David Rubenstein, the founder of Carlyle Group, arrived punctually at 7 PM at a hotel in western Suzhou. When he saw the Chinese woman with dimples in her smile, his first reaction was one of quiet amazement.
As one of Simon Westeros's two most important connections in China, Chen Qing—like Lin Su, who had recently appeared on the Forbes 400 Richest Americans list—was well-known to Rubenstein. He was fully aware of her status and wealth. Naturally, this realization stirred a tinge of envy.
Founded in 1987, Carlyle Group had been in operation for nearly a decade, yet Rubenstein's personal net worth still lingered around $20–30 million.
Fortunately, with George Soros formally joining Carlyle as a partner a few months prior—and, more importantly, with Carlyle successfully aligning itself with the meteoric Westeros system—the private equity firm finally stood on the brink of transformation.
Just last month, after persistent negotiations, Carlyle secured a $1 billion investment from Westeros Company.
For Carlyle, this influx of funds represented an even bigger boon than Soros's arrival. Although the investment came with clear stipulations—essentially treating Carlyle as a shell entity—David Rubenstein still treated it with the utmost seriousness.
After all, following the Westeros system's lead was never a losing strategy.
The $1 billion investment had been earmarked entirely for China's heavy industries, specifically construction, transportation, and mining-related machinery sectors.
With Carlyle's scale rapidly expanding this year, its prior focus on U.S. defense investments alone was no longer viable. Diversification was a necessity, and Simon Westeros's directive had opened a promising path.
Rubenstein had spent the past week in China surveying the state of its industrial sector. As his trip was coming to an end, he received instructions from Westeros. For projects in China involving Westeros funds, Carlyle was to appoint Chen Qing as a governmental policy advisor.
Carlyle had a history of hiring former Washington officials as executives or advisors to secure defense contracts. Thus, aligning with Chinese authorities was a logical move for Rubenstein. Even though he initially found Chen Qing's official role somewhat redundant, he agreed without objection.
And that led to tonight's meeting.
After exchanging pleasantries, Rubenstein, accompanied by his assistant, took a seat at a round table large enough for eight. Chen Qing, in contrast, was the only one representing her side, with two trusted aides present solely to assist with serving dishes. To ensure privacy, hotel staff were stationed outside the room.
Once everyone was seated and orders were given to bring out the food, Chen Qing smiled and began casually.
"So, David, after two weeks in China, how do you like the food here?"
Rubenstein was naturally affable and replied with a smile, "It's been an eye-opener. I think I might never be able to go back to just eating Western food."
"Our boss feels the same way," Chen Qing said lightly. "Chinese cuisine has such a wide variety that even if someone is unaccustomed to certain flavors, they'll always find something they love."
"Absolutely."
The food arrived quickly, and the conversation turned toward business.
"So, David, how do you feel about the batch of companies we've shortlisted for you?"
Attempting to use chopsticks clumsily yet determinedly, Rubenstein answered, "Honestly, Chen, I visited six companies over the past week, and my impressions were remarkably consistent: crude, outdated, chaotic, and very small in scale. Take XCMG Group here in Jiangsu, for instance. Their revenue last fiscal year was only $260 million—one of the top engineering machinery manufacturers in China. In contrast, Caterpillar, the largest in the U.S., posted $14.3 billion in revenue last year, with $950 million in net profit alone."
Chen Qing's smile remained steady. "So, David, does that mean you're not optimistic about our boss's investment strategy?"
Rubenstein didn't shy away. "If this strategy hadn't come directly from Simon himself, I wouldn't invest a single penny in these sectors in China."
"And now?"
"Well," Rubenstein chuckled, "I plan to follow Simon's lead, of course. I just hope this isn't his Waterloo. If it is, Carlyle might be dragged down as well."
Chen Qing teased lightly, "Actually, if you manage to prove that our boss was wrong, that would be quite the achievement. Although, to be fair, Simon hasn't made many mistakes when it comes to identifying major industry trends."
"That's true. Which is why Carlyle plans to bet alongside him."
"You won't regret it," Chen Qing said confidently. "However, David, I must emphasize that the interests of the Westeros system must remain your top priority."
"Of course. The client is always king."
Chen Qing nodded in approval. "Shall we move on to specifics? Have you settled on any targets?"
Rubenstein raised his left hand and held up two fingers. "Two. One is XCMG, which I just mentioned. The other is a private company in Hunan called Sany Heavy Industry."
The companies Rubenstein had investigated were all drawn from a shortlist provided by Cersei Capital's China Economic Research Institute.
Having been assigned the title of "government policy advisor" by her boss, Chen Qing had diligently reviewed these dossiers. Upon hearing the names, she immediately recalled the general profiles of the two companies.
XCMG was a large state-owned enterprise. While its revenue of $260 million (22 billion RMB) was notable domestically, it paled in comparison to global leaders.
Sany Heavy Industry, on the other hand, was a private company with a narrower focus. Unlike XCMG's diverse product lines—ranging from agricultural machinery to port equipment—Sany specialized in concrete machinery, particularly high-rise concrete pumps. Its technological breakthroughs in pumping heights exceeding 100 meters had broken foreign monopolies, making it a rising star in its field.
To Chen Qing, high-growth private companies like Sany were precisely the type of investment targets Wall Street favored.
"Choosing Sany makes perfect sense. But why XCMG?" Chen Qing asked. "Their product line is scattered, and they're expected to report losses this year."
Rubenstein didn't answer directly. Instead, he explained, "I've had extensive discussions with Sany's team, toured their factories, and seen their products. They're well-managed, have clear goals, and their leadership is exceptional. I hope to inject capital and provide technical support to help them evolve into a comprehensive construction and excavation machinery giant.
"As for XCMG, if we can strike a deal, I plan to restructure the company, divest its agricultural machinery business, and focus on port and mining equipment."
"Construction machinery, excavation equipment, port machinery, mining machinery…" Chen Qing repeated thoughtfully, identifying the core focus areas. "That's an excellent approach, David. But have you considered what to do if things don't go as planned?"
"What do you mean?"
"I mean," Chen Qing explained, "do you think $1 billion will be fully utilized if you only invest in these two companies?"
"Of course not. But that's just one part of the plan. Simon is also interested in shipbuilding and railways, both of which are capital-intensive. And, Chen, I don't intend to deploy the entire $1 billion in one or two years. The full investment timeline is projected to be three to five years."
"Fair enough," Chen Qing said. "But I suspect Simon might have something else in mind. He often prefers to hedge his bets by fostering competition. In Chinese terms, this strategy resembles raising venomous creatures together—letting scorpions, spiders, and centipedes fight until only the strongest one survives."
Rubenstein considered this for a moment before replying, "That does sound brutal… but if Simon supports this approach, I'm on board."
After all, Rubenstein had too much capital on hand to focus narrowly on just two companies. The Chinese engineering machinery sector was fragmented, with manufacturers scattered across various provinces. A diversified investment strategy made practical sense.
Moreover, fostering controlled competition—limiting certain equipment categories to a few key players—could ensure healthier growth.
Of course, the success of this plan hinged on Simon Westeros's long-term vision. If his prediction that China's infrastructure sector would soon boom proved correct, Carlyle stood to reap enormous rewards.
If not? The $1 billion from Westeros, along with Carlyle's matching funds, might face an uncertain fate.
The next day, Rubenstein flew back to the U.S. to prepare for the upcoming investments.
Meanwhile, Chen Qing received an early-morning call and promptly returned to Beijing.
The capital's team had informed her that a project Simon Westeros had been quietly pursuing—a golf course and luxury villa development at the foot of Fragrant Hills—had finally made progress.
Upon arrival, Chen Qing attended a municipal government meeting. The initial proposal, which sought 2,500 mu of land on the southeastern slopes near the mountain, was rejected. However, the city didn't outright deny the project but instead suggested moving it about a kilometer eastward, away from the foothills.
While this wasn't ideal, Chen Qing wasn't surprised.
The foothills of Fragrant Hills were prime real estate, widely regarded as a Feng Shui treasure. Though she had done her homework and ensured the targeted area lacked significant historical or political occupants, it seemed new interests had emerged to stake their claim.
Nonetheless, securing approval for
a 2,500-mu project without the city demanding joint ownership was a significant concession, likely granted out of respect for Simon Westeros.
As the meeting concluded, Chen Qing was approached by a middle-aged official.
"Ms. Chen, a moment?"
Chen Qing, ever vigilant, turned on her charm. "Of course, Secretary Liu. What can I do for you?"
The official offered a faint smile. "About the Rose Garden project in Changping… your team seems quite interested?"
Chen Qing froze for a moment, realizing the official had caught wind of their moves. They want us to take over the mess?
Feigning calm, she replied, "We've looked into it, Secretary Liu. But I've heard there are… complications?"
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