Arab Today, arab today china\s accelerating overseas buys raise fears
Last Updated : GMT 07:22:56
Arab Today, arab today
Arab Today, arab today

China\'s accelerating overseas buys raise fears

Arab Today, arab today

Arab Today, arab today China\'s accelerating overseas buys raise fears

Shanghai - AFP

China\'s biggest overseas takeover, the $15 billion purchase of Canada\'s Nexen, is a huge step in Beijing\'s push for foreign acquisitions -- but its drive to secure resources and markets is causing unease. Ottawa last week approved Chinese state-owned energy giant CNOOC\'s purchase of the oil and gas company, despite political opposition in Canada. The victory is particularly sweet for CNOOC after it was forced to withdraw its bid for another North American firm, US oil and gas producer Unocal, seven years ago following an outcry in Washington. For the Chinese government, the deal is an affirmation of its decade-old drive to encourage companies to go abroad to build international players and secure supplies of energy and raw materials to keep the economy humming. \"It\'s a milestone to show Chinese companies are getting more sophisticated when it comes to overseas acquisitions,\" said Edward Tse, chairman for Greater China for management consulting firm Booz & Company. \"This case will help the Chinese go to other countries, in particular developed countries.\" Chinese firms have become more active in mergers and acquisitions since the global financial crisis that began in 2008, as economic distress has thrown up bargains around the world. Between 2005 and 2011, the number of China\'s overseas acquisitions tripled to 177 and jumped five-fold by value to $63 billion, according to law firm Squire Sanders and intelligence service Mergermarket. But Chinese state media used the Nexen success to blast unspecified \"Western powers\" for alleged unfairness and protectionism. \"Chinese investors have been discredited by some Western governments and media as a group of cash-rich predators and spies,\" the official Xinhua news agency said in a commentary. \"Western powers that harbour China-investment phobias should first drop their prejudice towards Chinese companies and let their entrepreneurs, not politicians, decide the business deals.\" A US congressional committee said in October that Chinese telecom manufacturers Huawei and ZTE should be excluded from government contracts because their equipment could be used to spy. CNOOC offered a premium for Calgary-based Nexen, pledged to keep management in place and vowed transparency -- helped by a possible listing on the Toronto stock exchange -- to smooth the way for the acquisition. Fei Kwok, a partner for law firm Norton Rose in Shanghai, said the deal could offer psychological support to other Chinese companies planning to invest abroad in the footsteps of the state giant. \"It does help psychologically for some of the smaller-sized Chinese companies, primarily in relation to private Chinese companies, who are waiting for the result of this CNOOC-Nexen deal,\" she said. But academics said more was at work than commerce, as China seeks growing stature and competes with other countries for resources. \"It\'s tied to the Communist Party\'s national objectives, which increasingly include projecting economic power abroad,\" said Joshua Eisenman, senior fellow for China studies at the American Foreign Policy Council. \"Chinese state-run companies have been expanding throughout the developing world and there\'s been push back in many places,\" said Eisenman, co-author of \"China and Africa: A Century of Engagement\". In Myanmar, opposition leader Aung San Suu Kyi will lead a probe into a crackdown on a protest against a Chinese-backed copper mine which will also assess the future of the contested project. And in copper-rich Zambia, Chinese companies active in the mining sector have seen riots over wage disputes but deny accusations of labour rights violations.

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today china\s accelerating overseas buys raise fears Arab Today, arab today china\s accelerating overseas buys raise fears

 



Arab Today, arab today
Arab Today, arab today Tourism shows signs of recovery

GMT 09:59 2017 Monday ,20 February

Tourism shows signs of recovery
Arab Today, arab today Sarah Belamesh designs antiques of "ceramic"

GMT 19:45 2017 Monday ,20 February

Sarah Belamesh designs antiques of "ceramic"
Arab Today, arab today Blind sheikh buried in Egypt

GMT 06:32 2017 Thursday ,23 February

Blind sheikh buried in Egypt
Arab Today, arab today Media host Mona Iraqi stresses her show's success

GMT 15:32 2017 Wednesday ,22 February

Media host Mona Iraqi stresses her show's success

GMT 16:50 2017 Wednesday ,22 February

Yahoo salvages Verizon deal

GMT 15:47 2017 Wednesday ,22 February

Airbus faces challenges as it enters new era

GMT 11:47 2017 Wednesday ,22 February

Toshiba skyrockets over 22% on chip unit sale hopes

GMT 11:31 2017 Wednesday ,22 February

Bayer says Monsanto deal on track, eyes record 2017

GMT 10:49 2017 Wednesday ,22 February

Airbus says profits hit by military plane woes

GMT 06:43 2017 Wednesday ,22 February

LuLu festival offers a taste of Egypt
View News in Arabic - Business: أخبار الشركات
Arab Today, arab today
Arab Today, arab today
Arab Today, arab today To hold social dialogue over secondary school

GMT 07:43 2017 Wednesday ,22 February

To hold social dialogue over secondary school
Arab Today, arab today UK appoints 1st Scotland Yard chief in 188 years

GMT 05:14 2017 Thursday ,23 February

UK appoints 1st Scotland Yard chief in 188 years
Arab Today, arab today Milan laughs while Rome cries

GMT 10:28 2017 Wednesday ,22 February

Milan laughs while Rome cries
Arab Today, arab today Pluto's unruly moons

GMT 06:31 2015 Thursday ,04 June

Pluto's unruly moons
Arab Today, arab today Nissan enhances sales in most markets

GMT 14:08 2017 Monday ,20 February

Nissan enhances sales in most markets
Arab Today, arab today Competes Sweden and Germans by S90

GMT 22:36 2017 Thursday ,16 February

Competes Sweden and Germans by S90
Arab Today, arab today Salma Rashid happy for 'A Whisper of Love'

GMT 05:19 2017 Tuesday ,21 February

Salma Rashid happy for 'A Whisper of Love'
Arab Today, arab today Small ponds have outsized impact

GMT 15:53 2017 Tuesday ,21 February

Small ponds have outsized impact

GMT 06:41 2017 Monday ,20 February

Janat pleased for issuing 'Good Morning'

GMT 12:35 2017 Tuesday ,21 February

63-Year-Old Woman Delivers Baby

GMT 14:29 2017 Monday ,20 February

Prepares to present her new collection

GMT 14:06 2017 Friday ,17 February

London to tax old cars

GMT 23:29 2017 Thursday ,16 February

Home built on sand castles-style costs $8m

GMT 05:15 2017 Tuesday ,21 February

Omega 3 can reduce asthma cases

GMT 19:16 2017 Friday ,17 February

Aziz House ready to host the tourists

GMT 13:12 2015 Saturday ,09 May

Sheikh Sultan opens Sharjah Centre

GMT 12:39 2017 Monday ,20 February

newest smartphone another winner for Huawei

GMT 19:10 2017 Friday ,17 February

Hats, scarves add beauty to women
Arab Today, arab today
Arab Today, arab today
 
 Arab Today Facebook,arab today facebook  Arab Today Twitter,arab today twitter Arab Today Rss,arab today rss  Arab Today Youtube,arab today youtube  Arab Today Youtube,arab today youtube
arabstoday arabstoday arabstoday arabstoday
arabstoday arabstoday arabstoday
arabstoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabstoday, Arabstoday, Arabstoday