StudentShare
Contact Us
Sign In / Sign Up for FREE
Search
Go to advanced search...
Free

China in metal industry - Essay Example

Cite this document
Summary
Current records reflect that China’s steel output exceeds 100 million tons in a year on average and the country is now the world’s largest producer of steel (Hu & Ping, n.d., p.1). The present study focuses on the role of China in the metal industry before and after joining…
Download full paper File format: .doc, available for editing
GRAB THE BEST PAPER94.1% of users find it useful
China in metal industry
Read Text Preview

Extract of sample "China in metal industry"

China in Metal Industry Introduction: Current records reflect that China’s steel output exceeds 100 million tons in a year on average and the country is now the world’s largest producer of steel (Hu & Ping, n.d., p.1). The present study focuses on the role of China in the metal industry before and after joining the WTO considering the physical market, the price discovery, and security and risk management.Role of China in the Metal Industry:Before and After Joining WTO:With the liberalization of trade in the 1990s, the metal industry in China has been found to go through several reforms trying to improve the state of the industry.

Earlier the control of China’s metal industry was under the State Owned Enterprises (SOEs) where the key SOEs worked under the policies of the central government and the local SOEs were under the influence of the provincial government. China’s membership in the WTO had posed several challenges for the country considering the weaknesses in comparison to other countries in the world. However the country depended on mergers and acquisitions of steel companies but doubts still persisted as to whether the country would be able to compete in the international market (Hu & Ping, n.d., pp.2-3). The Chinese metal industry has been found to violate several commitments of the WTO.

Violating the norms, the Chinese industry has not stopped its ownership and control over the production of steel. This has been mostly achieved with the intervention of the government that plays a significant role in the decision making even after China joining the WTO. In fact after joining the WTO, the intervention of the government has increased contrary to the commitments of the WTO. Violations have also been observed in the treatment and providence of the SOEs (Metals and Mining Chinese Steel Industry, 2011).

Physical Market, Price Discovery, and Risk Management:Slowdown of growth in the Chinese market may bring concerns over the demands of steel along with other products. The LME (London Metal Exchange) realizing the state of the China metal industry decided to spread out its warehouse set-up into China that it considers as the largest user of base metals together with copper. This has been thought to bring in benefits for both the Chinese industry as well as the LME (Sim & Li, 2012).China has proved to be a leading producer of rare earths, tungsten and molybdenum in the world and over the last two years the country has imposed strict taxes over the exports of these elements leading to price rises (Rare Earths, 2012).

China is also the largest consumer of copper, aluminium, and zinc, in the world and plans to limit new aluminium merging base metal production. The demand for base metals can be expected to increase in China (Research and Markets: Analyzing Base Metals in China - 2011 Report on One of the Worlds Biggest Consumers of Copper, Aluminium and Zinc, 2011). Keeping in focus the security and risk management issues, the China metal industry has been expected to make a shift from the concept of mergers and acquisitions to domestic consolidation “with deals materializing at a fast pace in 2011”, with which the number of transactions is also expected and found to be increased (CFO Innovation Asia Stuff, 2011).

Conclusion: From the study it can be concluded that China has been continuously trying to improve and prove its position and power in the metal industry that can be reflected from the management and influences over the industry in the world as a whole. References1) CFO Innovation Asia Stuff (2011), China’s Metal and Mining Industry to Focus on Domestic Consolidation, cfoinnovation, available at: http://www.cfoinnovation.com/content/chinas-metal-and-mining-industry-focus-domestic-consolidation (accessed on May 11, 2012)2) Hu, X. & H. Ping (n.d.), Globalization and China’s Iron and Steel Industry Modelling China’s Demand for Steel Importation, faculty, available at: http://faculty.

washington.edu/karyiu/confer/xian05/papers/hu%26ping.pdf (accessed on May 11, 2012)3) Metals and Mining Chinese Steel Industry (2011), industrytoday, available at: http://industrytoday.com/article_view.asp?ArticleID=F359 (accessed on May 11, 2012)4) Rare Earths (2012), The New York Times, available at: http://topics.nytimes.com/top/reference/timestopics/subjects/r/rare_earths/index.html (accessed on May 11, 2012)5) Research and Markets: Analyzing Base Metals in China - 2011 Report on One of the Worlds Biggest Consumers of Copper, Aluminium and Zinc (2011), businesswire, available at: http://www.

businesswire.com/news/home/20111223005162/en/Research-Markets-Analyzing-Base-Metals-China-- (accessed on May 11, 2012)6) Sim, G. & S. Li (2012), LME Wants Warehouses in China as Asia Growth Lifts Demands, businessweek, available at: http://www.businessweek.com/news/2012-05-03/lme-wants-to-expand-warehouse-network-to-china-ceo-abbott-says (accessed on May 11, 2012)

Read More
Cite this document
  • APA
  • MLA
  • CHICAGO
(“China in metal industry Essay Example | Topics and Well Written Essays - 500 words”, n.d.)
China in metal industry Essay Example | Topics and Well Written Essays - 500 words. Retrieved from https://studentshare.org/business/1596605-china-in-metal-industry
(China in Metal Industry Essay Example | Topics and Well Written Essays - 500 Words)
China in Metal Industry Essay Example | Topics and Well Written Essays - 500 Words. https://studentshare.org/business/1596605-china-in-metal-industry.
“China in Metal Industry Essay Example | Topics and Well Written Essays - 500 Words”, n.d. https://studentshare.org/business/1596605-china-in-metal-industry.
  • Cited: 0 times

CHECK THESE SAMPLES OF China in metal industry

The Retail Industry in China

The chain stores and Chain supermarkets serving the daily needs of the people appeared in china in around a decade ago and they rapidly grew to the extent of being the second-largest retail market worldwide.... Its rapid growth can be owed to the government of china in 1992.... This paper 'The Retail industry in the USA" focuses on the fact that retail is part of an integrated system known as the supply chain, which involves the sale of goods and services to consumers from individuals or businesses....
8 Pages (2000 words) Assignment

Polymer and Metal Matrix Composites

This essay "Polymer and metal Matrix Composites" is about a material that is described as a composite material if it is comprised of two or more constituents either in a combination of phases or distinct phases....   … The materials are bonded along with the interface of the composite....
8 Pages (2000 words) Essay

Wheel and Rims Industry: The Case for China and the United States

This essay represents an overview of wheel and rims industry by studying the case for China and the United States.... hellip; China's car wheel rim and cover industry is growing rapidly, fueled by the booming auto industry in the mainland.... This essay represents a deep and thorough analysis of wheel and rim industry and seeks to outline the past, the present and the future trends in relations between US and China.... Private enterprises are also lured by the strong growth of the aluminum wheel rim industry....
7 Pages (1750 words) Essay

In what ways does recycling directly impact the sustainability of the environment

Recycling is a major industry and for the sustainability of the environment, the infrastructure has to be in order.... E-waste has become very common in most countries and particularly in china where economic development has been very rapid.... The recycling process in china is absolutely informal and this has an adverse impact on the environment.... Recycling of the e-waste takes place in the villages in china and is handled by the uneducated people....
4 Pages (1000 words) Essay

Rare earth-Business Globalization

hina, which produced 120,000 tonnes or 97% of world output of rare earths in 2009, is undeniably the largest producer of rare earths globally, with India trailing far behind at a distant second place producing only around 2% of the global output(Humphries,6),(Rare metal Mining, Nov 7,2010).... china, India, Brazil and Malaysia figured as the major rare earth producers in 2009, in that order, with china dominating the supply scene producing 97% of the total… roduction, as illustrated in Table-3, a scrutiny of which reveals that countries like USA, Russia and Australia, have the capability to become potential full-scale producers of rare earths (Humphries,6)....
7 Pages (1750 words) Research Paper

The Demand for Metal in China

Also, the author describes how the consolidation of the steel industry affecting the trend of the prices in the metal across the globe.... In this essay, the author demonstrates why China's economic growth during the period of the fluctuations in the prices of aluminum affected the price of the metal.... The duration and amplitude of price fluctuations in the case in question must have been as a result of numerous change in the economic strength of the metal market in general....
6 Pages (1500 words) Essay

The pollution of East Yangtze River in China

For instance, the factories based upon metal industry allow metallic waste materials to enter the river and it results in metal pollution.... Similarly, paper-making industry (say, factories/paper mills) in the banks of the river allow toxic waste materials to enter the river.... Besides, the shipbuilding industry results in the... As the river (say, East Yangtze River) acts the role of a lifeline for the whole Thesis statement: It is evident that pollution is threatening the existence of the East Yangtze River in china because the river's downstream economic region is highly polluted due to industrial wastes, agricultural pollution, shipping discharges in general....
6 Pages (1500 words) Essay

Bloody Century of China

The intention of Mao to launch the Great Forward Leap was for it to act as an alternative to the model of economic growth that focused on heavy industry advocated by others in the industry.... This essay explores the Genocide in china.... The genocide in china occurred between 1958 and 1961.... nbsp;   In the Great Leap Forward, china's peasants had full incorporation in the operation.... china thus launched the massive steel production campaign in the villages and a collective farming throughout china....
6 Pages (1500 words) Research Paper
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.
Contact Us