Russia is also connected with steel production to Russia

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Russia is also connected with steel production to Russia

2017-12-28 18:27:24 897 ℃

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12 on Sept. 28, the Russian satellite network reported that the Chinese steel production moved to the far east. Debon Guangdong Hongkong company plans to build steel deep processing industry in the coastal border area area. According to the information from the Far East Development Department, China is ready to invest about 2000000000 dollars in the project.

Far East Development Department pointed out that the Far East Development Minister Alexander Galuska de state owned by Guangdong Hebei Luanhe Industry Group Co Ltd chairman Yao Xiaodong discussed the plan of investment in russia. The implementation of the project will be divided into two stages. The first phase is to build a 1 million ton steel production base with a total investment of US $500 million. If all goes well, 5 years after the second phase will complete the production and sales of the chain: the mining of raw materials, melting production, final product steel production and the sale in foreign countries. The annual production capacity of the largest smelter in the future should exceed 5 million tons.

, according to the information from the Far East Development Department, will also be possible to localize the production of steel needed in the Russian domestic market in the future. But now the project is good for Russia, at least in society. According to the Hebei Luanhe industry group chairman Yao Xiaodong estimated that the project will provide more than 50 thousand jobs for the area. Mei Xinyu, a researcher at the Foreign Trade Research Institute of the Institute of international trade and economic cooperation, the Ministry of Commerce, believes that the project is also very favorable for China.

Mei Xinyu said, "first of all, the relationship between political China and Russia is very good, but the two sides have maintained good relations for over 20 years. Second, taking into account the business environment in Russia there is a big problem in industrial facilities, and modern industry, more capital and technology intensive industries need more facilities of the scope economy industry, coastal border area adjacent to the Chinese industrial base, in this case, the combination of related industrial facilities to the northeast and system a lot of convenience, will. Third, to invest in the steel industry in the Far East market, there may be some convenience in obtaining coking coal and other aspects. Fourth, investment in the coastal border areas, land prices will be much cheaper than China. "

really far east is much cheaper than the Chinese side that is adjacent to Russia. In addition, the cost of labor in Russia is also highly competitive with the fall of the ruble against the dollar. But there is still an important motive for China to build a steel production base in Russia. In the

2008 crisis, the Chinese government dropped 4 trillion yuan to the domestic economy in order to prevent a sharp decline in the growth of GDP. Such a huge sum at that time was equivalent to 14% of China's GDP. Supplementary financial incentives have also been taken. In the ten year plan to fight the consequences of the crisis, 12 trillion yuan was put on. Moreover, unlike other countries, such as the US, anti crisis measures are mainly manifested in the introduction of indirect tax incentives and administrative measures, while China's package counter measures are directly invested in budgets, banks and enterprises. The sudden mobility of the national economy needs to be implemented as soon as possible.

and not to any speculative activity, for example, in the stock market, but to the entity sector to ensure the growth of GDP. Therefore, the government, especially the local governments, is doing everything possible to support investment in infrastructure and heavy steel industry. This energy and capital intensive industry, of course, needs a lot of labor in its construction, which means that GDP can be substantially increased. The

problem is that everyone is trying to get into the stream, building a infrastructure project that is often not needed, the same enterprise, and the infrastructure. In the end, China became the largest steel producer in the world. But the problem is that China doesn't need so much steel at all. And the overstaffed iron and steel industry has an extremely adverse impact on the ecological environment. So the Chinese government has announced a "supply side reform" a few years ago, that is, to reduce excessive production. The reform has been effective. China will withdraw 1.28 billion tons of steel capacity by the end of the year, and will withdraw 37 million tons every year from 2018-2020 years. Xi Jinping at the recently held central economic work conference said that the next five year plan of the government will not focus on maintaining economic growth, but ensuring high quality development, windbreak, pollution prevention and eradicate poverty.

thus shows that China's steel production base in Russia seems to be trying to export its economic imbalance to foreign countries. From an ecological point of view, steel production is unsafe in China, and enterprises are just trying to hide in Russia. Mei Xinyu, a researcher at the Foreign Trade Research Institute of the Institute of international trade and economic cooperation, the Ministry of Commerce, believes that this is not exactly the case.

Mei Xinyu said, "first, the so-called" capacity to ', we remove the production technology, production technology is backward production capacity, and for some of the industry, there is no capacity problems. Secondly, the excess capacity is not only a look at the current situation, but also a long period of time in the future. We should not only look at the depression period, but also look at the prosperous period. We should not only see the needs of the domestic market, but also look at the demand of the international market. In the past two years, the production capacity of China has reached 1.5 million tons, and the iron and steel production capacity has been basically completed. But when China goes to production capacity, the new steel production capacity in the Middle East and the EU is nearly 40 million tons, which indicates that there is still demand in the steel market. China, as a country with high efficiency in producing steel products, goes to production capacity, and some of them