We live and do business in a global economy; to think otherwise is hypocritical. After reading many newspapers one would think that China is in the process of hijacking the United States economy. Today, CNOOC, China's largest offshore oil company formally bid $18.5 billion for Unocal.
Where were the outcries against globalization on June 16, 2005 when Bank of America announced it was buying a 9% stake in China Construction Bank for $3 billion? China has recently welcomed foreign competition in the banking sector which has an estimated $1.3 trillion in deposits.
Unocal and Bank of America will make decisions that create value for their shareholders. Admittedly, there are still many reforms that need to take place in China. However, shareholders of companies that are doing or plan to do business in China can make the decision on whether they believe that the reward is greater than the risk.
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