Chinese Unocal?
Posted by TFG on June 23rd, 2005
Eric Seigmund talks about the CNOOC bid for Unocal.
Those of us who have been directly affected by corporate takeovers immediately recognize the phrase “seek to retain substantially all…employees,” which is generally code for “most of them are history.” However, Cnooc would presumably be more likely to retain employees than Chevron, given the lack of overlap with an existing employee base, especially in non-field personnel. Chevron has remained non-committal about its layoff plans, although it has already said that it would consolidate Unocal’s headquarters into its own offices.
Me, I just plain don’t want massive American reserves in Chinese hands, enriching the Chinese. There’s only slightly less of a worry with them in an American corporation’s hands, but I’ll take that.
And, yes, I recognize my hypocrisy, being an unfettered laissez-faire capitalist for the most part. I’m willing to be convinced that this is OK for America.
June 23rd, 2005 at 10:11 am
Those darn Chinese took over Thinkpads too, damn them!
Look, lots of people had the same reaction to the Japanese (and to a less extent, the Germans) foreign investments in the US in the 80s and early 90s.
Does anybody remember those days, and the dire predictions?
Have any of those dire predictions come true?
Just asking.
June 23rd, 2005 at 10:44 am
Which we had already kicked Japan’s and Germany’s ass quite hard 30 years prior, and rebuilt their societies. Even had a Japanese constitution that looked like ours, as much as possible. Plus, a history of market-based economic and political philosophy. Japan, not so much, but some, right?
Not nearly so with China.
I’m trying hard not to be xenophobic, so keep convincing me. Something about state-owned industries from Red China firmly planted in capitalist America gives me the willies, though.
June 23rd, 2005 at 5:15 pm
I dunno…the thought of being able to someday nationalize someone else’s assets for a change has a certain je ne se quois to it!
June 24th, 2005 at 11:35 am
Thanks for your blog! It is a great outlet from a long day at work!
Keep spreading the good word!!!
– Kara
June 24th, 2005 at 1:30 pm
Aside from the free trade angle, are we on moral high ground to buy goods from China with dollars and then turn around and repudiate the worth of the dollars becuase the Chinese now want to spend them?
This is rank populist protectionism. I don’t like the PRC any more than the next free trader, but that’s not relaly the point now is it? Should we disallow foreign investment by citizens of France, who arguably are more detrimental to America than citizens of China?
June 24th, 2005 at 2:01 pm
As I continue to ponder this with my gigantic-but-lugubrious brain, the question turns to this: CNOOC isn’t a “citizens of China” outfit. It’s a Chicom outfit, government-owned and -operated, something on the lines of 70%.
I’m pretty much on the verge of saying this: if I were a shareholder in Unocal, there ain’t no way I turn my company over to Commies. No way, no how, no matter how good they are at selling textiles. Commies don’t have my best interests in the forefront of their brains. But no one ever accused the American stock market of being horribly rational…I expect most will look at the strike price and knock each other down trying to get their dough.
No govt. intervention required or desired, either. I wasn’t necessarily saying that to begin with, but just to make sure it’s clear.
June 24th, 2005 at 11:37 pm
I do not trust the Red Chinese at all-nuke them ’til they glow would be my driving policy, were I Emperor of the Current American Police State, but like so many of us, I buy their cheap crap at Wal-Mart and elsewhere due to the low prices. But there is something very wrong about a fundamentally anti-freedom regime that represents the antithesis of the American way, despite their current embrace of capitalism, running the Panama Canal or a major American oil company.
The R Man