Analysis Of The Causes For The Failure Of Chinese Iron And Steel Enterprises In The International Iron Ore Negotiations

With the globalization of economy,the economy has made rapid development inthe world,the demand for resources is also increasing year by year.As we allknown,many resources are scarce,non renewable.But the development of a country’seconomy cannot do without the guarantee of resources.So in order to maintain thelong-term development of the country and the interests of the state,the scramble forresources has intensified.Countries are interdependent and mutual struggle.If a country’s economydevelops too fast,the consumption of resources is also bigger. This must cause thescramble for resources with other countries.Resource is the foundation of nationaldevelopment.Without resources,development is impossible.In order to safeguard theinterests of their own country and international status,resource has become animportant factor for a country to limit other country’s development.Our country is the biggest importer in the international iron ore market,with thedevelopment of steel industry,the rapid rise in demand for iron ore makes Chinaovertook Japan in2003to become the biggst importer in the world.In recentyears,although the iron ore production in China is increasing year by year,thecharacteristics of Chinese iron ore makes the import quantify continue to increase.By2010,China has import more than half of iron ore production in the world.There is nodoubt,China is the biggest importer in iron ore market.Logically speaking,Chinashould size the initiative in the international iron ore price negotiations and getreasonable price,but that is not the case.On the surface,China should get a reasonableprice.In fact,China became pricing dwarf,it can only passively accept the price after negotiations.It makes China lose the discourse right in the international iron ore pricenegotiations.This is not only do harm to the long-term development of China’s ironand steel industry,but also has an impact on the domestic iron ore market.Through review the course of China’s iron ore negotiations and analysis thecause of failure.At last, this paper puts forward the correspondingcountermeasures,such as increase industry concentration,adjust the industrialstructure,expand the impot channel,change the negotiation strategy. Only in the waycan we make China change the inferior position、grasp the initiative in theinternational negotiations、maintain the economic stability and expand China’sinternational influence.