Chapter 412: Semiconductor War
The weather was getting warmer in March, and Shirakawa Kaede was basking in the sun with Xiao Qingkong and Xiao Yasheng in his own garden.
Suddenly, Nanny Kimie came out from the main hall in a hurry, "Sir, Nakajima-san said he has something urgent to discuss with you."
Hmm? Bai Chuanfeng looked up in surprise. What could happen at this time of year? SIC hasn't made any big moves recently.
"I understand. You go ahead and do your work."
"Hayi" Jundai bowed slightly, then retreated respectfully.
"Are you going out?" Yuko Tanaka, who was sitting next to the stroller, wanted to get up and pack his travel coat and briefcase for him.
"Take a rest first, I'll let Jundai prepare it." Baichuan Feng stretched out his fingers and gently touched the tender hands of the two little guys, then he smiled and stood up to leave.
"Oh, right." As if remembering something, Shirakawa Feng, who had just taken two steps, came back and bit Tanaka Yuko hard on the face.
Then, amid the latter's angry voice, he left contentedly.
Tsk, the senior sister who has just become a mother is like a ripe peach now, so tempting.
After returning to the living room, Shirakawa Kaede picked up the phone and called Nakajima Heitaro to ask what was going on.
“Brother Nakajima, is there something urgent at SIC?…Okay, I’ll be there right away!”
After hanging up the phone, Baichuan Feng's expression was no longer as relaxed and leisurely as just now.
"Kimiyo, tell Kojima to come over. I need to go to Daikanyama."
"Huh!" Kimidaro first hurriedly went to find Shirakawa Kaede's exclusive driver Kojima, and then quickly prepared a coat and other items for him.
More than half an hour later, a black Toyota Century stopped under the SIC building.
As soon as I entered the hall, Yamazaki Teru, who had been waiting there, hurried to greet me.
"Where is the person? Is there anyone to receive him?" Bai Chuan Feng, who was in a hurry, asked without waiting for him to speak.
"In the VIP reception room, Nakajima-san, Shima-san and others are accompanying us. They should be here for the chip issue."
Baichuan Feng paused and his expression became more serious.
"Let's go up first." It's no use worrying about anything at this point, so let's see what the other party is up to.
As expected, we knew that those friendly competitors would not be at peace.
After half a year, he finally came to me on his own initiative.
In front of a luxurious conference room on the top floor of the SIC building, Shirakawa Kaede straightened his clothes and waited for Yamazaki Teru beside him to knock on the door before stepping into the conference room.
"Mr. Uno and Mr. Sugiyama, your presence here today is truly a great honor to SIC."
Baichuan Feng was smiling so enthusiastically that he quickly walked up to the other person before he stood up.
"I am sorry for being so rude to visit you today." The leader, Uno Sosuke, stood up slowly.
He is over sixty years old and in poor health, so he looks a little sick.
But Shirakawa Feng did not dare to neglect him, because just a few months ago, Uno Muneno had another identity, the Minister of International Trade and Industry.
At the beginning of this year, due to health reasons and his advanced age, he voluntarily resigned and retired.
Kazuo Sugiyama, who was following him, was then serving as Vice Minister of Industrial Affairs in the Ministry of International Trade and Industry.
A former Minister of International Trade and Industry and a current Vice Minister of Affairs, this lineup is quite subtle.
It's neither too formal nor too casual.
Seeing this, Baichuan Feng already had an idea in his mind. It seemed that the Ministry of International Trade and Industry was also making its first tentative contact.
After exchanging pleasantries with each other, they sat on both sides. However, since the other party took the initiative to come to him, Baichuan Feng simply did not take the initiative to speak.
Sure enough, after a few more polite words, Uno Sosuke put down his teacup and spoke with a smile.
"Mr. Shirakawa has done a lot in the past two years, not only creating a top company like Shirakawa Electric.
He even made a splash in the most cutting-edge chip field. He is truly a young and ambitious man.”
"You're too kind." The higher the hat was worn, the more cautious Baichuan Feng became.
"Ahem~" Uno Sosuke coughed lightly, then slowly spoke, "There is no doubt that chips are the core of the future technology industry.
Not only Japan, but countries all over the world invest a lot of resources in this field every year.
Only by concentrating efforts under the guidance of the government can there be major breakthroughs in chip technology.
Just like Japan’s current DRAM chips, the reason why it has gone from being extremely scarce to now occupying half of the global market in one fell swoop.
It can be said that everyone worked together towards a common goal, which played a decisive role.”
There is no lack of pride in Uno Sosuke's tone. This is the pride of the entire Neon and the confidence of the Yamato nation.
Not to mention him, even Sugiyama Kazuo who accompanied him nodded in approval.
"Uno-san is right. Only when we work together as a group can we unleash unimaginable energy!"
Alas, it is as expected.
He kept saying government guidance and collective strength. How could Baichuan Feng not understand the meaning of his words?
"Mr. Uno, Mr. Sugiyama, does the Ministry of International Trade and Industry want to reopen the VLSI Research Institute?"
Without pretending to be ignorant or playing Tai Chi, Baichuan Feng asked directly what their plans were.
Uno Sosuke and Sugiyama looked at each other, hesitated for two seconds, and the former looked at him with a serious expression.
"Shirakawa-san, what do you think of the VLSI Institute?"
"Mr. Uno, as the former Minister of International Trade and Industry, have you made any special discoveries about the economic development of Japan over the years?"
Baichuan Feng did not answer his question first, but instead talked to the other party about the economic development of Neon.
"A special discovery?" Uno Sosuke looked at him strangely.
"Yes, I have some superficial opinions and some questions. I would like to ask Mr. Uno and Mr. Sugiyama to solve them."
Baichuan Feng put down his teacup, sat up straight, and looked at them with burning eyes.
As the Ministry of International Trade and Industry is in charge of Japan's economic and industrial development, they must have seen more than I do.
"Uno-san, since the 1950s, Neon's economic development has never been free from the influence of the United States, right?"
This... Uno Sosuke and Sugiyama Kazuo's expressions became subtle, but this was the fact and they had to admit it.
“So the 30 years between the 1950s and the 1980s.
Is our economic cooperation with the United States smooth or close?"
"Mr. Shirakawa, what do you mean...?" There was a hint of seriousness in Uno Sosuke's serious expression.
"Although we have a lot of cooperation with the United States, competition and friction are always around us.
From the mid-1950s to the early 1970s, the textile industry was the mainstay of Japan's economy.
With the advancement of technology and the United States' preferential tariff policies.
With its extremely low labor cost advantage, Neon expanded its textile market share from 17.4% in 1951 to over 60% in 1956.
In the US textile market, more than half of the goods come from Japan.
This is indeed a remarkable achievement, but is it really okay? Are Americans satisfied with this result?
Facts have proved that this is not the case. Starting from 1957, the United States and Japan signed textile trade agreements four times.
The agreement aims to restrict the export quantity, growth rate, total amount and other data of neon textiles.
And by the 1960s, domestic competitors in the United States were strongly resisting and filed anti-dumping lawsuits against the government.
Under pressure, the world leader promised to take more stringent measures against neon textiles.
Finally, in 1971, the United States and Japan signed the US-Japan Textile Trade Agreement.
Thus, the "fiber friction" came to an end, and Neon gave up the textile industry to upgrade its industrial structure. "
As Shirakawa Kaede continued to tell the story, the expressions of both Uno Sosuke and Sugiyama Kazuo became somewhat complicated.
I can’t tell whether I feel humiliated by my past experiences or grateful for the decision I made to upgrade the industrial structure at that time.
But is this the end of the trade friction between Japan and the United States? No, far from it.
"From the late 1960s to the late 1970s, neon accounted for more than 42% of U.S. steel imports.
It reached its peak in the early 1970s, with market share exceeding 50%, which triggered a wave of protectionism in the United States.
From 1968 to 1974, Japan was forced to voluntarily restrict its steel exports to Japan three times in a row.
The "Agreement on Import Quota Restrictions on Special Steels" in 1976 and the "Agreement on Maintaining Market Order" signed in 1977 with the purpose of "minimum import price system" are both products of the tide of the times.
The 20% punitive tariff has caused many Japanese steel companies to gradually disappear.
Since then, Japan’s steel exports have declined significantly and no longer pose a threat to the United States.”
Uno Sosuke opened his lips, but now he didn't know where to start, even though he was usually eloquent.
However, Baichuan Feng had no intention of stopping. He stood up and walked to the window, looking at the street scene outside and continued his explanation.
“Thanks to the upgrading of industrial structure, Japan has started to export a large number of home appliances to the US since the 1960s.
At its peak in 1976, 90% of the color TVs imported into the United States came from Japan, and 20% of the global color TV market was occupied by Japanese products.
As a result, the United States began to impose anti-dumping duties, increase tariffs, and launch a "201 investigation," among other measures.
After the signing of the "Agreement on Maintaining Market Order" between the United States and Japan in 1977, Japan was forced to automatically restrict the export of color TVs to the United States.
At this point, the third trade friction, namely the color TV friction, has come to an end. "
Uno Sosuke sighed slightly. He had experienced all these things personally.
I even cursed the United States for its shamelessness in private, and I still feel upset when I think about it now.
However, Baichuan Feng still did not give them the chance to speak or even think, and continued with his speech.
"In the 1980s, that is, in the first two years, Japan's automobile production exceeded 7 million units, ranking first in the world .
Nearly 2 million of them were exported to the United States, accounting for 21% of the U.S. auto market.
At the same time, the U.S. automobile industry began to decline. In 1980, General Motors, Ford, and Chrysler all suffered losses.
A large number of unemployed industrial workers began to gather on the streets to smash Japanese cars to protest the invasion of Japanese products.
As far as I know, we negotiated with the United States once in 1979, but achieved little success. "
In front of the window, Baichuan Feng turned slightly sideways, his face appearing light and dark in the light.
"Mr. Uno, Mr. Sugiyama, is Japan ready for the fifth trade friction, the semiconductor dispute?"
Uno Sosuke and Sugiyama Kazuo's bodies trembled visibly, and then they both felt a tingling sensation on their scalps.
