Chapter 1627 Why didn’t you follow the script?

China will not give in easily, at least not on the surface. This is something that most people can think of.

However, the responses from Ju Factory and Huaxing Technology still surprised the majority of media outlets that were waiting to see what was going on.

Not only because the two statements were almost identical, but also because they were made at almost the same time.

more importantly.

The reaction was really bland.

Although corporate announcements have their own mature wording system, it is not difficult for experienced insiders to dig out some emotional elements from between the lines.

As for the current situation, the U.S. Department of Commerce is taking the risk of de-globalization by using its trump card, undoubtedly intending to hit the weak spots of the two companies, or even the entire Chinese semiconductor industry.

Then in response, whether it is explanation, rebuttal, resistance or even scolding, they are all reasonable, or at least foreseeable forms of expression.

But it shouldn't be dull anyway.

It’s as if the supply of the lithography machines and chips was cut off, but the potatoes and cabbages in the canteen.

For a time, public opinion around the world was caught off guard.

I'm even a little unsure which direction to report the rhythm from.

Most of the people whose skills are average and who don't have any inside information just end up reprinting the original text.

However, there are still some people with sharp eyes who have found a way to operate from it...

……

Later in the day.

Washington.

Chief of Staff Pete Rouse walked into the Oval Office and placed the folder on his desk.

"Sir, China's official response has just been compiled."

As he summarized, he glanced at the sofa seat next to him.

There sat Commerce Secretary Penny Pritzker and Senator Robert Chambers.

Together with Ao Guanhai himself, they basically form the core trio of the whole thing.

"As you would expect, the statements from Chrysanthemum Factory and Huaxing Technology are almost straight from the diplomatic rhetoric manual. The statement from the Industrial Construction Committee... is also watertight."

Ao Guanhai put down the pen in his hand and quickly flipped through the few pages of the briefing in front of him, his brows slightly furrowed.

"It's much more ordinary than I thought." He raised his eyes and glanced at Pritzker who was sitting upright on the sofa opposite him. "Penny?"

Then he closed the folder and motioned to Pete Rouse to pass it to the other party.

Pritzker took the folder and read it quickly as well.

"Mr. President, there are still thirteen... twelve days until the December 12 deadline we set. There is still plenty of time." She closed the folder and tapped the plastic cover with her fingertips. "This response may be a test of our reaction, or it may be a delaying tactic to appease domestic public opinion... In short, there are many possibilities. I'm afraid we will have to wait until New Year's Eve to reveal the final answer."

"..."

While neither of them was speaking, Chambers leaned forward slightly and interrupted:

"Mr. President, I remember you mentioned before that we should be prepared to extend this game until the second half of next year..."

When Pritzker was flipping through the documents just now, he had already seen the contents.

Ao Guanhai put one hand on his lips and nodded:

"I'm not worried, I just think... the other party's attitude is a bit strange."

He actually feels the same as most media outlets.

It shouldn't be so bland.

Chambers thought for a moment, and suddenly threw out a key message.

"Before coming here today, I checked the fund flow records between TSMC and China since January... A clear trend is that the Chrysanthemum Factory has been paying TSMC for the 7nm chip manufacturing since at least five months ago..."

The corners of Ao Guanhai's mouth drooped slightly, and he was obviously a little unhappy with this statement.

It was not difficult to hear that the other party's words were blaming himself for taking action too late.

But he quickly regained his previous expression: "Can we calculate the exact delivery quantity from this?"

Chambers shook his head slowly. "The payment structure is complex, including deposits, phased payments, and final balance. Unless we use an administrative order to force TSMC to submit detailed internal accounts, it will be impossible to accurately split it."

In their plan, TSMC is as important as ASML.

Therefore, unless it is necessary, there is no need to make your eating appearance too ugly.

But soon, he changed the subject:

"However, if we make a rough estimate based on the 3:7 model, then the Ju factory is likely to have received 50 to 60 7nm chip products... Of course, there will be differences in categories and models, but if they calculate carefully, it is not impossible to rely on this batch of inventory to support a quarter or even half a year."

Pritzker, holding a cup of coffee, replied at the right time: "If that's the case, then I guess the Chinese side is probably using this gesture to delay time, create an illusion of 'not fearing sanctions', and try to gain more favorable bargaining chips for themselves in subsequent negotiations."

The picture they painted - that China was bluffing, hoarding supplies, and buying time for negotiations - seemed very reasonable, like two pieces of a puzzle, temporarily filling some of the anxiety in Ao Guanhai's heart.

"A reasonable inference." The latter nodded slightly, and his tense expression finally relaxed a little.

In his opinion, as long as the Chinese are willing to sit down at the negotiating table, his plan will be 90% successful.

So, I prepared to make a summary speech and then send the guests off:

"So……"

But he was interrupted just as he started talking.

This time, it was Pritzker who raised concerns:

"What I am really worried about is market confidence... Capital is extremely sensitive and fragile after all. Assuming that after December 12, Juchang and Huaxing Technology can still deliver products to their global customers stably, whether they use inventory or other unknown means..."

She put down the cup and glanced at Ao Guanhai and Chambers:

"In the eyes of investors, this is equivalent to declaring that our sanctions have failed to achieve the expected effect. At that time, companies such as TSMC, Qualcomm, Intel, Nvidia, etc. may suffer a chain reaction of selling... The market volatility may be more severe and more difficult to control than we expected."

Somewhat surprisingly, O'Guanhai and Chambers seemed quite relaxed.

The latter even smiled calmly.

"Penny, your concerns are very professional." Chambers' voice was soothing. "But please don't forget that in the process of promoting this sanctions plan, Qualcomm, Intel, and core companies such as Samsung are the most active initiators and participants. They are not passively involved, but actively choose to take risks."

He paused for a moment, then emphasized:

"The decision-makers of these companies, including their major shareholders, have a clear understanding and are fully prepared for possible short-term stock price fluctuations and even profit declines... In fact, as far as I know, Qualcomm's management has even discussed privately that this may be a 'window of opportunity' to repurchase the company's shares at a low price."

Ao Guanhai took over the conversation:

“Robert is right. The short-term pain in the capital market is a controllable and acceptable cost in light of long-term strategic interests… Our allied companies have demonstrated admirable determination and responsibility. In the short to medium term, any disturbance in the market will not be enough to shake our foundation.”

Similar to the strategy of low-price dumping, capital does not care how much it costs in the process of seizing the market.

After all, as long as you gain a monopoly, you will definitely be able to recoup your initial investment...

Although the other two had given assurances, Pritzker's instinctive vigilance had not completely dissipated:

"Ever since the craze over the new battery, the entire stock market has been clearly overheated, so I think... we still have to do something, at least to hedge against the possible impact from China, just in case."

In fact, Ao Guanhai still felt that the other party was making a big deal out of nothing.

But on reflection, there doesn't seem to be much harm in this proposal.

So he stopped arguing and simply nodded:

"Of course, it's always good to plan ahead." He raised his hand and made a "sit back" gesture, then turned to the chief of staff and said, "Pete, contact the White House Office of Science and Technology Policy and ask them to coordinate. We need a strong endorsement from the source of technology to hedge against any market concerns that may arise."

Peter Rouse quickly opened his notebook: "You mean..."

"My scientific advisor told me that advanced chips with a process of 7nm and below can only be produced by EUV lithography technology."

Ao Guanhai replied:

"Currently, the only alliance in the world that can master and mass-produce EUV lithography machines is the ASML-Zeiss alliance, and the alliance's technological foundation and key supply chain are inextricably linked to us... So we should find a media outlet with enough influence to arrange an exclusive interview with ASML executives and let them express their views from a professional perspective, just to appease the capital market."

"I understand." Ross nodded immediately. "CBS's news and current affairs column has enough influence. Their ace producer and I have a good personal relationship. I can arrange it as soon as possible."

"Very good." Ao Guanhai showed a satisfied expression and glanced at Pritzker, "Penny, should this ease your concerns?"

Pritzker met the president's gaze and finally nodded.

Although the uneasiness in her heart was not completely eliminated, she also understood that this was the safest response strategy at the moment.