On China's economic strategy from the lesson of iron ore negotiation

Source: Internet
Author: User
Keywords Chinese steel industry iron ore price FMG economic strategy mine price
Tags change demand developing developing countries development economic economic development economy
China's economy needs "Zunyi meeting"--on China's economic strategy from the lesson of iron ore negotiation our 4 trillion investment announcement, magnificent to contribute to the world economy, let Rio see the strategic opportunity of extortion.  You are all over the country, the demand for steel is obvious, this is a typical strategic leak. Air Force Colonel Dai China's six consecutive price blackmail in the iron ore negotiations, the seventh negotiations have been a huge passive. Japan and Europe have agreed to a 33% per cent price cut with Rio Tinto, and only China has spoken to the 40% per cent price cut and offered 6 billion of billions of dollars in exchange for a small company FMG agreed to cut prices by 35%.  But the real rival, Rio Tinto, immediately said it would not sign a deal with China as a result of the negotiations. In the case of total loss of strategic initiative, this tactic only has "face" significance. China's iron ore negotiation strategy has gone into "death". If this is a war, it is the destruction of the whole army.  If you do not change your mind, the results of the Ming and the next will be predictable. In the world financial crisis, when demand for iron ore has fallen sharply, suppliers have been tough. As the biggest demand for iron ore, is China really so trampled on?  The author thinks that we should convene the "Zunyi meeting" of economic circles to thoroughly rethink the current iron ore negotiation strategy. The big triangle of wealth and the two ways of China the West has a famous saying: The Customer is God. Why did the customer become the victim of extortion in China?  To understand the relationship between "Chinese customers" and the world's iron ore suppliers, we must have a basic understanding of the world economy today. If we think of the world as a big market, a wealth triangle can be clearly seen: countries that produce low-skilled products earn meagre profits in the developed world, and then buy the latter's High-tech products--also profiteering products, return part of their profits, and almost all others to purchase resource products, To achieve the continuity of production. The resource country actually sits as a landlord, reap large sums of money for the benefit of developing countries, while Western countries, by virtue of high technology products, arms and other profiteering substances, through political, financial and other means to profit from resource-rich countries, to buy low-cost products from developing countries for their own consumption.  See the Middle East countries and Australia to buy American arms wantonly, we know. Globalisation is increasingly revealing the ultimate face of "global capitalism".  At the same time, it presents the characteristics of all capitalism in history, such as extortion, common spoils, monopoly exploitation, etc. Think of the resource-based countries as the landlords we know, the Western powers as capitalists, the developing countries that produce low-skilled products, the "workers and farmers" who are exploited and squeezed. This can be applied to Marx's "capital", only the scope from a country to the whole world. No one can change this situation through revolutions or parliamentary elections, as the United Nations and other "world councils"Leadership is largely dominated by the western world. The only way for developing countries to change their fortunes is not to overthrow landlords and capitalists, but to get away from the poor.  There are two methods: first, the use of their own labor resources and other advantages, to redesign the rules of the game in order to achieve the maximum value of their own, and the second is to become landlords or capitalists. The Art of War One: Shanshi, using the traditional view of warfare to see the current iron ore negotiations and the acquisition of Rio Tinto case, feeling that the relevant strategy is simple, tactical inflexible, commanding messy, and even a large number of "collaboration" situation (quite reminiscent of the "National Army"). Counter-view opponents, all, diversion, bribery between the use of the art of war handy.  In fact, to look at the ancient art of war, we can find the broken law of the present predicament. The logic of international political relations is the power leading, the economy is the core of politics, still the principle of power. You can fight and you can.  From the above popular deconstruction of the world economy, the author suggests that the relevant departments, from the current struggling to deal with high oil prices, high ore prices (there will be high water prices, Takagi prices) and so on the price of the predicament jumped out, seriously take stock of our hands trump card. In the case of iron ore negotiations, China has the world's most influential Coke. Coke is a necessary ingredient in steelmaking, and if you turn off the valve, the world's steelmakers will have to cut back on their capacity, reducing their demand for iron ore. Knocking on the world steel industry's "mountain", earthquake iron ore suppliers of the "Tiger", which is tantamount to the world iron ore oligopoly is the most drastic. China's iron and steel enterprises can take the opportunity to absorb iron ore, and even participate in the world iron ore group. At the same time, the cutting capacity of the world steelmaking plant will make steel price soaring, which will greatly improve the Chinese steel industry profits.  China's many years of iron ore blackmail situation, a drum can be broken. The same is true of the ingenious use of rare earth resources. If I have no one, I can make wild speculations, this is also the current practice of international Resource Monopoly Group and high technology country to China.  China's top priority is to carry out a unified inventory of all the country's hard resources, to find out what can participate in the world Monopoly game, like Russia on the important resources of the national unified management and regulation. The Art of War II: The current situations, High-tech statehood to the resource monopoly to deal with resource monopoly, is to change the immediate humiliation to accept blackmail emergency measures. But in the long run, we must find another way out. Because China has no advantage in overall strength or in the current control of the world's resources.  The result of the confrontation has only aggravated all kinds of siege, which will make the short Zujizhan a lasting warfare. The West has been raising the price of iron ore and oil, thanks to strong demand in countries such as China and India. Although there are elements of the cover-up, but China's current economic development model for quick success, indeed gave people "stick" the pretext. For example, China's steel production, the 80 's in the last century or 30 million tons, to 2008 has exceeded 500 million tons! Due to the great backwardness in the process of modern industrialization, the development of contemporary China will undoubtedly require a lot of resources.  The disorderly duplication construction has exacerbated the resource demand. The author believes thatShould take advantage of the current resources crisis opportunities, to shake off the development of resources, the road to higher technology, and strive to make the country and the people into the ranks of "capitalists" is the best policy.  In fact, the price of oil or iron ore prices, are "unscrupulous businessmen" in the world gouging, the stakes in China and India and other countries on the huge demand for primary products. Why can't we, like Japan and Germany, rely on High-tech products to earn more resources to make up for the loss of resources? India is now aware of this and is making a sudden rise in computer software.   If we do not change the current thinking of economic development, we will not change the fate of other slaves. The War of art speaks the most to the enemy. The price of resources, we can take the opportunity to promote industrial upgrading, the transfer of funds from the real estate to the real needs of the national modernization of the strategic industry to go, why should it be against the trend? Even a temporary decline in GDP growth is also a fever of patients, not bad. The key here is to discard the myth of GDP.  There is no economic form to fight the earthquake ability of the world economy, the bigger the GDP number, the more insidious it lurks. There's a big shortage of great wisdom. The war waged by the United States over the years, one of the clear aims is to seize resources. The economy is the core of politics, the military is the continuation of politics.  Now we can fight by peaceful means, with only the intensity of the war, there is no essential difference. The announcement of our 4 trillion investment, magnificent to contribute to the world economy, has made Rio see a strategic opportunity for extortion. You have a nationwide boom, and the demand for steel is obvious, which is a typical strategic leak. Sun Tzu can not show it and use it.  The strategic art of Mao Zedong era is world-renowned, modern Chinese seem to have completely lost the strategic thinking. The United States in the Iraq War, the national chess. The State Council, the Pentagon, the news media, and so on, their respective roles, true and false difficult to distinguish, big dozen national strategic psychological warfare. In fact, the iron ore negotiation is the same as the war Law of Swords. Iron ore is the overall situation of China's modernization programme and cannot be implemented by only one specific department. The state should set up a strategic planning department, coordinate strategic experts, unify action and cooperate with all parties.  The ancients asked for the astronomical geography of the people know that today's economy is the chief of the nation, and its knowledge structure should be beyond the professional, and cover all areas. The process of Chinese modernization is actually the process of adapting to the rules of capitalist game. There is no need to be hostile to "international capitalists" and "big landlords". The rule of maximizing profit is also applicable to China: China has so many resources trump card, why keep on opposing "Wuchang"?  China has so much foreign exchange, why not go to other places to stir up trouble, by the way the existing resources oligopoly system shaken? In the era of economic globalization, the real army of the state is money. And China has a strong capital. In my humble opinion, we can use this army in the resource market, but also in the High-tech field to make strategic attack,Open the way for the country's future development.  But we haven't learned how to use this army of foreign exchange.  We do not lack strength, and lack the wisdom to command this army. (The article stands for personal opinion)
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