Home>News Center>China

CNOOC's bid for Unocal tests US' China ties
(Los Angeles Times)
Updated: 2005-07-12 06:44

"This might reveal the true face of the U.S." toward China, Liu said.

Even before CNOOC lobbed its bid, strains in U.S.-China trade had been building for months. China's soaring textile exports prompted the Bush administration to impose new quotas. Several bills in Congress threaten tariffs on Chinese goods if Beijing doesn't revalue its currency, which critics say is undervalued, giving Chinese exporters an unfair advantage. American industries complain about lax protection of intellectual property rights in China.

Unocal offices in Sugar Land, Texas. Oil exploration firm Unocal said its shareholders would meet August 10 to decide on takeover offers from US rival Chevron and China National Offshore Oil Company (CNOOC). [AFP]
Some of those issues will be discussed today by top officials from the U.S. and China meeting in Beijing for annual trade talks.

For the Bush administration, the CNOOC matter is particularly difficult. On one hand, the bid is being seen against the backdrop of America's huge trade deficit with China, which is increasingly blamed on allegedly unfair Chinese trade practices. On the other hand, free trade advocates argue that it would be hypocritical for U.S. politicians to derail a deal when there isn't strong evidence that it threatens American security interests.

Some of America's largest corporations, including Exxon Mobil Corp. and Bank of America Corp., have urged politicians not to interfere and for no small reason. Bank of America last month agreed to pay $2.5 billion for a 9% stake in one of China's largest state-run banks and has an option to buy much more. Exxon just last week signed a $3.5-billion deal with another Chinese oil company and a Saudi concern to expand a refinery in south China.

And Goldman Sachs is considering an investment in China's largest bank, according to various reports.

"Almost every major company is here and making money or wanting to make money," said Andy Rothman, a China specialist at CLSA Asia-Pacific Markets in Shanghai. "They don't want to spoil this."
Page: 12345

Special police detachment established in Xi'an
Panda cubs doing well in Wolong
Suspect arrested in Taiwan
  Today's Top News     Top China News

Taiwan's KMT Party to elect new leader Saturday



'No trouble brewing,' beer industry insists



Critics see security threat in Unocal bid



DPRK: Nuke-free peninsula our goal



Workplace death toll set to soar in China



No foreign controlling stakes in steel firms


  No foreign controlling stakes in steel firms
  China-made telescopes race to space
  'No trouble brewing,' beer industry insists
  HK investors cautious on mainland homes
  Law in pipeline to ban money laundering
  Overseas students test their Chinese abilities
  Go to Another Section  
  Story Tools  
  Related Stories  
China berates U.S. over Unocal vote
China tells Congress to back off businesses
CNOOC's Unocal bid may benefit US economy
CNOOC volunteers for acquisition review
CNOOC's Unocal bid may ease yuan pressure
CNOOC in all-cash bid for Unocal
CNOOC ready for all-cash bid for Unocal
  News Talk  
  It is time to prepare for Beijing - 2008