After Getting Rebuffed By The Americans

[redfox]

After Getting Rebuffed By The Americans, China Now Making Its Own Council That Can Reject Foreign Investments
Mamta Badkar | Feb. 14, 2011, 12:28 PM

China is setting up a panel that will review acquisitions of local companies by foreign investors for potential security threats, according to Bloomberg. The goal of the panel is to prevent any mergers or acquisitions of Chinese firms that it deems a risk to China's security.

Investors believe this will be a bureaucratic hindrance and will violate the country's free-trade agreements. This move follows China's own struggles with foreign acquisitions.

In 2005, China National Offshore Oil Corporation (CNOOC) lost an $18.4 billion bid for Unocal after the Senate raised concerns over national security.

More recently, a report by the US-China Economic and Security Review found that investments from China's burgeoning telecommunications sector could pose a national security risk to the U.S. by giving the country access to sensitive technology that could be used for espionage.

In 2009, China dropped its bid for a majority stake in Australia's Lynas Corp which owns the world's richest deposit of rare earth minerals, because of stringent rules set up by the Australian Foreign Investment Review Board, according to Reuters.

China had $105 billion in foreign direct investment last year.



Read more: After Getting Rebuffed By The Americans, China Now Making Its Own Council That Can Reject Foreign Investments

 

[graphican]

Yes why not.. every country must examine potential threat in terms of foreign investment. Every opportunity has a built-in disadvantage which must be looked at.

Now guess what.. India is going to do the same.

 

[redfox]

China investment in US companies are sometime rejected baseless of US national security. This American double standard behavior is unexpected only to the naive. After all, how do you think the US reached the level of dominance that they reached in the 20th century? But now, more than one can play at this game. Much thanks to the Bush/Obama Administrations!

 

[CardSharp]

China invesment in US companies are sometime rejected baseless of US national security. This American double standard behavior is unexpected only to the naive. After all, how do you think the US reached the level of dominance that they reached in the 20th century? But now, more than one can play at this game. Much thanks to the Bush/Obama Administrations!

Even Americans know that it isn't about national security but lobbying by various business protecting their own interests. I mean the money they donate to campaigns of senators and congressmen gotta count for something right?

 

[redfox]

Even Americans know that it isn't about national security but lobbying by various business protecting their own interests. I mean the money they donate to campaigns of senators and congressmen gotta count for something right?

Sure. But look who is crying a river for JOBS? This can only result in a quicker decline of the US economy.

 

[CardSharp]

Sure. But look who is crying a river for JOBS? This can only result in a quicker decline of the US economy.

What these poor workers don't realize is that their jobs aren't taken by China, they are taken by their own corporations and auctioned to the lowest bidder. China just happens to be the lowest bidder. If China wasn't around it's sold to someone else regardless.

 

[WeaponUnleashed]

Yep yep! In this particular case, the threat to national security means protecting their "special interest" groups. While hundreds of illegal immigrants cross our border through Mexico everyday and this could be seen as a threat to national security, these politicians don't care much because... well... they ain't getting money from them, so.

But yeah, two can play the game. And from the looks of things.... we can pretty much figure out who will win this game.

 

[asianamerican]

How the hell do I get rid of the ad blocking the post?

 

[GUNS-N- ROSES]

Yes why not.. every country must examine potential threat in terms of foreign investment. Every opportunity has a built-in disadvantage which must be looked at.

Now guess what.. India is going to do the same.

brother, india is way ahead in this then china. there is already a limit of 26% FDI in key sectors. in some sectors it has been raised to 49% but the govt has categorically denied raising limit to 51%.