286: Chapter 286 The Sudden Sanctions

Lei Jun knew he was just deceiving himself.

Even if Transsion didn't have a controlling stake in Huawei, the two companies wouldn't fight; they would only join forces to strangle Apple and Samsung.

Once the news of Honor's upcoming product release was revealed, Xiaomi 3's sales plummeted to rock bottom.

The domestic market share fell from 8% to 3%.

But there is always a way out; Lei Jun picked up his phone and saw a news notification.

"The US Department of Commerce announced that it has placed Huaxin Investment on the Entity List, prohibiting its trading team from entering the United States capital market due to alleged threats to national security. At the same time, all Huaxin products are prohibited from entering the United States market, including the Motorola brand under Huaxin, which will also be affected."

Lei Jun should have been happy to see this news, but he believed that Transsion would not be defeated by sanctions.

Shen Fei always had a backup plan.

Moreover, he believed that this sanction order from the United States would not last long before being revoked; after all, a capital market circuit breaker is not a joke...

On the other side, the sanction notice from the US Department of Commerce arrived at Transsion headquarters at 3:00 AM Kyoto time.

However, this did not affect Huang Tianya's operations; it wasn't like he didn't have other aliases.

Li Qing was woken up by the phone. Initially, he was a bit groggy, but when he saw the email, he reached out to tuck his messy hair behind his ears, and he became instantly clear-headed.

Huaxin Investment and its affiliates have been placed on the Entity List, and all products of the Huaxin system are prohibited from entering the United States market.

Huaxin Investment is Shen Fei's white glove and also Transsion's largest shareholder.

Sanctioning Transsion is treating the symptoms but not the root cause. But sanctioning Huaxin Investment is equivalent to holding Shen Fei's lifeline.

This is a fatal blow.

As for Motorola, although it was not directly named, everyone knew it was also on the prohibited list.

Li Qing did not call Shen Fei immediately, as he knew the company had long been prepared...

Besides, Zhang Mingzhu is almost due, so any business can wait until tomorrow.

After all, this is not the worst news. The United States did not directly ban the companies that were invested in, so there was no major impact.

At 8:00 AM, the large conference room at Transsion headquarters was full.

Not only Shen Fei and other executives, but also Secretary Li from Guangzhou and Zhang Shiqing.

The projector displayed the sanction notice from the US Department of Commerce.

"The United States has placed us on the Entity List, prohibiting Huaxin system products from entering the United States market. Although the news about Motorola has not been officially announced yet, it is almost certain."

He looked towards Huang Tianya, as this matter would have the biggest impact on the capital market.

What is invisible is the most valuable!

"Tianya, tell us your thoughts."

"There is no impact. At most, just change our identity. Then change the IP to a country like Nigeria, and we can still enter. However, I am most curious now about how the United States will handle our assets. After all, these are high-quality assets I carefully selected; reaching trillions in the future is definitely not a problem."

Huang Tianya spread his hands. Did this really have no impact?

It was just a pity for those assets of his that were likely to be frozen for a while. The names of these high-quality assets had already appeared on the big screen.

Google, Qualcomm, Apple... Huang Tianya had a hand in the top 100 tech companies and some entity companies in the United States.

For many, they were already listed, and for the smaller ones, he had about 1%, making him a proper tycoon.

"They shouldn't just take them back, right?" Wang Hua looked at the big screen with a smile.

"Hard to say, those people are capable of anything!"

"They won't." Huang Tianya said firmly. Soon, his tone was not so certain, "They shouldn't do such a stupid thing!"

After all, the last time this happened in the United States was in October 1997, and then it was written into history textbooks.

This resulted in every United States President not wanting to cause a market circuit breaker during their term due to some policies.

If a stock market circuit breaker occurred one or more times because of forcibly seizing Huaxin's assets, that would really be remembered by United States capital for a lifetime.

As for why Huang Tianya was so sure that a circuit breaker would occur, after all, retail investors are also people. If even big capital like Huaxin Investment can be robbed, what about other capital?

A lack of trust is enough!

Shen Fei did not speak, so after Huang Tianya finished, Li Qing continued:

"Boss, Motorola is the only brand we have to enter the United States market. If it is banned, our daily business will return to zero. Although we can sell tens of millions of units a year, our profits may be affected to some extent."

"It's not just the United States; the European market may also be affected. Those allies of the United States may follow suit, and we may be forced to head east. To open up the Eastern European market. I have discussed this with Professor Li Jiahui, and we have a contingency plan." Wang Hua said.

"There is no need to worry about core technology. In terms of architecture, we have already obtained permanent authorization, and we are currently developing our own architecture. The Taishan Chip is produced by us, 28nm, 14nm, all of which are the world's most advanced technology, and it will not cause any impact at all." Professor Li Jiahui reported on the work.

"There is no problem with the screen either; our China Star panel OLED screen is also self-developed and self-produced." Manager Chen added.

"Sensors, batteries, and cameras are all the same. The sanctions from the United States seem to have no impact; they cannot touch our supply chain, it's just that we have one less market."

After talking around, the trace of worry that had been on everyone's faces completely disappeared.

At this time, the legal director made a suggestion: "Boss, we can sue. Although the United States courts are unreliable, we can drag it out. After all, in such a major event, it is impossible for them to have a unified opinion. We only need to be responsible for starting the fight, and then we will naturally be matched with evenly matched opponents."

Shen Fei shook his head. To make the conservative big black egg make this decision, they had already compromised internally...

After all, it has been a while from the news leaking to the implementation.

"Just as everyone said, we have been preparing for this day for a long time. This is not our darkest hour, but our highlight moment! After all, for a tech company, if you haven't even enjoyed the special treatment of the United States, you are not worthy of being called a tech company."

Everyone nodded, especially the research staff.

Some projects were just for technology reserves, but now they can all be used.

But just at this moment, Shen Fei sighed silently: "It's just a pity that the Motorola brand might not be saved."

Thinking of the people who had been harassing him these days, a plan instantly emerged in Huang Tianya's mind.

Why not just sell it? The patents and everything else have been used up, and the Motorola brand is useless anyway...

It's better to use Transsion to kill our way back!