MTL - Extraordinary Genius-Chapter 2005 Big problem in the steel industry

Feng Yu is because of what, did not participate in this negotiation? It is a matter for the Polar Bear Mining Group to sign a contract with Huaxia Iron and Steel.

Lituo Group and BHP must complete the merger in iron ore mining and transportation. The next step is of course to find stable procurement targets and ensure the benefits.

However, China's steel demand is increasing, and the Lituo Group has just signed a joint venture agreement with Huaxia Aluminum, and then talks about the long-term supply contract for iron ore.

Every business wants to have stable and honest partners, and when new businesses look for partners, many people will choose partners who have worked together and trust.

Huaxia’s integrity is unquestionable, not to mention Feng Yu’s insurance. In addition, the Chinese side allowed the Polar Bear Mining Group to participate in the shares, and also guaranteed the interests of Kirilenko, then this matter was logically promoted.

However, the signing of this contract may bring a series of troubles. This trouble is mainly for the steel enterprises in China.

The ore of Vale is sold to the country of rice, and then the country is sold to other countries and regions. However, the country now mainly develops special steel, ordinary steel, and they are now mostly imported.

And their biggest importer is China. Huaxia is the world's largest importer of iron ore. Of course, it can't consume so much steel. Even if China is doing many infrastructure projects, it will definitely export.

Asia, Europe, and the Americas all have to export, and they are beginning to slowly open their markets. Because of what, because the price is cheap, the quality is superior.

The former Huaxia Iron and Steel was synonymous with inferior quality. Later, Huaxia also found that steel was a strategic material. So under the blockade of European and American technology, it invested a lot of research and development funds, researched its own technology, and in some respects, it was more than Europe and America. More developed.

In addition, the wages of steel mill workers in China are generally not too high, and many of them are still old traditions and dedication. Therefore, the cost of steelmaking in China has become very low, far below that in Europe and America.

Huaxia transported the steel to the other's port, and the result was still cheaper than the other's steel, so the steel mill in the country was seriously threatened, and it is very likely that the product could not be sold.

In fact, the capacity of the country's own steel mill is enough to ensure the use of the country, so there may be a problem here, that is, the rice congress has imposed sanctions on China's steel exports, as long as Huaxia's steel is dumped on the rice country.

Not only can they be fined, but they can also receive import surtax, which is retaliatory and punitive tariffs, to protect the interests of their domestic enterprises.

At the beginning of this year, the country has already done so. Their Steel Workers' Federation claimed that China's export of automobile tires to the country has disrupted the market freedom of the country, so it should impose punitive tariffs on China's tires for three consecutive years.

This steelworker federation is everything related to steel, and they can all get in.

To put it bluntly, this is a kind of local protection. Whoever makes China's exports now grow too fast, seriously threatening the interests of the country. And not only the interests of the country, but also the interests of many countries such as the EU.

It was difficult for China to enter the WTO at the beginning. Many countries believed that once China was added to it, it would have a disastrous impact on the manufacturing industry of their country, because they would not compete with Huaxia enterprises.

But in the end, China's accession to the WTO was facilitated by the country, because the country wanted to open the Chinese market and could not protect each other.

At first, the country was making a lot of money, but now it is found that it seems that China has earned more, and the country has begun to suffer.

China’s tire exports in the past few years have nearly quadrupled, and the speed is too fast. This has aroused the vigilance of the relevant companies in the country. They found that although the market is growing, more money seems to have been earned by Huaxia enterprises.

The economic crisis, the people of the country have also begun to buy bargains, and the country’s own tire companies, such as Goodyear, have weak competitiveness.

At that time, Feng Yu was secretly looking for help and letting punitive tariffs be lifted, but Huaxia also secretly gave some other compensation. For example, the purchase of the national debt was a compromise.

Of course, at the same time, China also made a counterattack. For some of the export products of the country, it also imposed high tariffs, and China seriously suspected that this is because China is no longer importing GM foods and seeds related to rice.

At the same time, China is more emboldened, that is, Polar Bear Mining Group acquired the Lituo Group, which can affect the price of raw materials such as ore to some extent.

Rice has always been a major importer of raw materials, and now China does not sell it. We keep raw materials and produce it ourselves. Let the cost of raw materials in your country rise to the next level, and then make your products less competitive internationally.

It is also the case that the country has once again made a counterattack. They have to impose sanctions on China’s steel products, and they must impose penalties and impose punitive tariffs.

In fact, if it is only so engaged with the country, China is not worried at all, the two lose, the country suffers more.

However, according to WTO rules, if China accepts these penalties, other countries can follow these programs. For example, the EU, island countries, etc. can also impose penalties on such products of China and impose punitive tariffs.

As a result, China's overall export of the industry will suffer a major blow, and China's losses will be even greater, which may trigger a wave of resistance to China's exports.

It seems that this is a counterattack by the country of China on China’s delay in purchasing the national debt of the country. All of them have said that you have added conditions to China. Is this excessive? Our country is short of money, but it is not being bullied.

In fact, there are many contradictions between China and the EU. For example, the photovoltaic industry also wants to decide on dumping. Huaxia's photovoltaic industry is mainly Feng Yu's investment, thanks to the help of the state, otherwise that part of the industry will greatly reduce Feng Yu's profits.

Of course, this will also reduce China's tax revenue and reduce the income of those employees.

In fact, the Polar Bear Mining Group acquired the Lituo Group, which has already repeatedly blamed the EU and the US, but it has been hard-backed by the Russian side, which also represents the interests of Russia.

Now it is a joint venture with Huaxia Iron and Steel Co., Ltd. to produce steel, which will once again provoke the sensitive nerves in Europe and America. Feng Yu was deliberately avoiding Reid and not let Reid have the opportunity to communicate with him for the first time. He wanted to see what choices would be made in the country.

If it is still necessary to impose sanctions, then Feng Yu will not invest another cent in the country!

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