China's bid to buy Unocal

[Skwerrel]

I have been following this story for a while.
money.cnn.com/2005/06/25/news/international/unocal_congress/index.htm
www.foxnews.com/story/0,2933,160656,00.html


Basically, if CNOOC buys Unocal, China gains major access to the US's oil resources. I know a lot of people don't like Fox News but I think they raise some interesting issues on both sides of the argument.

[Urgeria]

I can't see how the Bush White House can allow this to happen while it is also preaching that the US should be energy independant. You can bet, without a doubt, 2 years from when CNOOC buys Unocal, Unocal will be shiping 100% of it's output to China.
But in the end this is good for me.
My father's company instals Solar Power, Heating, and Hot Water systems.

[TheSensitiveNewAge]

Skwerrel, NPR reported this potential buy-ouy also, you're good by my book.

I don't see how the American government could justify stopping China on this, but American will need to do something. Oil is going to run out soon anyway so we need alternatives now.

Oh, I abstained from the poll to not skwe things.

[Goldenloser2241]

Hmmm so I'm sorry to maybe sound quite paranoid but am I the only one seeing that China in a couple of years could become a bit...........lets say.......trigger happy? They have threatened Tiawan and recent actions of China buying into the caribbian and also trying to gain stragic locations around the world seems suspicious to me. If bombs fall and it all starts in Tiawan and we find out that OH maybe this little buy out of Uncoal was a warning then I doubt anyone would be worrying about alternative sources of energy.

[TheSensitiveNewAge]

China's strategy (according to NewsWeek) is to dominate through trade, you need them but they can ditch you. The problem for China is that the US has some firepower and quite a few nukes and interests in Tiawan. As far as I can figure, trade is the best way to deal with a super power with WMDs and is what China is doing. To counter this, stay in front of research in all areas.

[Estayland]

I dont like the idea of China buying up an American company, and I hope it doesnt happen. We need all the oil we can get!

[Elgarve]

I put yes because it is a security risk but I can't see how to stop it. Hopefully this will encourage the use of alternative energy sources.
TSNA is right about the trade thing, it's what the EU is trying to do, balance out the military might of the US with economic power.

[Bahamamamma]

scary!

[Skwerrel]

elgarviandelegate said:

I put yes because it is a security risk but I can't see how to stop it.

Well, the US government has the authority to say "No, you cannot buy Unocal," no matter how much the Chinese offer for it. In the end, because it is a foriegn government tryig to buy a company with substantial infustructure in the US, it automatically triggers a review and approval process by some governemt agency.

The tricky thing is: if the US governement says no and stops the sale, it will most likey damage our relationship with China at a time when the relationship is fairly tense (US is about to make into law some import caps on some Chinese products). But personally I think it is a risk that we have to take.

The Chinese offer represents about 10% of the annual US trade deficit with China. That means China has a lot of money from us and they are using it to buy out US interests.