CNOOC beats a retreat

CNOOC beats a retreat

Mainland China's state-owned China National Offshore Oil Corp. (CNOOC) threw in the towel this week in its bidding war with Chevron for Unocal, the ninth largest American oil company.

It's not because Chevron was the higher bidder. In fact, CNOOC's US$18.5 billion offer for Unocal was much higher. The reason for CNOOC's withdrawal was purely political, as Congressional China-bashers have invoked "national security" to block the commercial deal.

The irony in the high-profile acquisition drama is the Beijing looked more capitalistic than Washington, which refused to play by the rules of capitalism.

Where is America's market economy? Where is the principle of free trade? Nowhere. It is politics uber alles.

The debacle of CNOOC, however, may not thwart its plan to acquire oil resources in other parts of the world, and that may prove a greater "threat" to America's security. Remember Chinese president Hu Jintao's visits to Russia, Africa and Latin America? See how close Beijing is getting to Tehran? Among other things, Hu had oil in mind.

Suffering a staggering blow beneath the belt, Beijing may not turn the other cheek. The smile on Capitol Hill is no cause for joy. -- The China Post, Taipei