America Fights Back Against the CCP's Steel Industry Takeover

welcome to Crossroads the steel industry is facing too much Supply and tumbling prices now look much of this problem is coming from China where the ccp's policies have led to overcapacity and facing this problem the United States has placed tariffs on Chinese Goods including steel and aluminum which the Chinese Communist parties has in turn tried to get around by using Mexico as a waypoint into the US market but the US is now looking to close this loophole that the chinesee Communist party is using on steel in fact last month US President Biden Mexican president Lopez oor announced in a joint statement that they are taking key measures to protect the North American Steel and aluminum markets from unfair Trade Practices now look these key measures include improving the transparency of the origin of its Imports with Mexico requiring importers to provide more information about the country the country of origin of Steel products and not only that the United States will Implement melt and por and smelt and cast requirements respectively for certain steel and aluminum imports from Mexico in order for those steel and aluminum Imports to enter the United States tariff free now there's a bit more on this from The Epic Times They say that estimates suggest that 3.8 million tons of steel arrived in the United States from Mexico in 2023 87% of the steel is melt melted and poured in North America although 13% is melted and poured outside the United States Canada and Mexico which is the main concern among these officials now Leo brard the director of the National Economic Council said in a press call that quote these actions fix a major loophole adding that countries like China are using it to avoid us tariffs by shipping their products through Mexico and added quote China is simply too big to play by its own rules now you might remember why President Biden put tariffs on Chinese deal in the first place and this goes back to May 14th White House St said in a statement that President Biden says American workers in businesses can outcompete anyone as long as they have Fair competition but for too long China's government has used unfair non-market practices and notes that China's forced technology transfer meaning they steal our intellectual property and also intellectual property theft have contributed to its control of 70 80 and even 90% of Global Production for the Cru critical inputs necessary for our Technologies infrastructure energy and Health Care creating unacceptable risks to American Supply chains and economic security in other words the CCP has rigged the game in its favor and by cheating by stealing theyve then created monopolies on some of the key Industries feeding into the surface Industries uh the CCP got there using theft essentially and after doing so then undercut all the competition put a lot of them out of business and now they control that the US and other countries are now pushing back on this notably a lot of this also started under Trump where he was talking about American Steel right this is now continued the White House adds that furthermore these same non-market policies and practices contribute to China's growing overc capacity and Export surges that threaten to significantly harm American workers businesses and communities further on they state to to encourage China to eliminate its unfair Trade Practices regarding technology transfer in other words they steal it they reverse engineered or whatever else and then build it domestically also intellectual property and Innovation they say the President Biden is directing increases in tariffs across strategic sectors such as steel and aluminum semicond uors electric vehicles batteries critical minerals solar cells Shi to shore cranes and medical products now they also know that there's unfair practices when it comes to overc capacity and the CCP by overproducing certain materials really because they're anticipating dominating dominating a lot of these surface markets they have too much of it on store and what that has done is it's caused of course a type of again Monopoly on the global market where the CCP having too much is is dumping these onto the market driving prices down and if they allow this to take place it will put a lot of American and European and other countries you know manufacturing the same products out of business uh steel and aluminum are two of the big ones here because remember as well steel and aluminum you know you don't have steel beams just sitting on your shelf right uh these tend to be products that are used for the production of other things they're within the supply chains and so if you control the materials that are needed to construct these surface level Goods then you control the surface level markets the Chinese Communist part has been trying to do this the Us and other countries are pushing back on it now it also adds that China's policies and subsidies for their domestic steel and aluminum Industries mean highquality low emission us products are undercut by artificially low priced Chinese Alternatives produced with higher emissions remember they're tying a lot of this to global warming and stuff now notably as well when they talk about the CCP subsidizing this products that's a whole other issue that's important here because unlike a lot of other companies within the free market China being a communist country tends to subsidize a lot of these products most of these businesses have a kind of public private relationship with the CCP uh the CCP controls oftentimes their shares to a certain extent meaning they're at least partially government-owned and because they get money from the government they don't need to fairly compete in the actual you know free market capitalist Market meaning they can charge below cost often times which then means that companies in the US or Europe or elsewhere they can't compete on it what the CCP does is it cuts costs so low that nobody else can compete puts all their competition out of business steals their Innovation and so on feeds it into its markets and then uses that to just put everyone else at of business it creates monopolies and then once it controls the market it then uses that one to again raise prices because then there's no one to challenge them but also is a way to even you know carry out diplomacy with other countries threatening to cut them off from some of these materials if they say things the CCP doesn't like and so business on this level is not just purely business for the CCP business is also political now what's also interesting about about this is it doesn't just point to overc capacity having too much on store instead it points to the overall problems with this ccp's unfair Trade Practices now with all these in place the CCP has been using various methods to try and get around these tariffs right because the United States as we just mentioned has tried putting a stop to these types of practices of the Chinese Communist party on the semiconductors then the Chinese Communist party has established an entire supply chain to get around the tariffs and with steel in particular it's the same thing with this that's where Mexico comes into play because remember right in that joint statement between the US and Mexico if steel companies want to avoid tariffs on their products that are coming through Mexico they have to prove the origin of the products now meaning again what they're essentially doing is this they're having it so that if you know you want to sell steel through Mexico you now have to verify it was actually smelted everything else in Mexico meaning Mexico can't just import it from China or other countries and then sell it into the us if they want to do it without having tariffs because Mexico is one of the countries that has an exemption from those tariffs the CCP then takes advantage of that right and so in order to close that loophole the US and Mexico are agreeing to have it where hey you want to get around this we have to prove that you actually smelted it that it actually came from you now BBC had a bit more on this they said the measures expand protections for us steel and aluminum makers that were launched under Mr Trump in 2018 in the name of National Security remember Donald Trump was talking about American Steel American Steel right they know the tariffs that Trump put in place set a 25% tax on steel and 10% tax on aluminum Imports and they were controversial sparking trade battles with countries all around the world they know that Mexico one of America's largest trade part Partners was among the countries to eventually win an exemption from the rules and the White House said it decided to revisit the exemption from Mexico as an increase of imports from the country suggested it was being used as a stopping point to byass the taxes and it's only about 133% of the steel imported from Mexico last year and only 6% of aluminum originated from outside of North America according to officials but officials said the rules were aimed at heading off a further increase is China's flagging domestic economy leads firms to look abroad in other words the amount of Steel and aluminum coming from China through Mexico it's technically not the majority it's still a lot but they're concerned that because the CCP has an issue of overc capacity right now that it would increase that and use that of course as a way to bypass the tariffs and the taxes now on this as well the ccp's unfair trade practice is and its use of loopholes to get around tariffs are actually causing some really serious concerns for the industry overall I'll be talking about this after we come back from a quick break experts agree one of the best ways to protect against Financial uncertainty is to diversify your portfolio learn how physical gold and silver can secure your retirement funds from today's economic challenges with a gold irra from American Harford gold you can Safeguard your 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Chinese Communist party has in turn trying to get around by trying to use Mexico as a waypoint into the US market because Mexico was given an exemption on this and the US was revisiting that exemption meaning they might take it away unless Mexico takes actions to stop that from happening now the ccp's unfair Trade Practices and its use of loopholes to get around tariffs are actually causing some really serious issues for the market Reuters said this they said the price of iron ore has dropped for a sixth consecutive ative week is China's steel sector continues to struggle and Port inventories of the raw material stop Rising the note that appears that steel mills and Traders have taken advantage of the declining Trend in Iron ore prices to restore inventories but now that they are at a relatively high levels the question is whether there is any appetite to continue adding to them now here's a bit more business standards said this they say steel producers in the United States and Europe are being squeezed between a fresh wave of cheap Imports and anemic demand that's pushing prices lower so in other words you have a lot of supply and not a lot of demand and what does that mean it means prices fall through the floor and what happens prices fall through the floor companies go out of business so what do you do well the Chinese Communist party's businesses don't need to make a profit they're State subsidized they don't need to make money they can put all their competition out of business and it's good for them in the long run because once prices go up they then dominate the entire market so to protect American businesses from going out of business they then have to stop the CCP from dumping these products now they not as well the company cut its forecast for apparent consumption of Steel outside of China a key barometer of the world economy and it really is a barometer of the world economy because remember steel again it's used for again building buildings for building cars for building all kinds of things and if there's lower demand for that it means that the production of the surface level Goods is lower because they don't need as much of it this this shows to an extent the state of the entire Global Market in other words now they also note that China's excess production relative to demand is resulting in very low domestic steel spreads and aggressive exports steel prices in both Europe and us are below the marginal cost now it should also be noted that on the side of the Chinese Communist party this is not a sign of power it's not that their Steel Industries are necessarily doing well right when they're trying to like dump on our markets and so on this is a sign of trouble in their Industries as well right this not only ties again to their fading real estate industry which uses steel which also again you know needs that for construction it ties in with the problem of overc capacity and the ripple effect that's now having through the metal industry that includes nickel and copper and many others the Steel issue is just one of many within the entire Metals industry and remember if the entire Metals industry is having this problem that means that the surface production is having problems as well Bloomberg noted copper and nickel made in China flooded overseas into warehouses tracked by the London Metal Exchange last month as temp domestic demand triggers a way wave of exports that is weighed on global prices remember tepid domestic demand meaning the CCP doesn't need them as much businesses within China don't need them as much and what does it tell you if locally within China they don't need as much steel they don't need as much aluminum they don't need as much copper or anything else well it means that their manufacturing is down it means their construction is down and that's a barometer of the entire state of their actual industry to get around this they're trying to dump it again they know that China the largest Metals Market is typically a significant net copper importer meaning that not only do they use everything they produce but they need even more than they produce so they import it but they note that weak local conditions have reversed global trade flows in recent months Weighing on prices and remember metals are not end products they're materials to build other things so when you too much of them and they're sitting around well it also tends to be a sign that the manufacturing and the Construction Industries could be having issues as well and this could be an indicator as well right over the entire Chinese economy I'll be talking more about this only on epct tv.com so you're watching on YouTube Facebook X Rumble there's a link in the description below click on that you'll get access to the rest of this episode as well as our whole library of shows and our hard-hitting documentaries on issues that really matter like the Chinese Communist party's 100-year plan to defeat the United States the CCP is one of the biggest threats to America they're using things like propaganda video games entertainment movies culture to subvert and influence the Next Generation this unrestricted war against our country is one of the scariest but least understood issues of our time because it's not tangible it's being done through soft power and ideological subversion now I've spent over a decade investigating the CCP subversion and it's such an important issue that I made the documentary called The Final War which exposes this 100-year plot of the CCP to take down America if You' like to find out more about the CCP is plotting against the US watch the final war you can find the link in the description below and I'll show you all the trailer before we go exclusively to epct tv.com for the rest of this episode I'll see you there the greatest threat facing the United States is the CCP The Epic Times investigation team had studied the CCP for years but what we uncovered was yielding evidence beyond our imagination with chairman ma with the Prime Minister our talks have been characterized by frankness the Clinton Administration said oh don't worry about it this will be a poison pill for China China's strategic goal is to make sure that the US has four enemies and one of them must be a terrorist group we are giving of our life's blood so that the Chinese Communist Party can survive and thrive