China slaps heavy duties on cold-rolled steel

[charrison]

linkage

SHANGHAI: China, the world's top steel importer, has slapped hefty import duties on high-grade metal used by the booming auto and shipbuilding sectors, protecting Chinese players as they ramp up capacity to plug a domestic shortfall.


Shares in overseas steel makers such as Taiwan's China Steel dipped on the news, while domestic steel firms cheered the move.

Shares in top Chinese maker Baosteel edged up, despite the wider market falling one per cent by midday.

China implemented the tariffs after it concluded that there was dumping of cold-rolled steel by Russia, South Korea, Ukraine, Kazakhstan and Taiwan.

Comments?

 

[Czar]

next stop, wto

 

[glenn1]

Comments?

Stupid. When you're a huge net importer of commodities, slapping a punative tariff on them is the last thing you want to do. Their steel industry can't make enough steel to supply their needs, and they want to make the steel they're importing cost more. Besides, the other commodities suppliers for things that they don't really have native producers for at all (like copper producers) will now jack them to discount for the increased implicit political risk that those commodities will be next.

 

[BaliBabyDoc]

Well it's not like they didn't have a role model . . .

 

[Dari]

Well, no one ever said the chinese were the head of the class in economics or political management. This shows why.

 

[BaliBabyDoc]

Well, no one ever said the chinese were the head of the class in economics or political management. This shows why.

. . . like I said, they had a good role model.

 

[Dari]

Originally posted by: BaliBabyDoc

Well, no one ever said the chinese were the head of the class in economics or political management. This shows why.

. . . like I said, they had a good role model.

Bush's reason was political management. The Chinese decision came just on the heel of the Bush Administration's reversal and a WTO ruling. Furthermore, the Chinese have their currency pegged to the dollar, their banks are highly insolvent, and going their own way as opposed to adopting standards, while at the same time going against WTO rules by imposing restrictions and tariffs on foreign competition.

Again, this isn't the chinese best area.

 

[mfs378]

Ban imports of Happy Meal toys!! Write to your congressman!

 

[Zephyr106]

From NYT: Pairing up chip makers with Chinese firms? Sounds like the quickest way for them to pull off industrial espionage.

I'd bet the tariffs are to help out some "good [influential] comrades" in those industries. Next time China cries foul over trade, cry hypocrite.

Zephyr

 

[Dari]

Originally posted by: Zephyr106
From NYT: Pairing up chip makers with Chinese firms? Sounds like the quickest way for them to pull off industrial espionage.

I'd bet the tariffs are to help out some "good [influential] comrades" in those industries. Next time China cries foul over trade, cry hypocrite.

Zephyr

You're absolutely right. But the worrying thing is that they've been doing the exact same thing with automakers for years, forcing them to partner with domestic partners and forcing all of them to have their cars built by a single manufacturer. I'm shocked that they let them get away with this (blatant industrial espionage).

I've let it be known to many (trade) lawyers that China deserves a massive economic shock. That should make them more humble.

 

[SuperTool]

I guess it makes US manufacturing more competitive for metal products.

 

[Miramonti]

Originally posted by: SuperTool
I guess it makes US manufacturing more competitive for metal products.

Won't this create a steel glut that will drive down prices for steel outside of china? In other words it will be less profitable to sell to china so foreign producers will need to seek elsewhere to sell their goods, thus putting more pressure on our industry to compete with cheaper steel.

Well, one thing is for certain, the chinese aren't doing it just to apease a segment of the voters.

 

[LunarRay]

I don't imagine they actually need to tarrif anything coming into China.. just a nod and pat on the back should create the nationalistic attitude China desires..
Besides, the definition of a Chinese Economist is an ugly third grader.
Finance types run the business and make the money decisions... as it ought to be.