celestial system of the solar system

Chapter 244 Plan ahead
It is very difficult to find out the real origin of goods exported from the transit country.Unless the transit country is willing to fully cooperate, the consumer country is allowed to conduct a comprehensive investigation in the transit country.

Previously, the biggest obstacle to transit trade was transit fees.Because after passing through the transit, the price of the commodity will inevitably increase.This part of the increased cost is sometimes not much less than the anti-dumping duty.Therefore, the impact of transit trade on countries that implement anti-dumping duties is generally not too great.

But this time it was completely different.

The price of buying steel is too cheap, so the additional cost of transit trade cannot hinder it at all.

Some consuming countries have hammered the transit trade and questioned why the transit merchants did so.However, the intermediary dealer said innocently: I wanted to scold him loudly, but the profit of this business is too much.

Thus, the final consumer country is caught in a dilemma.

Since transit trade is very active nowadays, high tariffs will not have the desired effect at all.If you want to truly protect the domestic steel industry, you can only completely ban the import of steel from foreign countries.

However, a complete ban on steel imports would have serious consequences.

If foreign steel imports are truly completely banned, developing countries can follow suit in the future and ban the import of certain commodities at any time if necessary.

At this time, many developed countries began to realize that something was wrong.

Developed countries were misled when steel prices were cut in the first place.

Because before that, something quite similar happened once.

That time, a company established a huge short position in copper futures, and the market went in the opposite direction.

In order to make up for the huge loss of copper futures, relevant departments sold a large amount of spot copper in the spot market.

This time, a similar scene played out in history: a certain company still established a huge short position in steel futures, and the market trend was still the opposite.

Those huge short futures positions will result in huge losses for the short buyers.In order to avoid losses in futures, related companies have made full efforts in the spot market, which has led to a sharp increase in steel trading volume.

But now, these developed countries can almost be sure: at the beginning, the company established a huge short position in steel futures, which was probably purely a trick in the middle of 36 tricks!The purpose is to make them misjudge!

The real purpose of the whole thing was to cover up the massive sales of that trading company.

Unfortunately, developed countries did not know the truth at the time, and mistakenly believed that a certain company was about to suffer another big loss in the futures market, so they desperately lowered the spot price of steel in a desperate attempt to recover the loss in the futures market.

Therefore, developed countries that think they "know the truth" adopted a laissez-faire attitude in the early stages.

And this kind of erroneous judgment made the developed countries simply implement punitive tariff measures to interfere in the early stage.

Afterwards, a trading company aggressively sold steel to other non-developed markets, and the developed countries just looked on and did not take strong measures.

Now, in countries that have not raised tariffs, almost all of the steel markets are products from the same trading company.

In countries that have raised tariffs, because of the active transit trade, almost all products on the market are products from that trading company.

The steel industry is different from other industries and can almost be regarded as the basis of the industrial chain.

Moreover, there is another special feature of the steel industry, that is, the significance of the industry cannot be considered purely from an economic point of view-sufficient steel production is the root of whether a country can speak loudly.

If the downturn in steel prices lasts for a short period of time, it will not be a big problem.

But if this situation continues for a long time, then things are troublesome.

Therefore, those developed countries unite to discuss how to solve this problem.

Many developed countries are actually helpless about how to deal with low-priced steel.

The most troublesome thing is that after the developed countries imposed punitive tariffs on the trading company in order to protect the domestic market, the trading company only made a symbolic protest and did not take other actions.

In the face of high tariffs, the trading company did not insist on continuing to sell steel to developed countries, but sold cheap steel to the transit country as much as it could. What troubled developed countries was that the merchants in the transit countries were very happy to earn the difference in the transit trade .

Nowadays, the steel that enters the developed countries is sold in the name of the transit country, and the developed countries can't tell the pain.

The nature of capital is to seek profit.

That trading company sells steel so cheaply that unless developed countries completely ban steel imports, it is impossible for merchants to buy steel from that trading company in the name of a transit country and then sell it to developed countries.

It can be said that developed countries have encountered unprecedented difficulties this time, and conventional means cannot resolve this crisis at all.

In the end, the result of the discussion was to prepare both light and dark.

The approach on the table is to unite to put pressure on the trading company and ask the other party to stop selling steel at low prices.

The method under the table is to implement extremely strict inspections on steel imported from any country, and it can even be described as nitpicking.

……

The trading company naturally rejected the unreasonable demands of developed countries.

Free trade is a common principle. Don't your conscience hurt if you violate this basic universal principle?
As for the small tricks of the developed countries, the trading company did not respond strongly.

The trading company is currently experiencing such a level of losses in exporting steel. Compared with its low cost, it can basically take an indifferent attitude.

Since the low-price dumping action of the trading company has not slowed down, it can be said that the two-handed preparations of those developed countries have all failed.

And because the trading company only protested the small actions under the table in a very ordinary way, the developed countries headed by country M acted evilly.

Those countries have intensified their efforts and implemented more unreasonable measures to hinder steel imports - some transit traders have even received court summons from developed countries for tax evasion or "bank fraud."

Now, the trading company had to make some concessions in the negotiations with those developed countries and agreed to raise some prices.

However, developed countries have not restrained themselves.

Their stronger strength is only one of the reasons.

The more important reason is that those developed countries think that there is no way out.

Because the analysis of developed countries believes that although they don't understand why the trading company can sell so much steel, the sales volume is a fact after all.

Once that trading company is allowed to sell steel freely, the steel industry in other countries around the world will gradually lose their competitiveness, and they can barely survive by relying on state subsidies.

How can this be tolerated?
(End of this chapter)