Chapter 2005 Big Problems in the Steel Industry

Why did Feng Yu not participate in this negotiation? It was the signing of the contract between Polar Bear Mining Group and Huaxia Iron and Steel Corporation.

Lituo Group and BHP Billiton have completed the merger in iron ore mining and transportation, and of course the next step is to find stable procurement targets and ensure benefits.

However, Huaxia's demand for steel has increased significantly, and Lituo Group has just completed the signing of a joint venture agreement with Huaxia Aluminum, and it is more appropriate to discuss a long-term iron ore supply contract.

Everyone who does business hopes to have a stable and honest partner, and when looking for a partner for a new business, many people will choose a partner who has cooperated and trusted before.

There is no doubt about Huaxia's integrity, not to mention Feng Yu's guarantee. In addition, Huaxia allowed the Polar Bear Mining Group to participate in the shares, which also guaranteed Kirilenko's interests, so this matter was logically facilitated.

However, the signing of this contract may bring a series of troubles. This trouble is mainly aimed at Huaxia's steel companies.

Vale's ore is sold to the United States, and then steel is made in the United States and sold to other countries and regions. However, the United States now mainly develops special steel products, and most of them are imported ordinary steel products.

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 though Huaxia is doing many infrastructure projects, it must export it.

Asia, Europe, and the Americas all have to export, and they have all begun to slowly open up sales. Because of what, because the price is cheap and the quality is high.

In the past, Huaxia Steel was synonymous with inferior quality. Later, Huaxia also discovered that steel is a strategic material, so under the blockade of European and American technology, it invested a lot of research and development funds and developed its own technology. more developed.

In addition, the wages of steel mill workers in China are generally not too high, and many of them are still old-fashioned and talk about dedication. Therefore, the cost of steelmaking in Huaxia has become very low, much lower than that in Europe and the United States.

Huaxia shipped the steel to the other side's port, but it turned out to be cheaper than the other side's steel. In this way, the steel mills in the United States were seriously threatened, and it is very likely that the products could not be sold.

In fact, the production capacity of the United States' own steel plants is sufficient to ensure the use of the United States, so there may be a problem here, that is, the United States will impose sanctions on China's steel exports, as long as China's steel is dumped on the United States.

Then not only fines can be imposed, but also import surcharges, that is, retaliatory and punitive tariffs, to protect the interests of their own companies.

At the beginning of this year, the United States has already done so. Their United Steelworkers claimed that China's export of car tires to the United States disrupted the freedom of the market in the United States, so punitive tariffs should be imposed on Chinese tires for three consecutive years.

The United Steelworkers can intervene in everything related to steel.

To put it bluntly, this is a kind of local protection. Who made China's exports grow too fast now, seriously threatening the interests of the United States. And not only the interests of the United States, but also the interests of many countries such as the European Union.

The reason why it was so difficult for Huaxia to enter the WTO was that many countries believed that once Huaxia joined it, it would have a disastrous impact on their country's manufacturing industry, because they could not compete with Huaxia's enterprises.

But in the end, China's entry into the WTO was facilitated by the United States, because the United States wanted to open up the Chinese market and could no longer protect each other like this.

At first, the United States made a lot of money, but now it seems that China has made more money, while the United States has begun to suffer losses.

The export of tires from the Huaxia Team USA has increased by nearly four times in the past few years, which is too fast. This has aroused the vigilance of related companies in the United States. They found that although the market has grown, more money seems to have been made by Chinese companies.

In the face of the economic crisis, American people have started to buy cheap products. American tire companies, such as Goodyear, are less competitive.

At that time, it was Feng Yu who secretly asked for help.

Let the punitive tariffs be cancelled, but Huaxia also secretly gave some other compensation, such as the purchase of US treasury bonds this time, which is a compromise.

Of course, at the same time, China also made a counterattack. It also imposed high tariffs on some export products from the United States, and China was seriously suspicious. This was because China no longer imported genetically modified foods and seeds from the United States.

At this time, Huaxia has more confidence, that is, Polar Bear Mining Group has acquired Lituo Group, which can affect the price of ore and other raw materials to a certain extent.

The United States has always been a big importer of raw materials. Now China does not sell them, and we keep the raw materials for our own production. Let your raw material costs in the United States also rise by a notch, and then make your products even less competitive internationally.

It is precisely this that made the United States counterattack again. They also want to impose sanctions on China's steel products, impose penalties, and impose punitive tariffs.

In fact, if it's just a confrontation with the United States, Huaxia is not worried at all, both sides will suffer, and the United States will suffer even more.

However, according to WTO rules, if Huaxia accepts these penalties, then other countries can follow these plans. For example, the European Union and island countries can also impose penalties on such products of Huaxia and impose punitive tariffs.

In this way, China's overall exports of this industry will suffer a major blow, and China will suffer even more. This may trigger a wave of boycotts of China's export products.

It seems that this is the United States' counterattack against China's delay in buying US treasury bonds. It has been agreed, and you China has added conditions. Is this a bit too much? We in the United States are short of money now, but we are not to be bullied.

In fact, there are many conflicts between China and the European Union. For example, the photovoltaic industry also wants to rule on dumping. China'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 Huaxia's tax revenue and reduce the income of those corporate employees.

In fact, the acquisition of Lituo Group by Polar Bear Mining Group has been publicly criticized by the European Union and the United States many times, but they have been forced back by Russia, which also represents the interests of Russia.

Now it is building a joint venture with Huaxia Iron and Steel Corporation to produce steel, which will once again provoke the sensitive nerves of Europe and the United States. Feng Yu deliberately avoided Reed, and did not allow Reed to have the opportunity to communicate with him in the first place, and wanted to see what choice the American side would make.

If sanctions are still to be imposed, then Feng Yu will not invest another dime in the United States!

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