Ah, think of the beauty of it! It took billions of dollars and a Cold War to finally turn the Chinese (ex) Communists into free market capitalist wheelers and dealers. And the Dragon has now turned around and bitten Uncle Sam in his ass.
Be careful of the children you bear, if you do not teach them good morals or proper manners! "How sharper than a serpent's truth is the thankless child." Blow back once again! > From: "Vigilius Haufniensis" > <[EMAIL PROTECTED]> > Date: Sat, 25 Jun 2005 12:10:37 -0700 > Subject: [cia-drugs] In Washington, China has gotten > almost too big to criticize > > In Washington, China has gotten almost too big to > criticize > By Edmund L. Andrews > The New York Times > Friday, June 24, 2005 > > http://www.nytimes.com/2005/06/24/business/worldbusiness/24trade.html > > WASHINGTON, June 23 -- For the Bush administration > and even for many > members of Congress, China has become almost too big > to bash. > > A day after one of China's state-controlled oil > companies made an > unsolicited $18.5 billion bid for Unocal, a > California oil and gas > company with extensive fields in Asia, > administration officials and > many lawmakers were almost tongue-tied about the > implications. > > Treasury Secretary John W. Snow, asked whether he > would lead a > national security review of the deal, hesitantly > told members of the > Senate Finance Committee that the question was > "hypothetical" > because the transaction has yet to happen. > > Alan Greenspan, chairman of the Federal Reserve, > said virtually > nothing about the deal. But he used some of his > bluntest language > ever to warn lawmakers against imposing tariffs on > China as a way to > pressure it over its exchange rate policies. > > For months, many lawmakers in both parties have > become almost > frantic about China's soaring trade surplus and its > impact on > American manufacturers. Anxiety is so high that > Republican lawmakers > from industrial states like Ohio and Pennsylvania > are loath to vote > for anything that sounds like a free-trade > agreement. > > But anxiety is at least as great about a disruption > of American > business ties to China. > > "I think there is a reluctance to confront China," > said Rep. Phil > English, a Republican from Pennsylvania and the > leader of the > congressional steel caucus. "The problem is that > many companies are > depending on Chinese inputs and on imported goods to > sell at > retailers." > > China is also a leading creditor of the United > States; it acquired > more than $200 billion of Treasury securities over > the last year. > > Moreover, China is already home to a growing number > of American- > owned factories, many of them exporting to the > United States, and a > large number of factories that are suppliers to > American companies. > > For the last two years, the Bush administration has > struggled to > balance competing economic goals. It wants to > persuade China to let > its currency rise in value, which would make Chinese > imports more > expensive in dollar terms, even as it works to fend > off proposals > from Congress to impose high tariffs if China > refuses to change its > policies. > > On Thursday, Mr. Snow argued that it would be > dangerous to > impose "punitive" actions on China. Not only would > it be a mistake > to threaten China with tariffs if it refuses to let > its currency > float, he said, but it would also be a mistake to > subject China to > countervailing duties in cases where it illegally > subsidizes exports. > > "Acting on any of the punitive legislative proposals > before Congress > now would be counterproductive," Mr. Snow told > lawmakers. > > Mr. Greenspan, testifying at the same hearing, said > it was a major > mistake to think that American jobs would be > increased even if China > did change its currency policies. > > "I am aware of no credible evidence that supports > such a > conclusion," Mr. Greenspan said. Tariffs on Chinese > imports would > protect "few, if any American jobs," he continued, > and > would "materially lower our standard of living." > > But the political debate about China is lagging > behind events on the > ground. The $18 billion bid for Unocal by the China > National > Offshore Oil Corp. (CNOOC), China's third-largest > oil company, was > merely the latest and by far the biggest move by a > Chinese company > to buy a formidable American company. > > The move represents an evolution for China from > being a major > exporter, using its earnings to acquire Treasury > securities, to > becoming a significant foreign investor in hard > assets as well. > > Administration officials made it clear Thursday that > a deal with > Unocal would almost certainly be subjected to an > interagency review > over its implications for national security. > > But Mr. Snow was extremely hesitant when asked about > it by Sen. Ron > Wyden, Democrat of Oregon. > > "It's hypothetical at this point, because we don't > have a > transaction," Mr. Snow said, adding that a foreign > company taking > over a company in a potentially sensitive industry > would normally > ask for such a review itself. Indeed, CNOOC did just > that Thursday, > even before it was clear whether Unocal would accept > the offer over > its standing deal with Chevron. > > The diffidence of Mr. Snow startled Mr. Wyden, who > has supported the > administration on many trade issues. "I'm a free > trader, but being a > free trader isn't synonymous with being a chump," > Mr. Wyden remarked > after the hearing. "He should have said, 'You bet > we're going to > take a look at it.'" > > Gary C. Hufbauer, a trade expert at the Institute > for International > Economics, said the administration wanted to keep > the issues > involving China as separate as possible, from its > currency policy to > its surging textile exports to its enforcement of > American patent > and copyrights. > > "What the administration wants to do is avoid > putting all these > issues together into what some would want to call a > single 'coherent' China policy,'" he said. "A > 'coherent' policy > would probably be one that sees China as an emerging > adversary." > > Lawmakers are demanding a comprehensive approach to > China. > > "China's competitive challenge makes Americans > nervous from Wall > Street to Main Street," said Sen. Max Baucus, > Democrat of > Montana. "What is the administration's plan? They > have none." > > Sen. Jim Bunning, Republican of Kentucky, complained > that the > administration had made little progress in prodding > China over its > trade and currency policies. "They've kind of told > us to take a > hike," Mr. Bunning said. > > Mr. Snow responded, as he did several other times > during the > hearing, that "we're not satisfied, and we want them > to know that." > > Despite the frustration among lawmakers, most > avoided any criticism > of the attempt by CNOOC to buy a major American oil > company. > > Administration officials noted that China remains a > minuscule direct > investor in the United States, far smaller than the > tiny European > nation of Luxembourg. As a general matter, American > officials have > encouraged foreign companies to invest in the United > States and > refrained from interfering in all but a handful of > cases. > > But critics of China hinted they might use the bid > for Unocal as a > way to pressure China on other issues. > > "Does anybody honestly believe that the Chinese > would ever let an > American company take over a Chinese company?" asked > Sen. Charles B. > Schumer, Democrat of New York and sponsor of a bill > that would > impose a tariff of 27.5 percent on China's imports > if it fails to > change its currency policy. > > Other lawmakers stressed caution. "We must be > thoughtful in our > actions and get it right," said Sen. Charles E. > Grassley, Republican > of Iowa and chairman of the Finance Committee. "We > can't afford to > act rashly, and get it wrong." __________________________________________________ Do You Yahoo!? Tired of spam? Yahoo! Mail has the best spam protection around http://mail.yahoo.com Complete archives at http://www.sitbot.net/ Please let us stay on topic and be civil. OM Yahoo! Groups Links <*> To visit your group on the web, go to: http://groups.yahoo.com/group/cia-drugs/ <*> To unsubscribe from this group, send an email to: [EMAIL PROTECTED] <*> Your use of Yahoo! Groups is subject to: http://docs.yahoo.com/info/terms/
