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Chen Bo: Zhang Yiming's strategy is roundabout: we all blame him

———— Release time:2021-01-12   Edit:  Read:16 ————

Today, Trump has adopted an unprecedented "ablution" policy for China, leaving no room for cutting off China's technology industry.


The Americans used this method to suppress Japanese companies and finally succeeded in reaping the fruits accumulated by the Japanese for decades after the war.


Many people scolded Zhang Yiming for not fighting, thinking that he gave in too quickly.


But these views are all wrong, and they do not understand Zhang Yiming's foresight.


Zhang Yiming's letter a few days ago explained this very vaguely, but not many people understood:


"It's just that most people got the focus of this incident wrong. The focus of the problem is not that CFIUS forced the sale of TikTok's U.S. business to U.S. companies on the grounds that musical.ly mergers and acquisitions endangered national security. (Although this is unreasonable, it is still in law. As a company, we have to abide by the law and have no choice). But this is not the purpose of the other party, or even the other party does not want to see it. The real purpose is to hope for a complete ban and more..."


Zhang Yiming has combined various information and has made a very certain judgment: In any case, Tiktok, which is controlled by the Chinese, will never have the opportunity to return to the US market.


Under this kind of judgment, it is meaningless to adopt a positive confrontation emotionally. It will not allow Tiktok to get any room for maneuver, but will only intensify the overall suppression of China's technology industry by the US political circles, and cause more Chinese companies and Chinese to be implicated.


And Zhang Yiming is an entrepreneur. If he confronts directly, leading to the complete closure of Tiktok, which will seriously damage his image among investors, then he will not have a chance to make a comeback.


Therefore, Zhang Yiming still said calmly: "We should still look at the current challenges and pressures from the long-term development."


The soldiers saw the bullet holes, and the general saw the formations.


In fact, while most people are still discussing how to resist the United States, Zhang Yiming has taken a step further and started a strategic roundabout.


First, negotiate with Microsoft to ensure that part of Tiktok's US-related business can be successfully sold within a limited time, even if it is underestimated. If you want to sell, then selling to Microsoft is the biggest victory. Because the real competitors are Facebook and Twitter.


Second, fully withdraw from the United States without any complaints and find a new strategic base. Moved the new Tiktok headquarters to the UK and set up the data center in Ireland.


Although the United Kingdom is also an ally of the United States, it is unlikely that it will fully replicate the United States' policies in the short term, and there is more room for maneuver.


The data center is located in Ireland. The first reason is because of low taxes and friendly policies. The second reason is because Ireland is the only English-speaking country in the EU, and the market is of great significance.


While everyone is still paying attention to the United States, Zhang Yiming has quietly built a new line of defense. Although there is no certainty of victory, it can retain some of the fruits of globalization and have the opportunity to wait for an opportunity to make a comeback.


Since Zhang Yiming was transferred to the head of global business since the beginning of the year, he already knew that today would come sooner or later. Although he could not catch up with Ren Zhengfei for decades, as the founder of a fast-growing Internet company, he was already very successful half a year earlier.


Zhang Yiming's self-confidence comes from Tiktok's algorithm, which is a core technology that Facebook has repeatedly tried to replicate and is difficult to obtain.


And this core technology originated from the Chinese business. This technology is one level ahead of competitors. The source of China's technology is still rapidly iterating, and he still has the opportunity to rise again in the future.


For Chinese companies, the US market is the front line. Enter if you can. If you can't enter, just wait for opportunities around. Can't plug the bullet hole.


But what can be seen is that with the normalization of a series of anti-China policies launched by Trump, the successor is unlikely to overthrow, and more likely to continue to innovate and add.


It is not easy for Chinese companies to get here today. Only by living can they win.


Chinese companies should preserve their minimum strength, never make reckless surprises, let alone be held hostage by narrow nationalism,  whether they come from home or abroad.