It was over.

But not like Mooo.com or one of the other high-profile, high-flushrate spectacular Internet burnouts from the outside world. In China, everything has happens with Chinese characteristics, nothing is black and white.

Chairman Mao, patron saint of MaoPortal, came up with a phrase in the Cultural Revolution - he had a way with words: The mountains and rivers of China are all red. It may have been true at the time. But really, the phrase should have read: The mountains and rivers of China are all grey. There are few things in this country which are fixed and non-negotiable. You can get away with just about anything in China if you can just find the right way of putting it, give it the right spin, make the right explanation.

So it was with MaoPortal. It didn't die as Jefferson and the others thought it would at that last meeting. The theatrics were premature. The Powers That Be decided it was too good an idea, and the basic elements too inter-locking with their own image and aims to let it collapse in a public flame-out. Can't have the Chairman's name associated with a failed dotcom!!

Jefferson was woken the next morning by the sound of his mobile phone screeching a particularly frenetic passage from the Rice Girls hit "The Great Helmsman Will Be Coming Down the Mountain When He Comes", and he instantly resolved to programme the damn thing back to a simple "beep beep".

"Wei?" he mumbled groggily.

"Jefferson, good morning. This is Yan Ge, the official handling the MaoPortal case. You remember me, of course?"

Jefferson almost leapt out of his skin, but controlled himself and simply leapt out of bed instead. Yan had the power of life & death, as it were, over them all.

"Mr Yan, good morning," he stammered. "Of course, of course. How can I help you?"

"I would like to meet. Just you, and me and Lao Zhang, to discuss the MaoPortal situation. When would be convenient for you?"

"Any time at all, Mr Yan. You say."

"Then I suggest this evening at a club I know called the Silver Age. Do you know it?"

Jefferson knew it well. It was a large night-club run by people with permed hair and good connections. In the corners, you could often see people making offers to each other that they couldn't refuse.

"The Silver Age," repeated Jefferson. "What time?"

"Let's say 8.30pm."

At 8.25, Jefferson walked through the neon tunnel at the entrance to the night-club and was ushered into an elevator by a girl wearing an ill-fitting qi-pao and far too much make-up. The expansive lobby was marbly and cool and staff were placed strategically at various desks, doors and corners - more girls in qi-paos, gentlemen in tuxedos and bellboys wearing gloves. A tuxedo approached him enquiringly.

"Mr Yan, please," said Jefferson.

"This way, sir." The tuxedo led him through high double doors guarded by bellboy gloves into a wide, dimly-lit auditorium. Candles lit the sofas and low tables scattered about, and highlighted the faces of bevies of girls, all with long hair and wearing wedding cake confectionery gowns. Jefferson noted as he passed that every single one of them was gorgeous, even allowing for the lighting.

Up some stairs, down a corridor lined with sumptuous private rooms from which spilled the sounds of karaoke, and into a smaller room. At the far end were sofas and a huge television set, and the near end, a round table at which were seated Mr Yan and Lao Zhang, his uncle. Yan stood up and shook his hand.

"Be seated, Jefferson. Thank you for coming," he said. "Miss, a glass of Chivas for my friend."

Jefferson looked at Lao Zhang, who looked away.

"This MaoPortal venture has been an interesting experiment," Yan began once they were settled. "But the time has come to sort things out, to standardise it, to bring it into the structure."

He paused to let this first piece of information to sink in, then resumed.

"Mistakes were made. Things were done which were at best questionable." He glanced at Lao Zhang. "But we have considered internally how to handle this, and we have decided, based upon the spirit of the directives from the leadership, that we should treat this more in the nature of a learning experience. The internal conclusion, therefore, is that we are willing to work things out. But, there are conditions."

He paused again. Jefferson was following the path of Yan's words intently, and his spirits began to cautiously rise as he realised that might be a way out.

"A business like MaoPortal's in China is difficult from a foreigner perspective," said Yan. He lit a cigarette. "It is very much a business with Chinese characteristics, and the dynamics of the market are very different from the United States or Europe. Take the beer market, for instance. It is a close parallel, I believe, to our current situation. The foreigners came into the beer market and invested large sums of money in production capacity and marketing in the belief that the China market would operate according to the principles they understood and can control based on their experience elsewhere. But they were wrong. Now, one by one, they are closing. They have lost much money, and their assets are being bought at a fraction of their original investment cost by Chinese companies that know the market, have the staying-power and also have the connections to make it work."

He put particular emphasis on the word "connections".

"Now, the Internet would appear to be the same in many ways," he continued. "There has been much talk of new economy, information revolution, the profound impact of computer technology on the way things are. But I believe that in the end, the fever will pass, much will die and the useful elements of this new phenomenon will be integrated back into the world as we know it. Are you following me?"

Jefferson nodded.

"Now, you and your staff and investors put a lot of work into creating and developing a market. That is, the market for online Mao products. For our country, this market is significant for two reasons. First, Chairman Mao has an important place in our history and it is important that all elements, particularly business elements, which relate to his name, meet the overall requirements of the country and the Party. In recent months, the market for Mao products has experienced some imbalances and abnormal phenomena which are not to the benefit of our long-term aims in this regard.

"The second reason is that MaoPortal has proved that there is indeed a market for these products online, and that the Internet is an effective way to build the Mao product business. The so-called e-commerce. It is still early, but it is already clear that the state should pay serious attention to this area.

"So, we have a problem." He looked at Lao Zhang, then turned back to Jefferson.

"MaoPortal has been involved, as I said, in certain practices which are at variance with our country's laws. But we have decided internally to take a lenient view of this from the perspective of the main leadership of MaoPortal, for the sake of stability and unity. And in return for the sale of all outstanding shares in the company to SinoGotham Investments. That includes all holdings by foreign investors. In return, I can guarantee that the directors of the company will not face any prosecutions with regard to the affairs of MaoPortal. Some of them may even be invited to participate in the management of the newly-reconstituted MaoPortal." He sat back in his chair and took a sip of whiskey. "That will solve the problem."

"How much will SinoGotham pay for the MaoPortal shares?" asked Jefferson.

"Ten fen on the yuan, or ten cents on the dollar, as I understand they say in the United States. A tenth of the original funds invested."

"A tenth!" Jefferson exclaimed. "But MaoPortal is worth more than that!"

Just then, the signature music for a MaoPortal ad emanated from the television set, which was switched to a broadcast channel rather than to internal karaoke. "This . Is MaoPortal," intoned James URL Jones.

"That is hard to say. It is very difficult to make an accurate, objective valuation of dotcom company," said Yan. "But the point is that that is the price on offer. It is not negotiable."

"But how can I convince the shareholders to accept such an arrangement?" asked Jefferson. "They'll be outraged, and I'll be finished."

"I think you will find that it is easily done," said Yan with a smile. "The relevant documents have been prepared, and I will tell you what to say."

Yan withdrew several pieces of paper from a briefcase by his chair.

"This is a document charging the entire board of directors of MaoPortal with complicity in certain criminal activities." He slid the paper across the table for Jefferson to read. "Tomorrow, you will show this document to the shareholders, and tell them it is an internal document not yet implemented. You will say you are doing everything you can to obtain more information on the situation.

"The next day, you will contact the shareholders again and say that it appears to be Lao Zhang, acting on behalf of MaoPortal, who committed the worst transgressions, but that the authorities are outraged by what happened and are determined to push the MaoPortal case through to set an example for the entire Internet community, both Chinese and foreigners."

He pushed over a little blue copy of the PRC Criminal Law towards Jefferson. "You will draw their attention to Article 8 which specifically applies the laws to foreigners committing crimes inside the PRC, to Article 31 which states that those in charge of an enterprise could be held criminally responsible."

He then laid a little green copy of the PRC Company Law next to the Criminal Law booklet. "Then you will make them aware of Article 118, which states that directors are responsible for all resolutions of the Board. And make them aware that the authorities are paying attention to these provisions with regard to the MaoPortal case.

"Then, on the following day, you call again and tell them the authorities have decided to close down MaoPortal, suspend its business indefinitely. They will realise that they are facing the prospect of the value of their shares falling to zero. MaoPortal, as you know, has few concrete assets. It's value lies in its continued operations. If it shuts down for any period with a public suggestion of impropriety, that will be the end of it.

"The day after that, you phone and say that you have been working hard to find a way out, and that you think you may have found a way to save at least some of the share value. You say you'll get back to them soon. A short while later, you contact them and say that the authorities are willing to consider dropping the criminal charges if the shares are sold at the rate I mentioned. I think by that time they will view it as a very good deal."

He pointed at the paper in front of Jefferson. "This document listing the criminal charges against the directors: you can let them see it, but there must be no copies made. You must take personal responsibility for this. You can tell them it is an internal document. It should convince them to follow the course I have described.X-Mozilla-Status: 0009fferson sat in awe of the man, and stunned into silence.

"None at all?" asked Yan.

"No!" said Jefferson. "I mean, yes! What about the Number Two Mao Memorabilia Factory and NepoHoldings?"

"You will tell the foreign investors that the shares controlled by the Chinese partners have already been sold at the agreed price. You can add, if you like, that Lao Zhang is under detention and that you are concerned for his safety."

He glanced at Zhang and smiled.

"And how do Maomaomao.com and Jackal fit into all this?" asked Jefferson.

"Ah. We reached an understanding with Mr Jackal some time ago. When this transaction is completed, it is entirely possible that MaoPortal and Maomaomao.com will merge.

Jefferson was silent.

"If there are no further questions, then let us end our discussioX-Mozilla-Status: 8019ou out."

"No, no need really," Jefferson protested. "I can find my own way, thank you. Mr Yan, thank you for your hospitality. See you again, Uncle Zhang."

Jefferson followed the instructions on the packet and the investors did as was required of them. They were all unhappy, and some angry, but the twin threats of criminal action and closure were remarkably effective.

Mao Portal was re-constituted as a domestic enterprise, merged with Maomaomao.com and given exclusive rights to handle sales of Mao products online.

Jefferson asked Lao Zhang about NepoHoldings, but his uncle gruffly turned the question aside. Jefferson's impression was that Lao Zhang had received a stiff reprimand over the affair.

Jackal was given the position of deputy director of the New New MaoPortal, and spent much of his time attending conferences and giving speeches on the significance of the Internet and e-commerce for the future of China.

Stone Daw and the other investors basically shrugged and moved on to the next deal. Daw vowed never to invest in China again, while investors closer to the scene swore that next time they would seek better guarantees and assurances. Wang Qiankan, however, was doing very well, thank you. MaoPortal.com had not worked out, but two other dotcoms he seeded at about the same time had already gone to IPO. He was now looking at a new deal involving a JV with international media magnate Sebastian Pringle, and was also about to be nominated for a position on the standing committee of the next session of the Chinese People Political Consultative Conference.

Suzanne found a new set of clients, but continued to have indirect involvement in the MaoPortal saga. For a while, she dated the new CEO put in place of Jefferson. Jefferson phoned her a couple of times, but her secretary said she was busy. Her mobile rang and rang, no answer. He could have phoned her from another number which would not indicate his identity, but there was no point. He could take a hint.

Lao Zhang "retired" from his position at the Shanghai Number Two Mao Memorabilia factory. But he had a large stash on money in Hong Kong, and he had plans to pursue other interests in Canada at an appropriate time.

Miracle Liang moved on to sell real estate in the Shanghai villa market, having completely lost faith and interest in the online business.

And Jefferson? He was sitting on the balcony of B on the Mund with Shanghai spread out before him. Miracle was on his right, listening politely while Jefferson talked animatedly to the Venture Capitalist from Taipei sitting on his right.

"Have I got this great idea!" he said. "It's not B-to-C, that doesn't make it anymore. Nor does B-to-B-to-C. The way to go is A-to-B-to-C-to-D! With Chinese characteristics. Here, let me show you the business plan!"