Extraordinary Genius

Why didn't Feng Yu participate in this negotiation? It was about the Polar Bear Mining Group signing a contract with Huaxia Steel Enterprises.

Li Tuo Group and Bi He Bi Too have completed the merger in iron ore mining, transportation, etc., and of course the next step is to find stable procurement targets to safeguard the interests.

Huaxia coincided with a huge increase in steel demand, and it was also more appropriate to discuss a long-term supply contract for iron ore after the signing of a joint venture agreement between Lituo Group and Huaxia Aluminum Industry.

Everyone who does business wants a stable and honest partner, and when looking for a partner for a new business, many people choose a partner they have worked with and trust.

Huaxia's integrity is unquestionable, not to mention Feng Yubao. Together with allowing the Polar Bear Mining Group to participate in shares on Huaxia's side, Kirilenko's interests were also guaranteed, so the matter was reasonably facilitated.

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

The ore from the Freshwater Valley is sold to the United States, which then refines the steel and sells it to other countries and regions. However, the U.S. now mainly develops special steel, ordinary steel, which they now import mostly.

And their biggest importer, Huaxia. Huaxia is the world's largest importer of iron ore, of course it cannot consume so much steel, even if Huaxia is doing many infrastructure projects, so it must be exported.

Asia, Europe and the Americas are all going to export, and they are slowly opening their doors. Because of what, because the price is cheap and the quality is superior.

Once Huaxia Steel was synonymous with poor quality, and later Huaxia also found that steel was a strategic commodity, so under the blockade of European and American technology, it invested a lot of money in research and development, studied its own technology, and in some ways it was more developed than European and American.

Plus, steel mill workers in Huaxia are generally not well paid, and many of them are still old traditions and dedicated. So Huaxia's steel production costs, which are very low, are much lower than in Europe and America.

Huaxia transported steel to the other party's port, which turned out to be cheaper than the other party's steel, so that the steel factory in the US was seriously threatened, and it was likely that the product could not be sold.

In fact, the US own steel production capacity is sufficient to guarantee the use of the US, so there may be a problem here, which is that the US Congress has imposed sanctions on Huaxia's steel exports, simply stating that Huaxia's steel is dumped on the US.

They can then not only impose fines, but also impose import surcharges, that is, retaliatory and punitive tariffs, to safeguard the interests of their own enterprises.

By the beginning of this year, the United States had already done so. Their federation of steel workers claims that Huaxia's export of car tyres to the United States disrupts market freedom in the United States and therefore punitive tariffs should be imposed on Huaxia's tyres for three consecutive years.

This federation of iron and steel workers, it's all about iron and steel, and they can get involved.

To be perfectly clear, this is a kind of local protection. Who has allowed Huaxia's exports to grow too fast, seriously threatening the interests of the US? And it's not just the interests of the US, it's also the interests of several countries, such as the EU.

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

Ultimately, however, Huaxia's accession to the WTO was facilitated by the United States, which wanted to open the Huaxia market and could no longer protect each other so much.

At first, the US made a lot of money, but now it seems that Huaxia made more money, and the US began to lose money.

Huaxia's US tire exports have grown nearly fourfold over the past few years, too fast. This prompted vigilance on the part of US companies, who found that while the market had grown, more money seemed to have been earned by Huaxia companies.

In the economic crisis, the Americans are also starting to buy cheap goods, and the competitiveness of their own tire companies, such as Guzhen, is weakened.

It was Feng Yu who secretly sought help to cancel punitive tariffs, but Huaxia also secretly gave some other compensation, such as this purchase of US Treasury bonds, which was a compromise.

Of course, Huaxia also responded by imposing high tariffs on some of its exports, and Huaxia was seriously suspicious that Huaxia was no longer importing genetically modified foods and seeds from the country.

Huaxia's bottom line at this time is that Polar Bear Mining Group acquired Lituo Group, which can to some extent affect the price of raw materials such as ore.

The United States has always been a major importer of raw materials and so on, and now Huaxia is no longer selling them, we keep the raw materials and produce them ourselves. Increase the cost of raw materials in your country by one step, and then make your products more uncompetitive internationally.

That is also why the US side reacted once again by sanctioning Huaxia's steel, punishing it and imposing punitive tariffs.

In fact, if it is only against the US, Hua Xia is not worried at all, both defeats will hurt, the US will suffer even more.

However, under WTO rules, if Huaxia accepts these penalties, other countries can follow these schemes, such as the EU, island countries, etc., which can also impose penalties and impose punitive tariffs on such products in Huaxia.

In this way, Huaxia's overall export of the industry will be hit hard, and Huaxia will suffer even more, which may trigger a wave of resistance to Huaxia's export products.

Looks like this is the US counterattack against Huaxia's delay in purchasing US Treasury bonds. It's all agreed, you put conditions on Huaxia again. Isn't that a bit excessive? We in the United States need money now, but we are not being bullied.

And in fact, Huaxia and the EU have quite a few contradictions, like the photovoltaic industry, that want to decide dumping as well. Huaxia's photovoltaic industry, mainly Feng Yu's investment, thanks to the help of the state, otherwise that part of the industry will greatly reduce Feng Yu's profit.

Of course, this will also reduce Huaxia's tax revenues and reduce the income of employees in those enterprises.

In fact, the Polar Bear Mining Group's acquisition of the Litao Group has led to many public accusations by the EU, the US, etc., but they have all been hardheaded back by the Russian side, which is also in Russia's interest.

Now the joint venture with Huaxia Iron and Steel Enterprises to produce steel will once again provoke that sensitive ~ sensory nerve in Europe and America. Feng Yu deliberately avoided Reed, preventing Reed from having the first chance to communicate with him, and wanted to see what choices the US side would make.

If sanctions were still to be imposed, Feng Yu would not invest another dime in the US!

……

PS: The new book "Domestic Animation Adventure" has been uploaded, can you collect and cast valuable recommendations? - Thank you. - Thank you.