Commies on Coke
Little do we hear about the current steel shortages on the late night news, we do however hear about the soaring gas prices. Manufacturers often cannot get steel or must ration it heavily. New companies either must be entered on a waiting list or are turned away. Why is this, well the main reason is China reducing the amount of coke they are selling, coke is a key resource in manufacturing steel. China is also the world's leading producer of coke. China is also on a shopping spree of all scrap steel that is currently available and has caused steel prices to skyrocket. Other methods of making steel are deemed to be environmentally hazardous and much more expensive. Coke is the most efficient and environmentally friendly way to make steel, but if China corners the market on coke it will be very difficult to make steel in the environmentally friendly world today. There have been talks of adding tariffs to stop American companies form selling scrap steel to china, but I worry about any tariff after China took such advantage of the last steel tariff America adopted. If China does succeed in creating a monopoly on steel, than what action can or should be taken. But this does worry me, China’s expanding their navy. The only reason an expanded Chinese navy would have aim for in my mind is against the United States. Is it time for something to be done about steel production, or to try to allow the market to change this attempt on corning the market. I personally am not sure of the best course of action at the moment, when markets collide with international politics and old grudges anything can happen.
posted by Casey @ 8:17 AM
3 Comments:
According to Forbes Magazine a new billionaire has been added to the list of the world's wealthiest people. He is a steel monopolist in India. I don't remember his name, but he has jumped to the top five wealthiest people in the world. While I disagree on any tariffs being put on any item, including steel, this does warrant some thought. If China continues to keep its coke locked up in their communist regime some new measures will have to be implemented.
The problem that I saw was not with China and their hold out on their coke product nor their gain of scrap steel, but it is with our own inefficiency and relyance on others. From the first article that was linked, it was shown that China was an expanding country that is just moving with the flow of technology. The people are wanting the same things that people in the United States are wanting, and their industries are just trying to supply them. The coke problem is rediculous. From the second link, coke is made from burning coal in anerobic processes, something that the US can do quite well if it wanted to. The problem seems to be that people are complaining about chance and creating problems where they do not exist. I do not agree with the comment that they are gathering steel for warfare, that is a huge assumption as to what their designs are. It would appear that the US is just entering a new phase that we will get out of through the same ingenuity and creativity that has lead us to where we are today. After all, when things get scarce and expensive, we find replacements.
“The only reason an expanded Chinese navy would have aim for in my mind is against the United States.” This is a tad bit paranoid don’t you think? This is especially true when you consider the long standing issues that exist between China and Taiwan regarding Taiwan independence. Brett Benson who is currently teaching classes here at USU, classes such as Chinese Government and Politics POLS 3250 and other Asian based courses, discussed in a lecture of his that I attended that currently China does not have the capabilities fully necessary get across the Taiwan Strait with a military force needed to invade Taiwan even if they wanted to. Regardless of whether Chinese Naval expansion relates to U.S. security or not, the U.S. definitely is not top on China’s priority list when it comes to its Navy; Taiwan is.
Post a Comment
<< Home