Why is Feng Yu not participating in this negotiation? It's about the contract between Polar Bear Mining Group and Hua Xia Iron and Steel Company.
Rito and BHP Billiton had merged their iron ore mining, transportation, etc., and the next step is to find a stable buyer to ensure profits.
Hua Xia's steel demand is increasing, and Rito had just signed a joint venture agreement with Hua Xia Aluminum. It's more suitable for them to negotiate long-term iron ore supply contracts.
Everyone who did business hoped to have a stable and trustworthy partner. When looking for a partner for a new business, many people would choose a partner that they had worked with before and trusted.
Hua Xia's integrity is unquestionable, and Feng Yu is his guarantor. Also, China allowed Polar Bear Mining Group to be a shareholder of Kirilenko's company, and it guaranteed Kirilenko's benefits. That's why this matter went smoothly.
But the signing of this contract might bring a series of troubles. The troubles are mainly against Hua Xia's iron and steel companies.
Vale's iron ores are sold to the US, and the US makes steel and sells it to other countries and regions. But the US is mainly developing special steel products, and most of their steel products are imported.
Their biggest importer is Hua Xia. Hua Xia is the world's largest iron ore importer, and Hua Xia cannot consume so much steel. Even though Hua Xia is doing many infrastructure projects, they must export their steel products.
Asia, Europe, and the US must export their steel products, and they are slowly opening up their markets. Why is it cheap and of high quality?
In the past, Hua Xia's steel products are synonymous with inferior quality. Later, Hua Xia discovered that steel is a strategic resource. So, Hua Xia invested a lot of R&D funds to develop their own technologies. In some aspects, Hua Xia's technologies are more advanced than those in Europe and the US.
Also, Hua Xia's steel workers' salaries are not high, and they still follow the old tradition of dedication. That's why Hua Xia's steel production cost is very low, much lower than those in Europe and the US.
Hua Xia transported the steel to the other side's port, but it was still cheaper than the other side's steel. This way, the steel factories in the United States would be seriously threatened, and it was very likely that they would not be able to sell their products.
In fact, the production capacity of the steel mills in the US was enough to guarantee the US's usage. Therefore, there was a possibility that the US would impose sanctions on Hua Xia's steel exports. They just had to say that Hua Xia's steel was being dumped in the US.
Then, not only could they impose fines, but they could also impose import surcharges, which were retaliatory and punitive tariffs, to protect the interests of their own companies.
At the beginning of this year, the United States had already done so. The United Steel Workers Union claimed that Hua Xia's tire exports to the United States had disrupted the freedom of the American market. Therefore, punitive tariffs should be imposed on Hua Xia's tires for three consecutive years.
The Iron and Steel Workers Union was involved in everything related to iron and steel.
To put it bluntly, this was a form of local protection. After all, Hua Xia's exports were growing too fast, which seriously threatened the interests of the United States. Also, it was not only the interests of the United States, but also the interests of the European Union and many other countries.
In the beginning, the reason why Hua Xia had difficulty entering the WTO was because many countries felt that once Hua Xia joined the WTO, it would have a disastrous impact on their country's manufacturing industries. This was because they could not compete with Hua Xia's companies.
But in the end, Hua Xia's entry into the WTO was facilitated by the United States. This was because the United States wanted to open up Hua Xia's market, and they could no longer protect each other like this.
Initially, the United States had made a lot of profits. But now, they realized that Hua Xia had made more profits, and the United States had started to suffer losses.
In the past few years, Hua Xia's tire exports from the United States had increased by almost four times. This was too fast. This had caused the relevant US companies to be wary. They realized that although the market was growing, most of the money was being earned by Hua Xia's companies.
This was because of the economic crisis, and the Americans had started to buy cheap goods. The United States' own tire companies, such as Goodyear, were not as competitive.
At that time, it was Feng Yu who had secretly asked someone to help him remove the punitive tariffs. But Hua Xia had also secretly compensated the United States. For example, the purchase of US government bonds was a form of compromise.
Of course, Hua Xia had also retaliated by imposing high tariffs on some of the United States' exports. Hua Xia suspected that this was because Hua Xia had stopped importing genetically modified foods and seeds from the United States.
Now, Hua Xia had more confidence. The Polar Bear Mining Group had acquired Ritto Group, and this will affect the prices of ores and other raw materials to a certain extent.
The United States had always been a big importer of raw materials. Now that Hua Xia had stopped selling, the United States will keep the raw materials and produce them ourselves. This will increase the cost of raw materials and make the United States' products less competitive in the international market.
Because of this, the United States retaliated again. They want to impose sanctions on Hua Xia's steel products and impose punitive tariffs.
Hua Xia is not worried at all if the United States is going against the United States. Both sides will suffer losses, and the US will suffer more.
But according to the WTO rules, if Hua Xia accepts these penalties, other countries can use these measures. For example, the European Union, Japan, etc., can also impose penalties on Hua Xia's products and impose punitive tariffs.
This way, Hua Xia's exports will suffer a major blow, and Hua Xia will suffer more losses. This might trigger a wave of boycotts against Hua Xia's exports.
Seems like this is the US's retaliation against Hua Xia for not buying US government bonds. Hua Xia had already agreed on this, and you are adding more conditions. Isn't this too much? The United States might be short of money now, but we will not let anyone bully us.
In fact, Hua Xia and the European Union have many conflicts now. For example, the Photovoltaic industry wants to be dumped. Hua Xia's Photovoltaic industry is mainly because of Feng Yu's investments. If not, Feng Yu's profits will be greatly reduced.
Of course, this will also reduce Hua Xia's taxes and the income of his employees.
The European Union and the US had publicly criticized Polar Bear Minerals Group for acquiring Rito Tinto Group. But Russia had rebuked them, as it represents Russia's interests.
Now, Polar Bear Minerals Group is setting up a joint venture with Hua Xia to produce steel products. This will provoke the European Union and the US again. Feng Yu had purposely avoided Reid and did not let Reid have the chance to communicate with him. He wants to see what the US will do.
If the US still wants to impose sanctions on Hua Xia, Feng Yu will not invest a single cent in the US!
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