>In Mexico, Mr. Shen was implementing an audacious plan, according to people familiar with the matter: A network of trading companies could route hundreds of thousands of tons of aluminum from China to Mexico, where a plant would melt it for shipment to the U.S., evading trade restrictions and claiming North American Free Trade Agreement benefits.
> Meanwhile, setbacks were piling up. Trucks and metal were stolen from the Mexico facility, slowing deliveries, former Aluminicaste employees say. The company failed to obtain Nafta benefits after U.S. authorities concluded that the metal came from China.
It's in the US's interests that they don't allow another country to manipulate the market to destroy the US production capacity. Once that capacity is online the foreign country can then raise prices.
It's not easy or cheap to bring production capacity online.
Generally I'm pro-free trade, but the issue gets quite messy when you consider government subsidies. As a Canadian, this discussion comes up frequently along the lines of the subsidized agriculture sector.
It says in the article: American companies are being put out of business by heavily-subsidized Chinese companies.
> Trying to enforce a tariff on element production from a subset of external countries seems sisyphean.
Apparently not:
> The company failed to obtain NAFTA benefits after U.S. authorities concluded that the metal came from China.
It helps to read the article you're commenting on ;)
I loved fantasy books as well.
He's, simply, laundering Chinese aluminum through Mexico.