One of China’s richest men is hiding 6% of the world’s aluminium in Mexico to evade U.S. trade tariffs
- 8 years ago
SAN JOSE ITURBIDE, MEXICO — One of China’s richest men has been linked to a massive stockpile of aluminum in the Mexican desert that U.S. aluminum executives say is part of a scheme to game the global trade system, according to a report in the Wall Street Journal.
The stockpile was discovered two years ago when aluminum executive Jeff Henderson hired a pilot to shoot aerial photos of a factory near the town of San Jose Iturbide, 500 miles south of the Mexican border with Texas, the Wall Street Journal reported.
There, the pilot found a stockpile of nearly one million metric tons of aluminum, or roughly 6 percent of the world’s total inventory, according to the the Wall Street Journal’s report.
Rerouting Chinese aluminum through Mexico into the U.S. allows Chinese companies to benefit from the North American Free Trade Agreement between Canada, Mexico and the U.S., which eliminates most of the tariffs on products traded among the three countries.
According to the Wall Street Journal, Chinese billionaire Liu Zhongtian, the chairman of China Zhongwang Holdings, has denied the allegations.
The stockpile was discovered two years ago when aluminum executive Jeff Henderson hired a pilot to shoot aerial photos of a factory near the town of San Jose Iturbide, 500 miles south of the Mexican border with Texas, the Wall Street Journal reported.
There, the pilot found a stockpile of nearly one million metric tons of aluminum, or roughly 6 percent of the world’s total inventory, according to the the Wall Street Journal’s report.
Rerouting Chinese aluminum through Mexico into the U.S. allows Chinese companies to benefit from the North American Free Trade Agreement between Canada, Mexico and the U.S., which eliminates most of the tariffs on products traded among the three countries.
According to the Wall Street Journal, Chinese billionaire Liu Zhongtian, the chairman of China Zhongwang Holdings, has denied the allegations.