Episode Summary
After a misunderstanding with a worker exposes his management weaknesses, idealist entrepreneur Liu Jun discovers his company's core technology has been stolen by a competitor, Municipal No. 1 Machine Works, led by the ruthless Lin Yue. The leak is traced back to a cleaning lady in desperate need of money. Liu Jun's attempt to sue for theft is systematically thwarted by Lin Yue's influence, which culminates in a crippling tax audit on his factory. To save the company from ruin, Liu Jun's father forces him to withdraw the lawsuit and personally apologizes to their rival, leaving Liu Jun completely disillusioned.
Spoiler Alert
Created in China Episode 7 Recap & Spoilers: An Idealist's Rude Awakening
When ideals clash with reality, the fallout is brutal. In this pivotal episode, Liu Jun’s dream of building a business on pure technical merit is shattered by corporate espionage, forcing him to confront the harsh truth that in the real world, innovation doesn't always win against ruthless tactics.
The episode kicks off with Liu Jun, the foreign-educated idealist, fumbling his on-the-ground management duties. While inspecting the workshop at his company, Qianjin Factory, he spots a worker acting suspiciously and immediately accuses him of stealing technical drawings. A scuffle breaks out, and the entire workshop floor watches as a supervisor intervenes, only to pull an adult magazine from the worker's clothes. Humiliated, Liu Jun flees the scene, his authority undermined by his own misplaced assumptions.
He escapes to a seawall to clear his head, where his friend Qian Hongming finds him. Looking out at the waves, Qian delivers a much-needed reality check, perfectly summing up the cultural gap between the brilliant engineer and his employees: "You can't expect assembly-line workers to understand the romance of precision bearings." The words hit home, and Liu Jun realizes he can't lead from an ivory tower. He returns to the factory ready to apologize, only to find his rival, Lin Yue, there. When Lin Yue asks if the worker will be punished, Liu Jun stands his ground and drops the matter. Later that night, he joins the workers for beer and barbecue skewers, finally beginning to bridge the gap between boss and team.
Just as he makes progress on the human front, the business front collapses. A financial review reveals accounting irregularities, prompting his seasoned father, Liu Shitang, to warn him, "A company isn't a laboratory; every penny has to be accounted for." The warning proves prophetic. Liu Jun soon learns that their main competitor, Municipal No. 1 Machine Works, has launched a nearly identical product at a much lower price. A frantic investigation led by Chief Engineer Wang confirms their worst fears: their core technology has been leaked. The trail leads to an unlikely suspect: the cleaning lady, Aunt Fu. Liu Shitang isn't surprised, remarking coldly, "Her son has 300,000 in gambling debts. Selling our tech would pay that off ten times over."
Furious and determined to fight for his intellectual property, Liu Jun files a lawsuit against Municipal No. 1 Machine Works for corporate theft. But he has underestimated his opponent. The powerful and well-connected Lin Yue not only accelerates the production of the knockoff products but also ensures that Liu Jun's legal efforts are dead on arrival. One by one, five different law firms refuse to take the case, all citing Lin Yue's influence. Even Lin Yue's own sister, Lin Chuan, warns Liu Jun that suing her brother will trigger a dangerous chain reaction.
After a failed attempt to confront Lin Yue directly, Liu Jun returns home and fires Aunt Fu, masking the dismissal as a cost-cutting measure. The very next day, the tax bureau launches a surprise audit of Qianjin Factory.
The move is a strategic masterstroke by Lin Yue, and it proves to be the final nail in the coffin of Liu Jun's lawsuit. His father, Liu Shitang, is enraged when he learns the audit was triggered by his son's legal battle. "If our reputation is ruined, it's worse than going bankrupt!" he yells. Forced to choose between his son's ideals and the survival of his company, Liu Shitang makes a devastating choice. Liu Jun is forced to withdraw the lawsuit and watch as his father humbly bows in apology to Lin Yue.
That night, a defeated Liu Jun drives to his mother's grave. He pulls out his phone, looking at a photo of the technical drawings he never sent. "You always said industry strengthens the nation," he says to the silent tombstone, "but it seems piracy is more profitable than innovation." As the wind snuffs out his cigarette, the lights of the Municipal No. 1 Machine Works factory glow in the distance, running through the night to produce stolen technology. His idealism has been crushed, but the war is just beginning.
The episode ends on a somber note, but the fight is far from over. Liu Jun is now poised to find a new way to fight back by secretly investigating Lin Yue's piracy chain. Meanwhile, Lin Chuan's loyalty is tested as she begins to pass crucial information to Liu Jun, risking her brother's wrath.
