Wow, Alan Tonelson has discovered that American companies can be more profitable than Treasury bills, bravo!!
But even with the integration of global commodity markets, more control for China obviously means less control – and less access at affordable prices – for others, including the United States.
Darn it, now he looks like a boob again. Alan needs to explain why China buying 10,000,000 barrels of oil on the open market affects the price of oil any differently from China "buying" 10,000,000 barrels of oil from a Chinese owned Unocal.
Make a law....No foreign company controlled in any way by a foreign gov't can own an American company.(e g CITGO, DHL, T-Mobile)
Not if they overpay for them. I wonder how Tonelson would feel about this if he were a stockholder in a company the Chinese wanted to overpay for.
So far they seem to have avoided real estate. Maybe Japan's disastrous foray into U.S. real estate the 80's is tempering their enthusiasm.
Alan needs to explain why China buying 10,000,000 barrels of oil on the open market affects the price of oil any differently from China "buying" 10,000,000 barrels of oil from a Chinese owned Unocal.
Because the answer doesn't play well with his alarm-ism. Although I share his concerns about government controlled entities buying U.S. businesses, I am surprised that Tonelson neglects to mention that American companies have been actively buying Chinese companies.
Anheuser Busch recently purchased all the voting shares of China's fourth largest brewer, Harbin. The deal was valued at $700 million. AB has also purchased a 27% stake in the largest Chinese brewer, Tsingtao.
Amazon.Com purchased Joyo.com for $75 million. They had tried to buy a 70%-90% interest in e-commerce giant Dangdang.com, for an estimated $1 billion, but that offer was rejected. Buying Joyo for just $75 million was a real coup for this American company.
Cargill, DuPont and Kodak are others who have made recent purchases. Kodak, through its venture with Lucky Film, now controls about 50% of the China film market.