Japanese investors

Chapter 604 Dumping

In the past, Wakayama City was unable to take off and land giant passenger aircraft such as the Airbus A380. Now, it can completely take off and land the Airbus A380.

Population inflow and the number of newborns are continuing to increase significantly. This city has once again become one of the veritable steel bases in Western Japan.

All the good signs are enough to mean that Wakayama City is once again prosperous. Among them, Karuizawa Heavy Industries, which is the mainstay of the economy, is indispensable.

Masao Ishihara came to Wakayama City and appeared in the high-level conference room of the Karuizawa Heavy Industries headquarters. He sat in the top spot.

As the president of Karuizawa Heavy Industries, Takashi Mizukawa personally presided over this meeting. He did not hesitate at all: "The Ministry of Commerce of South Korea has officially sent a document questioning steel dumping to our Karuizawa Heavy Industries.

In short, if we do not make certain rectifications, or to be precise, raise prices according to their wishes, they will initiate anti-dumping measures against us. "

The deputy director of the Accounting Department said categorically: "This is completely a unilateral threat from South Korea to our Chiguoguo. Prices must not be increased."

If we follow the requirements of the Korean Ministry of Commerce, we will completely lose our price advantage over Posco and other Korean steel plants in automobiles, ships and other steel types. "

Masao Ishihara's eyes fell on her side, but he couldn't remember for a moment and said: "Why do you look so familiar?"

The deputy director of the Accounting Department replied seriously: "Before, I was the eldest son's old secretary. Now, Asuka Hayasaka is able to take charge of her own business. So, she completely took over my past job.

I was originally supposed to be transferred to work in the secretarial office of the Karuizawa Group Headquarters. However, the eldest son thinks that I am more suitable to work at Karuizawa Heavy Industries.

After all, Karuizawa Commercial Bank and Karuizawa Heavy Industries need to have a seamless connection, and I am extremely familiar with Karuizawa Commercial Bank. Therefore, I was assigned to Karuizawa Heavy Industries as the deputy director of the accounting department. "

Masao Ishihara said clearly: "Is your opinion the same as everyone here?"

The director of the Accounting Department responded: “From the beginning, although we did not intend to kill the Korean steel industry, we have already caused a lot of pressure on it both intangibly and tangibly.

If not, the Korean Ministry of Commerce will not send us that thing. It is absolutely impossible to increase prices. Once the price increases, isn't it true that we were dumping steel into South Korea?

If South Korea is setting a trap for us, they are just waiting for us to jump there. Another blow is to sue us directly to the World Trade Organization, which would be even more troublesome.

If the Korean Ministry of Commerce bites us and accuses us of dumping, otherwise we will not feel guilty and raise prices or anything like that, it will be too passive. "

Ishihara Masao's attention shifted to Mizukawa Takashi and said: "What do you think?"

Mizukawa Takashi said seriously: "I don't agree with price increases either. Whether in the short or long term, price increases will not bring us much growth in profits, but will instead weaken our current exports.

If the Korean Ministry of Commerce does not change their attitude and insists on filing anti-dumping measures against us, then we will have no choice but to stay with it until the end.

Even if we lose the Korean market, we still have markets in Southeast Asia, Latin America and other wide areas. Our price advantage is our greatest international competitiveness.

If South Korea doesn’t buy it, I don’t believe other countries will follow suit. The result of South Korea's insistence on going its own way will only push up its car and shipbuilding costs. This is tantamount to reducing the export of related commodities and losing competitiveness in the international market. It will also have a considerable negative impact on South Korea's foreign trade. "

Masao Ishihara received a clear message from the top management of Karuizawa Heavy Industries that he would not accept the price increase request from the Korean Ministry of Commerce.

The types of steel products exported by Karuizawa Heavy Industries to South Korea for car manufacturing, shipbuilding, etc. have had an impact on similar products in the country and even the entire industry.

In order to protect its related companies, South Korea used such a crooked trick. As for the purpose, it is to make Karuizawa Heavy Industries retreat.

Ishihara Masao, who is good at listening, did not rush to make a decision: "Does anyone among you have a different opinion? If so, speak out boldly."

The vice president said seriously: "I have a different view. Since the Korean Ministry of Commerce requires us to increase prices, not only will we not increase them, but we will also take the initiative to reduce them.

In this way, even if it cannot directly defeat Posco Steel, it can also defeat some relatively weak steel companies in South Korea. After that, we can also increase our further occupation of the Korean market. "

Takashi Mizukawa immediately objected: "In my personal opinion, although the idea is good, we will face more challenges in the future. If it doesn't work well, it will force Koreans to jump over the wall.

The steel industry is not only an industry in South Korea, but also symbolizes the backbone of their nation. Koreans are a nation with high self-esteem.

Once they break out large-scale demonstrations, protests, or even boycotts of steel from all of Japan, it means that not only the Korean Ministry of Commerce, but also the Korean government will have to face it.

If it escalates to a trade dispute between the two countries, it will also require us to spend more energy dealing with this matter. This is also not in line with the entire Karuizawa Group and another strategic intention of the chairman in the future. "

The vice president discussed the matter and said: "I think this is an opportunity. Even if the steel industry in South Korea is not killed, it can be crippled. Just like the semiconductor dispute between South Korea and Japan.

By then, even if the South Korean government and people persist or disagree, it will not prevent South Korea's big chaebols from coming to Japan to proactively seek peace. "

Mizukawa Takashi retorted: "These are completely two properties. Back then, the semiconductor war between Japan and South Korea was because Japan was able to block the export of three key raw materials in South Korea's semiconductors.

In other words, Koreans simply cannot produce it and are forced to import it. And we can’t hold South Korea’s neck back.

They can absolutely produce it. It's just that the cost is higher than ours. Our advantage lies more in price than in technology. "

The vice president said tit for tat: "As long as time goes by, it will still make Koreans uncomfortable. After all, it will significantly push up the cost of their related products, especially export-earning products."

Mizukawa Takashi firmly disagreed: "In a big price war, you will kill one thousand enemies and lose eight hundred to yourself. Even if you win in the end, it will be a miserable victory and not worth it."

(End of this chapter)