Eisen was speaking the truth. In the 1990s, the country was desperately short of foreign currency.
To fuel rapid economic growth back then, foreign exchange was critical—not just for buying advanced technology and equipment from abroad, but also for investing in various industries.
With capital in such short supply, policies naturally leaned heavily in favor of attracting it.
Local governments set up dedicated agenscies to court foreign investment. Rumor had it that in some counties, securing just a few million dollars in investment could fast-track an official's promotion.
At one point, the exchange rate between the U.S. dollar and the Chinese yuan was close to 1:9.
By 2002, the foreign exchange shortage had eased up, but capital was still in high demand.
This dynamic shifted after China joined the WTO, racking up massive trade surpluses in international markets. It wasn't until after 2010 that the country started seeing a surplus of capital.
By around 2020, China was dealing with an overabundance of both financial and industrial capital.
But future abundance doesn't solve present hunger.
From Eisen's perspective, based on his preliminary communications, he saw no reason this trip to China would hit any snags.
"You need money, I've got the cash. We all make big profits together—why wouldn't that be welcomed?" Eisen thought.
"The government welcomes foreign investment, but individuals might not see it the same way. I'm worried things won't go as smoothly as you think," Luke cautioned.
"Is there a difference? Shouldn't individuals be all about business and profits? Who'd turn down a good deal?" Eisen, not deeply familiar with the local mindset, replied.
"Let's stay cautiously optimistic and see how it goes," Luke suggested.
As they stepped out of the airport, a sleek Maybach sedan was already waiting at the curb.
A man in his early thirties approached them. "You must be the VIPs from New York. I'm Mr. Li's secretary, here to handle your itinerary."
His demeanor was polite, but Luke sensed a faint unease.
The arrangements weren't rude by any means, but they lacked warmth.
Given Eisen's status as the head of a top-tier investment bank managing tens of billions of dollars, it wouldn't have been out of place for Mr. Li, the head of Hengdian Group, to personally greet them at the airport.
After all, in 2002, China's richest individual was worth about $700 million.
Even setting aside Eisen's control over vast investment resources, just the profits from Luke's film studio, valued at a conservative 7x PE ratio, would dwarf the wealth of China's richest person.
Globally, Eisen was among the elite tier of tycoons.
On their recent Japan trip, the head of JNTO had personally met them at the airport.
The last time they visited China, director Zhang hadn't come to the airport, but that was because Zhang Ziyu stepped in to create a warmer, more personal connection—a buffer before formal talks.
Today's situation was entirely different.
The courtesy was impeccable but lacked enthusiasm—a subtle signal in itself.
Still, Luke and Eisen followed the secretary to the car, which took them to a beautifully serene estate in Lin'an City.
As they stepped out, Mr. Li Yunsheng, the head of Hengdian Group, greeted them with a warm smile, firmly shaking Eisen's hand.
"Welcome, honored guests! In our line of work, Mr. Eisen, your influence in Hollywood is legendary. It's a real privilege to finally meet you in person.
And Mr. Luke, I've watched every one of your films. Hero and Pirates of the Caribbean were absolutely incredible—I've seen them multiple times and still can't get enough," Mr. Li said, shaking hands with both men.
Li's English wasn't strong, so his secretary translated. This wasn't unusual for older entrepreneurs without overseas education.
At about 6'1", Li was tall but slightly heavyset, dressed in a dark suit and white shirt.
His graying hair matched his age—mid-fifties—and his round, chubby face gave off a friendly vibe. Yet his sharp, resolute eyes conveyed a sense of calm intelligence.
Luke, with his knack for reading people like a script, could tell at a glance what was genuine and what was performative.
After just a few looks at Mr. Li, he pegged him as someone great to befriend but tough to work with.
His expectations for the trip dipped a bit lower.
"You've had a long journey. How about we grab a quick bite first and talk business later?" Li suggested.
Luke knew this "quick bite" would be anything but cheap.
But Eisen cut straight to the point. "It's only a little past 4 p.m. Still early for dinner. Why don't we dive into business first?"
Li was caught off guard. He hadn't expected Eisen's directness, but it wasn't entirely surprising—typical American style. He didn't take offense.
After inviting them to sit, Li said, "I've reviewed your partnership proposal. Honestly, it's very compelling."
Luke braced for the "but"—Li's tone made it inevitable.
"But we've got some challenges to work through," Li continued. "Two main issues. First, our group's ownership structure is already quite complex. Bringing in new investors could complicate control.
If you invest, I'd hope you'd agree to an AB share structure or a consistent action agreement."
Eisen's brow furrowed, but before he could respond, Luke gently tugged his hand under the table.
"What's the second issue?" Luke asked in Chinese.
Li went on, "As I mentioned, our ownership is pretty fragmented. Absorbing such a large investment would be tough—we might not have enough shares to offer.
I could transfer some of my own shares, but we'd need to coordinate with other shareholders looking to cash out.
So, I propose taking the investment in phases. A hundred million dollars in the first phase would be our limit."
With both issues laid out, Li awaited Eisen's response.
The terms were far from ideal—borderline unfavorable.
The AB share structure or consistent action agreement would effectively limit Luke's side from having a say in major decisions.
Li's stance was clear: invest if you want, but you're just dividend-collecting shareholders—I'm keeping control.
Losing control through equity financing was a risk Li wouldn't accept.