Chapter 2005

What's the reason for Feng Yu not to participate in this negotiation? It is the matter that polar bear mining group signs a contract with Chinese steel enterprises.

Leto group and BHP have merged in iron ore mining, transportation and other aspects. Next, of course, they need to find stable purchasing objects to ensure their interests.

And Huaxia happens to have a huge increase in steel demand. In addition, Leto group has just signed a joint venture agreement with Huaxia aluminum, and then it is more appropriate to talk about the long-term supply contract of iron ore.

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

There is no doubt about the integrity of Huaxia, let alone Feng Yu. In addition, China allows polar bear mining group to participate in shares, which also guarantees Kirilenko's interests, so this matter is naturally promoted.

However, the signing of this contract may cause a series of troubles, mainly for the steel enterprises in China.

Vale's ore is sold to the United States, which then makes steel and sells it to other countries and regions. However, the United States now mainly develops special steel products, ordinary steel products, which are mostly imported.

And their biggest importer is China. Huaxia is the largest iron ore import country in the world. Of course, it can't consume so much steel. Even if Huaxia is doing many infrastructure projects, it must be exported.

Asia, Europe and America all need to export, and they are slowly opening up their markets. Because of what, because the price is cheap and the quality is excellent.

Once, Huaxia 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 R & D funds, developed its own technology, and in some aspects, it was more developed than that of Europe and America.

In addition, the wages of steel workers in China are generally not very high. Many of them are still old-fashioned and dedicated. So the cost of steelmaking in China has become very low, far lower than that in Europe and America.

Chinese steel is still cheaper than the other side's steel when it is transported to the other side's port, so that the steel plants of the United States are seriously threatened, and it is likely that the products will not be sold.

In fact, the capacity of our own steel plants is enough to ensure the use of our country, so there may be a problem. That is, the United States will impose sanctions on Chinese steel exports, as long as Chinese steel is dumped on the United States.

Then not only can they be fined, but they can also collect import surtax, that is, retaliatory and punitive tariffs, to protect the interests of their own enterprises.

At the beginning of this year, the United States had already done so. Their Federation of steel workers claims that China's export of auto tires to the United States has disrupted the market freedom of the United States, so it should impose punitive tariffs on Chinese tires for three consecutive years.

This federation of steel workers is all things related to steel. They can get involved.

To put it bluntly, this is a kind of local protection. Who made China's exports grow too fast now, which seriously threatened 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.

Why it is difficult for China to enter WTO at the beginning is that many countries think that once China enters WTO, it will have a disastrous impact on their country's manufacturing industry, because they can't compete with Chinese enterprises.

But in the end, China's accession to the WTO was facilitated by the United States. Because the United States wants to open up the Chinese market, it can no longer protect each other in this way.

At first, the U.S. made a lot of money, but now it's found that, as if China made more money, the U.S. began to suffer losses.

In recent years, China's tire export has nearly quadrupled, too fast. This has aroused the vigilance of relevant enterprises in the United States. They find that although the market is growing, more money seems to be earned by Chinese enterprises.

In the economic crisis, people in the U.S. began to buy cheap goods. The competitiveness of their own tire companies, such as Goodyear and others, was weak.

At that time, it was Feng Yu who secretly asked for help to cancel the punitive tariff, but China also secretly gave some other compensation, such as the purchase of US Treasury bonds, which was a compromise.

Of course, at the same time, Huaxia also made a counterattack. For some of the export products of the United States, it also imposed high tariffs, and Huaxia seriously suspected that this is because Huaxia no longer imports genetically modified food and seeds of the United States.

At this time, China's bottom gas is more abundant. That is, polar bear Mining Group acquired Leto 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 doesn't sell them. We keep the raw materials for our own production. Let the cost of raw materials in your country rise a notch, and then make your products more uncompetitive internationally.

That's why the U.S. side made another counterattack. They should also impose sanctions on Chinese steel, impose penalties and impose punitive tariffs.

In fact, if we only engage in this kind of confrontation with the United States, China will not worry about it at all. We will lose both sides, and the United States will suffer even more.

But according to WTO rules, if China accepts these punishments, other countries can use these programs, such as the European Union, island countries and so on, to punish such products of China and impose punitive tariffs.In this way, China's overall export of the industry will suffer a major blow, and China will suffer even more losses, which may trigger a wave of boycott of China's export products.

It seems that this is the counterattack of the United States against China's delay in purchasing the national debt of the United States. It's all agreed that you should add conditions to China. Is this too much? We are short of money, but we are not bullied.

In fact, there are many contradictions between China and the EU. For example, photovoltaic industry also wants to adjudicate 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 the tax revenue of China and the income of those employees.

In fact, when polar bear Mining Group acquired Leto group, it has been publicly criticized by the European Union, the United States and other countries for many times, but it has been hardheaded back by Russia, which also represents the interests of Russia.

Now we have a joint venture with Huaxia iron and steel company to produce steel, which will arouse the sensitive nerves of Europe and America again. Feng Yu deliberately avoids Reid, so that Reid will not have the opportunity to communicate with him in the first time. He wants to see what choices the United States will make.

If sanctions are still needed, Feng Yu will not invest another dime in the United States!

……

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