On the behalf of imagery, some words from Sebastian Mallaby:
“Some people fear the economic threat from China. Others fret about expensive oil. With the skill of an accomplished arsonist, China has now poured gas on the flames of these separate anxieties, turning two medium-size fires into a single inferno.”
Many different people are debating CNOOC’s recent bid for Unocal. In today’s NY Times Paul Krugman says he would block the Chinese bid if it were up to him. (Such a comment has surprised many). On the other side of the coin, in today’s Washington Post Mallaby says that:
“...if you are looking for a convincing reason to block China’s bid
for Unocal, you’re not going to find one.”
Despite where you stand on the actual bid, this debate brings attention to the growing role of China as an international investor, and what might be the impact of this on developing countries. At a recent IFC lunch on the implication of China’s energy strategies those in attendance raised their concerns on the ability of developing countries to properly assess a Chinese bid, and understand the corporate governance, ownership structures and labor and environmental standards of the bidding Chinese firms.