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By Fabio Santoro
The Argentine head of state, in his eagerness to implement the national housing plan, met Liang Wengen, president of Sany, the main company in China and sixth in the world dedicated to the production of construction machinery.
This company could land in Argentina with its business unit of prefabricated concrete houses with the possibility of building a home and having it ready to live in a period of just 7 days and at half the price of a conventional home.
Alerted to the prospect of being flooded by imported Chinese houses, different business chambers (Faima, Cema, etc.) and Argentine manufacturing groups expressed their disagreement, reporting the damage of not making use of local products and labor in a degree to compete with the Asian country, and in this way, not favoring the development of regional economies.
"The Argentine Federation of the Timber and Related Industry (FAIMA) expresses its concern and that of its 27 associated chambers throughout the country for the transcended in reference to the purchase of Chinese houses by the National Government within the framework of its plans to housing, to the detriment of considering competitive local options, such as the use of wood in construction, ”Faima said in a statement at the beginning of March.
"Alerted by the operation of Chinese companies in association with local agents, FAIMA renews the preaching on the advantages that the use of wood in construction implies, both due to its competition and its impact on regional economies," said the business chamber .
For its part, the union sector also expressed its discontent through the Union Obrera Ladrillera (UOL), who considered that the problem of Chinese houses could unleash serious consequences.
"This housing program of the Sany Heavy Industry company brings brick workers to their knees," said Luis Cáceres, UOL general secretary, in a statement in mid-February this year.
"The State has provided to advance with Chinese houses that will seriously affect construction and specifically the brick industry," added the union leader, because he understands that this project threatens "the worker, since the houses are made of concrete and not a single local brick ”.
This housing program of the Sany Heavy Industry company brings brick workers to their knees (Luis Cáceres - UOL Secretary General)
China's advance over Argentina
President Macri during his visit to China stated: "We have an ambitious plan in infrastructure and in that sense we are interested in continuing to buy machinery from China", highlighting "the construction capacity that Chinese companies have" by stating that Argentina needs energy, infrastructure, roads and ports.
"President Macri announced a commitment to build one million homes and we could be part of the solution," Xu Ming, deputy general manager of Sany Heavy Industry and president of Sany Latin America, told La Nación newspaper.
In reality, the problem of the invasion of Chinese products that currently involves the construction sector is an issue that has been dragging on for a long time. It started since China became part of the World Trade Organization (WTO) (2001), and affects large sectors of Argentine industry as well as trade unionism. Consequently, both employer and union organizations suffer the consequences and repudiate the interference of merchandise from the Asian giant.
The Chinese modus operandi
Dumping, commercial piracy, cyber espionage, depredation of natural resources, toxic garbage dumps, environmental pollution, unemployment and social degradation, are the trademark of the modus operandi of the Asian power, as indicated in a seminar in October last year by the renowned writer and journalist specialized in China, Juan Pablo Cardenal.
An indiscriminate opening with China could not only imply displacing local production but could also limit the possibility of developing the local capacities necessary to go out and export higher value-added goods
The journalist points out that China's tactics to monopolize natural resources abroad are focused on three points: 1) at the stroke of a checkbook, 2) on offering star turnkey infrastructure projects, favoring the sale, production and labor of Chinese work, and 3) in the soft power of the diplomatic sphere, exerting a subtle or not visible interference.
Certainly, an indiscriminate opening with China by Argentina will be accompanied by facilities to import manufactured goods from that country, the analyst of the Abeceb consulting firm, Mauricio Claver, told The Epoch Times.
"This could not only imply displacing local production but could also limit the possibility of developing the local capacities necessary to go out and export higher value-added goods," he added.
The controversy unleashed by the incipient invasion of homes puts the Argentine business and union community on alert because it is already well known that Chinese competitive advantages are based on subsidies granted of all kinds (financial, energy, logistics) and a precarious working condition without any right.
This is the case of Chinese steel, where unfair competition from the Chinese regime, through dumping, makes Chinese companies under the orbit of the Red dictatorship export their steel at a subsidized price with the purpose of ruining competition by making the industry impossible. of the rest of the world to compete in such a disadvantageous situation.
Likewise, in the case of construction, the outcome remains to be seen since, as a result of the interest of the governments of both countries, the negotiation of the financing of the housing project is in a process that will take a few months, as reported La Nación Newspaper based on official sources.
The Epoch Times