Posted on 07/04/2005 9:10:43 AM PDT by Righty_McRight
BEIJING (AFP) - China angrily responded to a vote by US lawmakers urging the Bush administration to block the 18.5 billion-dollar bid by China National Offshore Oil Corporation (CNOOC) to take over US oil group Unocal.
"We demand that the US 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," China's foreign ministry said in a statement.
"CNOOC's bid to take over the US 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."
On Thursday, the House of Representatives voted 398-15 for the non-binding resolution that calls on the US government to block the Unocal bid.
A takeover by a Chinese state-run firm "would threaten to impair the national security of the United States," the resolution said.
"The Chinese government's control of CNOOC made the bid possible, not the free market," said House Democratic leader Nancy Pelosi ahead of the vote.
"We cannot, in my opinion, afford to have a major US energy supplier controlled by the communist Chinese," said Representative William Jefferson of Louisiana.
CNOOC Saturday asked the US Treasury Department to review the acquisition plan in an effort to clear up doubts over the bid and get the regulatory process rolling before Unocal's board of directors votes on the acquisition in late August.
"It's a voluntary notice from CNOOC Ltd. We hope the review will enter formal proceedings as soon as possible as we are sure that the transaction is purely commercial," CNOOC spokesperson Yang Hua said in a press release.
"This filing gives CNOOC the opportunity to comply with all US rules and regulations in an open and transparent manner ... we are cooperating fully and look forward to a formal review conducted in an expeditious manner."
CNOOC, China's third largest oil and gas producer, announced its bid on June 23 trumping a bid by Chevron by some 1.5 billion dollars.
US investment banks JP Morgan Securities and Goldman Sachs are advisors on the deal and will provide 3.0 billion dollars to CNOOC's bid. China's state-owned banks will also put in some 6.0 billion dollars, reportedly at better than market rates.
Unocal's board of directors have voiced preference for the Chevron bid despite the CNOOC's better cash offer and a pledge not to lay off any of Unocal's workers.
The US Treasury's Committee on Foreign Investments (CFIUS), has only barred one transaction out of the 1,500-odd it has examined since 1988 and that was in blocking a Chinese company from taking over a US firm.
"Basically for me this is a routine commercial activity, but anytime something like this happens in a sensitive industry like oil, you are going to get a lot of political interference," Dong Tao, an analyst with Credit Suisse Boston in Hong Kong told AFP.
"If the US Congress is saying that this bid will undermine national security, then they better watch out because the Chinese parliament could also come out and say the same thing about US banks buying up Chinese banks."
A successful CNOOC bid would help Beijing recycle US dollars that are piling up in China due to its voracious export driven economy, he said.
"China needs to recycle money back into the US and is already buying a lot of US treasuries to balance its capital account," Dong said.
"If CNOOC can buy Unocal then this would work in the same way."
Don't worry, they will.
China tells US lawmakers to back off CNOOC's takeover bid of Unocal
One Problem China...
American People tell US lawmakers to stay on target...
Since when did China elect US reps and senators? (I must have missed something.)
CHINA...
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"we demand?"
if the Chicoms want to continue exporting their junk to America, they'd better learn some manners!
and while I'm on the subject, the Chicoms needs to get their dog(NK) back on the porch or we just might start boycotting their products...just ask France how their economy is doing since we started boycotting their exports.
Happy Birthday, America!
Semper Fi,
Kelly
Hey China,stick it in your@#%$^%!!!!!!!!!!!!!!!!!
We must stop the economic terrorism against the Free Market by the Communist China. We must stop the Economic Pearl Harbor by the Communist China.
Sorry, this is no the clinton administration. Heh. Funny thing is, what you guys posted above me is on the money. Who do these guys think they are telling the elected body of the United States what to do?
You honestly think U.S. lawmakers listen to the their U.S. constituents? I don't.
Why don't we develop a list of demands to send to the PRC?
If we don't back off, what are they going t do about it?
....and let Wal-Mart infest their country.
Kinda looks like Dean in YEHAWWWWWW mode.
LOLOLOLOL Holy crap I nearly choked on my brat!
You do not understand the Chinese art of war. Not everything is military and in the open. Clinton administration gave us a glimpse of how much Chinese money is involve in our poltical campaign financing. Add that to the recent indictment of Clinton's Hollywood campaign fund raiser who tells stories of hookers provided to key Democrat Party leaders, Every nation in the world has registered lobbyists but the Chinese for some reason did everything illegally when it came to campaign contributions and lobbying. Why did they do it this way? It is simple, the free money is tempting to both of our political parties (especially when the winning margin is very close) and some staffer will take the money (act will be recorded by the Chinese) and how do we know the hookers provided by fundraisers, some are not Chinese operatives (embarassing pictures)? Everytime a RINO wonder what personal behavior has to do with ones performance in office, or a Dem says it is all about sex, sooo what, I remind them, and they shut up because there is no come back to. If this country's leaders do not get their moral compass in shape, their behavior will be another vulnerability for the Chinese to exploit.
Since the Red Chicoms elected and finaced 2 US Presidents (Bush 41 and Klintoon) and financed and bought off most of the US Senators.
Even if the attempted acqusition of UNOCAL were by an American corporation it would be subject to SEC approval.
and if you don't realize the HUGE problem of a Chinese Communist company acquiring UNOCAL then I can't help you.
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