China’s economic growth is pushing oil over $60 a barrel and leading Clyde Prestowitz to condemn the lack of US industrial policy (again).
I first went to Japan in 1991, just before the bubble burst and the
“decade of stagnation” began. That personal experience may warp my view
of China,but I think it more likely keeps my concerns in check.
There
are many things to cause concern about China–its ruthlessness at home,
its bellicose rhetoric towards Japan and Taiwan, its relative
popularity in the world, its willingness to build ties with other
despotic regimes–but buying US companies should not be one of them.
The Financial Times does a good job questioning the wisdom of the deal
for China, but if a deal goes through the beneficiaries will be
Unocal’s shareholders, most of whom are in the US.
The US is
investing in China for low labor costs. It makes sense for some Chinese
firms to invest in the US for brand recognition as Lenovo gets through
IBM computers and Haier gets through Maytag appliances.
