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Extraordinary Genius

By Qiong Si

The major problem of steel industry

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What matter didn't Feng Yu because, participate this time negotiates? Is Polar Bear Mining Conglomerate and matter of China steel and iron Company signing contract.

Stood develops the group with probably with probably hold to complete the merge in iron ore mining, transportation and other aspects, then naturally must seek purchases the object stably, the guaranteed benefit.

But the China steel and iron demand increases exactly, in addition stood develops the group also just to complete the joint capital Company agreement signature with the China aluminum business, then discussed the iron ore long-term supply agreement, was quite appropriate.

Each doing business hopes stably, and good faith partner, but the new service looks for the partner time, many people will choose had cooperated, and partner who trusts.

The China good faith is without a doubt, let alone also has Feng Yu to be a guarantor. In addition China allows Polar Bear Mining Conglomerate to hold share, has ensured the Kirilenko benefit, then this matter on logical was facilitated.

However the signature of this contract, will probably bring a series of troubles, this trouble, mainly aims at China steel and iron Company.

The ore of CVRD sells the US, then after the US makes steel, sells to other countries and regions. However the US now main development special steel products, the ordinary steel products, they now are the imports.

But they biggest importing country, is China. China is the world iron ore imports the first great nation, oneself could not certainly consume these many steel products, even if China were making many capital construction projects, must therefore certainly exit / to speak.

Asia, Europe and Americas must exit / to speak, moreover starts slowly opened the sale. Because of anything, because is low-cost, is good-quality.

Once China steel and iron was the inferior synonym, afterward China also discovered that the steel and iron was the strategic resources, therefore under the blockade of European and American technology, put in very high research and development funds, studied own technology, and fields, compared with Europe and America also developed.

In addition the China steel mill worker wages are not quite generally high, their old tradition, stressed the dedication. Therefore the China steel-making cost, becomes very low, is lower than that side Europe and America.

China ships the steel products to the opposite party port, finally is cheaper than the steel products of opposite party, such iron and steel plant in US seriously was threatened, had the possibility product unable to sell very much.

In fact, US own iron and steel plant capacity, guarantees the use of US sufficiently, therefore in this may cause an issue, that will be the US will make the sanction to the China steel exporter, so long as said that the China steel products dumped to the US on the line.

Then not only can fine, but can also collect the import additional tax, is the retaliatory nature and punitive customs duty, to safeguard their our country Company benefit.

At the beginning of this year, the US such has done. Their steel worker federation claimed that the car tire exit / to speak of China to US, threw the market in US to be free, therefore should to the China tire consecutively for three years of levy punitive tariffs.

This steel worker federation, with the steel and iron related all matters, they can insert the seat of honor.

To put it bluntly, this is a local protectionism. Who makes the China export amount grow now is too quick, posed a threat to the interests of US seriously. Not only interests of US, EU and other interests of countries.

Initially why China entered WTO to be very difficult, is many countries believes that once China were involved, then to the manufacturing industry of their country will have the disastrous influence, because could not compete China Company.

However finally China joins WTO, is the US facilitates, because the US wants to open the China market, cannot such protect again mutually.

The initial US has gained much, but discovered now, probably China gains are more, the US started to suffer a loss.

China team US these years tire exit / to speak, grew close four times, the speed was too fast. This has caused the vigilance of US related Company, they discovered the market, although grows, but more money were made probably by China Company.

The economic crisis, the American also started to buy the bargain-priced goods, US own tire Company, for example Goodyear anything, the competitive power was weak.

At that time was Feng Yu is finding person to help, making the punitive tariffs in secret cancel, but China has given other compensations similarly in secret, for example this time purchased the US national debt, was a compromise.

Naturally, simultaneously China also has made the counter-attack, regarding some export products of US, has levied the customs duty of high quota, and China serious suspicion, this is because China no longer imports the transgenetic food of US to be related with the seed.

But China the energy was fuller at this time, that was Polar Bear Mining Conglomerate purchases has stood develops the group, can affect the ore and other raw material to a certain extent the prices.

The US is the raw material had imported the great nation, now China does not sell, we keep raw material to produce. Let the material cost of your US also rise one grade, then makes your products internationally not have the competitive power.

Also so, made that side the US make the counter-attack once more, they must also punish the China steel products, must punish, wants the levy punitive tariffs.

Actually if with the US such to doing, China were not worried, mutually wounded, the US suffers a loss is bigger.

However according to the WTO rule, if China accepted these punishments, then other countries can continue to use these plans, for example EU, Japan , etc. can make the punishment to China the kind of product similarly, and levy punitive tariffs.

As the matter stands, the industry aggregate exit / to speak of China will be attacked significantly, China suffered a loss was bigger, this possibly initiated boycotts the China export products the tide.

It seems like this is the US does not purchase the counter-attack of US national debt to China, has reached an agreement, your China adds the condition, was this somewhat excessive? Our US is short of money now, but does not let the person to bully.

But in fact China with EU that side, currently also has many contradictions, for example the PV industry, similarly wants to rule dumping. The PV industry of China, is mainly the investment of Feng Yu, this has been lucky the help of country, otherwise that some industries, will reduce the Feng Yu profit enormously.

Naturally, this will also reduce the China tax revenue, reduces the income of these Company staff.

Actually Polar Bear Mining Conglomerate purchased has stood develops group, has made EU, the US and other countries frequently publicly accuse, but had been refuted by Russia that side, that was also representing the Russia interests.

Now pools capital to put up a factory with China steel and iron Company, the turnout steel, this will shoulder European and American that sensitive nerve once more. Feng Yu avoids Reed specially, does not make Reed have first with the opportunity that he communicates, will want to take a look at that side the US to make anything to choose.

If must punish, then Feng Yu will not invest the 10 cents toward the US again!

......

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Extraordinary Genius

The major problem of steel industry

The major problem of steel industry

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