Americans, among others, have been used to aluminum in the environment for generations via the ubiquitous soft drink can. The vessel found its way around the world filled with Coca Cola and its many imitators. It gave rise to the recycling business, creating armies of entrepeneurs who scour the landscape with it s trash containers brimming with empties. Aluminum smelters/refiners were cranking out tons of the lightweight metal to satisfy the demands. Bauxite miners bought new carriers and ever larger rigs to extract the ore to feed the smelters. All of this activity caught the wandering eye of the Chinese government whose leaders saw opportunity. Enter Chinese aluminum product.
Since the year 2000, 15 of 21 American aluminum smelters have shut down, displacing over 5000 workers in the eastern US. The remainder sites are in jeopardy. The prices of Chinese imported aluminum product directly led to these closures. Now a Chinese company wants to directly takeover a US company that produces here at home: Aleris Corp., based in Cleveland, Ohio, home of the Indians and LeBron's Cavaliers. 12 U.S. senators have sent a letter to the Obama administration asking to halt this acquisition. The company, Zhongwang USA LLC offered the highest price ever for a US metals company. Liu Zhongtian, who controls the company, is founder and chairman of Chinese aluminum giant China Zhongwang Holdings Ltd. The letter sent was addressed to to Secretary Jacob Lew sighting the effect of certain defense-related aluminum products. It has been a topic of concern when it was revealed 2 months ago that Mr. Liu was routing Chinese aluminum product through Mexico to avoid US import quotas and tariffs, given Mexico's trade status.
Apparently, Mr. Liu thinks the investment in a domestic facility will make his entry into the American market legitimate. Hmmmm. Is this the country that is trying to intimidate the Phillipine Islands into submission in the South China Sea? Is this the same China that is rousting political opponents in Hong Kong who espouse more independence? Is this the same China that harasses Tibets on all issues? Is this the same China that chases Muslims from their homes in the far western provinces? Is this the same China that looks away from its client state of North Korea when the porky madman at the helm test fires another missile into the Sea of Japan? Why, I believe it is.
Concurrently, Germany is also dealing with a Chinese attempt to score a significant asset in that country: chip maker Aixtron. Germany has withdrawn its approval of the purchase, sighting the issue of defense contracts and industrial secrets. Chinese officials then criticized the move as "detrimental" to China/Germany trade agreements.
Nice try, Mr. Liu.
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