries and regions in the global patent pool and standard essential patents (SEPs) based on technological strength, market size, and historical contributions.”

A pie chart appeared on the screen:

“按照初步构想，一个合理的比例是：华夏：美国：日本：欧盟：韩国：独联体= 4 : 4 : 3 : 2 : 1 : 1。”

Another younger senator, Mark Flynn, suddenly interjected:

"So...what about other countries?"

Cohen just laughed.

"Same as the Washington Naval Treaty," he replied casually. "Other countries do not impose restrictions."

Flynn also responded.

This share even takes into account the CIS, which has a low voice, and all other countries are completely sidelined.

Unless aliens come to help, there will be no trouble at all.

It will also be more convenient for them to make adjustments later.

After making sure there were no further questions, Cohen continued to explain:

"This ratio fully takes into account China's current market size and development momentum, giving them the same top-tier share as us."

"At the same time, it also consolidates the interests of traditional allies Japan, the European Union and South Korea, while South Korea and the CIS can serve as important supplements."

"In this way, our total share will reach 10, or at least 8, giving us an absolute majority and dominance, while Huaxia will be limited to 4, and at most it will not exceed 7, so we will not be able to form a monopoly."

There was a brief silence in the meeting room.

This solution is obviously more feasible.

It not only gave China a big enough cake to give them the motivation to sit down for negotiations, but also ensured its own long-term advantages through a legalized treaty framework.

"It sounds... feasible." Senator Flynn's eyes flashed with a hint of interest. "Giving them a decent share in exchange for long-term rule stability is much less risky than direct confrontation."

Councillor Chambers still has some concerns:

"The idea is attractive...but the key is, will China accept it? This is tantamount to asking them to put on shackles on their own initiative."

"Moreover, the negotiation process may be quite long, during which their technological development will not stagnate. If they refuse, or the negotiations break down, what should we do? Should we hastily initiate sanctions? Then the consequences will be difficult to predict."

The third member of parliament, Emilia Chen, who had been silent, also spoke with concern:

"Robert is right. In my district, Qualcomm, Nvidia, Apple... many companies' production lines and supply chains are deeply integrated into the Chinese market... Any policy that may affect trade will be immediately reflected in stock prices and employment data, and voters will not easily agree to it."

The scene was somewhat stalemate for a while.

There is a divergence of positions between Councillor Flynn, who supports tough restrictions, and Councillors Chambers and Chen, who support a careful balance.

Cohen was not anxious.

He knew he had to add fuel to the fire.

At this point, John Carlson, a lobbyist for Qualcomm sitting next to Cohen, cleared his throat:

"In fact, there is a once-in-a-lifetime window of opportunity right now!"

Everyone's eyes were focused on him.

"The semiconductor manufacturing industry is undergoing a historic generational leap - from deep ultraviolet (DUV) light sources to extreme ultraviolet (EUV) light sources!"

Carlson said:

“EUV lithography is the only viable solution for manufacturing the next generation of semiconductors, and the core lifeblood of this technology - EUV light source and objective lens system... is completely in our hands and in the hands of our allies.”

"And no Chinese company, including Huaxin International, which they have high hopes for, has the ability to develop and manufacture EUV lithography machines!"

When talking about "Huaxin International", he emphasized the tone.

"This window of opportunity for generational leap will not be too long, only about 3-5 years. If Hua Xia misses this period, the competitiveness of their entire industry will be greatly affected,"

Cohen immediately added, having apparently reviewed the script with Carlson:

"So, in order to avoid being completely left behind in this competition that will determine the future... I believe that as long as the conditions we put forward in the negotiations are relatively reasonable, such as the share ratio Mr. Cohen just showed... then under the huge pressure during the critical window period, the other party will make substantial concessions!"

He looked at Chambers and Councillor Chen:

"Because they can't afford to delay! Time is on our side!"

These words directly hit the core concerns of Chambers and Councillor Chen:

Time cost, risk controllability, and whether it can produce results quickly.

They painted a clear picture, which is to use EUV, an irreplaceable absolute technological advantage, as a "stick" to force China to accept the "carrot" of share restrictions in the short term.

Congressman Chambers's frown finally relaxed.

After hesitating for a moment, he exchanged glances with Councillor Chen and saw that the other party nodded slightly.

Of course they need votes, but it is even more impossible for them to completely offend these financial backers.

It’s enough to have said this much today.

"We will seriously consider it and coordinate within the party."

Chambers paused and his tone became more serious:

"Of course, this matter is of great importance and requires strategic decision-making at the highest level...so we will also seek to communicate with the White House as soon as possible and strive to gain the understanding and support of the President and the National Security Council!"

Several lobbying representatives looked at each other and saw the satisfied expressions on each other's faces.

Obviously, this kind of thing of dividing spheres of influence in the midst of chatting and joking is very much to the Americans' liking.

Just like at the end of World War II.

It's just that no one realizes it yet.

Times have changed.