From the Christian Science Monitor:
The $18 to $20 billion offer by China National Offshore Oil Corp. (CNOOC) to secure Unocal, which has oil and gas reserves in Asia, underscores the magnitude of the energy needs of China as it continues its manufacturing juggernaut on the world stage. The bid is part of China’s so-called energy diplomacy, which in recent years has witnessed a host of Chinese leaders, including President Hu Jintao and Premier Wen Jiabao, making deals worth tens of billions in Australia, Sudan, Iran, Khazakhstan, Venezuela, and Canada.
Yet as the scale of China’s push into world markets gets larger, including its willingness to accept far greater risk and exposure than before, there may be a shakeout in the US over how the principle of free markets meshes with regulation and political sentiments.
See also “China bid sparks tug-of-war for oil” from the San Francisco Chronicle.
