Tuesday, July 05, 2005

 

China Tells Congress To Butt Out

A simultaneous affront to both capitalist and democratic principles.

Yesterday, the Chinese government demanded that Congress not interfere with CNOOC's takeover bid for Unocal:
The Chinese government on Monday sharply criticized the United States for threatening to erect barriers aimed at preventing the attempted takeover of the American oil company Unocal Corp. by one of China's three largest energy firms, CNOOC Ltd.

Four days after the House of Representatives overwhelmingly approved a resolution urging the Bush administration to block the proposed transaction as a threat to national security, China's Foreign Ministry excoriated Congress for injecting politics into what it characterized as a standard business matter.

'We demand that the U.S. Congress correct its mistaken ways of politicizing economic and trade issues and stop interfering in the normal commercial exchanges between enterprises of the two countries,' the Foreign Ministry said in a written statement. 'CNOOC's bid to take over the U.S. Unocal company is a normal commercial activity between enterprises and should not fall victim to political interference. The development of economic and trade cooperation between China and the United States conforms to the interests of both sides.'
Contrary to the Chinese Foreign Ministry, it isn't normal for foreign, government controlled enterprises (CNOOC is 70% government owned) to purchase important US companies. Moreover, it is unprecedented for a Communist government to attempt to do such a thing while attempting to apply political pressure to our government in the process.

In this particular case, the Chinese Foreign Ministry's statement alone should be reason enough for the US to immediately reject CNOOC's bid for Unocal. But US policy should be to formally oppose any attempt by the Chinese Communist government to purchase any American company. Or any foreign company, for that matter. It simply isn't in the interests of the US to allow the emerging fascist regime in Beijing to purchase strategic energy assets, militarily useful technology or greater economic clout than its huge, rapidly growing economy already gives it.

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