Alpine Summit

Wednesday, June 29, 2005

Black Gold

Drudge reports that China is telling the U.S. to stay out of the Unocal bid.

China expressed opposition to interference in a government-controlled oil company's bid for the U.S.-based oil company Unocal, state media said Wednesday.

Foreign Ministry spokesman Liu Jianchao said that China National Offshore Oil Corporation's $18.5 billion offer for Unocal was "normal commercial activity between enterprises."
So let me get this straight: it's okay for the Chinese Government to own 70 percent of a company and make a bid for a major oil company in another country? Okay, I can live with that (though I don't like it). But then they criticize the U.S. Government for commenting/getting involved? Why are they so concerned with what our government thinks of this deal? Given the strains between China and the U.S., I think lawmakers are right to be concerned about losing a major company that deals with a product that is strategically important to the entire country. It isn't like they're making a bid on buying K-Mart or anything. I don't usually wear my tinfoil hat, but this just strikes me as a back-door ploy to start controlling the U.S. economy.

When a company is owned by a government to the tune of 70 percent, it makes me wonder who's motivations are driving the company's actions- private investors et. al. interested in making money? Or the government that has little need for more money? Since they're effectively one and the same in this case, who knows?

And another thing: do you think China would allow us to buy out any of their major cash cow companies where their national security was a factor? I think not. I'm really hoping this Unocal bid does not get accepted.



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