Chapter 158: You’ve Ruined My Face

I walked up the staircase of an apartment with no elevator.

As I pressed the doorbell, a woman opened the door.

It’s Zhang Ying.

I recalled seeing her in a newspaper years ago.

“Welcome!”

Without asking much, I followed her inside.

In the simple living room of the apartment, several computers were set up. The staff working there turned their heads to look at us.

These people, just a little over ten in total, were founding members of Alibaba.

Han Gyeong-yeong and I entered the main bedroom, which served as an office.

Inside the room sat two men.

“CEO James.”

Jack Ma got up, smiling as he approached, shaking hands with Han Gyeong-yeong.

“Please, have a seat. I see we’ve got a new face with us today, haha.”

“Nice to meet you. I’m Charlie Kim.”

“Ah, Charlie! Good to see you.”

The young Jack Ma had a playful vibe about him.

After a brief greeting, we kicked off the investment negotiations.

Jack Ma spoke.

“Our stance hasn’t changed: $20 million for 20% equity is our best offer. This is the consensus of all our staff, including myself.”

Honestly, I couldn’t fathom where he drew such confidence from.

When Son Jeong-gi visited China, Jack Ma once waited for hours just to receive a 20-minute meeting.

Did he need Son Jeong-gi’s name more than the investment?

Yet, James Han was valued even higher in the U.S. and worldwide than Son Jeong-gi.

Despite that, this was his attitude.

“You seem overly confident. You’re asking for $20 million for a company that’s just a year old and hasn’t even solidified its profit model?”

“What?”

When I casually blurted that out, Jack Ma’s surprise was palpable.

“The reason I came here was that I found your demands outrageous. I thought I’d hear it directly from you. What’s the real reason? Let’s be honest. Did someone else offer you a better deal?”

“No…”

Jack Ma looked anxiously over at Han Gyeong-yeong.

“He’s our boss.”

Jack Ma seemed to struggle with that meaning, but the surprise on the face of Chai Chongxin beside him was clear.

“Charlie Kim. I wondered where I had heard that name. So, you’re the real owner of Dream High, holding 99% of the shares? I heard you were reclusive, that no one knew you were involved directly.”

Chai Chongxin said in admiration, but I didn’t feel the need to respond.

“Be honest with me. Explain your reasons for all this. Have you been in talks with Son Jeong-gi already?”

“How would I know…”

Indeed, Son Jeong-gi and Chai Chongxin were already connected.

“If you’re seeking investment from Son Jeong-gi, I’ll get up and leave. I prefer a clear answer. If you’re just trying to inflate your value by proposing conditions we can’t accept, it’s better to walk away now.”

At that, Jack Ma looked at Chai Chongxin, puzzled.

“What’s going on, Chai?”

Chai Chongxin answered Jack Ma, his expression awkward.

“Soon, Masayoshi Son from SoftBank will e visiting Beijing to invest in Chinese IT companies. I’ve been informed they’ll be calling the CEOs of startup companies. That’s all that’s underway right now.”

“Why didn’t you tell me this?”

Jack Ma’s face turned red with anger.

With his straightforward nature, he raised his voice even with others present.

“I was going to wait until it was certain before discussing it.”

“Let’s keep our etiquette, Chai.”

Jack Ma bowed his head as he looked at us.

“I apologize. That wasn’t my intention. Please don’t misunderstand.”

“Are you asking me to believe that?”

“Whether you believe it or not is up to you, but it’s the truth.”

Jack Ma didn’t appear to be lying.

That said, I didn’t fully trust what he said, but I let it slide for now.

“Here’s my final proposal: $30 million for 45% equity.”

In China, the maximum foreign ownership allowed was 49%.

While this would ease over time, for now, the 49% cap stood.

“That’s difficult.”

It was Chai Chongxin, not Jack Ma, who raised his voice.

“…I see. Let’s disregard this investment then. I decided to invest based on your future, but I never expected to be treated this way.”

I thought they would welcome me with open arms if I said I wanted to invest in Alibaba.

But if they approached me like this, I had no choice but to consider other options.

Just then, Jack Ma spoke to Chai Chongxin in Chinese.

“Chai, what are you really thinking? 45% is unreasonable, sure. But there’s no reason to shut down negotiations without at least trying, right? Do you have something else in mind? Even if you reject the offer, you should keep the courtesy. What’s going on?”

“It’s like you’re trying to steal the company. So what’s the point of negotiation? Jack Ma, I believe in your success. That’s why I left a high-paying job and transferred to Alibaba. Don’t you understand my sincerity?”

When Chai Chongxin worked at AB Invest, his salary was 3 million Hong Kong dollars.

But he joined Alibaba simply believing in Jack Ma’s passion and potential.

“Then be precise. Tell me why you are refusing their investment.”

“That’s…”

Chai Chongxin glanced at us once before quietly telling Jack Ma.

“Rumor has it that their funds are the private assets of party power holders. You wouldn’t want interference from the Party, right?”

“What?”

“Moreover, they openly flaunt their connections to Vice Premier Wen Jiabao.”

Jack Ma’s expression hardened.

“Is that true?”

“I can’t be certain. But that rumor has been circulating on Wall Street. That’s why I was skeptical. I thought passing up 20% wouldn’t be an issue. It’s true we need the money. But not anything beyond that.”

Seeing that, it seemed there was nothing he wouldn’t say in front of me.

“You’re saying some interesting things.”

As fluent Chinese rolled off my tongue, Jack Ma and Chai Chongxin looked at me in shock.

“In China, it’s only natural to befriend the Communist Party if you plan to do business here. That’s the current reality. Right now, you’re also looking over your shoulder at the government. Am I wrong?”

“So you could speak Chinese.”

“Does that really matter?”

“Please observe the etiquette.”

“Etiquette? Who wasn’t being polite?”

As I laughed heartily, both Jack Ma and Chai Chongxin stiffened.

“The Chinese prioritize face. You’ve ruined mine. Expect consequences. I’ll hinder all your ventures. I’ll create the same business and run the same operations. Even if it results in losses, I can always throw money at it. Think I can’t do that?”

It wasn’t that I wished to take the rough path when an easier one was available with Jack Ma.

Baidu and Tencent were the same.

Knowing what they would do, I’d simply back a proxy and pour in vast amounts of capital.

“The reason I didn’t do that from the start was that I was genuinely interested in you and Alibaba. But you present yourselves like this? Now we really have to be adversaries.”

Chai Chongxin’s eyes burned with intensity.

I didn’t shy away from his gaze.

“I’m not interested in your management rights or being a puppet for the Communist Party. I intended to loosen regulations instead.”

“Is that true? You can ease the regulations?”

Jack Ma asked in surprise.

Currently, internet companies in China, including Alibaba, were under the intense scrutiny of the Communist Party.

Unlike countries like the U.S. and Korea which were relaxing internet regulations, the Chinese government was regressing.

It was almost comical; despite overseeing the establishment of official government websites and internet networks, they were under constant surveillance.

“You don’t say dumb things if you lack confidence.”

Finally, Jack Ma elbowed Chai Chongxin.

“Chai, let’s take this offer without question.”

“That’s unbelievable.”

“I appreciate you coming to Alibaba for me. But unless you have something else in mind, let’s go with my suggestion this time.”

“…Jack Ma.”

At that moment, Zhang Ying, who had been quietly listening, finally spoke up.

“Is it true you have no interest in management rights? Can you clearly put that in the contract?”

“Zhang Ying.”

Chai Chongxin called out her name, but her gaze was icy.

In the past, Jack Ma had said in an interview:

‘Ninety percent of my success is due to Zhang Ying’s support. She always encouraged me from behind. But when she gets angry, nobody—including me—could stop her.’

With a fierce gaze, Zhang Ying glared at Chai Chongxin and said.

“Chai, can’t we try negotiating? What’s the extreme opposition about? Did you make some promise to SoftBank?”

“No, what are you talking about…”

“Then let’s stop the bickering. This is Jack Ma’s company. All decisions are made by him, right?”

“…”

Chai Chongxin was taken aback by Zhang Ying’s response, unsure how to react.

On the other hand, Jack Ma hadn’t said a word since she began speaking. His trust in her seemed enormous.

Zhang Ying looked at me, smiling as if she hadn’t just been furious.

“I apologize for being rude. However, Goldman Sachs currently holds a 15% stake. The maximum we can offer is 34%. Would you still be willing to invest?”

It seemed like Zhang Ying was the true power in the room.

I matched her slightly softened tone.

“I’ll handle the acquisition myself. But the investment will drop to $20 million.”

“The amount doesn’t matter. Just ease the government’s regulations. Jack Ma struggles with that every night.”

“You.”

Jack Ma was about to say something, but Zhang Ying spoke quicker.

“Our conditions are straightforward. First, ease government restrictions. Second, don’t covet control. Third, if you need to sell shares, give us the first right of refusal. Lastly, delegate your voting rights to us.”

Zhang Ying’s demands were excessive.

Had I not foreseen the future, I wouldn’t have invested under such conditions.

Yet the reason I wished to invest in Chinese IT companies was due to the influence they would hold, rather than the money. If I could secure equity, there was no need to hesitate.

“Alright.”

“What do you think, Jack Ma?”

“If that’s your desire.”

Once Jack Ma agreed, things moved swiftly.

“We’ll write everything down in the contract.”

“Go ahead.”

“Dream High—no, let me trust you, Charlie.”

Zhang Ying decided on the spot, as if rejecting Chai Chongxin’s opinion entirely.

I willingly produced the contract.

“There’s space below to write special provisions. Please add your requirements there. But don’t include anything related to the Party; it could lead to issues later on.”

“I understand, Jack Ma.”

After receiving Zhang Ying’s gaze, Jack Ma carefully reviewed the contract before starting to note down the requirements at the bottom.

Chai Chongxin’s expression was devastating.

Feeling sidelined from the negotiations was bound to take its toll.

“Congratulations on joining us.”

I smiled, extending my hand.

“I apologize for being rude today.”

Jack Ma clasped my hand, apologizing.

“It’s fine. I believe one day Alibaba will grow larger than eBay in the U.S. If you ever need investments, contact James.”

Han Gyeong-yeong took the contract once it was confirmed and signed it.

“Funds will be transferred tomorrow.”

“Thank you.”

The contract was concluded smoothly.

Just before leaving, I added casually as if I had just thought of it.

“Oh, and we’ll send a new financial officer. I don’t think I can trust that Chai Chongxin. I need to ensure the investment is spent appropriately.”

On the way to the airport after leaving Jack Ma’s apartment.

I spoke to Han Gyeong-yeong.

“You handle Goldman Sachs’ 15%. Negotiate for it. They probably invested about $500,000, so offering them four times that should get approval.”

“Okay.”

“Then I’ll be heading back to Korea; you take care of the Tencent investment.”

Han Gyeong-yeong appeared apologetic.

“I’m sorry for dragging you into this.”

“You don’t need to feel sorry. If you don’t receive the investment, just threaten to create the same business like I did today. It’s a battle we can’t lose.”

A few days later.

Han Gyeong-yeong successfully wrapped up the Tencent investment and returned to the U.S.

I didn’t know if my advice had really worked.