yournovel Chapter 277 Political Games
Chapter 277 Political Games
They arrived in Sacramento at 2:30 p.m.
The state capitol building, a white, domed structure, looked solemn in the sunlight. The surrounding streets were quiet, with only the occasional person in a suit hurrying by.
The meeting took place at a private club, two blocks from the Capitol. The club was unassuming on the outside, with no sign except for a small brass plaque that read "Sacramento Business Association." The interior was old-fashioned: dark wood paneling, leather sofas, and portraits of past governors hanging on the walls.
The waiter led them to a private room on the second floor. The room wasn't large, but it offered good privacy. The window faced the backyard, where roses were planted, though they weren't in bloom yet.
At exactly three o'clock, the door opened.
The man who entered was a white man in his fifties, slightly overweight, wearing an ill-fitting gray suit and a loose tie. He had a professional smile on his face and sharp eyes.
"Mr. Ling, it's a pleasure to meet you." He extended his hand. "I am James Lee, Chief of Staff to Congressman Thompson."
"Mr. Li." Ling Yun shook hands.
"This must be Ms. Ophina?" James turned to Ophina. "Richardson mentioned you to me. A very capable young woman."
"You flatter me." Ophina smiled, but the smile didn't reach her eyes.
The three sat down. A waiter came in and asked if they would like any drinks. James ordered bourbon on the rocks, Ling Yun asked for water, and Ophina ordered tea.
"Well then," James took a sip of whiskey, "let's get straight to the point, you should know why I'm here."
"It's about the investigation," Ling Yun said.
“Yes.” James put down his glass. “Deputy Secretary Miller of the State Department of Consumer Affairs is an old friend of mine. He received a complaint about StarCraft and was going to follow the normal procedures. But Representative Thompson… has always been very concerned about privacy issues at tech companies. He felt it was necessary to make the investigation more thorough.”
The words were beautifully phrased, but the meaning was clear: we were the ones who escalated the investigation.
"Is the information in the report true?" Ling Yun asked.
"That's not important," James smiled. "What's important is that once the investigation starts, the media will report on it, and the public will have doubts. That's troublesome for a company like yours that relies on user trust, isn't it?"
"That's certainly troublesome," Ling Yun said. "So, how can Congressman Thompson stop being so 'concerned' about this?"
James took another sip of whiskey. The ice cubes clinked in the glass.
"Lawmakers are currently pushing for a 'Consumer Digital Rights Act,'" he said. "The bill requires tech companies to increase transparency in data collection and give users more control. It's a good bill, but it needs support."
"What kind of support?"
"First, a public endorsement," James said. "As a representative of innovation in Silicon Valley, StarCraft's public support for this bill would be very persuasive."
"We can consider it."
"Secondly," James leaned forward, "the legislative process requires resources. Research, hearings, lobbying... all of these require money. Congress has established a 'Digital Future Fund,' accepting corporate donations specifically to advance related legislation."
"The amount donated?"
"It depends on the company's sincerity," James said. "Typically, companies that have a direct impact on the bill donate between 500,000 and 1 million."
Ling Yun and Ofina exchanged a glance.
"Is there anything else?" Ling Yun asked.
"Finally," James leaned back in his chair, "the congressman himself is very interested in the tech industry. He often says he wants to build long-term relationships with real innovators. Perhaps... StarCraft Technology could hire the congressman as a strategic advisor, offering him some equity incentives so he can share in the profits of technological development."
That's the real purpose.
"Strategic consultant..." Ling Yun repeated the term, "How exactly does it work?"
"It's very simple." James took a document out of his briefcase. "Set up a new company, let's call it 'Digital Innovation Consulting Company.' Star Technology grants this company a number of stock options, and the company's shareholders... include members of Congress and some of his supporters. When Star Technology goes public, they can exercise their options and cash out. Of course, the whole process is completely legal and compliant, and is overseen by lawyers."
The document was pushed towards Lingyun, who opened it to find a draft of the company's establishment framework. The new company had a registered capital of only ten thousand US dollars, but could obtain stock options worth millions of dollars from Xingchen Technology.
"Have other tech companies used this approach?" Ofina asked.
“Many,” James smiled. “In Silicon Valley, it’s called ‘political risk hedging.’ Politicians get economic rewards, and companies get political protection—a win-win situation.”
Lingyun closed the file. The edges of the paper were sharp, slicing across his fingertips.
"I need time to think about it," he said.
“Of course.” James glanced at his watch. “But not too long. The deadline for responding to the inquiry is 5 p.m. tomorrow. If we don’t reach an agreement by then… Deputy Secretary Miller might decide to expand the scope of the investigation. You know, once the government gets going, it’s not easy to stop.”
This is a threat, disguised under a polite guise.
"I'll give you an answer tomorrow morning at 10 a.m.," Lingyun said.
"Looking forward to your good news." James stood up, shook hands again, and said, "By the way, I heard that StarCraft is raising funds? Congratulations. The tech industry needs innovators like you, and the senator thinks so too."
After he left, the private room fell silent. The whiskey glasses remained on the table, and most of the ice had melted.
"Shameless," Ophina whispered.
"That's how politics is," Ling Yun said. "Give them money or shares, and they buy Ping An."
"Do we really have to agree?"
"We have no choice." Ling Yun stood up. "If we refuse, the investigation will continue, the media will report on it, and we'll lose users. And this is just the beginning. Today there's one Thompson, tomorrow there could be ten. We need to build our own safety net."
"But this..." Ofina shook her head, "feels like being blackmailed."
"It's not extortion, it's a deal." Ling Yun walked to the window, looking at the rose bushes in the courtyard. "They provide political protection, we provide economic compensation. A clear price, no deception."
"Are other tech companies like this?"
"That's how it is." Ling Yun turned around. "Apple, Google, Microsoft... how do you think they get around so easily in Washington and Sacramento? It's all paved with money and equity."
Ofina remained silent. She looked at the documents on the table, her expression complex.
"So how exactly do we do it?" she asked.
"Agree to their terms," Ling Yun said, "but we need to negotiate the conditions. First, the donation can be a maximum of 500,000. Second, the strategic consultant's equity cannot exceed 0.5% of Xingchen Technology's total share capital. Third, they must ensure that the investigation is completed within a week, and the conclusion must be 'no violations found' in our favor."
Will they agree?
"Yes," Ling Yun said. "Because for them, this is a risk-free business. 0.5% of the shares aren't worth much now. But if Xingchen Technology goes public, it could be tens of millions of dollars. They're betting on our future."
"So, what shall we bet on?"
"We're betting on time," Ling Yun said. "We're using these shares to exchange for one or two years of peace of mind. Once we're strong enough, we won't need this kind of deal anymore."
"Let's go back to Silicon Valley," Lingyun said. "There's still a lot to do."
The car drove onto Highway 80, heading back to the San Francisco Bay Area. On the way, Lingyun called Richardson.
"How did the talks go?" Richardson asked.
"They want equity," Ling Yun said. "They'll set up a shell company and give them stock options."
“That’s to be expected,” Richardson said. “Companies in Silicon Valley all do it this way. Want me to recommend a lawyer who handles this kind of structure?”
"Yes, it is necessary. But the equity stake must be kept below 0.5%."
"0.5%... Thompson won't be satisfied. He wants at least 1%."
"Then it's 0.8%, no more," Ling Yun said. "In addition, Goldman Sachs needs to help review the structural design to ensure it's legal and compliant, and to avoid any future problems."
“No problem.” Richardson paused. “Ling, there’s something I need to remind you. Once this kind of deal starts, it’s hard to stop. This year it’s Thompson, next year it might be another senator, and the year after that it might be at the federal level. Political donations and stock option incentives will snowball.”
"I know."
"Moreover," Richardson said seriously, "if one day in the future StarCraft's interests clash with those of these politicians... they might turn around and use these deals to blackmail you."
"Then we'll talk about that on that day," Ling Yun said. "Right now, I need to solve the problem at hand."