The now-withdrawn $18.5 billion acquisition bid for Unocal Corp. (UCL ) by CNOOC Ltd. (CEO ), China’s third-largest oil company and one that is 70% owned by the Chinese government, encountered a buzz saw of opposition, exposing America’s deep anxiety about China’s rapid emergence as a global economic power. Even though the CNOOC bid failed, the concerns posed by the deal’s opponents still warrant dispassionate consideration. With the possible help of their government and its $700 billion in foreign-exchange reserves, Chinese companies are poised to become bidders for U.S. companies across a variety of sectors. Yet, despite the protectionist rhetoric from U.S. politicians over the CNOOC bid, there’s already a framework in place to adequately assess whether such purchases will serve America’s economic interest.
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