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I'm missing the part of this scheme where you need to have a large cache of aluminum in any form to make this work. Related: The Chinese regulations on export
by brandmeyer 10y ago
I'm missing the part of this scheme where you need to have a large cache of aluminum in any form to make this work.
Related: The Chinese regulations on export of neodymium magnets is similarly structured. Exporting the magnets or the raw metallic ingredients is subject to high tariffs, but export of finished products using them is not. This isn't just about energy exports though, it's straight up protectionism of their manufacturing businesses.
- joe_the_user 10y agoWell, If the aluminum they're getting is worth more than they're paying for it, they want to buy and export as much as possible. They then store it until they can sell it at the appropriate price. Especially considering that you'd assume the loophole is going to close sooner or later.
- novaleaf 10y agoa guess: in case China closes the loophole.
- liztsai 10y agoIf you're taking a protectionist view of their manufacturing business, China relaxing duties on finished goods would make sense. It's unclear (to me anyway) that that decision was made with the intent to spur raw aluminum exports vs some clever guys putting two and two together. And yes, in case the loophole closes. These guys may have been the largest operation that some guy flew a plane over but they probably weren't the only ones.