Toxic mood over China's investment in the US
- Source: Global Times
- [01:36 December 23 2009]
- Comments
It is not rare for Chinese companies to be put under the political lens in the US. It is still fresh in people's minds how CNOOC's bid for US petroleum giant Unocal was aborted in 2005 by Capitol Hill crying wolf, despite CNOOC's bid being $900 million higher than that of the nearest rival.
There is concern in some quarters that striking down Firstgold investment proposal, although it is small, may deal a blow to China-US relations. It probably will.
The message coming from Washington is that it remains toxic when it comes to Chinese companies, especially State-owned enterprises.
The latest decision of CFIUS would hold back many thriving Chinese companies from investing in the attractive but politically dangerous American market.
China-US business relations are deeply intertwined and involve thousands of millions of jobs and families. To advance these relations calls for promoting mutual trust. US politicians need to stop stonewalling Chinese companies because of either an outdated attitude or need for narrow political gains.
Smoother trade relations also require removal of the barriers to allowing more US hi-tech exports to China.
Rejecting this deal will hurt both Northwest and Firstgold, but the greater damage would be to China-US trade relations.
