china's global expansion - home appliances manufacturers in china

This column is written by Irwin M. Stelzer.
Federal Reserve Chairman Alan Greenspan, in collaboration with Treasury Secretary John Snow, urged them to remain calm when the Senate committee met last week.
Politicians and policy experts are once again angry at foreign acquisitions of a US company, in which case the Chinese National Offshore Oil Company is trying to acquire Uniko (CNOOC).
For those who remember the hysteria of the Rockefeller Center, the jewel of Japan's purchase of the crown of New York real estate in the late 1980 s, borrowing the words of Yankee Saint Joji Bella, "This is a deja vu again . ".
This could be a dangerous mistake.
China's current acquisition is different from the crazy acquisition of Japanese companies.
Japan's influence in Asia or the world is not a competitor; China is.
Japan is not a major competitor to scarce resources such as oil; China is.
Japanese companies are private;
China's acquirer is a state-owned enterprise. run entities.
Japan is a democratic country and, in general, an ally of the United States.
China is definitely not.
Japan did not steal intellectual property on a large scale, and China did not.
Japan did not purchase strategic assets: ownership of New York real estate has no effect on national security;
This is true of ownership of oil resources.
$20 billion from CNOOC
Cash bids for Uniko are just one of several ongoing bids by the Chinese regime, eager to expand China's international reachOwn company.
Last week, China's Haier bid $1.
Maytag is a struggling household appliance manufacturer with 3 billion employees, or 20,000.
In the following months, IBM sold its PC business to Lenovo, a Chinese computer maker, for $1. 75 billion.
In this article, it is not possible to predict whether CNOOC's bid will be successful.
It's about $2 billion higher than Chevron's offer, but the American company has the ability to improvegenerous offer.
Or the board of directors of Uniko may decide that several relevant regulators are likely to veto CNOOC's bid, which poses a threat to US security, so it is wise to accept Chevron's lower offer.
Popular news Shanahan has released a video of a military House investigation into a massive drug explosion: Ortiz shoots an update, but regardless of the outcome of CNOOC's decision to acquire a large US oil company, it raises temperatures that are already Red
Heated debate on trade policy
Authorities have begun to realize that the United StatesS.
It is often understood that companies do not operate in the free market.
The fight for Chevron is not a bidding battle between the two private companies, both responsible for maximizing shareholder value.
CNOOC is 70% states.
Benefiting from cheap government financing, action is expected to support the regime's geopolitical goals.
This is a mockery of the Chinese authorities warning the Bush administration not to politicize CNOOC's acquisition plan.
China has decided to use its national resources to transform its main enterprises into important multinational companies. -
This is part of a radical policy that projects China's strength globally.
If it's not political, there's nothing.
This policy is the most striking in the oil market.
China's acquisition of Uniko's large assets in Asia will increase its political influence in the region.
China also bought 40% of Sinopec's North light oil sand project at a final cost of $2 billion;
A 10% stake in an oil field and pipeline in Azerbaijan;
And invest in Venezuela's oil industry in exchange for President Chavez's pledge to transfer some of Venezuela's crude oil from the United States to fuel --
Hungry factory in China
All of this happened in the context of congressional support for action against China.
Even before the recent surge in clothing imports forced the president to implement the quota, the Senate had already approved a bill to implement the pound 27.
5% tariff on all manufacturingin-China products.
Its sponsors, including Chuck Schumer of New York, claim that such a tax would offset the Chinese's low exchange rate in order to maintain their currency.
Some government supporters are quietly passing on the message that Schumer's efforts will give China two years to bring the exchange rate to market --
The Chinese government's need to abandon a fixed exchange rate system linked to the dollar and regain control of its monetary policy may be just an excuse.
In the face of the hostility of senators, the well-known inarticulate snow could not defend the government's refusal to respond effectively to what senators see as an unfair trade environment, threatening national security, and China's systematic refusal to end the theft of American intellectual property, which is estimated to cost only $25 billion to $30 billion a year in our six industries ---
This does not include the damage caused by the impact. offs (
Dell computers copy sales as Nell)
Patent infringement and direct infringement
Leave out (
Is there anyone cheap "Nike? ).
Congress is frustrated by the government's refusal to support it for years
For a long time, "within the scope of the rule of law" to act to import to China (
Read WTO rules
As the chairman of the Senate Finance Committee, Republican Senator Charles Grasley of Iowa, said.
Critics of the government have won a war of words with snow, but they have ignored the serious issue of the position they urged the president to take.
On the one hand, low floods
The cost of imported goods in China has reduced retail prices.
The decline in the resulting serious inflation rate helps to maintain for a long time --
Long-term interest rates are low enough to keep the real estate boom going.
On the other hand, China's labor force
The cost advantage is so great that its goods will find the way to Wal-Mart
Even if the authorities allow the yuan to appreciate, so is Wal-Mart shelves.
But the more valuable yuan will make it cheaper for China to buy US dollar assets, which is China-
Critics ignored it.
At the same time, not everyone is unhappy with China's buying spree.
China's entry into the stock market will have a favorable impact on share prices.
Investment bankers see new sources of M & A costs.
S. companies eager to expand into China see CNOOC's acquisition as a basis for asking the Chinese government for reciprocity.
The buyers seen by companies interested in assets in China may follow Japan's 1980 M acquirers.
Just as the Rockefeller family and other American property owners sell to the Japanese at the peak of the commercial office rent boom, Uniko may sell to the Chinese at the peak of the oil boom, when the company is irreversible, maytag may dump its assets on them.
If opponents actually kill CNOOC's deal, they may unknowingly save China from the fate of those early Japanese rusts --
After dollar assets
The Japanese bought high and finally sold low.
Japanese investors restored Rockefeller Center to American ownership after defaulting and suffering heavy losses.
However, it is unwise to ignore the national interests and security issues caused by China's acquisition policy, hoping that they can reach a deal by the standards of private companies in the United States, which has proved uneconomical.
The Chinese did not score as we did.
Irwin M.
Stelzer is director of economic policy research at the Hudson Institute and columnist for The Sunday Times (London)
Weekly Standard contribution Editor, Daily Standard contributor. By Irwin M.