PRC Steel and Aluminum Strategy A Long-term Play for Global Domination
For nearly a decade now, INVNT/IP has tracked the ongoing economic campaigns run by the government of the People’s Republic of China (PRC) to dominate key global industries. From renewable technologies like photovoltaic cells and wind turbines to semiconductors, telecommunications, chemicals and beyond, the government of the PRC has pursued a system of global market domination that follows a distinct path. PRC government entities and their affiliates consistently follow three simple steps in the process of achieving unlawful domination of global markets deemed high national priorities by the leadership of China and the Communist Party of China (CPC): steal, amplify and dominate.
A simple but effective procedure, this system requires that the PRC government first promote or execute the theft of intellectual property from entities across the Western world, providing Chinese government and government-supported firms with the knowledge required to produce high tech goods without performing the necessary research and development. Once technical know-how has been stolen (or coerced through forced disclosure policies), government-affiliated firms are given funding and legal protection to “incubate” in the Chinese market.
Chosen by the government and carefully protected until they are able to compete internationally, these firms and their products are then introduced into the global market with extreme levels of government financial support. As a result, they are able to sustain below-profit sales at the government’s behest long enough to weaken and destroy their competitors. This domination of global markets is, of course, the point of the effort and expenditure employed in the preceding steps.
Few industries offer a better case study for this process than global steel and aluminum markets.
In 2016, Chinese hackers working for the People’s Liberation Army were indicted for hacking U.S. Steel, Westinghouse, Allegheny Technologies Inc., Alcoa, and the United Steelworkers Union (Solarworld was also a victim). The team obtained cutting edge manufacturing processes and advanced formulas, planning and strategy documents, and passed them to at least three major PRC government-owned firms: Baosteel, Chinalco and SNPTC. These firms, armed with massive PRC government subsidies (illegal by WTO standards), proceeded to sell these products on the global markets at far below the market rate.
In 2017, the United States Department of Commerce estimated subsidy rates of between 63.86 and 190.71 percent on products from a slough of Chinese companies in the metals business in its final determinations on antidumping and countervailing duty investigations of stainless steel sheet and strip from the PRC. Dumping margins from 48.64 to 106.09 percent were determined for aluminum products.
The continuous dumping of steel and aluminum products on the global market have had their effect. The hacks, which spanned from 2006 to 2014, allowed the PRC government to take massive global market share in these key industries. According to the USGS, the PRC produced roughly 27.4% of global primary aluminum in 2006, a number which had roughly doubled to 56.5% of global production by 2017. In 2006, China held 33.6% of the global crude steel market, while by 2016 that number had increased to 49.6%. While finished steel products are highly diverse, output in the PRC has increased vastly in a number of categories since 2006 (in some categories more than doubling) while other major producers worldwide have been stagnant or in decline. According to the US Department of Commerce there were 102 trade remedies in effect against China around the world by March of 2017, while DBS reports that public gross profit numbers averaged -1.4% in China for a list of 24 major steel producers in 2015.
Evan Anderson, CEO of INVNT/IP, said “Steel and aluminum are, without a doubt, two of the most important industries to any industrial power. Without domestic industrial capabilities in these industries, a nation cannot build infrastructure. Without them, a nation has no military.”
While criticism of the consideration of such metals as key to national security is common, Anderson added “I often see trade officials today complaining that these metals shouldn’t be part of any national security considerations, which worries me. We at INVNT/IP believe the inverse: every nation in the G7 should be focused on these metals as critical to national security, and none should be denied the right to secure and preserve their own domestic sources, particularly in the face of hostile attempts to dominate these industries.”
Aluminum and steel both play a critical role in the supply chains of high tech hardware, electric grid, agricultural equipment, aerospace, rail and automotive industries, and military branches across the board. As such, they are key to the national interest of any industrial economy. In the face of the ongoing campaign to destroy production capabilities everywhere outside the PRC, nations who follow international trade norms should act to protect themselves through continued, collective, and collaborative trade action.
Are US allegations that Huawei is helping Beijing hack US data networks motivated by genuine suspicions or by trade protectionism?
Joe Miller reports from the US where some Americans feel frustrated that their government is restricting them from using the Chinese tech firm’s cheap and reliable products. Meanwhile Ed Butler asks Wired journalist Scott Thurm whether the Trump administration’s clampdown is just part of the broader trade standoff between the world’s two biggest economies.
Plus, Chinese billionaire and artificial intelligence expert Kai-Fu Lee explains why he thinks ultimately China may win the tech arms race with the US over everything from mobile payments to autonomous vehicles.
Mark Anderson (CEO, Strategic News Service) presents his latest thinking on Flow and Interaction, which he has come to view as the two fundamental elements of the universe, constantly at work, continually shaping every aspect of our lives. Flow: The movement of substances, data, information, ideas, or innovations over time. Interaction: The internal or external effect(s) of substances, data, information, ideas, or innovations as they travel over time, changing the original state of the flow. Mark shares examples of how those two actions drive everything from physics to economics, from biology to corporate success.
Mark Anderson is a predictions expert in the fields of technology and the economy. He is CEO of Strategic News Service, an online technology newsletter read by Bill Gates, Paul Allen, Elon Musk, Michael Dell, Jeff Bezos, and other leaders in technology and finance. He is also the founder of the Future in Review (FiRe) conference, named “the best technology conference in the world” by The Economist.
Technology Alliance Group For Northwest Washington State
Please enjoy this video archive from Predictions 2018! We enjoy featuring Mark Anderson each January – great content as always. Please come join us next year for a delicious lunch and fascinating presentation. You can learn more about our annual Predictions event on our website here: www.tagnw.org/predictions
Representing world-changing documentary films at the renowned film festival
PARK CITY, Utah – January 5, 2018
FiReFilms is the documentary film branch of the Strategic News Servicetm (SNS) Future in Review (FiRe) Conference Corp. Described by The Economist as “the best technology conference in the world,” the annual FiRe conference, which each year selects one important documentary film to screen for its attendees in addition to year-round FiReFilms benefits, features global speakers and leaders in technology and the global economy, including Elon Musk, Craig Venter, Michael Dell, Vint Cerf, Leroy Hood, Elena Polyakova, Mark Hurd, Paul Jacobs, Cory Doctorow, Kamran Elahian, Ken Goldman, Dharmendra Modha, and many others.
FiReFilms creates awareness of documentary films in which technology improves the human condition, and promotes them throughout the year to the SNS / FiRe global corporate community of C-level executives in technology and finance, as well as to world press, select partner film festivals, and members of the global subscription-based FiReFilms initiative, from creation through distribution to education.
This year during the opening week of Sundance, from January 18-22 FiReFilms will host up to six specially member-priced events at a luxurious private home and screening room located in Deer Valley, just minutes away from all Sundance venues. Filmmakers, new and long-term FiReFilms members, and other world-changers will be able to mingle in this beautiful, private view setting over food, wine, and other beverages, along with other special surprise events. General membership registration is at www.firefilms.org.
“For the fourth Sundance in a row, we are excited to be able to provide for our FiReFilms members great content and discussions about globally important subjects with filmmakers and producers,” said Sharon Anderson Morris, FiReFilms Managing Director.
FiReFilms, created in 2012 after four years of screening an annual selected documentary to FiRe’s world-changing audiences, unites members who believe that documentary filmmaking is a powerful tool for world and social improvement, and who wish to be informed of and share unique benefits made possible by their relationship with FiReFilms – including important inputs and personal, early access to cutting-edge movers and events in documentary film. FiReFilms is led by a Steering Committee comprising specially invited technology, film, and investment experts.
MARK ANDERSON, Key Note på Radar Summit! “The technology landscape. Who survives and who will die” Mark Anderson, en av världens mest inflytelserika påverkare inom IT, kommer till Sverige för att tala på Radar Summit 2017.
“Grave concerns over the state of the Internet came into sharp focus Tuesday at Techonomy 2017, as session panelists talked about the beleaguered network’s effects on our political systems, cybersecurity, laws and regulations, economies and markets–and ultimately, on global society.”