Wednesday, June 29, 2005

China tells U.S. not to meddle in oil deal

Date: Wednesday, June 29, 2005 8:41:23 AM EST

BEIJING, June 29 (UPI) -- China expressed opposition to interference in a government-controlled oil company's bid for the U.S.-based oil company Unocal, state media said Wednesday.

Foreign Ministry spokesman Liu Jianchao said that China National Offshore Oil Corporation's $18.5 billion offer for Unocal was "normal commercial activity between enterprises."

Liu said "economic cooperation between China and the U.S. serves the interests of both sides and commercial activities should not be interfered in or disturbed by political elements."

There are growing concerns in Washington over the deal as some U.S. officials are uncomfortable with CNOOC, 70 percent owned by the Chinese government, controlling a major player in the U.S. energy sector.

Sino-U.S. commercial ties are strained on a variety of fronts as China emerges as major economic power, including a massive trade imbalance, widespread copyright and intellectual property infringements plus accusations the country manipulates its currency.

Xinhua reported Wednesday that CNOOC Chief Executive Fu Chengyu is heading to the United States for negotiations and to dispel concerns over the deal.

First off this would be a bad bad bad idea if Unocal sells to China. You think gas prices are high now, wait till China takes 100% of the oil production they acquire from Unocal and directs it all to China.

Second........China can go take a long walk of a short pier!