[luvtolean]

Interesting how the Chinese government is the owner of this company, but thinks that the US government shouldn't be involved. I think the strong remarks by the Chinese solidify my opinion I hope the government blocks this deal!

http://news.yahoo.com/s/nm/20050706/...y_china_usa_dc

[dB]

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 two countries

Pretty ironic coming from the Chinese.

[luvtolean]

I read in the Wall Street Journal yesterday a couple of interesting pieces on this. One was from the head of the CNOOC or whatever. (A USC grad). As you can imagine, a propaganda piece promoting his company.

The other was from a person arguing a point I take to heart, but disagree with the conclusions of. His point was that it is estimated the Chinese have a $20b monthly trade surplus. Estimates range from 2/3 to 4/5 of that surplus is used to buy up US debt, currently mostly in treasury notes. As the author states, it is only natural the Chinese decide to start buying companies like Maytag and Unocal.

Yes, there is going to be one hell of a hangover from the overly high standard of living here in the US and us younger generations, and our kids will be the ones bearing the burden.

His point was that Americans need to recognize that this is the real problem, not the $18.5b deal for a "second tier" energy company.

While I agree, the standard of living in the US should drop making the "hangover" less dramatic, I think this ignores the strategic implications. Let them buy Maytag and make our washers, but oil/energy is a different matter.

[ND4SPD]

http://www.nytimes.com/2005/07/20/in...rssnyt&emc=rss

[oldfogey]

I find this interesting.

US consumers buy lots of Chinese goods, made mostly by private or foreign-owned Chinese companies. The dollars acquired end up in the Chinese central bank, which either buys US Treasuries (i.e. lends them to the US government) or lends them to Chinese state-owned (directly or indirectly, so-called "red chip") companies who then use them to buy US companies. That's because the Chinese currency, the Renmimbi, is tied to the US dollar and not free floating.

The Japanese, when they were in this position, tended to buy Hawaian and Californian real estate and golf clubs. Some decent investment decisions, some poor.

I appreciate you might not want companies with foreign governments as their ultimate controllers to own US assets, your call via the political process.

But you should distinguish between privately-owned Chinese companies and state-controlled ones. The US depends for its wealth on the action of free markets, so you should accept that if you buy from foreigners more than you earn, those foreigners will end up owning US assets.

By the way, what's strategic about the ownership of an oil company? If US oil companies have to remain American, then should they be allowed to own oil reserves in other countries by the foreign governments? Quid pro quo.

[sheepofblue]

The huge difference is Japan wanted to better us not kill us. Read the communist handbook, they are not that suttle on the world domination theme. That is why I have no problem with the purchase if it was by Japan, Germany, England, Australia, etc. While they wish to surpass us economically (some cases politically) they do not wish to subjucate us.

Note: I do not include France in the etc.

[oldfogey]

So its OK to buy their goods but not to sell them your assets? Read your Marx if you're worried about communist conspiracy. The public sector in China is smaller as a proportion of GDP than it is in the US, much less the UK or Germany. Who is the socialist?

Democracy, that's different.

[sheepofblue]

Originally Posted by oldfogey

So its OK to buy their goods but not to sell them your assets? Read your Marx if you're worried about communist conspiracy. The public sector in China is smaller as a proportion of GDP than it is in the US, much less the UK or Germany. Who is the socialist?

Democracy, that's different.

I avoid Chinese made goods also if possible.

[MACI4LIFE]

Originally Posted by sheepofblue

The huge difference is Japan wanted to better us not kill us. Read the communist handbook, they are not that suttle on the world domination theme. That is why I have no problem with the purchase if it was by Japan, Germany, England, Australia, etc. While they wish to surpass us economically (some cases politically) they do not wish to subjucate us.

Note: I do not include France in the etc.

or canada

[sheepofblue]

Originally Posted by MACI4LIFE

or canada

Nope I think Canada is a good neighbor and have no problem with doing business with them. I only pointed out France since it is one of the western countries I want nothing to do with.

[oldfogey]

Originally Posted by sheepofblue

I avoid Chinese made goods also if possible.

Including those branded Apple?

[sheepofblue]

Originally Posted by oldfogey

Including those branded Apple?

if possible For instance if I see shoes and there is a choice of two pair that I like I would alter my decision if one was Chinese and the other from my earlier list. Not fanatical about it but yes it does factor in on decisions.