Preview

Eu' Anti dumping Charges Against China: Politicizing Internationa Trade

Powerful Essays
Open Document
Open Document
1720 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
Eu' Anti dumping Charges Against China: Politicizing Internationa Trade
Eu' Anti dumping Charges Against China: Politicizing Internationa Trade

1. The steel industry is a very dynamic one and therefore prone to a lot changes. Which factors on the one hand drive and on the other hand impede these dynamics?
Since the steel industry became a major part of the global market, it saw a lot of changes.
The development of this market could be divided in three main phases;

“The Growth

1

Period” , “the Stalemate Years”, “The Boom Years”. The first phase began in the year 1950 and ended in the year 1973, the second from 1974 to 2001 and the third one from the year
2002 to 2006. At the beginning of the 19th century, the United Kingdom turned out as the market leader. However, in the early 20th century, the United States replaced the UK as leader, until China became the ultimate leader.
Historically seen, the reconstruction phase after the Second World War, created a huge demand in the global steel industry. During this phase, the demand surmounted supply and countries which produced steel had to increase their production capacity. The two oil shocks in the years 1973 and 1979, which affected all the markets, reduced the growth period of the global steel industry.
According to the preparatory readings there are several factors, which drive the dynamics of the steel industry. Historically China had been a main contributor to the drive of the steel industry since the beginning of the century, when the Chinese economy was starting to prosper. A major factor being that the Chinese were investing in their infrastructure so the construction industry was booming, which meant an increasing demand for steel for building.
The low production costs of steel in China also contributed to the drive, due to the fact that there was great labour availability and employment costs were low.
One of the other biggest and most potent factors for the drive of the Chinese steel production were the subsidies from the government. The low

You May Also Find These Documents Helpful

  • Good Essays

    the Chinese were such tough and hard workers, they were in high demand by employers…

    • 989 Words
    • 4 Pages
    Good Essays
  • Satisfactory Essays

    Their items were in great demand from Europe to China. It was growing and increasing between cities thriving in trade.…

    • 893 Words
    • 4 Pages
    Satisfactory Essays
  • Good Essays

    within China making it hard for industry to develop. This shows the limit of the…

    • 1794 Words
    • 6 Pages
    Good Essays
  • Satisfactory Essays

    Reform of Deng Xiao Ping

    • 292 Words
    • 2 Pages

    -Industrial production also increased, ushering China into the modern world to compete along other advanced competitors.…

    • 292 Words
    • 2 Pages
    Satisfactory Essays
  • Good Essays

    England. Unfortunately for Mao and China all the steel that the people produced turned out to…

    • 627 Words
    • 3 Pages
    Good Essays
  • Powerful Essays

    Nucor at a Crossroads

    • 11800 Words
    • 48 Pages

    In 1986, U.S. producers shipped 70 million tons of steel mill products. Subtracting exports of one million tons and adding imports of 21 million tons implied 90 million tons of domestic consumption of steel that year. Relative to the most recent peak year, 1979, domestic shipments had decreased by 30% and domestic demand by 22% (see Exhibit 1). The decline in demand derived from the stagnation of many steel-intensive industries, particularly automobile manufacture, efforts to use steel more efficiently and the emergence of substitute materials such as aluminum, plastics and advanced composites. There was general agreement in 1986, however, that the market would not decline further in the near term. Although the market for steel comprised several…

    • 11800 Words
    • 48 Pages
    Powerful Essays
  • Better Essays

    According to Economy Watch, it has been stated, “that from the period starting from 1910 till the year 1960, the first position in terms of producing the largest amount of steel in the whole world was captured by United States Of America. During this period it was observed that almost half of the total steel production around the globe was produced by USA. But the scenario started to change after the countries like Japan and China came to the fore” (Economy Watch, 2010). This is one of the major trends that Nucor was realizing when it came to the Steel industry around the world. Steel was becoming a vastly used product in every developed nation around the continent. This would have a great impact on companies who did and did not produce steel from their beginnings. Nucor began to produce steel after the new CEO was installed. Kenneth Iverson was appointed as the new CEO from a similar position he held with a company known as Vulcor, which happened to dabble in the steel industry before hand. Iverson realized he had great “ opportunities to capitalize on newly emerging technologies to produce steel more cheaply” (Thompson, Strickland, & Gamble, 2010) with his new company at his control. The steel industry was starting to evolve and there was a great chance that Iverson could get it to work with Nucor. “Nucor embarked on a four part growth strategy that involved new acquisitions, new plant construction, continued plant upgrades and cost reduction efforts, and joint efforts” (Thompson, Strickland, & Gamble, 2010). Nucor thought it would make smart business sense if they were to purchase other operation plants that were already capable of production that only needed to be minimally upgraded. According to Crafting & Executing Strategy, Nucor had over eleven separate acquisitions that help increase the different…

    • 1702 Words
    • 7 Pages
    Better Essays
  • Good Essays

    19th Century China

    • 806 Words
    • 4 Pages

    Internal trade was very important to China during the 19th century. The silk industry was very important, as it had been for many years. But the balance of the population and the ability to maintain it reached its highest at approximately 1779. Later on, it continued to rise but could not sustain itself at the same time. Accordingly, the orthodox of living and food available for every individual declined greatly. Eventually, with the rise of population, the ability to sustain its people and the average standard of living plummeted. Millions of…

    • 806 Words
    • 4 Pages
    Good Essays
  • Powerful Essays

    China is the most heavily populated country in the world with a continuous culture of nearly 4000 years old. Lot of elements have been originated in China such as paper, gunpowder, credit banking, the compass and paper money which all play an important role in our modern lives. The country is rich for natural resources for example iron, ore, zinc, petroleum, natural gas, coal, manganese, aluminum, hydropower potential etc.…

    • 6520 Words
    • 27 Pages
    Powerful Essays
  • Good Essays

    China, however, with all the abundance of natural resources initially began its march on the growth path in all the…

    • 501 Words
    • 3 Pages
    Good Essays
  • Satisfactory Essays

    b) The expected future and difficulties of development of China (environment, aging labor force, western discrimination).…

    • 268 Words
    • 2 Pages
    Satisfactory Essays
  • Satisfactory Essays

    for 70.45% of total output in China. Because of the transfer of production line, Yunnan…

    • 628 Words
    • 4 Pages
    Satisfactory Essays
  • Satisfactory Essays

    Baosteel Group

    • 329 Words
    • 2 Pages

    By acquiring these two companies Baosteel Group could increase its output as the new company had the permission to build a new 10-million-ton steel-making base in Zhanjiang City. The new base in Zhanjiang City was promising as it would solve the lack of steel-making facilities in Guangdong, save money due to the shorter distance to Australian iron ore sources and face a ready market with Honda’s and Toyota’s manufacturing facilities demanding their flat rolled steel. They needed, however, to modernize the enterprises, eliminate the obsolete capacity and shut down environmentally critical operations.…

    • 329 Words
    • 2 Pages
    Satisfactory Essays
  • Better Essays

    Ever since China first became China the Chinese have always been one of the most innovative and advanced cultures to grace this planet. Under the Ming dynasty the Chinese economy was the cornerstone that held the key to the Afro-Eurasia global economic revival. This was possible due to the relocation of China's capital, the opening of a major waterway and other internal trade routes, the goods they had to offer, an enormous population, as well as a new form of currency.…

    • 1204 Words
    • 5 Pages
    Better Essays
  • Good Essays

    1. China saw the development of a new auto industry as a key step in its drive to industrialize its economy.…

    • 442 Words
    • 2 Pages
    Good Essays