Free Republic

BEIJING, June 24 - From the dusty plains of East Africa to the shores of the Caspian Sea, China is seeking to loosen the grip of the United States on world energy resources and secure the fuel it needs to keep its economy in overdrive. Its energy deal-making has cost tens of billions of dollars and has dominated China's foreign policymaking for the past two years. At times it has put China in direct competition with American policy goals, especially in Iran and Sudan, whose leaderships are among the least favored by the United States government. Now Washington has the...

HONG KONG Is the bid by the China National Offshore Oil Corp. for the American oil company Unocal another act in a classical tragedy that will lead inexorably to the United States and China destroying the commercial embrace they both cherish?From a political perspective, the bid could scarcely have come at a less opportune time. It is destined to rile many in a U.S. Congress already fretting over trade issues and the Chinese currency peg. It will be another boost to those calling for punitive tariffs against all Chinese goods. From an overall Chinese perspective, the bid could be deemed...

There's nothing shocking per se about the fact that Chinese buyers are now seeking control over some American companies. * * * America, which imports far more than it exports, has been living for years on borrowed funds, and lately China has been buying many of our I.O.U.'s.Until now, the Chinese have mainly invested in U.S. government bonds. But bonds yield neither a high rate of return nor control over how the money is spent.So it was predictable that, sooner or later, the Chinese would stop buying so many dollar bonds. Either they would stop buying American I.O.U.'s altogether, causing...

WASHINGTON, June 25 - President Bush's initial response to the proposed takeover of a major American oil company by a Chinese rival has been to duck. It is not hard to see why.The $18.5 billion offer by the China National Offshore Oil Corporation for Unocal, which had already made a deal to be acquired by the American oil giant, Chevron, is forcing the administration to confront its own internal rifts over whether China should be viewed as friend, foe or something in between.

The brewing political controversy over a Chinese oil company's $18.5 billion bid to acquire the ninth-largest U.S. oil company could have serious local repercussions if it soured U.S. business relations with China.

Secretive panel could block China's Unocal bid By Jim Wolf 38 minutes ago WASHINGTON (Reuters) - If Unocal Corp. accepts an $18.5 billion takeover by China's CNOOC Ltd. the deal's fate may hinge on how a secretive U.S. review panel defines "national security," experts said on Friday. "The primary question for this transaction is whether they consider energy security to be a national-security issue," said Michael Wessel, a Democrat and a member of the U.S.-China Economic and Security Review Commission. Wessel said the Bush administration, so far, had restricted the definition of national security. State-owned CNOOC's unsolicited bid trumped a...

NEW YORK - Billionaire investor Warren Buffett said on Thursday in an interview on CNBC he maintains a long-term bearish view on the dollar due to the size of the U.S. trade deficit, despite the currency's recent strength. . . . The latest available data show that the U.S. current account deficit widened to $195 billion in the first quarter of this year, or 6.4 percent of gross domestic product — a record by both measures. This means the U.S. economy must attract around $2 billion of foreign capital every day just to balance its books, alleviate the downward pressure...

That's why state-owned energy outfit CNOOC is making a very rich bid for the U.S. concern. But S&P sees global demand for crude easingThe Middle Kingdom's thirst for energy reached a new stage on June 23 amid news that China's state-owned oil outfit, CNOOC (CEO ), has made an unsolicited $18.5 billion bid for Unocal (UCL ), the seventh-largest U.S. oil company. Unocal is currently in the last stages of an agreed $17 billion takeover by Chevron (CVX ). CNOOC's bid reflects China's increasing dependence on imported oil and the country's desire to secure long-term oil supplies. Any dissolution of...

China is moving into the merger-and-acquisition major leagues, as its star corporations shop for American household names like Unocal, Maytag and IBM, looking for bigger profits through global ambitions. China's growing appetite for Western corporate icons is reflected computer maker Lenovo Group Ltd's recent takeover of IBM's personal computer business and two big deals reportedly in the making for Unocal Corp. and Maytag Corp. "I'd expect at least a half a dozen similar deals by the end of the year," said Jack J.T. Huang, chairman of international law firm Jones Day's Greater China practice. But the deals are not without...

SHANGHAI, Thursday, June 23 - One of China's largest state-controlled oil companies made a $18.5 billion unsolicited bid Thursday for Unocal, signaling the first big takeover battle by a Chinese company for an American corporation. The bold bid, by the China National Offshore Oil Corporation ( CNOOC), may be a watershed in Chinese corporate behavior, and it demonstrates the increasing influence on Asia of Wall Street's bare-knuckled hostile takeover tactics. The offer is also the latest symbol of China's growing economic power and of the soaring ambitions of its corporate giants, particularly when it comes to the energy resources it...

China Cos. Show Appetite for Brand Names By ELAINE KURTENBACH, AP Business Writer Wed Jun 22, 8:50 AM ET China is moving into the merger-and-acquisition major leagues, as its star corporations shop for American household names like Unocal, Maytag and IBM, hoping that global ambitions will mean bigger profits. State media reports quoted unnamed officials at China National Offshore Oil Corp., or CNOOC, as saying the company's board would meet this week and decide whether to go ahead with a $20 billion bid for Unocal Corp., the ninth-biggest U.S. oil and gas company. The CNOOC purchase, if it went through,...

Assuming that you worked at a US (or other Western) based firm, what would you do if a Mainland Chinese "firm"* acquired your employer? What would you do: 1) During the "courtship" period 2) During the "consumation" period 3) During the "integration" period? Please share your ideas! * By way of operational definitions, as I see it, there is no such thing as a firm - in the traditional Western sense - in Mainland China. To one extent or another, every enterprise headquartered there incurs some form of involvement by either local or national government. CCP representatives are placed within...

Chinese Oil Giant May Bid for US Oil Major BEIJING, May 10 Asia Pulse - China National Offshore Oil Corporation Ltd (CNOOC), the nation's third largest oil producer, is mulling over a counter-offer to trump Chevron-Texaco's US$16 billion bid for US company Unocal Corp, a report said yesterday. CNOOC will use their May 23-24 board meeting as a forum to discuss the possibility of swiping Unocal, the US' ninth largest oil company, from Chevron-Texaco, the Financial Times reported, citing unidentified sources. CNOOC yesterday refused to comment on the report.

Unocal Corp. said Thursday that first-quarter earnings jumped 69 percent from last year on strong crude oil and natural gas prices, and a 5 percent increase in output.

Global Warming Tax   Duke Energy, a leading U.S. electricity and gas utility, announced this week its support for a global warming tax () — essentially a consumption tax on consumers of gasoline, oil, natural gas and coal. The tax is intended to reduce energy use and resulting emissions of greenhouse gases. Duke calls it a “carbon tax,” but we might call it the “Greenpeace tax” in honor of the various radical environmental groups, like Greenpeace (), pushing global warming hysteria and supporting such a tax. But we could also call it the “corporate appeasement tax” in honor of businesses...

Shares in US energy producer Unocal had their biggest gain in almost six years after the Financial Times said China National Offshore Oil Corp (CNOOC), China's third-biggest oil company, could bid more than $US13 billion ($17 billion) for the oil and gas group. Detailed talks were yet to be held, the UK newspaper reported on its website, citing unnamed people familiar with the matter. State-owned China National, which owns 71 per cent of Hong Kong-traded CNOOC, is also looking at other overseas purchases, according to the report. CNOOC declined to comment. "We've not received any information about the issue," said...

CNOOC Ltd., China's third-biggest oil and gas group, is considering a bid of more than $13 billion for its U.S. rival Unocal Corp. in a deal that would mark the largest and most significant overseas acquisition by a Chinese company, the Financial Times reported Friday. Quoting people close to the situation, the British paper said the state-controlled group is interested in Unocal's Asian assets and has asked bankers to study a takeover of the whole company followed by a subsequent sale of the U.S. assets. Unocal's main attraction for CNOOC is its extensive operations in several Asian countries, including Indonesia,...

Anyone can make a mistake. But when a documentary maker uses false information and intentionally deceptive images to create a fictional picture of a critical event, it's no mistake. That's what Michael Moore did in 'Fahrenheit 9/11' regarding why the US invaded Afghanistan. This is serious business because: 1) Moore's image as Media Rebel has been masterfully promoted around the world so that now he is a hero for critics of US policy; 2) His false picture of why the US invaded Afghanistan trivializes the disastrous meaning of the invasion. Thus he lulls his viewers with inaccurate and petty criticism....

In his new movie, Fahrenheit 9/11, Michael Moore reviews the Bush administration’s publicly stated rationale for the war against terrorism in Afghanistan – it was part of the U.S. response to the attacks of September 11, 2001 – and then suggests that the real reason for the war was, at least in part, to enable Unocal to proceed with a natural gas pipeline project in Afghanistan and for other U.S. energy and oil-service companies to participate in various projects in that country. Unocal has absolutely no intention of participating in an Afghanistan pipeline project nor are we in discussions with...

US oil giant Unocal must stand trial in California for alleged complicity in human rights abuses by Burma's military junta, including forced labour, rape and torture, a judge has ruled. "Prior to its involvement in the pipeline project, Unocal had specific knowledge that the use of forced labour was likely, and nevertheless chose to proceed," Los Angeles Superior Court judge Victoria Chaney said. In the decision, Judge Chaney rejected arguments by the California-based energy firm, which built a gas pipeline in Burma, that the case should be tried at least in part under Burma or Bermuda law. Unocal had made...