US-China trade relations jeopardised

Dreamer128 · 08-03-2005, 09:12 AM

The future of trade relations between the United States and China has become uncertain following the failure of a Chinese takeover bid for the US oil company Unocal. The Chinese former state oil company CNOOC abandoned its attempt to buy the American company on Tuesday, following the passing of new legislation by the US Congress which made the deal virtually impossible.

CNOOC and the Chinese authorities say the handling of the takeover bid was unfair. Analysts are concerned that this could make things difficult for US companies wishing to invest in China.

The way is now free for Chevron, the second largest oil company in the US, to purchase Unocal. Chevron had already offered 17 billion dollars, when it was trumped by the Chinese bid of 18.5 billion.

(rnw.nl)

Azred · 08-04-2005, 12:49 AM

This was actually a good thing--we don't want a major oil company winding up in the hands of a country who really does not have our best interest at heart.

Timber Loftis · 08-04-2005, 10:40 AM

Fair? Let's talk fair. A U.S. company wouldn't be allowed to own any Chinese company. Allowing a communist country to compete as an actor in our capitalist country breaks the market model, because they won't reciprocate and allow us to compete in theirs.

As for trade with China -- let them pull out of trade. We'd LOVE it. It would bring jobs back, for sure.

Morgeruat · 08-04-2005, 02:07 PM

Quote:

Originally posted by Timber Loftis:
As for trade with China -- let them pull out of trade. We'd LOVE it. It would bring jobs back, for sure.

How much of our National Debt does China own?

Timber Loftis · 08-04-2005, 02:11 PM

A ton. Of course, if we tell them we won't pay, what will they do? Just cancel the debt.

Chewbacca · 08-04-2005, 05:04 PM

Quote:

Originally posted by Timber Loftis:
A ton. Of course, if we tell them we won't pay, what will they do? Just cancel the debt.

I don't think it's that simple. Isn't much of our foriegn debt exchanged in the form of bonds available, in part, on the open market?

Won't that huge of a sell-off of bonds would upset the market in a serious way. Wouldn't we have to buy our debt back to save the market? And wouldn't refusing to honor bonds destroy thier credibility as a safe investment?

I'm no economist, but I thought I'd throw these idea sout to see if they fit or not.

[ 08-04-2005, 05:06 PM: Message edited by: Chewbacca ]

Kakero · 08-04-2005, 09:28 PM

Let me guess, if it's other country ( example england, japan etc ). The bid to own the oil company will be successful?

Timber Loftis · 08-05-2005, 12:42 AM

Of course it's MUCH more complex, Chewie, I was just having some fun. Canceling the debt would be akin to nationalizing it -- what Harvard economist Lester Thurow would call a "communistic economic practice."

08-04-2005, 12:49 AM	#2
Azred Drow Priestess Join Date: March 13, 2001 Location: a hidden sanctorum high above the metroplex Age: 55 Posts: 4,037	This was actually a good thing--we don't want a major oil company winding up in the hands of a country who really does not have our best interest at heart. __________________ Everything may be explained by a conspiracy theory. All conspiracy theories are true. No matter how thinly you slice it, it's still bologna.

08-04-2005, 10:40 AM	#3
Timber Loftis 40th Level Warrior Join Date: July 11, 2002 Location: Chicago, IL Posts: 11,916	Fair? Let's talk fair. A U.S. company wouldn't be allowed to own any Chinese company. Allowing a communist country to compete as an actor in our capitalist country breaks the market model, because they won't reciprocate and allow us to compete in theirs. As for trade with China -- let them pull out of trade. We'd LOVE it. It would bring jobs back, for sure. __________________

08-04-2005, 02:11 PM	#5
Timber Loftis 40th Level Warrior Join Date: July 11, 2002 Location: Chicago, IL Posts: 11,916	A ton. Of course, if we tell them we won't pay, what will they do? Just cancel the debt. __________________

08-05-2005, 12:42 AM	#8
Timber Loftis 40th Level Warrior Join Date: July 11, 2002 Location: Chicago, IL Posts: 11,916	Of course it's MUCH more complex, Chewie, I was just having some fun. Canceling the debt would be akin to nationalizing it -- what Harvard economist Lester Thurow would call a "communistic economic practice." __________________

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08-03-2005, 09:12 AM	#1
Dreamer128 Dracolisk Join Date: March 21, 2001 Location: Europe Age: 40 Posts: 6,136	The future of trade relations between the United States and China has become uncertain following the failure of a Chinese takeover bid for the US oil company Unocal. The Chinese former state oil company CNOOC abandoned its attempt to buy the American company on Tuesday, following the passing of new legislation by the US Congress which made the deal virtually impossible. CNOOC and the Chinese authorities say the handling of the takeover bid was unfair. Analysts are concerned that this could make things difficult for US companies wishing to invest in China. The way is now free for Chevron, the second largest oil company in the US, to purchase Unocal. Chevron had already offered 17 billion dollars, when it was trumped by the Chinese bid of 18.5 billion. (rnw.nl)

08-04-2005, 09:28 PM	#7
Kakero 40th Level Warrior Join Date: March 24, 2002 Posts: 10,215	Let me guess, if it's other country ( example england, japan etc ). The bid to own the oil company will be successful?

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