The Chinese National Offshore Oil Corporation’s recent attempted acquisition of Unocal raised American fears that
China could challenge American energy security. Inside the beltway, conventional wisdom said spiking such Chinese deals would make the United States safer. Torpedoed by concerted lobbying by energy firms and administration China hawks, the deal was replaced when, only days later, the Chinese acquired PetroKazakhstan of Calgary for over US$4 billion in cash, a fateful transaction which barely merited ink in the US media.
Rather than making America safer, the Unocal affair only increased China’s incentive to seek and bolster reliable energy supplies through bilateral trade on a global scale at America’s expense. Other energy deals are being reported weekly.