Chapter 552: The Fall of Baosteel

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"I invite Ziqi, the host of "The Same Song", and Mr. Fan Wuxi, chairman of Fan's Investment Group, a special guest, to sing "For Whom" for us." The host of the party announced the program arrangement loudly.

I have to say that those who know the inside story know that there are too many childcare in various performances held by CCTV.

Fan Wuxian watched the rehearsal of a normal performance, so he knew these situations very well, so when Ziqi interacted with the host and the guests to sing, he was already very calm, after all, it was not the two of them who pulled the black bull.

After hearing the host's announcement, Ziqi walked out, waved to the audience with the microphone, and then made an inviting gesture to Fan Wuxi, who was sitting in the guest seat under the stage.

Fan Wuxian is surrounded by some high-ranking figures, including members of the Politburo, and celebrities in the business world, who can sit here, basically have a net worth of more than billions, including many new rich people in China, but now everyone doesn't know much about them.

"Mr. Fan, tell you to go up." Next to it. These people knew that Fan Wuxian was very powerful, and when they saw this scene, they all said to him with a smile.

Fan Wuxian laughed, stood up, and then. didn't take the ladder, and jumped directly onto the stage more than two meters high from the ground below, which immediately caused an exclamation, and then someone remembered that Mr. Fan is not only a business giant, but also a master of national arts, and he has killed two Japanese masters with one punch before.

So the audience suddenly remembered the enthusiasm. Applause, everyone applauded.

Fan Wuxian came to the stage, waved his hand to the four directions, and then from Ziqi's. He took a microphone in his hand.

The two people looked at each other, separated by a distance of more than two meters, and then the lights. It went dark, and then it slowly lit up to the sound of the music.

"The mud covered the trouser legs

Sweat soaked the back of the shirt

I don't know who you are

but I know for whom you are serving

For whom

For the harvest of autumn

In order to return to spring and return to the wild geese

Full of enthusiasm and singing youth without regrets

Looking at the end of the world, I don't know when my comrades-in-arms will return

Who are you

For whom

My comrade-in-arms, when will you return

Who are you

For whom

My brothers and sisters don't shed tears

Who is the most beautiful

Who is the most tired

My folks, my comrades-in-arms

My brothers and sisters

Sisters—"

The two of them didn't talk nonsense much, and directly expressed themselves in song. has paid tribute to the soldiers who participated in the flood relief, but some sensitive people have noticed that the two people were two meters apart before singing, but when they finished singing, their hands had been pulled together.

Anyway, this. A party was very successful, and when it came to the second round of donations, it was a corporate donation, which set off a round of enthusiasm at this time, and many emerging enterprises began to donate enthusiastically, on the one hand, to express their company's support for the people in the disaster area, and on the other hand, to show the economic strength of their enterprises.

By the end of the day, the total amount of donations raised had exceeded 2 billion yuan, and there were also some off-site donations that had not been counted, and it was estimated that they could add up to more than 5 billion yuan.

This figure is a bit unexpected by the organizers.

After the party here, Fan Wuxi went home with a little excitement.

Ziqi estimated that there would be a celebration party, so there was no chance to go out with him, so the two of them dispersed after singing.

As soon as he got home, Fan Wuxi's phone rang, but it was news from the headquarters, saying that Baosteel had raised prices.

"Baosteel has raised prices again?" After Fan Wuxi heard the news, his mood was more complicated.

Baosteel, which has always been regarded as a market vane, has raised prices against the wind in this sensitive period, what kind of interest chain is buried behind this?

Beginning last year, because of the impact of the financial crisis in Southeast Asia, steel prices plummeted, before April this year were in a state of recovery, since then because of the speculation of steel futures sharply increased the price, after August the ex-factory price has been in a state of decline, until the latest price adjustment, although there have been clues, but at that time it was to cancel the preferential way.

Baosteel's price increase itself is nothing, but the timing is indeed a bit sensitive.

Because soon, Baosteel will negotiate with the iron ore supplier about the import quantity and price next year, and the sudden announcement of a price increase at this time is obviously not beneficial to the iron ore price negotiation. According to the data, it is not the first time that Baosteel has raised the price of iron ore before the price negotiation.

At that time, Mitsui & Co., Japan's largest general trading company, had already had an insight into the Chinese market that would drive up the spot price of iron ore, thus creating a community of interests such as Nippon Steel, Mitsui & Co., MOL Lines, Shanghai Baosteel, and Vale of Brazil.

Mitsui's penetration of Baosteel can be traced back to the beginning of Baosteel's establishment. As early as 1977, during the preparation period for the establishment of Baosteel, it imported technology and equipment from Nippon Steel, Japan's largest iron and steel company, and Mitsui & Co., Ltd. owned 20 percent of Nippon Steel's equity.

As early as the forties and fifties of the last century, Mitsui & Co. began to collect information and purchase iron ore overseas, and further invested in mines by signing long-term contracts with foreign countries, and finally became the board of directors of mining companies. Mitsui & Co. has accumulated rich experience in iron ore trading, and has formed a community of interests with mining companies through long-term trade contracts, investment, equity participation, joint ventures, and participation in management.

Nippon Steel Corporation and Mitsui & Co. are a community of interests, and they have a relationship of mutual shareholding and joint investment; Secondly, Brazil's Vale and Australia's two extensions have long been firmly bound and become part of Mitsui's global layout.

According to the information obtained by Fan Wuji, the inventory of buildings and plates in major cities across the country has doubled year-on-year this year, and the inventory remains high.

However, he also noticed that Baosteel's price increase is mainly determined by the supply and demand relationship of products, and the demand for downstream automobiles and household appliances is strong, and at the same time, the cost pushes the price up.

The most unpleasant thing is that after the Japanese chaebol took control of the domestic steel enterprises, not only did the domestic iron ore acquisition be controlled by others, but even Baosteel also had a Mitsui bloodline in the shipping and logistics link, and the merchant ship Mitsui carried more than 10 million tons of iron ore for Baosteel every year.

It can be said that since the day it was born, Baosteel's dependence on Mitsui's technology, talents, and logistics has been deeply rooted in the bone marrow, and its main production equipment and core technology are all from Nippon Steel.

However, although Baosteel enjoys a controlling stake in the joint venture company in the steel processing base jointly operated by Mitsui & Co. and Baosteel Group in China, as well as the production base under construction, due to policy restrictions, Mitsui's power is not limited to this.

In some companies, although Baosteel's investment ratio is 51 percent, the chairman of the board is appointed by Mitsui & Co., and Baosteel Group's guaranteed loans are also guaranteed by a letter of guarantee provided by Mitsui & Co.

Mitsui controls Baosteel in China, POSCO in South Korea, and the Tata family in India. This situation makes Fan Wuxi more worried.

Since the 90s, under the influence of the strategy of going out, it has become a mainstream trend to learn from the Japanese and Korean models and make Chinese enterprises bigger and stronger.

However, with the rapid development of China's economy, inflation reached 21.7 per cent in 1994. Since 1995, the Chinese government has shifted to the U.S. economic model, intervening in the economy through macroeconomic management to control interest rate leverage and monetary policy. The interest rate on deposits once rose to about 12%, and savings with a term of more than five years can also get about 12% interest on hedging value, which means that the interest rate on long-term deposits has reached almost 25%, and this kind of high interest rate is probably rare in the world. As a result of a series of policies, the withdrawal of money, the disappearance of inflation, and the rapid braking of economic development have also been caused.

As an integrated trading company, one of the important functions of Mitsui & Co., as a general trading company, is to assist the consortium's affiliates in entering overseas markets. At this time, since the Chinese market was not really opened, many companies of the Mitsui consortium were investing in Southeast Asia on a large scale, but the target was still the Chinese market. At the same time, Mitsui & Co. has led Japanese companies to set up a number of joint ventures in China.

Beginning in 1992, Baosteel took the lead in carrying out a pilot project to settle working capital debts, and then cleared up the triangular debts of key enterprises in the four industries of coal, electric power, forestry, and non-ferrous metals. However, by 1996, the triangular debt had reached $800 billion. At this time, triangular debt caused enterprises to blindly expand production, resulting in a surplus of products, and breeding an economic crisis.

Many large state-owned enterprises at that time adopted the Western accounting system, and they were exposed as insolvent, and the triangular debts were forcibly liquidated indiscriminately, which eventually led to the collapse of the country, and China's independent industrial system continued to collapse due to the destruction of the symbiotic relationship between enterprises.

At this time, after the triangular debt was liquidated, a pillar large enterprise like Baosteel lost the support from many domestic enterprises, and formed a severing relationship with domestic foreign trade, shipping, financial and other enterprises, which brought opportunities for industrial organizers such as Mitsui & Co.

It was also at this time that Baosteel began to fall into the hands of Japanese companies.

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