I talked about the difficulty for a Chinese company to buy a U.S. company several days ago. Then Dave, one of my Australian readers, commented that it is also difficult for a foreign company to buy a full Chinese company. That's true, I have to admit(sorry, Dave, I can't re-comment because my blog comment is blocked here in China).
It is not totally wrong for U.S. politicans to be worried. In a "mysterious" economy such as China's, people outside are easily suspecting how markets will operate, or be operated. Some activities may be forbidden, such as foreign banks could not hold more than 20 percent of the local banks; Some activities are encouraged, like government will support huge low-interest loan when baby CNOOC planned to buy U.S. oil supplier Unocal.
Newsweek just did a story analyzing the bidding contest for Unocal. "It's an unfair playing field," Chevron vice chairman Peter Robertson said on yesterday's story on Newsweek . "If any foreign government can do that, their companies can not only buy Unocal, but any company they want." Chevron is the competitor of Baby CNOOC in the bidding contest.
It is always hard to say something is fair or unfair, Amy has learned.
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