Chapter 481: Just Business
Jiang Qingchuan had hit the nail on the head.
In Su Yuanshan's previous life, the MP3's rise wasn't smooth sailing either. A Samsung employee had been reading an in-flight report on audio and video technology when he glanced over and saw the passenger next to him using a MiniDisc (MD) player.
That moment sparked an idea: use flash memory chips to store MP3s—a compact format with decent audio quality. The result? A lightweight, highly portable player that could organize music with ease and replace the MD and Walkman.
But that was 1997, right in the middle of the Asian financial crisis, which severely impacted South Korea. The Samsung employee was laid off.
He later joined Saehan, a smaller Korean company that backed his idea. In 1998, they released the MPMan F10—the world's first flash-based MP3 player.
But back then, flash memory was still incredibly expensive. MD had already been entrenched in the high-end market thanks to years of Japanese marketing. And internet speeds were still far too slow to support rapid song downloads. So in the first round, the MP3 lost. The MPMan F10 couldn't beat the MD.
Yet history never bends to obsolete technology.
Even with Sony pushing MD hard, the rise of MLC flash, architectural improvements, flash memory prices dropping from hundreds of dollars to a few hundred yuan, and the internet becoming faster by the day…
Forget MD—even MP3s barely lasted before getting overtaken by feature phones and TF cards.
Of course, MD and MP3 would later evolve into a niche culture of audio purists and hi-fi fandom—but that's another story.
Compared to the previous timeline, this generation's MP3 would benefit less from the internet boom. But the competition was also far less intense. And most importantly—Su Yuanshan already had a plan to deal with the music source problem.
...
"We've been working on this for quite a while," Su Yuanshan explained patiently to Jiang Qingchuan. "We've signed internet-based copyright agreements with Sony Music and several major audio publishers. So theoretically, as long as we release music in MP3 format instead of on CDs or DVD/VCD discs, we can deliver quality music at very low cost."
He continued, "In fact, per the agreement, we're even allowed to distribute data-format MP3 compilations… but that would really irritate traditional publishers. So we'll hold off on that."
Wang Chuanfu chuckled. "And it would be a piracy magnet."
"Exactly… Though I have a feeling piracy will dominate in China anyway," Su said with a wry grin.
Jiang Qingchuan coughed softly.
He knew Zhang Jianjun's background. And he suspected that the rise of pirated VCDs had something to do with Su Yuanshan pulling strings behind the scenes.
After all, nobody profited more from the booming VCD market than Yuanxin.
At present, VCDs were still in their rapid expansion phase, particularly in China where the market was fiercely competitive. Yuanxin, having enjoyed a monopoly-like advantage in the early days, had already begun transitioning into a professional OEM model. Even though Yuanxin VCD and DVD players still dominated the market in sales and influence, profits were on the decline.
Meanwhile, piracy was booming alongside the VCD market. Whether it was rural flea markets or major urban districts, street vendors selling bootlegs were everywhere. Hawkers on tricycles roamed the streets, calling out for business. It wasn't uncommon to hear someone whisper, "Hey bro, wanna buy a disc? No censorship."
"But the MP3 is just a little gadget. It'll make a little money," Su said, setting the player down and turning serious. "The real killer app is still the phone."
"The first music phone—VIDOO Music Phone. Just think about the slogan: The world's first music phone. It'll sell like crazy to the oil-rich guys in the Middle East."
"Don't worry," Wang Chuanfu reassured him. "Only a few PCB issues left. At worst, we'll have an engineering model by mid-next year. But if you want a prototype early, I can get you one by Chinese New Year."
"Perfect! I'll be waiting," Su said, standing up with the MP3 in hand. "I'll take this one with me to Japan next week."
...
Once everything was ready, Su Yuanshan boarded a flight from Shanghai to Japan.
Before he left, Zhou Xiaohui had already coordinated the necessary logistics, and Duan Yongping had returned to the Special Economic Zone to oversee coordination between the phone design and manufacturing departments.
Accompanying Su were key members from the lithium battery project, including Cheng Peng, as well as senior engineers from BOE, including the deputy director responsible for technical operations.
Their plane landed smoothly at Tokyo International Airport.
"Isn't this a little much?" Su said as he stepped off the stairway, only to see three sleek black Honda vans waiting nearby. Standing by were Ken Kutaragi and several Japanese executives, smiling in welcome. Among them was the ever-spirited Li Xiao, hair neatly trimmed and eyes sharp.
"This is only proper, Su-san. Miss Zhou, this way please."
"Thank you."
After brief handshakes, the group quickly entered the vehicles under the astonished gazes of nearby passengers, exiting the airport through the VIP lane.
The convoy headed down a wide avenue toward Sony's headquarters near Kyoto Port. Watching the city's skyline roll past, Su couldn't help feeling nostalgic—these buildings were all products of the previous decade's economic miracle.
In the sensitive world of semiconductors, Japan wasn't unaware of its situation. It had tried to fight back… but ultimately failed.
The truth was simple: no country at that time could stand up to the U.S.—not in economics, not in tech, not in anything.
"I heard Tokyo's real estate used to be so valuable, selling a few buildings could buy all of America," Su joked to Ken Kutaragi as they chatted in the car.
"Mmm, it's still expensive. Population versus living space—that's Japan's eternal dilemma," Kutaragi replied lightly, but with insight.
He'd known Su for a while now. He understood that Su, despite his young age, had an old-school gentleman's spirit. So he dropped the corporate mask and spoke freely.
"There's still room to live. The problem is resource allocation. But this isn't an agrarian society anymore. We don't need endless farmland to feed our people. This is an industrial and commercial age. Making money is the only rule."
As soon as Su mentioned money, Zhou Xiaohui, who had been chatting idly with Li Xiao in the back, smiled knowingly.
Just as expected.
As he always said—he'd come to Japan for one reason only:
To talk business.
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Chapter 482: The Arrival of the Digital Age
Before departing, Su Yuanshan held a small meeting in the industrial zone, stating clearly: this trip would not involve politics or diplomacy—it was all about business.
There are no eternal friends, only eternal interests. As long as interests align, cooperation is always possible.
—Back during the Cold War, Toshiba had quietly rerouted several sets of five-axis CNC machines to the Soviet Union via Switzerland. Why? For profit.
As for the price markup—some said fivefold, others tenfold—whatever the number, it was enough to make someone trample over laws or even risk the death penalty without hesitation.
So, Su Yuanshan had no illusions about platitudes like "neighbors across the sea" or "a thousand years of watchful friendship." No need to pretend.
Just talk business.
"Heh, fair enough," Ken Kutaragi smiled knowingly.
He understood that Su Yuanshan was someone with great ideals. The man constantly talked about technology and the future, so it was a bit jarring to hear him bluntly state that "making money is the priority."
But even so, Kutaragi couldn't deny that Su was right.
When a country's land and resources can no longer support its population—or can't provide a decent life for everyone—the only solution is to make money. Use money to buy what you lack.
That's why foreign trade had always been a cornerstone of Japan's strategy. And now, with semiconductors becoming increasingly important to the future, Japan's own chip industry was faltering under U.S. pressure—inevitably shrinking and declining...
Anyone truly involved in the field could feel the urgency.
Su Yuanshan smiled, then reached into his briefcase and pulled out an MP3 player and a pair of headphones.
"Kutaragi-san, how about some music?"
"Hm?" Ken blinked in surprise. As soon as Su asked if he wanted to listen to music, his eyes followed the cable to the small device.
"What's this?"
"A newly developed digital music player. It plays MP3 audio files. Try it out—see how the sound quality feels."
Su handed him the MP3 player and headphones.
Ken was momentarily puzzled by the sudden offering, but soon realized he was holding something significant.
—The device featured internationally recognized buttons: play, skip, pause—all cleverly integrated into a responsive circular control pad.
Ken took a deep breath, slipped in one earbud, and pressed the arrow indicating play.
A familiar piano piece began to play in his ear. He immediately pulled out the earbud and looked at Su Yuanshan with eyes wide.
"How many songs are on this? What kind of storage medium does it use?"
"Fifteen tracks. It's stored on flash memory."
Ken's brows furrowed.
As the man who helped foster the partnership between Sony Audio and Yuanxin, he knew all about the MP3 format's properties—fifteen songs meant it had to be at least 64MB of storage.
Given the current price of flash memory chips on the market… this had to be some luxury prototype made just for Yuanxin's boss.
But then it hit him.
Ken Kutaragi knew how bullish Su Yuanshan was on flash memory. He also knew Yuanxin had been developing its own flash chips.
And Su Yuanshan wasn't the type to create an unrealistic, unmarketable product just for fun.
—He was one of the most pragmatic entrepreneurs Kutaragi had ever met.
Ken took a deep breath. "Yuanxin has already managed to reduce the cost of flash chips?"
"Yes… not long ago, we completed tape-out for our new MLC flash architecture. Compared to existing designs, it doubles capacity per unit area. And thanks to our advanced 0.5-micron manufacturing process, the integration is far higher than anything else on the market."
"We're already working on the next generation of architecture. Hopefully next year, we'll double capacity again—maybe even more." Su Yuanshan smiled, his eyes gleaming. "Kutaragi-san, the digital age has arrived."
The digital age has arrived?
Ken Kutaragi looked at Su Yuanshan, his gaze slowly sharpening.
...
"Xiao-jie, did you skip work today or what?"
Back at Sony headquarters, after all the formalities were done, Su Yuanshan and his team were placed in a five-star hotel nearby. Li Xiao, of course, was with them.
Sitting on the couch with a cup of tea, Su looked at her and chuckled.
He had tried every trick in the book to convince Li Xiao to move to the Special Zone, only for her to unexpectedly agree to relocate to Japan. In hindsight, she was the perfect person for the job.
And now, she'd been in Japan for almost a year.
Over the past year, she had led the Yuanxin team in seamless cooperation with Japan's lithium battery teams. Together, they had produced numerous patented technologies—effectively schooling a generation of extremely patriarchal Japanese engineers and showing them what "women hold up half the sky" really meant.
When it came to lithium battery collaboration, Yuanxin and their Japanese partners had been completely open. That was part of why Su's current trip also included plans to discuss deepening this cooperation.
In fact, Su Yuanshan already had an idea: why not dissolve the battery divisions at both Yuanxin and Sony, and merge them into a single entity—SuoXin Energy?
Of course, Su had one condition: the new entity must be a mainland company.
Whether Sony would agree remained to be seen. But Su intended to push for it either way.
"Xiaohui-jie, don't you think this guy's mouth is getting more and more outrageous?" Li Xiao shot Su a glare and turned to Zhou Xiaohui with a smile. "I've known him since he was little. Now I come visit him after a whole year, and he acts like he's being forced to spend time with me."
"Mhm, a bit outrageous," Zhou Xiaohui replied, completely unfiltered now that only the three of them were present—Wen Xiaoqian had gone to coordinate with the rest of the team.
She had worked with Su Yuanshan long enough to know exactly what kind of "virtue" he had.
It was about time someone knocked him down a peg.
"Alright, I surrender!" Su raised both hands in mock defeat.
"Coward," Li Xiao muttered.
"Heh… wise men don't argue with women," Su quipped, but seeing the look on their faces, he quickly shut up and changed the subject. "So… what do you think Mr. Kutaragi is doing right now?"
The moment he mentioned Ken, the two women dropped their teasing.
They'd seen the look on his face in the car.
Especially when Su Yuanshan had said, "The digital age has arrived"—Ken's entire demeanor had shifted.
Maybe… it really was time for Sony, that aging vessel, to change course.
Maybe it even needed a new captain.
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Chapter 483: Sony's New Helmsman
As a vast, successful—perhaps even great—commercial empire, Sony had never lacked for analysts or researchers dissecting its rise. And regardless of whether those researchers held positive or critical views, there was one universal consensus:
Sony was built by Masaru Ibuka and Akio Morita.
But now, Ibuka had long since stepped away from management, aged and frail. Akio Morita, following a stroke, had also relinquished power. Though he still retained the title of chairman, in truth, he no longer participated in Sony's decision-making.
Historically, this period marked the rise of Nobuyuki Ohga, the CEO whose power reached unprecedented heights and who would eventually ascend to chairman and president.
In Sony—or in Japan, more broadly—there existed a peculiar corporate tradition:
In traditional Japanese companies, the ultimate authority didn't necessarily lie with the CEO or the chairman—not even the board chairman, unless he also held the position of president (equivalent to a managing director or general manager).
If a chairman tried to run the company without concurrently serving as president, he was seen as overly power-hungry, turning the president into a mere puppet.
Su Yuanshan couldn't recall exactly when Akio Morita officially stepped down, but he remembered that Nobuyuki Ohga, in his heyday, held both CEO and president titles—making him the undisputed helmsman of Sony in both Western and Japanese contexts.
But now… perhaps history was about to change.
...
"You don't seriously think Ken Kutaragi has a chance, do you?" Zhou Xiaohui moved closer and lowered her voice as she glanced at the door.
"Japan is steeped in Confucian tradition, much like us. Seniority still matters a great deal. Look at Akio Morita—he suffered a stroke, and still, no one dares to mention retirement unless he initiates it," Su Yuanshan said with a faint smile. "So logically, someone like Kutaragi, who's only in his forties, shouldn't stand a chance. Even if Ohga wanted to step aside, there's a long line of contenders—people like Nobuyuki Idei or Kuniaki Ando. These are men born before Japan's surrender in WWII…"
"…Seriously?" Zhou Xiaohui rolled her eyes at his way of dating people by their war era. "But what if things don't follow the usual logic?"
"Well, then let me tell you this: Kutaragi was appointed to the board last year and made a vice president," Su said, clearing his throat with a grin. "Yuanxin's rise has already been featured in at least ten different business books… and as our close partner, Sony has definitely felt the pressure."
"An elder at home is like a treasure—wise and seasoned, especially in times of crisis. No one should underestimate the judgment of those who've weathered many storms. But elders also naturally lack the ambition and daring of the young. If Yuanxin has already carved a path, and Sony doesn't follow, then frankly, they're not worthy of being our partner."
Li Xiao interjected, "So… you really think Ken Kutaragi has a shot?"
"While he's never said a word to me about his odds… just between us," Su Yuanshan said, smiling meaningfully, "I think he has a very good chance."
He looked toward Sony headquarters, where the winds of a new era were beginning to stir.
After all, he could almost hear the footsteps of the future.
...
The next morning, Su Yuanshan and his delegation visited Sony's lithium battery R&D base, located in a corner of the company's headquarters. Surprisingly, none of Sony's top brass—including Kutaragi—were present. Only the battery department heads showed up.
Su didn't mind.
His main goal was simply to encourage Yuanxin's overseas team, and he had a pretty good idea of why Kutaragi wasn't there.
While Su was touring the battery division, inside Sony's main conference room, nearly all vice presidents and board members had gathered for a high-level meeting—only a few were absent.
At the head of the table sat Nobuyuki Ohga. Since Akio Morita's stroke, Ohga had become the de facto head of Sony, overseeing all major operations—even though he had yet to formally assume the title of chairman.
"Following discussions by the board, and in alignment with Chairman Morita's wishes," Ohga announced, "I will assume the roles of chairman and president of Sony Corporation."
Ohga was known for his stern demeanor. Even when delivering major news, he rarely showed emotion.
But that didn't stop the room from erupting in polite congratulations.
With this announcement, Ohga was now officially Sony's supreme leader.
Just as the applause reached its peak, Ohga raised his hand to signal silence.
"Next, regarding the position of president," he said, his gaze dropping to the letter of appointment in front of him.
A wave of shock rippled through the room.
Was Ohga really planning to hand over the real power just after ascending to the top?
"I will step down as president…"
The room held its breath. Though all eyes turned toward Ohga, everyone's peripheral vision was scanning the room for signs.
"I recommend Ken Kutaragi for the position of president."
As the words fell from Ohga's mouth, every head in the room turned sharply toward Kutaragi.
He was seated just two seats away from Ohga.
Hearing his name, Ken Kutaragi stood slowly and bowed deeply.
...
At lunchtime, Su Yuanshan ate a simple meal at the battery division's cafeteria. Frankly speaking, in terms of flavor, he still preferred the food back at the Tech Park. But in terms of variety, Sony's food service was definitely impressive.
After lunch, he wrapped up the visit and managed to shake free of his "tail"—Li Xiao.
That afternoon, his schedule included a private meeting with the true decision-maker at Sony to discuss deepening cooperation across multiple sectors. If Kutaragi hadn't been promoted, then Su would have to meet with Nobuyuki Ohga.
And frankly, Su Yuanshan had no interest in dealing with Ohga.
Ohga had never seen him in action. Talking business with someone who hadn't witnessed his capabilities always felt awkward.
He was debating whether or not to call Kutaragi when, to his surprise, the man arrived at the lab in person with his assistant in tow.
"Kutaragi-san, I thought you were going to leave me hanging," Su teased, hoping to read something from his expression.
But once again, he was disappointed.
Kutaragi wore the same ever-present, genial smile he always did. No visible signs of joy or triumph.
"How could I dare, Su-san? What's your plan for this afternoon?"
"I was hoping to meet with your company's president."
"Then please—this way," Kutaragi said with a polite gesture.
"Where to?"
"My office."
"…Ah." Su tilted his head slightly, and the realization hit.
This man—he'd actually done it.
"Congratulations!" Su said, warmly and sincerely. "This is the best news I've heard all year regarding a corporate leadership change."
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Chapter 484: The Future Alliance
Ken Kutaragi, who had taken many walks with Su Yuanshan along the artificial lake at the Tech Park, knew well that Su preferred to talk while walking. So he wasn't in a hurry. The two strolled under the trees on Sony's headquarters campus, chatting idly along the way.
"As you said, Su-san, we also believe the digital era is arriving. And coincidentally, I've been in charge of this area for the past few years," Kutaragi explained with a mild smile, as if wanting to offer Su a clear answer as to why he was chosen as the new president of Sony.
"I'm very pleased, because it means we'll be able to further strengthen cooperation between Yuanxin and Sony as we face the opportunities and challenges of the semiconductor and digital markets together."
"We feel the same," Su Yuanshan replied, nodding slightly.
Kutaragi gave him a thoughtful look. If not for their alliance with Yuanxin, Sony—based on its usual strategy and pace—would probably have waited two more years before realizing the full impact of the incoming digital shift.
And by then… while it wouldn't have been too late, they certainly would've lost their first-mover advantage. They would've had to rely solely on Sony's superior design capability and deep industrial foundation to battle for market share against all comers.
But now, thanks to their partnership with Yuanxin, Sony had become the first Japanese company to fully grasp that the digital age was arriving early. And with Yuanxin by their side—even as a competitor—Sony had nothing to fear.
When both started from the same line, Sony had never feared anyone.
Yuanxin had its strengths. Sony had its own. Yuanxin excelled in forward-looking technical strategy, R&D power, and, frankly, luck. But these were exactly the kinds of strengths Sony could borrow.
On the other hand, Sony's advantages—industrial design, cross-sector expertise, brand value, global market reach—were things Yuanxin could only gain through years of learning and accumulation.
And perhaps that's why Kutaragi's feelings toward Su were so complicated. He was sure Su could see this—yet Su pushed forward boldly, seemingly without fear of Sony.
The two, followed by assistants, made their way to Kutaragi's new office. After tea was served, the space was left to them.
...
"I remember telling you that CMOS image sensors are the future, didn't I, Kutaragi-san?" Su Yuanshan took a sip of tea and looked at him calmly. "I also said that by the end of the century, a single flash chip would reach 64MB."
"You did."
"Well, it looks like we'll reach that benchmark even earlier. Our multilayer MLC architecture has found its way forward, and we're already tackling next-generation flash. I can't guarantee timing, but logically, it will surpass MLC in capacity. With advances in wafer fab processes and 3D stacking, don't be surprised if one chip soon holds multiple gigabytes."
Kutaragi was visibly moved.
Hard drives had just entered the gigabyte era. But he trusted Su's projections—they were grounded in real, observable technology trends.
The only unknown was how long it would take to realize.
Just like how humanity will reach Mars one day… but who knows when?
From long experience, Kutaragi had learned: when it comes to predicting technology trends, it's best to listen to Su Yuanshan.
"Then… are you saying that even before the new millennium, digital cameras will overtake traditional ones?"
Su smiled. "Yes. In fact, we've already designed a concept phone we hope to equip with a CMOS sensor module—in short, a camera phone."
"Nani?" Kutaragi was stunned. But almost immediately, it clicked.
A phone already has a screen, an OS, storage, power. All that's missing is a lens. Wouldn't that make it a digital camera?
He recalled Su's insistence last year on entering the LCD panel market. The lithium battery company jointly formed with Sony. Yuanxin's other departments…
He put his phone on the table.
It was a Sony phone, built entirely using Yuanxin's chips and licensed technologies. Sony had only designed the casing and features.
"Nice phone," Su glanced at it and smiled.
"Su-san, tell me… is the phone Yuanxin's most important digital product?"
Su nodded. "Not one of—the most important."
Kutaragi exhaled slowly. He knew phones were the future. Thanks to Yuanxin, Sony had dominated Japan's mobile market. In the past two years, revenue from phones had surpassed his own entertainment division.
—And mobile phones were his deal.
Yet at this point, neither the cost nor user demand could fully justify Su's obsession with phones.
After all, payphones and pagers were still far cheaper and more practical.
"Because of our limited imagination," Su said, "we struggle to envision things humanity hasn't yet seen. But in sci-fi films, what do the heroes use? Devices that are compact, multifunctional, and network-connected."
"So we believe—strongly—that the device which best matches that vision… is the mobile phone." He placed his own phone on the table. "Add a camera and you've got video calls. Make the screen bigger, and it plays movies, TV shows—even games."
"These sound like fantasies. But lay them over actual technological trajectories, and they become inevitable."
"Right now, between us, we cover nearly every component… all that's missing is an affordable CMOS lens. Heh."
Kutaragi's face twitched. Yuanxin really had picked all the juicy parts of the tech pie. He forced a smile. "Su-san, if that's the case… it sounds like you're taking all the money for yourselves."
"There's no such thing as taking all the money," Su replied with a grin, sipping his tea again.
"Just look at flash memory. We sincerely hope your country—a semiconductor powerhouse—can rise again." Su turned serious. "Kutaragi-san, we'd like to build—together with Sony and other Japanese firms—a…"
"A flash memory alliance?" Kutaragi offered.
Su stared into his eyes, nodding slowly. "A strategic alliance."
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Chapter 485: What Is a Tech Giant?
On the international stage, Yuanxin was already being referred to as a "giant," and within China, this label had surfaced even two years prior.
But inside Yuanxin itself, the term "giant" was rarely used—unless someone was bragging.
The reason was simple: Su Yuanshan and the leadership team had always held a strict definition of what qualifies a company as a giant.
—Beyond corporate scale, a true giant must possess absolute technical dominance and industry influence in a globally significant field.
In terms of size, Yuanxin had finally begun to meet the threshold. If it were listed publicly, its stock would likely rise to rival Xinghai's.
But until recently, Yuanxin had lacked a domain where it enjoyed unchallenged technological supremacy.
Whether it was CPUs, the YX architecture (hailed as one of China's top ten technological breakthroughs of the 1990s), integrated baseband chips, or even the UESTC91 microcontroller line that Yuanxin now dominated domestically and was aggressively expanding across Asia—none of these had yet risen to global dominance.
YX architecture and the integrated baseband chip had merely given Yuanxin a one-step lead over the rest of the world. But plenty of competitors were hot on their heels, investing heavily in catching up.
However, with the advent of polymer lithium batteries and MLC flash memory...
Yuanxin finally held a commanding lead in two critical technologies.
—And not everyone could yet see the potential of these fields.
Su Yuanshan's job was to rally the right partners and allies before these two technologies exploded into annual trillion-yuan industries.
But first, he needed to convince these future allies to believe in him—and in the future of flash memory.
...
"Whether it's in business or research," Su Yuanshan said as he took another sip of tea, collecting his thoughts, "I've never liked discussing politics. That's a game for seasoned elders. I prefer pushing markets forward based on pure technology and commerce."
Ken Kutaragi also took a sip of tea, nodding slightly as he waited for Su to continue.
"From an economic standpoint, all of Asia is naturally one economic sphere—wouldn't you agree, Kutaragi-san?"
Ken smiled softly.
Indeed, there was no arguing with that. Even in this era of globalization—where ocean freight costs had plummeted and markets like Japan's had gone fully global—geographic proximity still offered undeniable advantages.
"And from a technological standpoint," Su said, "forgive me for speaking bluntly, but after the semiconductor agreement, the rise of Silicon Valley, and the birth of the internet… Japan has lost the ability to truly challenge the U.S. across the full spectrum of technology."
He gave a wry smile. "Of course, our own country is even less qualified."
Ken wasn't sure whether Su had said that last part to soften the blow or because he genuinely believed it. But it struck a chord.
Though only in his early forties, Ken Kutaragi was already considered a veteran at Sony. This year marked his twentieth with the company.
He had seen the golden era of Japanese audiovisual products dominating the West. He had witnessed Japan's near-total dominance in semiconductors. He had lived through Japan's peak economic glory.
But now, even though Japan was still the world's second-largest economy by GDP, its aura of technological supremacy had long since faded.
Even semiconductor giants like NEC had, according to the latest reports, been dethroned by Intel. Of the top ten semiconductor companies, Japan had gone from six to just four in five years. In their place? Korean giants like Samsung and Hyundai.
And if the decline continued, there would be even fewer Japanese names on that list.
Ken Kutaragi looked seriously at Su. "So, Su-san… are you suggesting we build a flash memory alliance to counter Silicon Valley?"
"If it's only about flash memory, then no—it can't counter Silicon Valley," Su said gently. "Besides, I have nothing but respect for the Valley. Competing with it isn't the point."
"But… if we allow Silicon Valley to continue dominating both technology and markets, then they take all the profits. What's left for the rest of us?"
"I think I've told you before why Yuanxin is rooted in the mainland," Su continued. "Consumers are the end point of all economies. And population size is the ultimate indicator of market potential."
"Unless someone believes China will stay poor forever—for generations upon generations, until the end of the Earth and the death of the universe…"
Su's Japanese wasn't perfectly fluent, so he spoke slowly, which gave his words unusual gravity. There was even a faint trace of resentment and defiance in his tone.
Ken Kutaragi quickly smiled and shook his head, indicating he didn't believe that at all.
"And unless a company only intends to survive for ten or twenty years, and doesn't care about legacy… then China will inevitably become the largest single-nation market in the world. I have no doubt about that."
"Yes, I agree," Ken nodded.
Whether out of politeness or genuine admiration for Su, he had to nod.
"When we widen our view to all of Asia—this region with the highest population density in the world—it becomes clear that this is where the future market lies. And in this region, you have the strongest technical capabilities."
"Kutaragi-san, your country has a responsibility to lead and drive the economic and technological advancement of this region."
Su's tone was utterly sincere.
—And this was exactly what he planned to say to every Japanese executive he met on this trip.
The Japanese were always talking about their "flying geese" strategy. If they were hesitant or modest about it, Su would hand them the crown.
He didn't talk politics—only economics and cooperation.
And "cooperation" naturally meant cooperating with China—with Yuanxin.
China's reform and opening-up had created fertile ground for foreign investment. Any investor was treated like a god of wealth.
With that kind of foundation, plus Yuanxin's willingness to support the rest, Su was confident he could pull together just a bit more partnership from Japan's industrialists—before Japan's far-right took their first step onto that obscure island that would one day become so infamous.
If the Japanese really did have far-sighted people, they would know that the only way to prevent war was to deepen regional economic cooperation.
Ken was silent for a long time before finally asking, "Su-san, is a meeting with Mr. Akio Morita part of your itinerary?"
"I heard Mr. Morita's health hasn't been great… so no, I hadn't planned on it."
"Actually, he's been doing a bit better lately," Ken said softly. "And… he really wants to meet you."
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