Tuesday, July 05, 2005

China? Who the fsck is China ...

Google News has an article from Businessweek Online reporting the Chinese goverment basically telling the US Government to back off on the UNOCAL deal.

The Chinese Foreign Ministry indicates in a statement released Tuesday, "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 Iranian and North Korean goverments like to do this too - tell us how to conduct our own affairs. This posturing is kinda silly if you ask me. I stopped doing it in the 5th grade.

Now, don't get me wrong, I'm an ardent capitalist. If CNOOC was *not* a state owned entity then I'd be all for it - yay Capitalism! But CNOOC is owned by China. Chevron isn't owned by the U.S. Not even in part. That makes the CNOOC offer an unfair bid in my eyes. If we were to put the GNP of the U.S. behind Chevron's bid then I would reconsider. This isn't just protectionist rhetoric either - those that know me know I am no protectionist. Heck, I would even consider a bid fair if the state which owned the corporation was a democracy - any democracy. But this isn't the case. The state in question is a socialist junta. In that environment you get locked up in very nasty places if you dissent with the party. You think the CEO of CNOOC is immune?

This really isn't a trade issue - it's a security issue. Do we really want a national resource owned by a potential enemy state? And China is far from friendly. Those that think otherwise may be overmedicating. All the hubbub comming out of that country is for one purpose - to keep the masses occupied. Keep them distracted from the fact that though their country has one of the highest GPDs of the world - 3rd after the U.S. and EU (per 2005 CIA world factbook) it has 10% of it's population living below the poverty line (U.S. = 5.5%) and has 9.8% unemployment (U.S. = 5.5%, EU = 9.5%). If I were Chinese I'd be pissed as well.

I just hope the Chinese people remember they have t'ien ming, a Mandate of Heaven, and overthrow the current despots and put new ones in charge.

2 Comments:

Anonymous Wifey said...

By saying that you would be ok with the whole deal as long as the government behind it were a democracy you are making business decisions based on politics. Isn't that distinctly protectionist? I agree with the state-owned issue, but I would go one further and say ANY state-owned business.

11:46 AM  
Blogger Dan Irving said...

Initially I thought the same. I guess what I was trying to illustrate was the major differences between a communist state run business versus a democratic state run business. If China were an actual Republic - it wouldn't be so big of a deal. But you are right - any state run business competing against private business has an unfair advantage.

4:01 AM  

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